In a high-profile trade, the New York Giants has traded Damon Harrison aka “Snacks” to the Detroit Lions in a fifth-round draft pick.
The deal comes amidst rumors that any of the New York Giant’s struggling defense could be available for trade. Harrison’s skills haven’t waned but the Giant’s appear committed to a full rebuild of its defense. Detroit’s defensive line ranks 30th in the NFL.
Harrison, 29, signed a five-year deal with the New York Giants just before the 2016 season worth $46.25 million. The Lions will pick up the $4.1 million Harrison is owed from this season, plus $7 million in 2019, and $9.25 million in 2020.
Originally from New Iberia, Louisiana, Harrison started playing football in his senior year at high-school and missed junior season recruiting so was overlooked by college scouts.
He was later recruited to William Penn University, Iowa, and went on to be signed by the New York Jets in 2012. He left the Jets for the Giants and the million-dollar deal in 2016.
As of Wednesday morning, October 24, 2018, the deal with the Detroit Lions hadn’t been confirmed officially. Lions coach Matt Patricia commented that despite the information circulating about the trade:
“I’m not going to comment on any situation that is not official or is not complete.”
Later that day, however, Harrison tweeted his thanks and goodbye to the New York Giants:
Much love to my teammates, the amazing staffs, coaches, and all the fans. This is my second home because of you…✌🏾 pic.twitter.com/4VUAjkIHlu
At 6ft 2in and 355Ib, Harrison is set to strengthen the Detroit Lion’s defense, a team that some believe are within striking distance of currently first-place Vikings in the NFC North.
George Soros is on a growing list of important people who have apparently been victims of a mail bombing campaign. There isn’t much information about who could be behind a plot that has targeted numerous politicians, including the Clintons, Barack Obama, and former CIA Director John Brennan at CNN.
It’s impossible to know the purpose of this series of reprehensible acts, but the targets all seem to be opponents of the Trump administration. At first glance, this suggests a political motivation. Yet another deranged Republican extremist at large.
All the bombs that have been found so far have been homemade explosive devices, commonly called pipe bombs. While a simple device, a pipe bomb is potentially deadly.
George Soros’ Politics Are Certainly in Play
Alexander Soros, who is George Soros’ son, was quick to frame the wide-reaching bomb plot in highly political terms.
In an op-ed that was published in the New York Times, the younger Soros said that:
“With Donald Trump’s presidential campaign, things got worse. White supremacists and antisemites like David Duke endorsed his campaign. Mr. Trump’s final TV ad famously featured my father; Janet Yellen, chairwoman of the Federal Reserve; and Lloyd Blankfein, chairman of Goldman Sachs – all of them Jewish – amid dog-whistle language about ‘special interests’ and ‘global special interests’.”
What isn’t being covered as much in the US media is the fact that most of the people that were targeted have been part of numerous political actions across the planet over the last few decades.
George Soros’ employees have openly admitted to intervening in global politics as early as 1991 when they helped overthrow Slobodan Milosevic in Yugoslavia.
Velimir Curgus, who worked for the Soros network in Belgrade, said that:
“We were here to support the civil sector–the people who were fighting against the regime of Slobodan Milosevic the past 10 years… Most of our work was undercover.”
A Rich Man’s Game
Soros’ enormous fortune, currently estimated to be in excess of $8 billion USD, allowed him to build an extensive network of NGO’s across the planet. The activities that these groups have undertaken aren’t publicly disclosed, but George Soros has talked about his involvement in working to supplant existing governments in formerly communist states.
In a 2001 article George Soros explained:
“When I got involved there was a pressing issue, which was the collapse of the Soviet empire and the transition from a closed to an open society… It was a historical opportunity, and I rushed in.”
Another Historic Opportunity Closer to Home
It’s no secret that George Soros is close to the Democratic party in the USA, and was openly opposed to Donald Trump’s election in 2016. Curiously, the public’s reactions to some of President Trump’s actions in early 2017 were exaggerated when compared to similar policies that were enacted by former President Obama.
President Trump’s travel ban that limited access to the US for citizens from seven countries was met with actual riots. Most people don’t know those seven countries were initially selected by former President Obama, and used for enhanced visa security policy during his administration.
Travel ban riots in 2017 / Shutterstock.
Former President Obama also created a presidential hit list, which extended to US citizens.
The reaction from the public and the media was extremely limited in both cases, especially when compared to the ‘instant riots’ that President Trump’s 90-day travel ban seemed to cause.
There’s no direct evidence to link George Soros to politically-motivated riots in the USA, although his organizations have worked extensively along similar lines in other nations.
For what it’s worth, President Trump has come out on the side of a civil political process and decried the pipe bombs that were sent to some of his fiercest critics as:
“abhorrent, despicable.”
Whether or not these acts have anything to do with the upcoming mid-term elections in the US or a much deeper motive is anyone’s guess at this point.
It’s been a pretty good ride for FANG stocks with VC funding flowing and exorbitant trading prices, but it seems the party’s about to end. Reuters reported yesterday that several tech-heavy US fund managers are starting to shift their focus away from the flailing FANG stocks. I’m referring of course to the insiders’ name for Facebook, Amazon, Netflix, and Google, not some Halloween costume making company.
Tech Funds Turning to Payment Companies Instead
As the panorama for tech companies all around looks a little bleak, major funds are turning back to the tried and tested companies that underpin vast volumes of mobile transactions, and online shopping payments.
These include Visa, Mastercard, and PayPal. All these companies are currently reporting above-average growth and have more reasonable valuations than the FANGs.
They’re also faring the latest stock market storm considerably better. Visa, for example, is down by around 3% over the past three months. But that’s compared to an over 30% plummet from Facebook and a 13.5% dive from Alphabet.
Portfolio manager of Plumb Equity fund Tom Plumb said:
“Right now we’re certainly looking at a test of the past [market] leadership and some of these FANG stocks have gotten ahead of themselves… We’re looking with companies that have high recurring revenue and high growth, and not a lot of companies are in a better spot than the payments space.”
More Realistic Price to Earnings
Plumb isn’t the only one who’s turning away from the FANGs. Managers from other investment firms like Ave Maria Mutual and Villere & Co. have also moved out of Facebook & Co. for the time being. Their valuations don’t seem sustainable and they haven’t fared well in the latest volatility.
The payments sector, on the other hand, is the perfect vehicle to tap into the rise of e-commerce and mobile purchasing. Moreover, Visa trades at a price-to-earnings ratio of 38.3, while Amazon trades at a P/E of 160.6. Lamar Villere from Villere & Co. said:
“You’re getting a lot of the same disruption but at a fraction of the price.”
With online sales expected to make up one-fifth of all US retail sales by 2022, payment providers could be your next best bet.
Music Producer DJ Khaled is a millionaire in his own right, and with so much luxury at his disposal, you’d hardly think he needed to start buying lottery tickets. But the controversial producer has been trending of late after he reportedly purchased a stack of lottery tickets for the $1.6 billion prize at stake.
Fans went for his jugular on social media platforms, and the reason is not far-fetched. Why are the rich always keen on getting richer when there are so many people in need?
42-year old Khaled is worth well over $20 million and surely wants to climb higher on the wealth ladder. Joining the billionaire’s league isn’t a bad idea after all.
The Mega Millions lottery comes with a jackpot of a staggering $1.6 billion, the biggest lotto payout since 1776 when the US got its independence.
DJ Khaled Called Out for Being Greedy
Are fans fair for labeling him a greedy freak? His lifestyle might have painted him in that light. It is typical of celebrities to brand themselves as ‘exceptions’ in the way and manner they live.
In one of the videos which he posted on his Instagram handle, Khaled, while at a convenience store in Florida bragged about spending a “whole bag” on as many lottery tickets as he could afford.
His jauntiness was quite imposing in the video as he was so preoccupied with the sign that read the $1.6 billion prize boasting:
“I’m gonna get me mine!”
His exuberance got on the nerves of those who queued behind him as they impatiently gestured at the cashier for spending so much time in printing the tons of tickets purchased by Khaled.
The permutation on each ticket provided as many as ten numbers, and his stack was simply massive. Extravagance is no big deal for someone of his clout so it wouldn’t have mattered even if he purchased thousands of tickets. His tickets were nevertheless so many that he had to get black jumbo binder clip to hold them together.
While some fans couldn’t help but call him greedy for wanting to amass more wealth at the expense of others, a few others would rather rue the capitalist system where the wealth has never been evenly spread.
The potshots came from different directions, but virtually all of them had the undertone of describing him as being greedy.
The Mega Millions is open to all Americans, but many feel that individuals of Khaled’s wealth should be ruled out of the game.
Deathly screams are ringing out today as news of the new Fortnite Halloween update aptly named ‘Fortnitemares’ has just been launched. If it’s scary how immensely-popular the game already was with gamers of all ages, the ghoulish new update will frighten you to death.
The Fortnite Halloween update was released on Wednesday and will be a limited-time feature that is offering new spooky challenges, wicked weaponry and ghostly new outfits that will suck the blood from your already-decrepit corpse.
Hellish Fun with the Fortnite Halloween Update
The Fortnite world is buzzing this week as Fortnitemares makes a return to a game console near you. Fortnitemares first aired last October for Halloween and is back bigger, better and bloodier than ever before.
The Fortnite Halloween update has some really cool features such as cube fragments from the “Fortnite: Battle Royal” spawning into cube monsters that offer loot features such as extra shields when you kill a monster. You can unlock some unique and exclusive Halloween content when destroying the cube monsters.
New Deadfire Fortnite Skin Outfit
If you’re a Fortnite skin collector, the most desirable new feature on the Fortnite Halloween update will be the new Deadfire skin which will apparently shift appearance during mid-March depending on your performance on the game.
If you build up lots of damages and survives from your battle royals, the Deadfire skin will change to a scary specter phantom.
The Deadfire skin and outfit come equipped with a wide range of new features such as the “Dark Shard” pickaxe, and the Shackled Stone Back Bling backpack, which will tickle the fancy of the most hardened Fortnite player.
If you’re the sort of person who likes to obliterate your competition to smithereens, other earth-shattering weaponry available via the update are the six-shooter high caliber pistol, a crossbow, and the pumpkin launcher.
Updates to ‘Fortnite: Save the World’
The new Fortnite Halloween update will also include additions to the paid mode of the game, ‘Fortnite: Save the World’. Paid players will be happy to see the return of Hexsylvania from last year’s Fortnitemares, which is a special zone that has a new set of Vlad Moon Rising objectives.
The upgrade to the paid version of Fortnite will also have a new narrative that is different from last year’s version and seven event-specific heroes from the 2017 Fortnitemares game.
The “Save the World” version is also now on offer with a 50% discount until November 6 if you don’t already have the campaign mode.
The new Fortnite Halloween update won’t be around for long, so make sure you get on there now or you might wake up to a chorus of zombie flesh eaters.
Apple plans to roll out a TV subscription service in more than 100 countries in a move that will put it in direct competition with content juggernauts Netflix and Amazon.
The California tech giant will launch the subscription streaming service in the first half of 2019, The Information reported. The roll-out will start in the United States and then move into other countries in the following months.
The new subscription service will be similar to Amazon’s Prime video channel subscriptions. Apple’s service will offer free original programming to Apple device owners as well as access to third-party services.
It will also allow users to sign up for network subscriptions, such as HBO and Showtime, using the Apple app.
$1 Billion Investment in Original Content
In 2018, Apple invested $1 billion to develop a wide array of “PG-rated” original content. Apple now reportedly has 20 shows in its pipeline after scoring high-profile, multi-year deals with mega-producers Oprah Winfrey, Steven Spielberg, and J.J. Abrams.
Among them is a scripted TV series co-starring Reese Witherspoon and Jennifer Aniston, according to The Verge. There is also a psychological thriller series from filmmaker M. Night Shyamalan.
Apple has been making a huge push to join the content war against Netflix and Amazon beginning in 2017 when it hired Sony Pictures Television presidents Zack Van Amburg and Jamie Erlicht to run its video business.
The duo produced the popular crime series “Breaking Bad” and the hit drama “The Crown,” among others.
Apple’s foray into original content has drawn some criticism after its initial failed attempts with the reality series “Planet of the Apps” and “Carpool Karaoke,” both of which flopped.
Analyst: Original Content Is King
Some analysts view the business decision as a cynical move to sell more Apple products. Media advisor Ezra Kucharz told The Wrap:
“First and foremost, they’ll use it to sell more products”
Kucharz, a former senior strategist to CBS, said content is king–but it must be original to win an audience.
“It’s going to be all about scripted shows… If you’re in the commoditized and perishable content business, things are going to be tough. You can get weather [updates from] a lot of places.”
That said, it could take a while for Apple’s TV subscription service to compete with established giants like Netflix and Amazon, which toiled for years to build up their business model and cachet in Hollywood.
But Apple has deep pockets and a will to win, so it could gain traction sooner rather than later.
Tesla Motors Q3 financial results were published after closing bell yesterday. They turned out to be considerably better than many analysts had expected.
The hastily arranged Q&A webinar which Tesla announced earlier this week caught some analysts off guard. Just before the release of the interim financial results by Tesla Motors we suggested Q3 figures would be ahead of forecast:
“It’s widely accepted that good results are announced early, and bad results held back as long as possible. In 2016, Tesla announced their Q3 figures early. Q3 2016 was the only profitable period to date. So the clues suggest we should be bullish on TSLA.”
There’s a school of thought that its also good form to get bad results out early so the company can move on. This was far less likely for Tesla Motors when you consider their results since they went public in 2010.
Tesla stock price was up 13% on Tuesday, and there was a possibility it had already factored in better-than-expected forecast results. Before the closing bell, the gains from Tuesday were maintained but with no clear indication of direction.
Tesla Motors Q3 2018 Results
GAAP net income came in at $312 million (non GAAP $516 million) from $6.8 billion revenue. This compared with Q2 figures of a net loss of $718 million from $4.0 billion revenue.
Having lost money every year since it went public, the cash flow figures were eagerly anticipated. Tesla didn’t disappoint. Free cash flow for Q3 was an impressive $881 million and operating cash flow $1.4 billion.
Elon Musk backed up the Q3 results in the Q & A webinar by saying he “hoped” income and cash flow would be positive for every quarter, hereon in. It has to be said though that he didn’t sound too convinced when he said it.
The Q3 results break down the results between automotive products and energy products. It also looks ahead and confirms they are still on target to deliver 100,000 Model S and X vehicles this year.
The first part of the webinar also covered Tesla’s safety designs with a recent 5-star rating and the highest standard of all 943 vehicle models ever tested in the US.
One hour after the closing bell TSLA was trading as high as $330 before falling back to around $317. The stock price is now ahead of the mean target from analysts of $304.
What Did the Tesla Analysts Get Wrong?
Revenue figures didn’t shock the analysts as much as the gross margin. The Model S is stated at more than 20%. Many analysts were simply not prepared for such an improvement in margin given the much-publicized difficulties in production and shipment.
Jamie Powell of FT Alphaville published a revised Q3 profitability forecast just a couple of weeks ago. It proved to be wholly inaccurate despite being released after Model S deliveries for Q3 had been reported by Tesla Motors.
In an earlier forecast, FT Alphaville had estimated 60,000 units would be delivered. They updated the forecast to the actual Model S deliveries of 55,840. They also increased their margin forecast from 11% to 15% and threw in some possible cost savings.
Their overall assessment was that Q3 would be another loss-making quarter:
“So returning to our model, and it is hard to figure out just how Tesla can eke out a profit this quarter, even with Model 3 gross margins of 15 per cent.”
How wrong they were, but that could be said for many market analysts covering Tesla Motors. Elon Musk was on his best behavior during the Q3 Q&A session with analysts.
This is in stark contrast to the Q1 webinar where Musk was quite belligerent to several Tesla analysts. Surprisingly, no tweets from Musk after the webinar, in fact, no tweets at all yesterday, which is quite rare for the serial tweeter.
On the back of freefalling Chinese equities and slowing growth, dwindling European markets, and signs that the next global economic downturn could be upon us, the US stock market got crushed yesterday. Nasdaq had its worst day in seven years after a series of late selloffs erased all gains for the year for the Dow Jones Industrial Average and the S&P 500.
Nasdaq Sees Worst Day in 7 Years
It was down and dropping with the worst of the bleeding coming from a late rout in US stock markets on Wednesday causing the S&P 500 to fall by 3.1% and the Nasdaq Composite to shed 4.4%–its biggest drop in a single day since August 2011.
Most of the panic selling happened in the last hour of the trading day as things went from bad to worse pretty quickly.
Tuesday’s Q3 earnings reports from US industrial giants 3M and Caterpillar took their toll on nervous investors with industry and energy among the hardest hit on Tuesday.
Yesterday’s bloodbath, however, was led by the communications services sector, chiefly, AT&T, ending 8% down after missing its quarterly profit forecast thanks to more and more Americans cutting the cord on their pay-TV subscriptions.
Fear and Panic Across All Industries
No industry was spared in the dive, and the tech sector also saw dramatic drops, with chipmakers, in particular, suffering from the decline.
The S&P 500 semiconductor and semiconductor equipment index dropped by 6.5%, registering its worst day since January 2009.
Dows’ Biggest Losers / Source: FT
Stock Market Slide Continues in Asia
Thursday is shaping up to be another torrid day for Asian stock markets as China’s CSI index of mainland companies dropped by a further 2.8%, down by almost 9% in October, the worst month so far since January 2016.
The carnage was echoed in South Korea with the Kospi index down 12.6% and Japan’s Topix index down 11%. Both these markets are set to make October their worst performing month since October 2008.
Asia stocks tumble / Source FT.
Hong Kong’s Hang Seng also fell by 2.4% this Thursday, bringing the index down by 11% this month with its sixth consecutive monthly fall–the longest consistent decline since 1982.
Highly valued tech stocks also suffered a mighty battering after years of stellar gains. That included Chinese tech giant Tencent down by 3%, and AAC Technologies Holdings, a high-tech component maker slumping by 6% so far this Thursday.
Why Is This Happening?
Stock markets are funny things. And highly susceptible to external pressures. In the case of this October, there’s a combination of factors that have gotten investors spooked. Partly, the stock market, particularly the tech sector, has been on a multi-year bull run with overinflated prices and high valuations. In part, a correction of sorts in this sector is long overdue.
External geopolitical pressures are also weighing heavily on investor confidence and global stock markets, with many companies bracing for lower profit margins in the wake of rising global tariffs and interest rates.
The slowing growth in the Chinese economy, ongoing US-China trade war, uncertainty in Europe over Italian bonds and Brexit, and the tensions with Saudi Arabia after the killing of journalist Jamal Khashoggi are all battering a fragile stock market and causing investors to pull the plug.
Is the next global recession here? I hate to be the bearer of bad news, but let’s just say, the signs aren’t looking good.
There’s no flashing red light or bell that goes off when the global economy tilts towards the abyss. But over the last few months, numerous data points have signaled a weakening economy, and the potential for another global economic downturn is very real. The reasons the post-2008 recovery is probably over are varied, but the end result is a trying environment for investors.
With the US stock market near all-time highs, it might be hard to believe that a global economic downturn is imminent. Yet Investor AB is preparing for harder times.
Investor AB is the investment arm of Sweden’s Wallenberg family. The company controls a portfolio that’s worth more than $40 billion USD and owns shares in one-fifth of the large-cap companies listed on Sweden’s benchmark exchange.
Investor AB just sold a 12-year 500 million Euro bond to build up their cash reserves. According to CEO Johan Forssell:
“For us, the most important part is that we’re prepared, and that’s why we issued a big bond and why we work closely with our companies to make sure we’re flexible and can adapt to different environments as good as we can.”
The Risk of a Global Economic Downturn is Real
Forssell went on to cite deteriorating economic data from Asia and Europe, as well as currency devaluation and a global trade war as reasons for concern. And Mr. Forssell isn’t alone in making preparations for harder times. The trade war that US President Donald Trump began is starting to bite the global economy. The US is also upping the ante in the South China Sea.
A recent video released by The Economist brought up the risk of another global recession, but the moderate tone that was struck by Senior Editor Ryan Avent may be lagging the global economic reality.
As it stands today, China’s Financial Stability and Development Committee has held 10 meetings over the last two months. The Committee is led by Vice-Premier Liu He, who is directly connected to Chinese President Xi Jinping.
The previously unscheduled meetings began on August 24 of this year, but they’ve been kept out of the news. Xu Jianwei, who is the senior China economist at French bank Natixis, commented:
“The anxiety among the top [Chinese] leadership is 100 percent”
It isn’t hard to see why the Chinese government would be concerned. In addition to an increasingly hostile relationship with their largest trading partner, the benchmark Shanghai Composite Index has fallen to 4-year lows, and the Chinese housing market is crumbling.
Real War Would be Bad News for the Global Economy
A global economic downturn would certainly challenge central banks and governments. As Avent correctly pointed out, the regular tools that policymakers have used to fight off recession aren’t available.
The post-2008 world order has destroyed the role of interest rates, and quantitative easing has introduced an entirely new role for major central banks.
Compared to the potentially hot war that is emerging in the South China Sea, monetary policy and interest rates are of little concern. Over the last few days, the US Navy sent two guided-missile warships on a freedom of navigation mission. They sailed in the Taiwan Strait, between the heavily disputed island of Taiwan, and mainland China.
This isn’t the first naval provocation by the US in disputed waters.
While Beijing has yet to respond officially to the naval exercises, an op-ed published in the Global Times (an unofficial mouthpiece for the Chinese Communist Party) on Monday penned by Chen Xiangmiao, a researcher at the National Institute for South China Sea Studies, stated that:
“Beijing needs to safeguard territorial sovereignty and maritime jurisdiction in the area and ensure secure corridors for energy import and freight transport… Judging by the current circumstances, China has no other choice than taking countermeasures, including increasing military deployment in the region.”
It’s worth remembering that when Archduke Franz Ferdinand was shot dead in Sarajevo on the 28 June 1914, the financial markets didn’t react. It wasn’t until the bond markets suddenly slammed shut a month later across the European continent and the UK that people realized the gravity of the event.
Don’t wait for a bell to ring, and pay attention to what is happening. The next global economic downturn could be much faster, sharper, and more violent than anyone can imagine. There’s no time like the present to prepare.
The fast-growing eSports industry, which is likely to generate nearly a billion dollars of revenue this year, has created a group of the highest performing companies worth over $1.5 billion.
The world’s most valuable eSports company, US-based Cloud9 is worth $310 million.
Most of these new companies have emerged in the last 5-10 years. eSports gained a hold in the video game industry in around 2010 and has thousands of professional gamers playing strategy, shooting and fighting games.
eSports has an audience of millions, expected to reach 427 million by 2019, who watch players and tournaments on streaming platforms such as YouTube and Twitch.
The eSports industry took a step closer to the world of real sports when Riot Games began selling League of Legends franchises for $10 million each in 2017. Activision Blizzard also sold franchises for Overwatch League for $20 million.
Traditional sports legends like Magic Johnson have even bought franchises. Now such operations are worth far more, League of Legends franchises are currently in the region of $50 million, and Overwatch between $60-$80 million.
Activision Blizzard signed a deal with Disney in July 2018, to broadcast the Overwatch League on mainstream television including on channels ESPN and Disney XD.
The eSports Market – Statistics Roundup
Estimated audience by 2019 – 427 million
Estimated revenue in 2018 – $906 billion, a growth of 38% from last year
Estimated revenue in 2021 – $1.65 billion
Largest revenue stream – sponsorship at an expected $359 million in 2018 and expected to rise to $1 billion by 2020
Expected advertising revenue in 2018 – $174 million
Expected media rights revenue in 2018 – $161 million, expected to grow to $320 million by 2021
Expected game publishing fees in 2018 – $116 million. Merchandising and tickets $96 million
Biggest Star in 2018 – Tyler Blevins “Ninja” who has 19 million subscribers to his YouTube channel and an estimated net worth of $6 million
Capital investment deals into eSports in 2018 to date – $2.34 billion an increase from $1.53 billion in 2017 and from just $34 million in 2008
Most Valuable eSports Companies to Date
The top ten eSports companies on the following table by Forbes are worth a combined $1.58 billion. Cloud9, worth $310 million, is set to earn $22 million in 2018 from its team’s success in games like League of Legends and Fortnite.
Forbes combined the list from expert information and opinion, Pitchbook and public filings, and information on capital deals. The list only includes gaming companies and not game publishers or arena builders.
These new companies have quickly morphed into deal makers like their equivalents in the traditional sports sector. Players are hired and changed daily, funding rounds are underway and sponsorship deals are growing rapidly.
eSports companies have to move quickly as new games emerge and others go out of favor and their eSports teams are trained and coached like any other sports players.
eSports is an emerging industry, set for massive growth and already delivering that growth to the innovative companies that have quickly adopted its potential. In comparison, and as a clue to the potential of the sector, the global traditional sports industry is worth as $450 billion.
