/Business/ Last Updated: Sat, Jul 11th, 2020 @ 12:05pm EDT

Business Insider

Casey Sullivan

KKR is looking to make a big push into life insurance with a $4.4 billion acquisition. Here's why private-equity giants keep elbowing in on the $30 trillion insurance industry.

Private-equity firms are starting to look a bit more like insurance investor Berkshire Hathaway. KKR this week announced plans to acquire Global Atlantic Financial Group, paying $4.4 billion in a deal that, subject to regulatory approval, would place the insurance giant on KKR's own balance sheet.  It marks the next phase of PE's move into the $30 trillion global insurance industry, as PE shops expand their relationships with insurers, taking them from limited partners to managing their...

Business Insider

Meredith Mazzilli

JPMorgan trader put on leave — lenders unload hotel loans — SoFi applies for bank charter

 

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With a travel-industry slump looking like it could stretch on for months or even years, lenders are beginning to sell debt tied to distressed hotel properties. It's a big change in posture for these firms, which had been wary to sell loans at discounts earlier on in the...

Business Insider

Joe Williams

We got an exclusive inside look at Fidelity's innovation lab where the $8 trillion investment giant is prototyping VR systems for meeting financial advisors and explaining quantum computing

Virtual reality has struggled to breakthrough to mass adoption even among consumers, but companies are actively looking for ways to use it both internally and to better connect to customers.  Fidelity's Center for Applied Technology, for instance, researches out how emerging tech like VR can be used to improve business as far out as five years.  The financial giant's innovation hub is experimenting with VR to educate employees on quantum computing and create a virtual meeting space for...

Business Insider

Carmen Reinicke

These 4 economic signals suggest the COVID-19 recovery is losing steam as cases spike

High-frequency economic data shows that in the last few weeks, the initially swift V-shaped recovery may be slowing down.  Last week, the June jobs report showed that the US economy added a record 4.8 million jobs, the second month of gains in the recovery from the pandemic recession.  But the report showed only the first few weeks of June and thus didn't reflect the response to new surging coronavirus cases in the US, which have peaked and forced some states to pull back or pause...

Business Insider

Megan Hernbroth

A top Silicon Valley VC thinks a massive shift to remote work could kill the commute —and launch the beginning of a boom in productivity

Mayfield managing director Navin Chaddha told Business Insider that the months of sheltering in place in California's Bay Area have been some of the most productive of his professional career. He credits the change to ditching his lengthy morning commute and time spent shuttling between Mayfield's office and various meetings in San Francisco. He said he has started taking socially distant hikes and walks with founders and firm partners in Silicon Valley's South Bay as a safe way to build...

Business Insider

Graham Rapier

Elon Musk is now officially richer than Warren Buffett after Tesla's stock hits an all-time high (TSLA, BRKA)

Elon Musk is officially more wealthy than Warren Buffett. Tesla stock, of which Musk is the largest holder, skyrocketed to record highs this week. Buffett, meanwhile, donated almost $3 billion of Berkshire Hathaway stock, causing his riches to shrink.  Visit Business Insider's homepage for more stories.

Elon Musk's wealth officially surpassed that of Warren Buffett on Friday, according to Bloomberg's Billionaire's Index, fueled by Tesla's skyrocketing stock price and a hefty donation by...

Business Insider

Dakin Campbell

JPMorgan's top Treasuries trader Rob Allen has been placed on leave amid a compliance review of his electronic messages

JPMorgan has placed Rob Allen, its top US Treasuries trader, on leave pending a review of his electronic messages, according to people familiar with the matter.  Allen didn't return calls seeking comment and a message sent to the JPMorgan email address listed on his Bloomberg terminal profile bounced back.  His leave comes roughly four months after the bank removed a handful of interest-rates traders from the trading floor and turned off their Bloomberg terminals while it investigated...

Business Insider

Dakin Campbell

The CEO of an Apollo-backed energy company may face charges for pulling a gun on a Mexican American couple that took a wrong turn near his Colorado home

A senior executive at a Colorado company backed by Apollo Global Management may face charges over pulling a gun on a Mexican American couple that took a wrong turn onto his property.  Paul Favret, the CEO of Resource Energy, may be charged with two counts of menacing and two counts of false imprisonment, according to an arrest warrant issued for Favret that was seen by Business Insider.  "After being made aware of this last week, Resource Energy Partners placed Mr. Favret on...

Business Insider

Alex Morrell

Bank of America has poached a top junk-bond trader from Deutsche Bank, leveling up in one of 2020's red-hot trading markets

Bank of America has poached a top trader away from Deutsche Bank, a big credit-trading competitor. Jeff Chang has resigned from Deutsche Bank and is joining Bank of America, according to people familiar with the matter. Chang was the head of US high-yield trading at the German lender. Junk-bond trading has been hot amid the disruption caused by the coronavirus, and both Bank of America and Deutsche Bank have top high-yield-credit operations. Visit Business Insider's homepage for more...

Business Insider

Daniel Geiger

Women-focused coworking startup The Wing is almost $270,000 behind on rent and other charges at its Bryant Park location in New York, according to lawsuit

The Wing is being sued by its landlord at 25 West 39th Street for almost $270,000 in rent and other charges. The company hasn't made payments for the location, according to the suit, since March. The suit is the latest setback for the firm, after its CEO resigned last month. Visit Business Insider's homepage for more stories.

Women-focused coworking provider the Wing is being sued by a landlord who alleges it hasn't paid rent and other charges for a space it leases in Manhattan near Bryant...

Business Insider

Junta Nakai, Databricks

The best way for companies to incorporate ESG goals is by using data science and AI

Junta Nakai is the global industry leader for financial services at Databricks, a big data and AI company valued at $6.2 billion. In this op-ed, Nakai explains why companies looking to focus on environmental, social, and governance (ESG) goals need to use data and AI technology.  Visit Business Insider's homepage for more stories.

Companies and brands that want to cement themselves as environmental, social, and governance (ESG) leaders must leverage data and artificial...

Business Insider

Ben Winck

A nationwide mask-wearing mandate would accelerate the US's economic recovery, Dallas Fed president says

A nationwide mask-wearing mandate would slow the coronavirus' spread and boost the US's economic recovery, Robert Kaplan, the president of the Federal Reserve Bank of Dallas, said Friday. Additional monetary and fiscal stimulus is important, but adhering to public-health protocols is "the primary economic policy" for helping the US grow faster, Kaplan told Fox Business. COVID-19 cases have recently spiked in several states, raising fears of a halted economic bounce-back. Goldman Sachs...

Business Insider

Carmen Reinicke

Dow gains 250 points as traders weigh virus spike against treatment advances

US stocks rose on Friday as traders weighed another record in daily virus cases against advances in treatment. On Thursday, the US reported 63,200 new coronavirus cases, according to data from Johns Hopkins University. Meanwhile, Gilead Sciences said on Friday that an analysis of clinical-trial data for its remdesivir drug found a 62% reduction in mortality risk among severe COVID-19 patients. Oil rose as the International Energy Agency said the increase in coronavirus cases could hurt the...

Business Insider

Matthew Fox

Cruise lines surge after Carnival reports 2021 demand "within historical ranges" (CCL, RCL, NCLH)

Cruise lines soared on Friday after Carnival Corp. reported second quarter earnings that revealed a few positive trends developing within the industry, after its business was decimated by COVID-19. The company said cumulative advanced booking for 2021 is "within historical ranges" with prices that are down slightly low to mid-single digits on a comparable basis.  Carnival saw revenue in the quarter fall 84% year-over-year, but revenue still managed to best analyst and its own...

Business Insider

Alex Nicoll

Some short-term rental startups like Sonder and CorpHousing say they're bargain-hunting for new locations to bet on an eventual travel recovery

The short-term rental industry has seen two big trends during the pandemic: a collapse in demand leading to liquidity challenges for urban operators, and a surge in demand for rural properties.  Airbnb-backed Lyric has shrunk to a single hotel in New York after slashing staff. Stay Alfred, one of the earliest venture-backed short-term rental companies, has shut down entirely.  But Sonder, the largest venture-backed short-term rental operator, and CorpHousing Group, a privately-owned...

Business Insider

Carmen Reinicke

Tesla short-sellers have lost $18 billion this year on the stock's 230% spike (TSLA)

Tesla's stock has rallied this year, gaining as much as 230% on solid vehicle delivery numbers and a slew of Wall Street upgrades.  In the same timeframe, traders betting against Tesla have notched $18.08 billion net-of-financing mark-to-market losses, according to data from financial-analytics firm S3 Partners.  A solid part of those losses occured in June and July, according to S3. Tesla short-sellers lost $3.71 billion in mark-to-market losses in June and $4.08 billion in July.  Watch...

Business Insider

Shalini Nagarajan

Oil's worst turbulence since 'Black April' has passed, the IEA says, even as coronavirus cases surge and inventories grow

The worst of the oil market downturn from the coronavirus pandemic has passed, according to the International Energy Agency. That outlook comes despite a resurgence in coronavirus cases and a massive crude oil inventory build-up. The IEA said reimpositions of lockdowns in North and Latin America have been "casting a shadow" over its outlook for the second half of 2020, when it expects global oil demand to be down by only 5.1 million barrels a day. The oil market has made some headway since...

Business Insider

Matthew Fox

Netflix will surge 32% to record highs as app download data points to strong subscriber growth, Goldman says (NFLX)

Strong app download trends suggest Netflix is on the verge of reporting a blockbuster second quarter earnings report, according to Goldman Sachs. In a note published on Friday, Goldman raised its Netflix price target to $670, representing upside potential of 32% from Thursday's close. The firm said COVID-19 continues to accelerate the trend towards video streaming services, and Netflix is a prime beneficiary of that trend. Goldman believes Netflix could add at least 12.5 million total net...

Business Insider

Rachel Green

Monzo adds open banking-enabled money transfer feature

This story was delivered to Insider Intelligence Banking Briefing subscribers earlier this morning. Insider Intelligence publishes hundreds of research reports, charts, and forecasts on the Banking industry with the Banking Briefing. You can learn more about subscribing here.

The UK-based neobank is piloting an open banking-enabled feature that allows users to transfer money from their accounts at other banks within the Monzo app, per AltFi.

Test participants can transfer funds between...

Business Insider

Ben Winck

The US officially ended its V-shaped recovery and has entered a slower 'healing phase,' Bank of America says

The US economy officially ended its V-shaped transition and entered its third and final phase of recovery, Bank of America economists said Friday. High-frequency economic data suggests the rapid bounce ended in June and gave way to a "healing phase" as reopenings boosted spending and hiring activity, the team led by Michelle Meyer wrote in a note. The third recovery phase will be "one of slower growth, likely in fits and starts," and will be "defined by the path of the virus," they...

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