Global IPO market looks set for a strong 2017: EY report

jeudi 15 décembre 2016

After a poor 2016 for initial public offerings, the outlook for 2017 is much more upbeat as economies grow stronger, say experts from EY.

The number of IPOs fell by 16 percent year-over-year in 2016 and the amount of capital raised fell 33 percent to $132.5 billion, according to EY's latest Global IPO Trends report.

Political and economic uncertainty in 2016 knocked the confidence of entrepreneurs and investors, deterring IPOs.

But Martin Steinbach, global IPO leader at EY, said the outlook for 2017 was positive.

"We have a strong momentum from Q4, so the IPO activity rose by 25 percent compared to Q3," he told CNBC's Squawk Box Europe.


"If we go to equity market indices, they are at an all-time high in many markets. Volatility has fallen, so these are good signs for 2017. Pipelines are building."

However, he added that the economy is in a period of transition following political events such as the U.S. election and Brexit will impact economic policy and make 2017 an interesting year with lingering uncertainty.

Technology, industrial and healthcare were the three top sectors this year, Steinbach added.

"We expect some unicorns (start-ups valued over $1 billion) next year in the U.S. and this may drive also some big tech IPOs in other regions."

Geographically, Asia-Pacific was one of the stronger areas of IPO activity in 2016, according to the report. The area accounted for 54 percent of global capital raised and 60 percent of IPO volume.

The Hong Kong market performed robustly in 2016, though 2017 will be very unpredictable with factors like the interest cycle on an upward path, a strengthening U.S. market and new changes in government policies like the Shenzhen-Hong-Kong Connect Program," said Ringo Choi, EY Asia-Pacific IPO leader, in a press release.

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GE to sell $3 billion industrial solutions business

General Electric said on Wednesday it would sell its $3 billion industrial solutions business, which makes electrical equipment, as part of a push to focus on its core businesses.

The industrial conglomerate expects to raise about $4 billion from the sale of the unit as well as the previously announced sale of its water business, GE said in an investor presentation.

The industrial solutions business has about 13,000 employees and 30 plants globally.

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Swiss central bank says the situation in Europe remains difficult

The Swiss National Bank's monetary policy framework must remain "expansionary", as concerns and uncertainties still lurk in Europe, its chairman explained to CNBC on Thursday.

"The situation in Europe remains more difficult and that's exactly the reason why monetary policy in Europe remains expansionary and that also means that we have to continue maintaining negative interest rates in Switzerland," Thomas Jordan, chairman of the Swiss National Bank, told CNBC Thursday.

Earlier, the Swiss central bank decided to stand pat on its monetary policy, leaving its interest rates unchanged at record-low levels. The SNB left its deposit rate at a negative 0.75 percent on Thursday, as was widely expected.

In the bank's latest statement, the SNB said it would remain active in the foreign exchange market, and that its current expansionary monetary policy is expected to help prop up economic activity and help keep an eye on the Swiss franc.

"Our monetary policy is expansionary and it has to remain expansionary because we still have a very difficult situation: We have negative inflation, we have a negative output gap and the Swiss franc remains significantly overvalued," he added.

Meanwhile, on Wednesday the U.S. Federal Reserve decided to raise interest rates by 25 basis points - the second time it had done so in a decade. While the market had priced this in, investors weren't expecting three planned hikes for 2017. However, for the SNB's chairman, the Fed's recent moves highlight that the U.S. economy is on track.

"It's very positive that the U.S. economy is on track. The decision by the Fed shows that the situation is improving and this is a very positive sign, not only for Switzerland but for the world economy as a whole."

As 2017 approaches, the Swiss central bank remains "cautiously optimistic" for the coming year, forecasting GDP (gross domestic product) to grow around 1.5 percent; yet it did however trim its inflation expectations for 2017 and 2018.

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Elon Musk is expected to urge Trump not to abandon the Paris climate agreement

Elon Musk is joining President-elect Trump's policy advisory council, despite his comments before the election that Trump "doesn't seem to have the sort of character that reflects well on the United States."

Still, it's probably in Musk's favor to work with the incoming administration, especially as it starts to shape new policies that are dear to Musk's heart, like regulations to bring self-driving cars to U.S. roadways and whether to abide by the 2015 Paris climate agreement or pull out, a threat Trump made on the campaign trail.

That doesn't sit well with Musk, who will likely urge the Trump administration to remain a signatory on the international climate accord. Reps for Musk did not immediately respond to request for comment.

Shortly after Trump won the election, his team began sketching a plan to abandon the the Paris accord, reported Reuters. And Trump's pick to head the EPA, Scott Pruitt, doesn't think climate change science is real.

Musk, on the other hand, has long advocated for the U.S. to institute a gradual carbon tax, which he says is the only viable way to spur a transition from fossil fuels to more sustainable forms of energy.

Trump is unlikely to warm up to the idea of another tax — he's promised to cut taxes across the board.

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Even so, Musk might be able to persuade the president-elect not to renege on the Paris agreement, which already lacks strong mechanisms for enforcement.

Rex Tillerson, Trump's pick for secretary of state and CEO of Exxon Mobil, also supported U.S. participation in the climate talks and endorsed the idea of a national carbon tax. Tillerson may also urge Trump not to leave the Paris deal.

Musk has a financial incentive for wanting the U.S. to start thinking progressively about transitioning from fossil fuel. Musk's company Tesla acquired SolarCity, a leading U.S. firm building solar-powered energy systems, last month.

Trump has previously said that he's convinced climate change is a hoax perpetrated by the Chinese.

Watch Elon Musk's speech at the Sorbonne in 2015, where he urged students to "talk to your politicians, ask them to enact a carbon tax" and to "fight the propaganda from the carbon industry."

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Starbucks to double its China stores in 5 years as Chinese middle class adopts coffee culture

mercredi 14 décembre 2016

Starbucks plans to add over 10,000 new jobs a year in China over the next five years as part of the U.S. coffee giant's big bet on the nation of tea drinkers, where coffee culture is flourishing amid a booming middle class despite an economic slowdown.

Besides aiming to more than double its store count in China to 5,000 by 2021, the world's largest coffee chain is brewing up a 30,000 sq ft premium coffee house in Shanghai, described by its new China head Belinda Wong as "the second Disneyland" in the making.

In an interview with the Post at a "Bing Sutt"-style Starbucks café in Central, which pays homage to the traditional 1950s Hong Kong coffee shop decor, Wong spoke of her vision since stepping into her role as the Seattle-based company's first China operations chief executive late October.

"In China in the coming five years we are definitely adding 10,000 plus new jobs every year. We open 500 stores a year and our goal is by 2021...to have 5,000 stores," said the 44-year-old, who has been named in the top 25 on Fortune China's annual list of the country's most influential businesswomen since 2012.

"This is the early chapter of our China growth right now. We have barely even scratched the surface."

That expansion is poised to make China, where the middle class have awakened to the taste of coffee ever since Starbucks opened its first store in 1999, the largest market outside the U.S. within the next few years.

The mainland China outlets were already the most profitable, said Starbucks chief executive Howard Schultz during a post-earnings call with analysts last week, when he projected that China had the potential to overtake its home market which it has nurtured for 45 years.

While Starbucks coffee can be an everyday indulgence for urbanites in the West, with a price tag of 30 yuan (US$4.43) for a medium latte in Shanghai, it is still a brand with plenty of snob appeal – a status symbol for the emerging Chinese middle class and a "liquid luxury" for an average worker.

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The U.S. coffee chain came under attack in 2013 by the state broadcaster for what critics called "inflated prices", but the bad public relations at that time failed to deter its expansion or overhaul its pricing strategy.

Starbucks more than quadrupled its number of mainland stores to more than 2,300 within five years, even as other U.S. fast-food and restaurant chains including Yum! Brands' KFC and PizzaHut outlets reported lackluster business.

The company has proven adept at adding local touches in its Chinese stores, such as moon cakes, dragon dumplings, as well as tea-flavored beverages such as spicy mocha and oolong.

Wong, who was born in Hong Kong, educated in Canada and is now based in Shanghai, said Starbucks might break into 10-15 new urban markets in China every year, while continuing its penetration in megacities where it has taken hold.

"There is plenty of space to infill in first and second tier cities where we have already opened – Beijing, Guangzhou, Shenzhen, Shanghai," said Wong.

Coffee consumption in the world's second biggest economy is still well below that of Europe and the US, and market researcher Euromonitor predicts that retail sales volume of fresh coffee will post a compound annual growth rate of 17 per cent in China.

However, competition in China is also intensifying. While other international coffee chains like Costa Coffee scramble to seize market share, independent coffee shops have also sprung up and are proving to be a magnet for young affluent Chinese seeking to "be different".

Starbucks last month unveiled plans to ramp up its upscale Reserve brand, where baristas prepare coffee using exceptional methods, such as siphon brewing.

"We want to make sure we open stores that are not cookie cutters," Wong said. In her new role Wong is responsible for the planned 2017 opening of the first international Starbucks Roastery and Reserve Tasting Room in Shanghai, which, at 30,000 sq ft, would be twice as large as the original Seattle outlet launched in 2014.

The roastery is a theater-style Starbucks catering to coffee connoisseurs more discerning about the coffee beans and roasting. It will be situated on West Nanjing Road, one of Shanghai's most expensive shopping districts.

"Shanghai Roastery is going to be much better than the Seattle one," said Wong, declining to give further details on what the showpiece would look like – other than to hint at it being like a "second Disneyland in Shanghai". "It's going to attract not only people in Shanghai but attract a lot of tourists in China," she added.

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Trump team 'bounced' Twitter from tech summit over 'Crooked Hillary' emoji flap: Report

President-elect Donald Trump declined to invite social network Twitter— a platform Trump himself uses with impunity—to a summit with other major technology players because of the company's refusal to approve a specialized emoji during the campaign, Politico reported on Wednesday, citing an unnamed source.

At the height of the campaign, Trump was attacking Democratic contender Hillary Clinton as "crooked", something he wanted the social network to create a "Crooked Hillary" emoji. The Trump campaign proposed a $5 million deal to do so, the publication stated, but Twitter rejected the idea. The character would have depicted money bags being stolen or given away, according to the report.

Twitter was pointedly left out of the confab at Trump Tower, which included high ranking executive delegations from Apple, Amazon.com and Oracle, just to name a few. A source told Politico that the company was "bounced" from the meeting in retribution over rejecting the emoji.

The unnamed source told Politico that RNC spokesman Sean Spicer, who is an adviser to the Trump transition, made the call to deny an invitation to Twitter CEO Jack Dorsey. The summit was organized by Facebook board member and tech billionaire Peter Thiel, who has been a vocal backer of Trump's.

Twitter declined to comment when reached by CNBC.

The full report can be found on Politico's website.

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Exxon CEO Tillerson to hand over reins to president after State Department pick

Oil major Exxon Mobil said on Wednesday that President Darren Woods would become chief executive and chairman in January after the retirement of Rex Tillerson, who is U.S. President-elect Donald Trump's pick for secretary of State.

Exxon shares fell to session lows shortly after the announcement around 3 p.m., ET. The stock ended the day 2 percent lower amid similar declines in the broader energy sector, which fell due to lower crude oil prices.

Exxon said Tillerson, 64, will retire at the end of the year and Woods, 51, would take over as chairman and CEO, effective Jan. 1.

Woods joined Exxon in 1992, and in January he was elected to the company's board and appointed president.

Woods has held various senior positions at the company, including overseeing its refining, supply and transportation businesses and managing its specialty-chemical unit.

Tillerson got his start as a production engineer at Exxon in 1975 and has worked there ever since, running business units in Yemen, Thailand and Russia before landing the top job in 2006.

He was expected to retire next year, when he turned 65, the company's mandatory retirement age for its CEO.

The retirement date had been advanced due to "the significant requirements associated with the confirmation process," Exxon said.

With his retirement, Exxon's board will have 12 directors.

The announcement of Exxon's change of leadership comes a day after Trump formally named Tillerson as his nomination to serve as secretary of state, citing his "tenacity, broad experience and deep understanding of geopolitics."

He could face a rocky confirmation process, given concerns among both Democrats and Republicans about his ties to Russia.

If Tillerson can overcome the skepticism of Republicans, he could win confirmation since their party will control a slim majority n the Senate when Trump takes office on Jan. 20.

Tillerson earned about $24.3 million in 2016. He has a net worth of $150 million, plus a $70 million pension plan.


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Trump could erase 'anti-bizjet' stigma by making private luxury jets hip again

Turbulence in the bizjet market appears to be easing and President-elect Donald Trump maybe poised to help the industry fly high again.

"The Trump win looks positive for bizjet demand," Cowen analyst Cai von Rumohr said in a research note Wednesday. He expressed optimism that Trump's policies might create "economic stimulus from an expected lower tax rate and less regulation."

The Cowen analyst also said the "shift away from Obama's anti-bizjet rhetoric" should help the bizjet market. The corporate jet market has been soft for many years and new jet deliveries remain below the 2007-2008 peak.

The negative perception of corporate jets came during the Great Recession when Detroit execs traveled to Washington on private jets asking for bailout money.

Indeed, Deutsche Bank said this month sentiment has bottomed in the bizjet sector and it contends that Trump as a bizjet owner "should go a long way in breaking the stigma for corporate jets."

Trump's private Boeing 757 airplane reportedly cost $100 million and is outfitted with 24-karat gold fixtures.

One sign of the rebound is the used market for General Dynamics' newest bizjet, the G650. The latest check by UBS this week showed there's 14 G650s for sale, below the peak of 18.

"Our survey of industry professionals indicates significant positive momentum post the electon," UBS analyst David Strauss said in a note this week.

Shares of General Dynamics, known for its Gulfstream corporate jets and defense business, are up more than 26 percent so far this year. That beats the performance of its aerospace and defense peers Boeing, Lockheed Martin, Northrop Grumman and Raytheon.

The G650, priced at $65 million, may be the flagship plane of the Gulfstream business but two other large-cabin business jets it is adding to the portfolio — the G500 and G600. The G600 is expected to have potential delivery in 2018 while the G500 is projected to enter service next year.

Textron also is exposed to the bizjet market with its Cessna, Sovereign and Latitude planes, and the newer Longitude.

According to Cowen, Textron's "mainstay U.S. owner/operator small business customers should benefit disproportionately from a tax cut." Moreover, Cowen believes "trade conflict risk looks tolerable since competitors Embraer & Bombardier could face entry tariffs on bizjets/parts imported to the U.S."

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Op-Ed: Interest-rate hikes slow the economy. So why did the Fed just announce one?

The Federal Reserve has raised short-term interest rates, doing so for only the second time since the 2008 financial crisis. The move reflects the Fed's growing confidence that the economy is on a sustainable growth footing — and its judgment that inflation is becoming a bigger danger to the US economy than sluggish growth or another recession.

A central bank like the Fed faces a basic trade-off between economic growth and inflation. When the Fed cuts interest rates — or keeps them low — more cash flows into the economy and business tends to boom. That's good up to a point, but if the Fed provides too much stimulus, it can lead to high inflation. The Fed made that mistake in the 1970s, when inflation reached double-digit levels.

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Conversely, when the Fed raises interest rates — as it did today — less cash flows into the economy. That can lead to slower economic growth, with fewer jobs created and slower wage growth.

The Fed decided to raise interest rates today despite the fact that its preferred measure of inflation came in at 1.7 percent over the past year — below its 2 percent target.

Normally, if inflation is too low, the remedy would be to cut rates, not raise them. So why did the Fed decide higher rates were in order? The Fed is concerned that inflationary pressures can build up over time, and that there can be a lag between Fed decisions and the resulting impact on inflation. In other words, it's worried that if it were to keep interest rates low for the next few months, it might find itself with surging inflation in 2018 — and be forced to raise rates more drastically to deal with the problem. That, in turn, could trigger a recession.

So the Fed is hoping that slowly and gradually raising rates — it did its first post-recession interest rate hike a year ago — will strike a careful balance between the twin dangers of inflation and recession.

The potential downside here is that a premature rate hike could prevent the economy from enjoying a robust economic boom. By some measures, the current economic recovery has been the weakest in decades, and some economists wonder if easier monetary policy could deliver a more robust economic expansion. But so far, that argument doesn't seem to have changed the minds of Fed decision-makers.

Commentary by Timothy B. Lee, a senior correspondent at Vox. Follow him/her on Twitter @binarybits.

For more insight from CNBC contributors, follow @CNBCopinion on Twitter.

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Cheating website Ashley Madison's owner pays $1.66 million to settle FTC case

The owner of hacked infidelity website Ashley Madison has paid $1.66 million to settle a joint investigation by the U.S. Federal Trade Commission and several U.S. states into lax data security and deceptive practices, the company and New York's Attorney General said on Wednesday.

The remainder of a $17.5 million settlement was suspended based on privately-held Ruby Corp.'s inability to pay, the office of New York Attorney General Eric T. Schneiderman said in a statement.

The company first disclosed it was the target of an FTC investigation in a Reuters interview in July.

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Neustar to go private in $2.9 billion deal, including debt

Neustar, which helps telephone carriers route calls and text messages, said it would be taken private by an investment group led by private equity firm Golden Gate Capital in a deal valued at about $2.9 billion, including debt.

Neustar's shares were up about 19.6 percent at $33.30 in morning trading on Wednesday, slightly below the offer price of $33.30 per share.

The equity value of the all-cash deal is about $1.85 billion, Neustar said.

San Francisco-based Golden Gate Capital had a stake of about 2.4 million shares in Neustar as of Sept. 30, according to a regulatory filing.

An affiliate of Singapore's sovereign wealth fund GIC Private Ltd will also make an investment and become a minority owner in Neustar, which was formerly a part of Lockheed Martin Corp.

Neustar said in June it planned to split into two publicly traded companies, with one focusing on call routing services for telecom carriers and the other on marketing and security services.

J.P. Morgan Securities LLC provided financial advice to Neustar while Goodwin Procter and Wiley Rein acted as its legal advisers.

Golden Gate Capital's financial adviser was BofA Merrill Lynch while Kirkland & Ellis and Nob Hill Law Group provided legal advice.

— CNBC contributed to this report.


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Trump giving businesses to his kids won't eliminate conflicts, government ethics office says

Donald Trump would not remove conflicts of interest by transferring his businesses to his children, and the president-elect should follow tradition by divesting or establishing a true blind trust, the Office of Government Ethics said this week.

In a letter sent Monday to Sen. Tom Carper, D-Del, agency director Walter Shaub Jr. said transferring operational control to children "would not constitute the establishment of a qualified blind trust, nor would it eliminate conflicts of interest" under the primary federal statute.

While he called on Trump to divest "conflicting assets" or make a qualified blind trust, Shaub said his agency, which operates within the executive branch and makes ethics guidelines, "has no power to require adherence to this tradition."

Trump's business connections around the globe leave unprecedented chances for conflicts in his White House. Trump has rightfully noted that the criminal conflict of interest statute does not apply to the president, though Shaub said the executive branch has always held that the president should act as if he is bound by it.

Trump canceled an announcement about his business plans initially set for Thursday, saying he plans to hold a press conference "in the near future." Instead, he tweeted that sons Donald Jr. and Eric, along with executives, will manage the businesses. He vaguely added that "no new deals" will be done while he is in office.

The president-elect's three eldest children, Donald Jr., Ivanka and Eric, hold spots on his transition team while serving as executives at the Trump Organization. Ivanka has sat in on at least one meeting with a key world leader, Japanese Prime Minister Shinzo Abe.

President-elect Trump has also acknowledged that he "might have" discussed business-related topics with a foreign official.

Separately Wednesday, House Democrats announced that the General Services Administration informed them that Trump would violate the lease for his Washington hotel "the moment he takes office" unless he fully divests himself of financial interests in it. A provision of the lease for the hotel in the Old Post Office building says that "No ... elected official of the Government of the United States ... shall be admitted to any share or part of this Lease, or to any benefit that may arise therefrom."

The Trump transition team did not respond to a request for comment for this story.

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Uber, SpaceX/Tesla, PepsiCo execs join Trump business council

Elon Musk, the chairman and chief executive of SpaceX and Tesla as well as Uber Technologies CEO and co-founder Travis Kalanick and PepsiCo Chairman and CEO Indra Nooyi have joined U.S. President-elect Donald Trump's advisory council, Trump's transition team said on Wednesday.

The group, which includes numerous other top business leaders, aims to give industry input on the private sector to Trump, who takes office on Jan. 20.

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Trump would violate DC hotel lease 'the moment he takes office,' federal agency tells Democrats

House Democrats said Wednesday that the General Services Administration told them Donald Trump would breach his Washington D.C. hotel lease "the moment he takes office" unless he fully divests his interests in it.

Trump's luxury hotel in the Old Post Office building officially opened earlier this year. A provision of the lease with the GSA states that "No ... elected official of the Government of the United States ... shall be admitted to any share or part of this Lease, or to any benefit that may arise therefrom."

Democratic Reps. Elijah Cummings, Peter DeFazio, Gerald Connolly and Andre Carson said in a statement that their offices received a briefing from the GSA's deputy commissioner after requesting more information from the agency on Trump's hotel.

"The deputy commissioner made clear that Mr. Trump must divest himself not only of managerial control, but of all ownership interest, as well," they said, adding that the GSA told them that the Trump Organization has not been in contact about the hotel.

The hotel is just one among many potential conflicts posed by Trump's global business holdings when he takes office. A government ethics agency has called on Trump to divest from his business and establish a qualified blind trust, though the president-elect has rightfully noted that he is exempt from a criminal conflict of interest statute.

Trump's current plan to have two of his children run his businesses along with executives does not qualify as a blind trust, experts have said.

The Trump transition team did not immediately respond to a request for comment on whether he plans to divest from the hotel.

— NBC News contributed to this report

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Goldman Sachs names two executives to replace Gary Cohn in COO role

Goldman Sachs named two executives to share the chief operating officer role, replacing Gary Cohn, who is leaving the investment bank to join President-elect Donald Trump's economic policy team.

Harvey Schwartz and David Solomon and will become co-chief operating officers on Jan. 1. Schwartz will also keep his current role as chief financial officer until the end of April and then will be replaced by R. Martin Chavez. Solomon is currently the co-head of Goldman's investment banking division.

Both Schwartz and Solomon will also be presidents of Goldman Sachs Group.

This week, Trump tapped Cohn as assistant to the president for economic policy and national economic council director, where he will help the administration design its economic agenda. Cohn has worked at Goldman for more than 25 years.

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The 2017 challenge for blockchain: Getting executives to understand it

Will 2017 be the year blockchain becomes part of the mainstream business culture? This past year has seen the technology used in various ways, and companies are throwing money behind it, but headaches and obstacles to its growth remain.

Deloitte conducted an online survey of 308 senior executives at U.S. companies with $500 million or more in annual revenue to find out about corporate sentiment towards blockchain technology.

Key findings from the survey showed that 28 percent of respondents had invested $5 million or more in blockchain technology, while 10 percent had invested $10 million or more.

On the flip side, 39 percent of respondents had little or no knowledge in the technology.

Blockchain was developed alongside the digital cryptocurrency bitcoin. It works like a huge, decentralized ledger which records every transaction and stores this information on a global network to prevent tampering.

"It is fair to say that industry is still confused to a degree about the potential for blockchain," said David Schatsky, managing director with Deloitte LLP, in a press release.

"More than a quarter of surveyed knowledgeable execs say their companies view blockchain as a critical, top-five priority. But about a third consider the technology overhyped."

Based on the survey, sectors including technology, media and telecoms, consumer products and manufacturing are leading the deployment of blockchain, with about 30 percent of survey respondents in these industries saying their company has brought blockchain into production.

In contrast, just 12 percent of surveyed financial services company executives said their company has deployed blockchain.

Other sectors keen to find uses for blockchain is the electrical power industry, where it can be used to manage wholesale transactions, peer-to-peer networks and allow energy users to register and trade renewable credits.

"Power is a logical use case for a few reasons: units of power and energy are a strong fit for so-called smart contracts based on blockchain, and meters can feed data directly into blockchain logic," said Katrina Westerhof, analyst for market researchers Lux Research, said in a press release.

"Power also relies on cumbersome trading and clearing systems to support complex markets, and blockchain can help create a leaner distributed system that can cut out intermediaries and associated fees."

However, in a report on the topic, called "Beyond Finance: Blockchain's Impact on the Power Sector", Westerhof and her colleagues pinpointed some challenges ahead. These included; the limited number of blockchain experts; the challenge of finding the talent to build proprietary blockchain networks; and how blockchain will be treated in a tightly regulated sector such as energy.

Blockchain will need to overcome several obstacles such as these in order to succeed in 2017.

For instance, some companies are considering integrating blockchain into the real estate sector, where the technology can help keep transaction records secure, and enable cheaper, faster transactions.

Seven out of ten property investors believe regulators are unprepared for the introduction of blockchain, according to a survey by real estate investment platform, BrickVest. Many also felt banks, insurance companies and private equity firms would be reluctant to invest in the technology.

"While the majority of property investors view blockchain as a core part of the future industry landscape, investors have correctly highlighted many of the challenges ahead, most notably at a legal and regulatory level," said Emmanuel Lumineau, CEO at BrickVest, in a press release.

"It will be a far from straightforward journey to overcome the status quo."

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Uber self-driving cars hit the streets of San Francisco

Uber is bringing a small number of self-driving cars to its ride-hailing service in San Francisco — a move likely to excite the city's tech-savvy population and certain to antagonize California regulators.

The Wednesday launch in Uber's hometown expands a public pilot program the company started in Pittsburgh in September. The testing lets everyday people experience the cars as Uber works to identify glitches before expanding the technology's use in San Francisco and elsewhere.

California law, however, requires a test permit for self-driving prototype vehicles, and Uber does not have one. The company argues that the law doesn't apply because its cars require a human backup.

Uber has a history of testing legal boundaries. Although the company has been around less than a decade, it has argued with authorities around the world about how much of its drivers' histories should be covered in background checks and whether those drivers should be treated as contractors ineligible for employee benefits.

The Streets of San Francisco

Uber's self-driving tests in San Francisco will begin with a "handful" of Volvo luxury SUVs - the company wouldn't release an exact number - that have been tricked out with sensors so they can steer, accelerate and brake, and even decide to change lanes. The cars will have an Uber employee behind the wheel to take over should the technology fail. Users of the app may be matched with a self-driving car, but can opt out if they prefer a human driver. Self-driven rides cost the same as ordinary ones.

The cars will be put to the test in the congested streets of San Francisco. The city can be a daunting place to drive given its famously steep hills, frequent fog, street and cable cars, an active bicycle culture, and roads that are constantly being repaved, remarked and restricted for bike lanes and traffic management.

Uber believes its technology is ready to handle all this safely, though its executives concede the vehicles are nowhere near able to drive without a human ready to take control in dicey situations.

There was room for improvement during a Tuesday test drive attended by The Associated Press. The car was destined for a local pizza parlor, but didn't pull directly in front of the restaurant, and instead stopped in the middle of the street. The cars may strike some riders as over-cautious, too. During the test drive, one idled in a traffic jam even though an adjacent lane was clear, prompting the human driver to make the move himself.

Uber's fleet of Volvo XC90s won't be the first self-driving cars on San Francisco streets - several other companies visit regularly with test prototypes, though none offers public rides.

Once testing is complete, the ultimate vision is to sell to the public technology which supporters argue will save thousands of lives because it doesn't drink, text, fall asleep or take dangerous risks.

Permit me not

Under state law, self-driving tests on public roads require a permit from the Department of Motor Vehicles. The department has issued permits to 20 companies, mostly a collection of traditional automakers and tech companies — but not Uber.

Uber argues that its cars aren't really autonomous, and thus aren't covered by the law. Under the law, an "autonomous vehicle" requires a permit if it can drive itself "without the active physical control or monitoring of a natural person."

According to Anthony Levandowski, the leader of Uber's self-driving program, Uber's cars simply aren't advanced enough to drive themselves without human monitoring. "We're just not capable of doing that yet," he said. Therefore, the Volvos are not autonomous and do not require a permit.

It makes no sense to get a permit when one is not needed, Levandowski said: "This is where science and logic needs to trump blind compliance."

In a statement issued late Tuesday, the DMV said it "encourages the responsible exploration of self-driving cars" and noted that 20 companies have permits to test hundreds of cars in California.

"Uber shall do the same," the statement said.

Operating without a permit arguably gives Uber a competitive advantage. Companies with one must report to the state all crashes and every instance in which a person takes control during testing. All that information is public. To receive a permit, a company must show proof of insurance, pay a $150 fee and agree that a human driver can take control of the vehicle.

Uber's stance seems likely to upset both state officials and competitors, said Bryant Walker Smith, a law professor at the University of South Carolina who tracked California's law as it was drafted in 2012. While an attorney could argue that Uber is reading the letter of California law correctly, Smith said, testing permits were "envisioned as a gateway, as an interim step" to launching self-driving cars on public roads.

Smith recalled discussing at the time the argument that Uber is now making: One day, a company might go public without a testing permit precisely because the law requires human oversight during testing.


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Republicans face corporate tax rebellion

Republicans are facing their first corporate tax rebellion since Donald Trump's election victory as opponents ranging from apparel makers and big retailers to the billionaire Koch brothers unite against a plan to penalize US importers.

The revolt comes as Republicans seek to spark economic growth with the biggest overhaul of the tax code in 30 years and signals Mr Trump could have to choose between promoting US-made products or crippling import-dependent businesses.

The cause of the uproar is a proposal to tax imports that is sending shockwaves through global supply chains, as Republicans in the House of Representatives champion it as part of a plan to encourage US companies to buy more American goods.

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Senior lobbyists who sometimes struggle to get the attention of company leaders told the Financial Times they were receiving calls from chief executives with orders to fight the tax plan, which some importers say threatens to wipe out their profits.

"This is something that has really gone all the way up to the boardroom, which doesn't often happen in Washington," said Stephen Lamar, executive vice-president of the American Apparel and Footwear Association, who called the import tax an "existential" threat to his industry.

With 98 percent of clothes sold in the US made overseas, the National Retail Federation said the import tax could inflate the tax bills of some fashion chains to three to five times their pre-tax profits, jeopardising their solvency.

Koch Industries, a conglomerate run by the brothers Charles and David whose products range from petroleum to paper towels, warned the plan would "distort" the market and raise the prices paid by consumers.


As businesses wake up to the significance of the import tax, which had been largely overlooked until this month, it has crushed post-election optimism that was founded on Republican vows to cut the corporate tax rate from 35 per cent to 20 or 15 per cent.

The House plan will provide the template for tax legislation to be negotiated next year with the president-elect, who has said fixing the tax code is a top priority. Mr Trump has not taken a position on the import tax.

Jennifer Safavian, executive vice-president at the Retail Industry Leaders Association, which represents big chains including Walmart, Target and Best Buy, said: "There are few if any other issues over the past decade that have raised the concern of the industry higher than this one."

Scot Ciccarelli, analyst at RBC Capital Markets, said the import tax, known by experts as a border tax adjustment, was by far the most significant part of the House tax plan and could wipe out the benefits of a reduced tax rate for some retailers.

The measure would affect US companies importing everything from oil products and car parts to smartphones and coffee, forcing them to choose between raising prices, accepting shrunken profits or revamping supply chains that stretch from Chinese factories to Brazilian farms.

Republican tax writers led by Kevin Brady, chairman of the Ways and Means committee, want to use the import tax to foster US manufacturing and deter inversion deals that US companies have used to move to low-tax jurisdictions. One lawmaker said critics were overreacting based on faulty assumptions about its impact.

Philip Ellender, a Koch Industries executive, said his company could benefit because it produces many goods in the US. But he warned: "The proposed border tax adjustment will distort the market, increase consumer prices and create an uneven playing field for companies and consumers alike. Our tax system should encourage, not destroy, free exchange and trade."

Kent Knutson, vice-president of government relations at Home Depot, a home improvement retailer that is the US's third biggest importer by ocean container volumes, said: "Everyone I'm talking to either doesn't understand border adjustability or they just plain don't like it.

"I sure hope when all the details come out it isn't more of the same with the government picking winners and losers. No one wants American consumers to end up the losers."


Retailers suggested it was unrealistic to imagine that businesses could reverse decades of outsourcing and buy the bulk of their inputs from the US any time soon.

David French, top lobbyist at the National Retail Federation, said: "Insourcing, where it is viable today, is maybe the preferred way of doing business. But the fact that so many goods in so many different areas come from outside the country suggests that it hasn't been economically viable."

The border tax adjustment would work by denying US companies their current ability to deduct import costs from their taxable income, meaning companies selling imported products would effectively be taxed on the full value of the sale rather than just the profit.

Export revenues, meanwhile, would be excluded from company tax bases, giving net exporters the equivalent of a subsidy that would make them big beneficiaries of the change.

Mr Brady, the chief tax writer in the House, told the FT: "We're working to deliver a globally competitive tax code built for growth that will encourage companies to invest in America and create jobs at home. Instead of focusing on one piece of our comprehensive plan, it's important for companies to consider all of the aspects of our blueprint including lower rates for corporations and a simpler international tax code."

Devin Nunes, a Republican member of the tax committee, said the import tax rebellion reflected how companies were looking at the results of static financial models that did not reflect "all the moving parts" of the tax plan.

"I don't think it's a problem at all. It's a new system. It's never been done like this," he said. "So people have lots of questions to be answered, but we're going to work through those."

Additional reporting by Patti Waldmeir in Chicago and Tim Bradshaw in San Francisco

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China to penalize US automaker for monopolistic behavior: Report

China will soon slap a penalty on an unnamed U.S. automaker for monopolistic behavior, the official China Daily newspaper reported on Wednesday, quoting a senior state planning official.

News of the penalty comes at a sensitive time for China-U.S. relations after U.S. president-elect Donald Trump called into question a long-standing U.S. policy of acknowledging that Taiwan is part of "one China".

Beijing maintains that self-ruled Taiwan is a wayward province of China and has never renounced the use of force to take it back.

Investigators found the U.S. company had instructed distributors to fix prices starting in 2014, Zhang Handong, director of the National Development and Reform Commission's price supervision bureau, was quoted as saying.

In an exclusive interview with the newspaper, Zhang said no one should "read anything improper" into the timing or target of the penalty.

The article did not give further details and the NDRC did not immediately respond to requests for comment.

China, the world's largest auto market, has become crucial to the strategies of car companies around the world, including major U.S. players General Motors Co and Ford Motor Co.

"We are unaware of the issue," said Mark Truby, Ford's chief spokesman for its Asia-Pacific operations.

In a statement, GM said: "GM fully respects local laws and regulations wherever we operate. We do not comment on media speculation."

The penalty follows a government crackdown on what it has called anti-trust behavior by foreign automakers and dealers.

It would be the second penalty by the NDRC this month and the seventh fine issued to automakers since the commission began anti-monopoly investigations in 2011, the newspaper said.

Targeted firms have included Audi AG, Daimler AG's Mercedes-Benz and Toyota Motor Corp, and one of Nissan Motor Co Ltd's joint ventures.

The NDRC's move was not directed against Trump's latest comments but to show it was not letting up pressure on price fixing behaviour in the auto sector after a raft of fines last year, a source at a government-affiliated industry association said.

"I don't think NDRC had only made a decision two weeks ago or a week ago. This is a long-term plan for them," the source said.

Local media had reported NDRC officials saying a penalty would be levied against an international automotive firm this year prior to Trump's remarks on Taiwan, although they did not specify it would be a U.S. company.

In a separate editorial, the China Daily urged Trump to recognize the importance of close economic ties between China and the United States rather than "trying to gain an upper hand in what is essentially a win-win relationship".

"History proves that what is good for Sino-U.S. relations is good for their economies," it said, noting that Chinese customers bought more than a third of the 9.96 million vehicles GM sold worldwide last year.

"For the American economy to be great again... the U.S. needs to cement its economic relations with China, rather than destroy them."

Trump's challenges to China on trade and Taiwan have rattled American companies who have long benefited from stable relations between the two countries.

In 2011, China imposed duties of up to 22 percent on large cars and SUVs exported from the United States during a wide-ranging spat on trade and currencies that became a focus of criticism for U.S. presidential candidates.

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China’s wealthiest man considers picking a successor, but his only son may miss out

mardi 13 décembre 2016

Wang Jianlin may be ready to hand over the reins of his 634 billion yuan (HK$712 billion) business empire – spanning from shopping centers, theme parks and sports clubs to cinemas – to a successor, but his only son may not be the one.

The founder and chairman of Dalian Wanda Group said he was most likely to pick a professional manager to take over the running of his business, according to a speech he made at an entrepreneurs summit at the weekend.

"I have asked my son about the succession plan, and he said he does not want to live a life like mine," said Wang, according to a transcript of his speech on Wanda's website.

"Perhaps young people have their own quests and priorities. Probably it will be better to hand over to professional managers and have us sit on the board and see them run the company."

The scions of China's billionaire entrepreneurs are increasingly striking different paths, as more than three decades of breakneck economic growth and overseas education have given them experiences, world view and aspirations different from their parents'.

More than 80 per cent of Chinese heirs are not keen on taking the reins of their parents' businesses, according to a survey by Shanghai Jiaotong University, covering 182 of the country's top family-run companies.

Some were backing off due to intense pressures, while others simply were pursuing other career interests, another study by an association of private enterprises in the mainland showed.

Wanda, founded in Dalian in 1988, is the epitome of the country's rags-to-riches story. It grew from a small property developer into a conglomerate operating malls, hotels, theme parks and the world's largest chain of cinemas. In the process, it made Wang and his son immensely wealthy.

Following a worldwide buying spree that added AMC Entertainment Holdings, Hoyts Group and Odeon & UCI Cinemas Group, Wanda now operates the world's largest chain of cinemas, with more than 10,000 screens. It also owns hotels run by Westin and Sofitel, as well as shopping malls.

After snapping up stakes in European football clubs, Wanda is now turning its sights on Hollywood, announcing plans to buy Dick Clark Productions that granted it the broadcasting rights to Golden Globe Awards.

Wang, 62, also struck a more conciliatory note in his weekend speech. While he had previously disparaged Walt Disney's Shanghai theme park and predicted it would not turn a profit for 10 to 20 years, he back-pedalled on his remarks, saying he had "already gotten reconciled with Disney," after visiting the company's head office in Burbank, California.

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"I think Disney would become the biggest-grossing studio in the world this year," he said. "Virtually all of its seven to eight releases every year were blockbusters."

Wang Sicong, who turns 29 next month, is a director of his father's conglomerate, owning a 2 per cent stake worth 12.7 billion yuan.

He had his early schooling in Britain, studying philosophy at the University College London.

Armed with 500 million yuan of his father's seed capital, Wang Sicong founded Prometheus Capital in 2011, naming his private equity fund after the Greek titan who stole fire from Mount Olympus to give to humanity.

He has been pouring capital to catch a slice of the mainland's booming internet entertainment, gaming and social networking industries, with investments in Invictus Gaming, a professional eSports gaming team, and Hong Kong-listed Dining Concepts Holdings, which operates the BLT Burger chain.

As of August, Wang's 9.98 per cent stake in Dining Concepts was valued at HK$80.9 million, according to exchange filings.

The younger Wang is a household name in the mainland, dubbed "the people's husband" for his status as one of the most eligible bachelors. He is an internet celebrity, with 21 million followers on his Weibo account, the Chinese equivalent of Twitter.

Even as his family business operates the world's largest chain of cinemas, Wang Sicong has not avoided internet squabbles with film stars and celebrities, with the country's highest-paid actress Fan Bingbing and one of the best-known directors, Feng Xiaogang, on the sharp end of his blogs.

Since early this month, the Wanda scion and Feng had been embroiled in a public spat over the scheduling of the film I Am Not Madame Bovary, the Chinese-language satire which won Feng the best director's award and Fan the best actress' award at the San Sebastian Film Festival in Spain.

Both Wangs could not be reached for comment.

A number of the mainland's richest self-created billionaires, mostly in their 60s and 70s, have already passed their torch to their millennial heirs and heiresses who had held senior management positions in their businesses for many years.

Zong Qinghou, the country's richest man in 2012, appointed his only daughter Kelly Zong, 34, as the chief executive of beverage giant Wahaha, while Liu Chang, 36, took the reins from his father Liu Yonghao in 2013 as the chief executive of agribusiness New Hope Liuhe.

"We have several professional managers as candidates," Wang said at the weekend.

Antoinette Hoon, a partner with PwC, said her firm's recent research found entrepreneurs tended to have a tough time determining whether they should prioritise the interests of their business or family.

"If the entrepreneur leaves family members in charge, they could cash out at any time," she said. "However, there is also a risk of family feuds that only increases with each new generation."

"On the other hand, setting up a family office to shield the business from family interests limits their control and their share of any dividends."

"We have several professional managers as candidates," Wang said over the weekend. "The one who is handpicked and later trained to be a business leader should be no better than those who manage to stand out of the others through competition," he said.

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Goldman Sachs to name David Solomon, Harvey Schwartz as Gary Cohn's replacements: WSJ

Goldman Sachs will promote David Solomon and Harvey Schwartz to the No. 2 executive spot, the Wall Street Journal (WSJ) reported late on Tuesday.

Solomon, presently co-head of the investment banking department, and Schwartz, the current chief financial officer, will be replacing Gary Cohn, second in command to CEO Lloyd Blankfein, the WSJ said, citing unnamed sources.


Cohn is leaving Goldman to become U.S. president-elect Donald Trump's chief economic adviser.

Meanwhile, Goldman's technology chief R. Martin Chavez could be promoted to finance chief, the WSJ said.

Read the full story here.

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Goldman Sachs to name David Solomon, Harvey Schwartz as Gary Cohn's replacements: WSJ

Japan manufacturers' mood improves to 1-year high: BOJ tankan

Big Japanese manufacturers' sentiment improved for the first time in six quarters in the three months December to hit a one-year high, a closely watched central bank survey showed, as stock gains and yen falls brightened prospects for the export-reliant economy.

The upbeat outcome reinforces market expectations that the Bank of Japan will hold off on expanding stimulus measures in the coming months.

Service-sector confidence was unchanged from three months ago, the BOJ's "tankan" quarterly survey showed on Wednesday, underscoring the fragile and patchy nature of recovery in the world's third largest economy.

The headline index measuring big manufacturers' business sentiment rose to plus 10 from plus 6 three months ago, the tankan survey showed, matching a median market forecast and hitting the highest level since December 2015.

"Manufacturing sentiment is doing well, reflecting a recovery in global trade," said Hidenobu Tokuda, senior economist a Mizuho Research Institute.

"Capex plans seem a little more cautious than I expected, so this is an area of concern. I think the economy will continue to grow due to exports and public works spending. The chance of additional monetary easing has receded."

Big non-manufacturers' mood was flat from three months ago at plus 18, compared with a median market forecast of plus 19.

Big manufacturers and non-manufacturers expect business conditions to worsen slightly in the coming three months, the survey showed, suggesting that companies remain cautious on whether the positive market trend will continue.

Big firms plan to increase capital expenditure by 5.5 percent for the current fiscal year to March 2017, the survey showed, down from their previous plans to raise spending by 6.3 percent. Analysts polled by Reuters expected capital spending plans to be raised by 6.1 percent.

Despite more than three years of aggressive money printing by the BOJ, Japan's economy has failed to emerge sustainably from the doldrums as soft global demand and slow wage growth weigh on exports and private consumption.

But recent data offered signs of hope. Private consumption edged up and Japanese firms' order books rose in November on robust Asian demand, masking concerns about the protectionist leanings of U.S. President-elect Donald Trump.

The stock market rally and recent yen declines, triggered by hopes for Trump's policies, also likely helped boost business and household confidence, analysts say.

The BOJ is likely to keep monetary policy steady and give a more upbeat view of the economy at next week's rate review, sources have told Reuters.

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Hertz appoints new Icahn-approved CEO, but stock sinks

Shares of Hertz Global Holdings fell more than 4 percent in extended trade after the company said John Tague will step down from his post as president and CEO of the company.

Kathryn Marinello will become the new president and CEO of the company, effective Jan. 3. Carl Icahn, chairman of Icahn Enterprises, the company's largest shareholder, praised the move, commending Marinello's experience.

"I am excited about Hertz and its prospects with Kathy at the helm," he said. "Kathy has a history as a proven CEO, and I believe she is the right person to lead Hertz as we move forward. Her consistent track record of successes in consumer and financial services, as well as technology businesses, is impressive."

Marinello previously served as chairman, president and CEO of Stream Global Services from 2010 to 2014. She has also served as a senior advisor of Ares Management since March 2014.

The company also announced that its three longest-serving directors have opted to leave the board on Jan. 2 with Tague.

Hertz is down 55 percent year to date.

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Casino stocks rally on bet Japan will be the next major gaming market as legislation clears hurdle

Shares of big U.S. casino companies rose as much as 3 percent in trading Tuesday on news Japanese gaming legislation has cleared a major parliamentary panel and could result in Las Vegas-style casino resort development.

In trading Tuesday, Las Vegas Sands closed up more than 3 percent. MGM Resorts and Wynn Resorts gained more than 2 percent by day's end, but had traded higher earlier Tuesday. Wynn also had news that it was selling a stake in its Las Vegas retail operations.

On Tuesday, the bill won approval in an Upper House committee after getting enough support within Prime Minister Shinzo Abe's ruling coalition. The landmark bill is now expected to get to the full Upper House as early as Wednesday and is widely expected to get approved.

The casino bill previously cleared the Lower House of Japan's parliament. Pachinko gambling already is popular in Japan along with betting on horse racing.

MGM Resorts CEO Jim Murren previously indicated the Las Vegas-based company might eventually spend more than $4 billion on an "integrated resort" in the island nation. The resort would include everything from the casino and hotel space to convention facilities and retail space.

Also, Las Vegas Sands Chairman and CEO Sheldon Adelson has expressed strong interest in the Japanese casino market.

"We continue to believe Japan represents a long-term value creation opportunity for those operators fortunate enough to operate integrated resorts within the market," said Stifel analyst Steven Wieczynski in a research note issued Tuesday. "However, we sense it could take a number of years until a shovel is put in the ground and the selected operators begin generating cash flow on what is expected to be rather sizable capital investments."

Efforts to legalize casino gambling in the world's third-biggest economy have been underway for several years but only in the last year started to gain traction when a bipartisan casino bill was presented in Japan's parliament.

"The reason why everybody's spending the time on this is that the potential is absolutely enormous," Murren said in November when discussing Japan on the company's earnings conference call. "It would dwarf the Singapore market in size and could be extraordinarily lucrative for all the investors, real estate and operators alike."

Overall, researcher CLSA estimates the Japan casino market could one day represent upwards of $40 billion annually to the national economy.

According to Murren, the Japan markets most talked about for casinos are Osaka, greater Tokyo, as well as Yokohama. "I have high confidence that MGM is going to be a front runner in one of these markets," he said last month.

Backers of Japan's casino measure say it will create jobs, boost the economy and promote tourism. It also would be a boost for companies manufacturing electronic casino games.

Critics say the casino bill would increase the problem of gambling addiction in Japan.

Meantime, the Wynn Resorts announcement that it would sell a 49.9 percent stake in its Las Vegas retail operations to Crown Acquisitions was seen as a positive development by industry analysts. It comes as Wynn is preparing to add new retail space in the Las Vegas market in fall 2017.

Union Gaming analyst John DeCree said the transaction with Crown values Wynn's overall retail assets in Vegas at just under $950 million. Also, the analyst said the deal terms are favorable when compared with MGM's move earlier this year to sell its Crystals mall located on the Las Vegas Strip.

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Silicon Valley engineers pledge to never build a Muslim registry

A group of nearly 60 employees at major tech companies have signed a pledge refusing to help build a Muslim registry. The pledge states that signatories will advocate within their companies to minimize collection and retention of data that could enable ethnic or religious targeting under the Trump administration, to fight any unethical or illegal misuse of data, and to resign from their positions rather than comply.

The group describes themselves as "engineers, designers, business executives, and others whose jobs include managing or processing data about people."

Silicon Valley tech companies themselves have, for the most part, stayed silent or declined to comment when asked about similar commitments to upholding civil rights. The pledge, which is posted at neveragain.tech, comes a day before top executives at major tech companies plan to attend a summit hosted at Trump Tower in Manhattan. Recode reported that Apple CEO Tim Cook, Facebook COO Sheryl Sandberg, Google CEO Larry Page, Tesla and SpaceX CEO Elon Musk, Microsoft CEO Satya Nadella, and perhaps Amazon CEO Jeff Bezos accepted an invitation to the summit from President-elect Donald Trump.

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Ka-Ping Yee, a software engineer at Wave, formerly of Google, and Leigh Honeywell, a security engineering manager at Slack, helped organize the Never Again pledge. Yee told BuzzFeed News that he didn't know why tech companies have not made similar commitments. "What's important to me is that individuals who care about the ethical use of technology can step forward, show how many of us there are, and say that there are lines we will not cross," said Yee.

Last month, after Facebook CEO Mark Zuckerberg said it was "pretty crazy" to think that fake news could have affected the presidential election, a group of renegade Facebook employees formed an unofficial task force to investigate Facebook's role in promoting propaganda.

"Ultimately, it's individuals who make decisions and do the work, and can take personal responsibility for their choices; if enough individuals refuse to participate, unethical projects can't proceed," Yee added.

We, the undersigned, are employees of tech organizations and companies based in the United States. We are engineers, designers, business executives, and others whose jobs include managing or processing data about people. We are choosing to stand in solidarity with Muslim Americans, immigrants, and all people whose lives and livelihoods are threatened by the incoming administration's proposed data collection policies. We refuse to build a database of people based on their Constitutionally-protected religious beliefs. We refuse to facilitate mass deportations of people the government believes to be undesirable.

We have educated ourselves on the history of threats like these, and on the roles that technology and technologists played in carrying them out. We see how IBM collaborated to digitize and streamline the Holocaust, contributing to the deaths of six million Jews and millions of others …

Honeywell said that the idea for a pledge came out of "informal discussions among techie friends." Roughly 30 people collaborated on the text. "We reached out to some civil society groups for feedback — we didn't want it to be written in a vacuum," she said. The organizers then looked within their existing networks to enlist others.

Right now within tech companies, "there's a lot of conversation happening about what people's ethical lines are," Honeywell told BuzzFeed. "I think that's really important. We don't know what's ahead, but we can at least lay down some ethical boundaries for our own behavior, and hopefully encourage others to do the same."

  • We refuse to participate in the creation of databases of identifying information for the United States government to target individuals based on race, religion, or national origin.

  • We will advocate within our organizations:

    • to minimize the collection and retention of data that would facilitate ethnic or religious targeting.

    • to scale back existing datasets with unnecessary racial, ethnic, and national origin data.

    • to responsibly destroy high-risk datasets and backups.

    • to implement security and privacy best practices, in particular, for end-to-end encryption to be the default wherever possible.

    • to demand appropriate legal process should the government request that we turn over user data collected by our organization, even in small amounts.

  • If we discover misuse of data that we consider illegal or unethical in our organizations:

    • We will work with our colleagues and leaders to correct it.

    • If we cannot stop these practices, we will exercise our rights and responsibilities to speak out publicly and engage in responsible whistleblowing without endangering users.

    • If we have the authority to do so, we will use all available legal defenses to stop these practices.

    • If we do not have such authority, and our organizations force us to engage in such misuse, we will resign from our positions rather than comply.

  • We will raise awareness and ask critical questions about the responsible and fair use of data and algorithms beyond our organization and our industry.

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German retail giant Lidl starts hiring for US launch

German discounter Lidl, which has expanded rapidly in Europe to become one of the continent's biggest retailers, has started a recruitment drive in the United States ahead of its expected launch in the country in 2017 or 2018.

Lidl held a hiring event for store managers in North Carolina on Monday and is inviting potential store supervisors to another event in Fairfax, Virginia on Wednesday.

"We have landed in America and we are searching for talented, friendly and dynamic people to grow with us," Lidl said on its careers website. "We are bringing a brand new fresh shopping experience to our American shoppers."

Lidl, which runs more than 10,000 stores in 27 countries in Europe, is expected to open its first 120-150 stores on the East Coast as early as the end of 2017, potentially increasing pressure on mainstream retailers like Kroger and Wegmans.

German discounter rival Aldi, which opened its first U.S. store in 1976 and now runs 1,600, is also growing fast in the country, both under the Aldi banner and Trader Joe's. Planet Retail forecasts Aldi will add another $5 billion of sales by 2020 to the $10 billion it recorded in 2015.

Holding a passport is among the requirements in Lidl's job descriptions posted for store managers as successful candidates will be expected to travel to Europe as part of a six-month training program.

"It's probably best to think about market impact on a localized level, as it will take many years for it to build any national scale," said David Gordon of consultancy Planet Retail.

Lidl is currently advertising 75 vacancies in the United States on its website, with most of the positions at its Arlington, Virginia headquarters, including experts in real estate and human resources, plus one German language teacher.

It is looking for properties in East Coast states between Pennsylvania and Georgia, with 80 sites under consideration or construction already, according to Planet Retail.

Lidl was not immediately available to comment.

Lidl could exceed $2 billion in sales by the end of its second full year of operations and almost $9 billion by 2023, consultants Kantar Retail forecast. It expects Lidl to have over 400 stores up and down the East Coast within a few years.

Lidl and Aldi have become giants by keeping prices low with a strategy of selling mostly own-brand goods in no-frills stores with minimal staff.

However, both chains have struggled recently in their home market as German shoppers have shifted to mainstream supermarkets, prompting the discounters to offer more brands and invest in sprucing up their stores, while also expanding abroad.

Lidl saw its sales rise 9.5 percent to 64.6 billion euros ($68.7 billion) in the fiscal year to the end of February. The Schwarz group that owns Lidl and the Kaufland hypermarket chain plans to invest 6.5 billion euros in the current fiscal year.

Based in Neckarsulm in southern Germany, Lidl is owned by Germany's richest man, Dieter Schwarz, son of the company's founder Josef Schwarz.

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German retail giant Lidl starts hiring for US launch

Chipotle shareholder urges Ackman to recruit new board members

Union-affiliated shareholder CtW Investment Group on Tuesday stepped up its pressure on Chipotle Mexican Grill by urging billionaire investor William Ackman to play a hand in recruiting new directors to its board.

"Replacing two or more incumbent directors with diverse candidates experienced in effective human capital management should be the highest immediate priority for the company, given that both its downturn and sluggish recovery have stemmed from inadequate training and staffing, as well as excessive operational complexity," Dieter Waizenegger, CtW's executive director, wrote in an open letter to Ackman. Hedge fund Pershing Square Capital Management, controlled by Ackman, announced a nearly 10 percent stake in the company in September.

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Op-Ed: The real reason Trump's denial that Russia hacked Democrats’ emails is so worrying

The spin war President-elect Donald Trump and his subordinates are waging over the question of Russian election-related hacking is raising serious questions about how his administration will function — because they're sending the message that the White House will refuse to accept facts that doesn't meet its own propaganda narrative.

In response to the Washington Post and New York Times's Friday reports on a secret CIA assessment that the Russian government deliberately intervened to help Trump win, the Trump team has pushed back very hard, attacking the agency as a whole and repeatedly questioning whether the Russians were involved in the hackings at all.

To be clear: An anonymously leaked CIA assessment should certainly not be taken for the gospel truth, and indeed there appears to be an interagency dispute over whether Russia's aims in hacking the email accounts of various notable Democrats here were specifically to elect Trump president (as the new CIA assessment suggests) or whether they could also have been to generally cause chaos and interfere with the US's election (which is reportedly the FBI's position). And Reuters reported Monday that the Office of the Director of National Intelligence also has "not embraced" the CIA's assessment of Russia's motives.

But there appears to be no interagency dispute on whether the Russian government (or at least entities closely tied to the Russian government) "directed" the hacking. That is a conclusion accepted by 17 different US intelligence agencies and public since October. And yet Trump and his team have repeatedly and publicly tried to cast doubt on just this conclusion, saying again and again that they're not sold on Russian culpability.

The bigger picture here is that Trump's actions over the past few days have sent an unmistakably clear signal across the government, and among those who will soon staff it. People who agree with the consensus conclusion of those 17 agencies will likely now feel distinctly unwelcome in the new administration, and fear political pressure to deny evidence and realities that are inconvenient to Trump. That helps ensure that people who have no compunctions about lying to advance Trump's agenda, will fill top posts. And intelligence agencies will feel pressure to cook their findings.

Overall, the heart of the problem is that Americans in swing states have elected someone president who is accustomed to lying casually without consequence, and has signaled that he will continue to do so in the White House.

That means it's likely up to those outside the executive branch to keep our politics at least somewhat tethered to reality — specifically Senate Republicans who have some sway. Senate committees can investigate controversial topics, and Senate confirmation hearings provide ample opportunity to ensure Trump is appointing qualified, reasonably honest people and to test whether they'd speak truth to power when they testify on certain issues.

Now, Trump's motivation for pushing back so hard on this topic is quite clear: Trump has long been obsessed with defining himself as a "winner," and therefore he is very thin-skinned about any suggestion that his election victory is illegitimate.

Signs of this include his absurd overreaction to Jill Stein's recount efforts even though they were overwhelmingly likely to further confirm his victory, his campaign manager's annoyance whenever his popular vote loss is mentioned, and his team's repeated and completely bogus assertions that he won in an electoral vote "landslide" (his electoral vote win is the 46th biggest out of 58 in US history).

Naturally, then, when the Washington Post and New York Times reported Friday on a secret CIA assessment that Russian hackers intervened in the election to help Trump win, the Trump team very quickly decided to attack the CIA for even coming to that conclusion (combining this with, again, that bonus false claim that Trump had won "one of the biggest Electoral College victories in history").

Transition statement on claims of foreign interference in U.S. elections:
(New York, NY) - These are the same people that said Saddam Hussein had weapons of mass destruction. The election ended a long time ago in one of the biggest Electoral College victories in history. It's now time to move on and "Make America Great Again."

On a call with reporters Monday, transition spokesperson Jason Miller made the subtext text by saying this was part of a "narrative in the news" that amounted to "an attempt to delegitimize President-elect Trump's win."

Also on Monday morning, Trump made an even more bizarre attempt to rewrite history with the claim that hacking "wasn't brought up" before the election.

Of course, it was talked about constantly, not least by Donald Trump himself, who in July openly urged Russia to "find" Hillary Clinton's deleted emails from her private server.

Trump was also repeatedly asked about the DNC hacks during the election, and refused to endorse the reported conclusions of US intelligence agencies that Russia was behind them. "It could be Russia, but it could also be China. It could also be lots of other people. It also could be somebody sitting on their bed that weighs 400 pounds, okay?" he said at the first general election debate in September.

Then in October, the US Intelligence Community released a statement saying it was "confident that the Russian Government directed the recent compromises of e-mails from US persons and institutions, including from US political organizations." But that wasn't enough for Trump. "Maybe there is no hacking," he mused during the second debate. So this has been going on for some time.

What's perhaps most worrying is that candidates for top jobs in the Trump administration have gotten the message that if they want the gig, they'd better follow Trump's line here.

John Bolton — who's reportedly the frontrunner to be deputy secretary of state — has gone on television in recent days making the argument that the hacks could be a "false flag," that the hacking could have been done by some other country, and that he didn't trust "politicized" intelligence from the Obama administration.

And Carly Fiorina, a reported contender for director of national intelligence, told reporters Monday that she and Trump spoke about "hacking, whether it's Chinese hacking or purported Russian hacking" — another apparent attempt to cast doubt on the US intelligence community's consensus finding.

In one sense, this is no big surprise. Trump is going to hire people who are willing to defend what he says, regardless of how absurd or flatly false it is. So if you're auditioning for a Trump administration job, you're going to back up Trump's latest statements.

But in another sense, it's extremely troubling. Potential Russian interference in US elections is a very serious matter. And again, the consensus conclusion of 17 intelligence agencies is that the Russian government or entities closely tied to it are behind the hackings. Yet Trump's team is making it loud and clear that their conclusions will not be accepted, because they aren't what the president-elect wants to hear.

And while there are often controversies about the alleged politicization of intelligence in administrations — the Bush administration pressured intelligence agencies to find information that would justify war with Iraq, while Obama has been criticized for downplaying the threat of ISIS because it didn't fit with his message that the threat of terror was declining — it's startling and likely unprecedented for a president-elect to be going to war with an intelligence agency before he's even sworn in.

Despite Trump's thin skin about the legitimacy of his victory, he is the winner and he is set to be president. The findings of these investigations will not change that.

So to prevent us all from being mired in a fact-free zone for the next four years, the Senate has a responsibility to exercise its independence and prevent the Trump administration from advancing baldfaced lies unchallenged.

First off, the Senate needs to grill top Trump foreign policy appointees — his director of national intelligence, CIA director, secretary of state, secretary of defense, and all their relevant deputies — on the issue of Russian hacking. It needs to ensure those appointees aren't mere Trump cronies but are respected and independent figures.

Second, the relevant Senate committees (or some special committee) also need to carry out their own bipartisan investigations on the matter. And while Senate Majority Leader Mitch McConnell signaled Monday that he would support investigations, the devil is in the details here. For instance, Politico's Austin Wright suggests that if the investigation is relegated to the congressional intelligence committees, final reports might never be released to the public.

Third, on future matters where the Trump administration seems set on denying reality, the Senate needs to step in. If Trump's team remains so hell-bent on twisting the facts for its propaganda purposes, the bar for the Senate to create an independent commission or launching a serious investigation should be lowered. If the administration shows it can't be trusted to be honest on basic matters, serious, continuous oversight is necessary.

Still, there is only so much the Senate — particularly if Democrats remain in the minority — can do. Trump is who he is, and his appointees will in large part say and do what he wants. The most his critics can do is make sure he pays a political price for it.

Commentary by Andrew Prokop, who covers politics at Vox. Follow him on Twitter @awprokop.

For more insight from CNBC contributors, follow @CNBCopinion on Twitter.

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Op-Ed: The real reason Trump's denial that Russia hacked Democrats’ emails is so worrying