Category: Company News

  • Facebook will now let anyone remove messages after people discovered Zuckerberg could

    Facebook Messenger now gives anyone the option to delete a regretful or mistaken message from their chat history.

    Facebook initially promised the feature after TechCrunch reported in April of last year that multiple people said Facebook messages they received from CEO Mark Zuckerberg later appeared to be deleted while their own messages remained. At the time, Facebook told TechCrunch Zuckerberg’s messages were deleted for security purposes.

    “After Sony Pictures’ emails were hacked in 2014 we made a number of changes to protect our executives’ communications,” Facebook told TechCrunch in a statement at the time. “These included limiting the retention period for Mark’s messages in Messenger. We did so in full compliance with our legal obligations to preserve messages.”

    Following the report, Facebook said it would publicly launch the feature to let users remove their messages from their chat history. Facebook reportedly said it would not have Zuckerberg delete messages he sent until the feature was publicly launched. Facebook did not immediately respond to CNBC’s request for comment.

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    Watch: Facebook turns 15 years old. Here’s how the company can continue to grow

  • Goldman Sachs: If you missed the January rally, you likely missed the 2019 gain

    Markets started out the year with a significant bounce. Investors who missed out on it might not get a second chance, according to Goldman Sachs.

    The firm is predicting lower returns after the best January in 30 years, and warned that those who missed it risk “missing the bulk of the returns for the year,” according to Goldman Sachs analyst Sharon Bell.

    “The rally we expected has happened swiftly, and given this we see relatively modest returns on equities from here,” Bell said in a note to clients Tuesday.

    Markets have rallied after their worst December since the Great Depression. The S&P 500 is up roughly 9 percent for the year so far, and the Dow Jones Industrial Average has rallied 8.7 percent. Bell isn’t predict a return to December lows, but is forecasting overall slower growth and lower profits for the remainder of the year.

    Earnings in recent weeks have been better than investors feared but estimates are still falling for future quarters. Wall Street expectations for earnings growth for the first quarter of 2019 have now turned negative, which would mark the first decline in more than two years, according to FactSet.

    Bell said there is still a slight disconnect between market returns and overall economic performance, but the “over-shot on the downside” that was evident at the beginning of the year isn’t nearly as big, Bell said.

    “While we saw a bounce in equity markets in 2019, we also argued that this would be followed by the resumption of a ‘flat & skinny’ trading range, with relatively low equity returns,” Bell said.

    The “flat and skinny range” will likely be more felt more in Europe, where Bell predicts “very little” earnings growth in the region for 2019 based on high margins, a weak economic backdrop and various structural problems facing large European sectors.

    Goldman is forecasting 4 percent earnings growth in 2018, and 2 percent in 2020. Bell said it’s difficult to argue for either cyclical or defensive stocks and instead takes an “idiosyncratic approach” to sectors and basket picks.

  • Trump administration finds 'no material impact' from foreign interference in 2018 midterm elections

    Trump administration officials found no evidence that any foreign actors had a “material impact on the integrity or security” of election infrastructure during the 2018 midterms. But the findings applied only to the “identified activities” of the governments or agencies investigated.

    That conclusion was spelled out in a classified report sent by acting Attorney General Matthew Whitaker and Homeland Security Secretary Kirstjen Nielsen to President Donald Trump on Monday, according to a joint press release.

    The specific conclusions of the report will remain non-public, the press release said, but its findings will be utilized in future elections. In the meantime, “efforts to safeguard the 2020 elections are already underway,” the statement said.

    Read the full press release here:

    Report Concludes No Material Impact of Foreign Interference on Election or Political/Campaign Infrastructure in 2018 Elections

    WASHINGTON – Acting Attorney General Matthew G. Whitaker and Secretary of Homeland Security Kirstjen M. Nielsen yesterday submitted a joint report to President Donald J. Trump evaluating the impact of any foreign interference on election infrastructure or the infrastructure of political organizations, including campaigns and candidates in the 2018-midterm elections.

    The classified report was prepared pursuant to section 1(b) of Executive Order 13848, Imposing Certain Sanctions in the Event of Foreign Influence in a United States Election, which the President issued on Sept. 12, 2018.

    Throughout the 2018 midterm election cycle, the Departments of Justice and Homeland Security worked closely with federal, state, local, and private sector partners, including all 50 states and more than 1400 local jurisdictions, to support efforts to secure election infrastructure and limit risk posed by foreign interference. Efforts to safeguard the 2020 elections are already underway.

    Although the specific conclusions within the joint report must remain classified, the Departments have concluded there is no evidence to date that any identified activities of a foreign government or foreign agent had a material impact on the integrity or security of election infrastructure or political/campaign infrastructure used in the 2018 midterm elections for the United States Congress. This finding was informed by a report prepared by the Office of the Director of National Intelligence (ODNI) pursuant to the same Executive Order and is consistent with what was indicated by the U.S. government after the 2018 elections.

    While the report remains classified, its findings will help drive future efforts to protect election and political/campaign infrastructure from foreign interference.

    This story is developing. Please check back for updates.

  • Trump admin finds 'no material impact' from foreign interference in 2018 midterms

    Trump administration officials said Tuesday that they found no evidence that any foreign actors had a “material impact on the integrity or security” of election infrastructure during the 2018 midterms.

    They said that the findings applied to “identified activities of a foreign government or foreign agent.”

    That conclusion was spelled out in a classified report sent by acting Attorney General Matthew Whitaker and Homeland Security Secretary Kirstjen Nielsen to President Donald Trump on Monday, according to a joint statement.

    The specific conclusions of the report will remain nonpublic, the press release said, but its findings will be utilized in future elections. In the meantime, “efforts to safeguard the 2020 elections are already underway,” the statement said.

    The finding comes nearly three months after the November midterm elections, where Democrats won majority control of the House and Republicans strengthened their hold in the Senate.

    That cycle was dogged by reports of attempts by Russian trolls to wage online influence campaigns on the eve of Election Day.

    For instance, the DOJ charged Russian national Elena Khusyaynova in October with participating in a conspiracy of “information warfare” against the U.S. by trying to “create and amplify divisive social media and political content.”

    But the agency’s criminal complaint noted that it “does not include any allegation that Khusyaynova or the broader conspiracy had any effect on the outcome of an election.”

    After Election Day, Facebook revealed in a blog post that it had blocked dozens of accounts on Facebook and Instagram that were allegedly linked to Russian trolls.

    Facebook said those social media accounts may have been linked to Internet Research Agency, the Russia-based troll farm that has been targeted by special counsel Robert Mueller.

    Mueller is investigating Russia’s meddling during the 2016 U.S. presidential election, as well as possible collusion with Trump campaign associates and potential obstruction of justice by Trump.

    The special counsel claimed in a court filing Wednesday that evidence in one of his cases was recently used in an online disinformation campaign, apparently in an attempt to discredit his probe.

    Whitaker and Nielsen’s report is likely to please Trump, who has long disputed that Russia’s meddling in 2016 had any impact on his victory over Democrat Hillary Clinton.

    Read the full press release here:

    Report Concludes No Material Impact of Foreign Interference on Election or Political/Campaign Infrastructure in 2018 Elections

    WASHINGTON – Acting Attorney General Matthew G. Whitaker and Secretary of Homeland Security Kirstjen M. Nielsen yesterday submitted a joint report to President Donald J. Trump evaluating the impact of any foreign interference on election infrastructure or the infrastructure of political organizations, including campaigns and candidates in the 2018-midterm elections.

    The classified report was prepared pursuant to section 1(b) of Executive Order 13848, Imposing Certain Sanctions in the Event of Foreign Influence in a United States Election, which the President issued on Sept. 12, 2018.

    Throughout the 2018 midterm election cycle, the Departments of Justice and Homeland Security worked closely with federal, state, local, and private sector partners, including all 50 states and more than 1400 local jurisdictions, to support efforts to secure election infrastructure and limit risk posed by foreign interference. Efforts to safeguard the 2020 elections are already underway.

    Although the specific conclusions within the joint report must remain classified, the Departments have concluded there is no evidence to date that any identified activities of a foreign government or foreign agent had a material impact on the integrity or security of election infrastructure or political/campaign infrastructure used in the 2018 midterm elections for the United States Congress. This finding was informed by a report prepared by the Office of the Director of National Intelligence (ODNI) pursuant to the same Executive Order and is consistent with what was indicated by the U.S. government after the 2018 elections.

    While the report remains classified, its findings will help drive future efforts to protect election and political/campaign infrastructure from foreign interference.

  • Allergan rises after David Tepper's Appaloosa ups pressure on the struggling drugmaker

    Allergan shares rose Tuesday after renowned hedge fund manager David Tepper increased his pressure on the drugmaker, calling for the company to jump-start the business with new strategies and recommending again that it separate the CEO and chairman roles.

    The stock rose about 1 percent Tuesday morning after the Appaloosa Management president lambasted Allergan’s executives, characterizing recent decision-making at $47 billion Allergan as “self-inflicted wounds” and marred by “ill-considered initiatives.”

    “In the wake of last Tuesday’s earnings call (and market reaction) it should by now be readily apparent to all interested and responsible parties that Allergan requires a fresh approach to its business strategy and an unbiased review of its capabilities, opportunities, and way forward,” Tepper wrote in Appaloosa’s letter. “Of course, fully arresting AGN’s decline will require rigorous follow-through and likely more radical remediation measures.”

    Appaloosa first asked Allergan’s board to separate the roles of Chairman and CEO in a letter dated April 23, 2018. Despite two subsequent letters advocating the change, the Allergan directors have “ignored” similar proposals in the past, Tepper said. Allergan did not immediately respond to CNBC’s request for comment.

    The company reported a $4.3 billion loss in the fourth quarter as it posted about $5.4 billion in pre-tax impairment charges. It reported last week a loss of $12.83 a share, an about-face compared to profit of $8.88 a share from a year ago. Analysts polled by Refinitiv were expecting a loss of 44 cents a share.

    Appaloosa Management has approximately $14 billion of assets under management. The billionaire investor is also the owner of the National Football League team Carolina Panthers.

  • Allergan stock rises after David Tepper's Appaloosa ups pressure on the struggling drugmaker

    Allergan shares rose Tuesday after billionaire hedge fund manager David Tepper increased his pressure on the drugmaker, calling for the company to jump-start the business with new strategies and recommending again that it separate the CEO and chairman roles.

    The stock rose about 1 percent Tuesday after the Appaloosa Management president lambasted Allergan’s executives, characterizing recent decision-making at $47 billion Allergan as “self-inflicted wounds” and marred by “ill-considered initiatives.”

    “In the wake of last Tuesday’s earnings call (and market reaction) it should by now be readily apparent to all interested and responsible parties that Allergan requires a fresh approach to its business strategy and an unbiased review of its capabilities, opportunities, and way forward,” Tepper wrote in Appaloosa’s letter. “Of course, fully arresting AGN’s decline will require rigorous follow-through and likely more radical remediation measures.”

    Appaloosa first asked Allergan’s board to separate the roles of chairman and CEO in a letter dated April 23, 2018. Despite two subsequent letters advocating the change, the Allergan directors have “ignored” similar proposals in the past, Tepper said.

    Allergan offered the following statement to CNBC:

    “Allergan’s Board of Directors has received Appaloosa’s proposal and is committed to continuing to engage with them, as we do any shareholder who has input and constructive ideas. The Board of Directors is committed to strong governance practices and independent board leadership. The company has been executing its strategy to drive growth and value for shareholders as it transforms into a global biopharmaceutical leader. Allergan has a strong long-term outlook across its four key therapeutics areas and a highly promising R&D pipeline.”

    The company reported a $4.3 billion loss in the fourth quarter as it posted about $5.4 billion in pretax impairment charges. It reported last week a loss of $12.83 a share, an about-face compared with profits of $8.88 a share from a year ago. Analysts polled by Refinitiv were expecting a loss of 44 cents a share.

    Appaloosa Management has approximately $14 billion of assets under management. Tepper also owns the National Football League team Carolina Panthers.

  • The most important numbers from Alphabet's Q4 earnings report — and why they sent the stock down

    Alphabet appears to have spooked investors with its fourth-quarter earnings report Monday. The stock shed 3 percent immediately after the report and opened in negative territory Tuesday.

    Shares were barely in the red in early trading, despite overall market gains.

    The company beat Wall Street expectations on both earnings and revenue. The figures aren’t comparable to the fourth quarter of 2017, so it’s hard to judge growth. But a beat on the top and bottom lines would normally send a stock up, not down.

    So here’s what shareholders might have seen that they didn’t like:

    Cost per click on Google properties — the rough measure of what Alphabet charges advertisers for each ad served on its web sites — dropped 29 percent from last year and 9 percent from last quarter.

    That’s the steepest rate of annual decline in at least 16 quarters and suggests a growing threat from Amazon could be causing a pricing squeeze.

    Alphabet paid $7.44 billion during the fourth quarter in traffic acquisition costs — the fees Google pays to companies like Apple to be the default search engine. That’s an increase of 13 percent from the third quarter of this year and an increase of 15 percent from the year-ago quarter.

    TAC as a percent of advertising revenue, which investors would want to see shrinking, has held consistent between 23 and 24 percent for the last six quarters.

    Alphabet reported capital expenditures just north of $7 billion for the period, posting a much more expensive quarter than the $5.63 billion in capex that was projected.

    Full-year expenditures for the company spiked 90 percent to $25.14 billion, far outpacing full-year revenue growth of 23 percent. Spending in the company’s Google segment more than doubled from the full year 2017.

    Alphabet reported an operating margin of 21 percent for the fourth quarter, lower than the 22 percent margin that was expected and the 23 percent margin it reported this time last year.

    WATCH: Google parent Alphabet beats on top and bottom — Here’s what three experts are watching now

  • Tesla, Jaguar and Nissan EVs lose power in cold temps. Polar vortex left electric car owners in cold

    Here’s a seemingly simple math question: what is 206 minus 27?

    If you answered 156 you’d be right – at least if you were driving a Jaguar I-Pace from Detroit’s Wayne County Metropolitan Airport to the suburb of Pleasant Ridge during the recent Polar Vortex.

    Owners of today’s battery-electric vehicles found out during last week’s cold snap that the range that shows up on their instrument panel is, at best, an estimate that can be impacted by things like terrain and a motorist’s driving style. Operate at night and those headlights will also have an impact, as well. But nothing eats up range like cold weather. While it can vary from vehicle to vehicle, experts and owners alike report that operating in sub-zero temperatures can cut range by as much as half, requiring twice as much energy to get from point A to B.

    As Winter Storm Jaden drove temperatures down below zero across large swaths of the U.S., reduced range was a problem not just for the I-Pace but for the Tesla Model 3, the Nissan Leaf, the Chevrolet Bolt; indeed, to all electric vehicles.

    On a nice spring afternoon when the temperature is around 70, said Timothy Grewe, “I can get 270 miles no problem,” from his Chevrolet Bolt EV with a fresh and fully charged battery. But on Thursday, when Detroit was in negative territory, the chief engineer at the General Motors electric propulsion lab said, “I got around 170.”

    That’s the same story you’ll hear over and over again. In some cases, range gauges will show an optimistic figure, then draw down power at an alarming rate. Other vehicles will display a significantly lower-than-normal figure to start with.

    “I’m consistently seeing a 30 percent degradation” in range on cold days, said Henry Payne, an automotive reviewer for the Detroit News and an owner of a Tesla Model 3. When the floor fell out under the weight of the Polar Vortex, he added, he lost a full 50 percent of the sedan’s normal range.

    There are a variety of technical reasons why battery cars routinely deliver less range in extreme weather conditions. For one thing, there’s the need to heat — or, in the summer, cool — the cabin. According to its EPA rating, the Bolt uses an average of 28 kilowatt-hours of energy to travel 100 miles in optimal circumstances. Fire up the heater and you draw an extra 5 kWh of power. You’re likely to spend more time driving in the dark in the winter, meanwhile, requiring power for your car’s headlights. And there are other energy drains, like the rear window defroster and seat heaters.

    But the biggest problem is the battery itself. It likes to “be treated like people,” explained Grewe, noting that lithium-ion cells — the type used for most of today’s electronics, including EVs — are most efficient at around the same temperature as humans, about 70 degrees Fahrenheit.

    Above that, batteries can overheat, potentially damaging their chemistry and shortening their life. At colder temperatures, in particular, the internal components of a lithium battery become more resistant to passing current.

    “The flow of energy is reduced and you lose more capacity,” GM’s Grewe explains.

    The Tesla Model S owners manual puts that simply: “In cold weather, some of the stored energy in the battery may not be available on your drive because the battery is too cold.”

    And then there’s the issue of charging. As I experienced this week, with both a Level 3 high-speed charger as well as a Level 1 charger plugged into a 120-volt wall outlet, the battery pack in the I-Pace simply couldn’t take up energy nearly as fast as it did in warmer months.

    How much slower the battery charges “depends on several factors,” explained Jonathan Levy, the vice president of strategic initiatives for EVgo, one of the country’s largest operators of public charging stations.

    That includes the basic chemistry used in each different vehicle’s battery pack. They all may be called “lithium-ion,” but there are more than a dozen different “families,” or compounds, that mix in different formulations of materials like cobalt, iron and manganese. Each responds to cold in a different way.

    Then there’s the design of the battery pack containing hundreds, even thousands of individual battery cells. The Nissan Leaf uses a simple and relatively inexpensive air-cooling system. The I-Pace, Tesla Model 3 and many other electric vehicles rely on more expensive liquid-cooled systems. One disadvantage is that they more energy on their own, especially on very hot or cold days. The plus side is that liquid-cooled battery packs can remain closer to their optimum operating temperature.

    The good news, says Grewe, is that most battery-electric vehicles can be “pre-conditioned” when they are plugged into a charger That means a motorist can use a smartphone app to start warming the vehicle’s cabin up before they leave home, office or store, saving a few kilowatts of battery power, since the energy comes from the grid. Commuters can even set a regular time for their electric cars to start pre-conditioning so they’re always warm before heading to or from work.

    Grewe’s Bolt, like a number of other electric vehicles, also will condition the battery pack, keeping it a little warmer while plugged in — without draining it. Over time, Grewe has found, that improves his own car’s range on a frigid morning by about 10 percent.

    It’s not only the amount of energy stored in the battery pack that’s impacted by cold weather, incidentally.

    Whether you’re riding in a conventional hybrid like the Toyota Prius, a plug-in like the Chevrolet Volt or a pure battery-electric vehicle like the Nissan Leaf, they all use a concept known as regenerative braking to maximize range. Where normal brakes slow a vehicle by friction, turning energy into heat, “regen” brakes are actually small generators. Kinetic energy gathered while slowing down is turned back into electric current and returned to the batteries. But those brake-generators also lose efficiency the colder it gets.

    So, how to maximize your range during cold weather driving? Experts like EVgo’s Levy and GM’s Grewe suggest keeping the vehicle in a warm garage, if possible, or at least out of the wind. They also suggest keeping the vehicle plugged in and using pre-conditioning to warm it up before heading out onto the road.

    With its two more expensive products, the Models S and X, Tesla recommends motorists “Turn on Range Mode…to limit power used by your climate control. This will decrease energy used per mile and maintain range.”

    While not all battery-cars have a range mode, two other recommendations are good for any BEV owner to keep in mind:

    • Turn off, or at least down, the cabin heater if you can get warm enough using its products’ seat heaters.
    • And, Tesla urges owners to keep their vehicles plugged in at all times, pointing out that even in optimum weather they will lose about 1 percent of range every day due to normal resistance within its batteries.

    Last week, Tesla CEO Elon Musk took to Twitter to advise owners “Many cold weather improvements coming via OTA software,” OTA shorthand for over-the-air updates, like those used with smartphones. What those might be, Tesla isn’t saying, but manufacturers are clearly looking for ways to counter range-sapping cold weather, possibly by tweaking the way their onboard hardware operates.

    The good news is that automakers may have something coming in the form of next-generation batteries alternatively known as “solid state” or “lithium-air.” These will replace the liquid slurry inside today’s lithium-ion cells with a solid ceramic material that, researchers believe, will speed up charging, improve range, reduce costs — and better handle cold temperatures.

    The bad news is that next-generation batteries have largely been demonstrated, so far, just in the research lab. While some energy experts predict we could see solid state batteries ready for production as early as 2022, others fear they won’t be market-ready until closer to the end of the decade. That leaves BEV owners facing the range anxieties of a lot more winter storms.

  • The most important numbers from Alphabet's Q4 earnings report — and why they sent the stock down

    Alphabet appears to have spooked investors with its fourth-quarter earnings report Monday. The stock shed 3 percent immediately after the report and opened in negative territory Tuesday.

    Shares were barely in the red in early trading, despite overall market gains.

    The company beat Wall Street expectations on both earnings and revenue. The figures aren’t comparable to the fourth quarter of 2017, so it’s hard to judge growth. But a beat on the top and bottom lines would normally send a stock up, not down.

    So here’s what shareholders might have seen that they didn’t like:

    Cost per click on Google properties — the rough measure of what Alphabet charges advertisers for each ad served on its web sites — dropped 29 percent from last year and 9 percent from last quarter.

    That’s the steepest rate of annual decline in at least 16 quarters and suggests a growing threat from Amazon could be causing a pricing squeeze.

    Alphabet paid $7.44 billion during the fourth quarter in traffic acquisition costs — the fees Google pays to companies like Apple to be the default search engine. That’s an increase of 13 percent from the third quarter of this year and an increase of 15 percent from the year-ago quarter.

    TAC as a percent of advertising revenue, which investors would want to see shrinking, has held consistent between 23 and 24 percent for the last six quarters.

    Alphabet reported capital expenditures just north of $7 billion for the period, posting a much more expensive quarter than the $5.63 billion in capex that was projected.

    Full-year expenditures for the company spiked 90 percent to $25.14 billion, far outpacing full-year revenue growth of 23 percent. Spending in the company’s Google segment more than doubled from the full year 2017.

    Alphabet reported an operating margin of 21 percent for the fourth quarter, lower than the 22 percent margin that was expected and the 23 percent margin it reported this time last year.

    WATCH: Google parent Alphabet beats on top and bottom — Here’s what three experts are watching now

  • Liberty Media joins bidding for regional sports networks being sold by Disney, sources say

    Liberty Media has joined the bidding for the regional sports networks that Disney is trying to sell to finalize a deal with Twenty-first Century Fox, sources told CNBC.

    Liberty and Major League Baseball have submitted bids in the auction. Disney is selling them in order to complete its $71 billion deal to acquire Fox‘s movie production and television assets, which included the regional sports networks. That deal is expected to close within weeks.

    Last week, CNBC reported that MLB’s bid would value the networks at no more than 6.5 times earnings before interest, taxes, depreciation and amortization.

    Sinclair Broadcast and the private equity firm Apollo, which had been looking to bid, are now said to be out of the process, though Sinclair may seek to join another bid.

    A sale of the sports networks could be a topic of discussion for Disney executives later Tuesday. The company is set to report earnings after the close of trading.