How Much Money Olympic Athletes (Not Named Michael Phelps) Make In A Year From Their Sport
“#SaveTwitter”— A trending hashtag yesterday after rumors circulated that Twitter may be shutting down in 2017. Twitter was quick to deny the rumors. #Saved.
- Each major U.S. index closed at an all-time high, a feat last accomplished in 1999, as oil prices rose along with strong earnings reports from the retail sector
Alternatives to Watch
- Oil jumped 4% after the Saudi oil minister made assuring comments about possible action to stabilize oil prices
- Valeant Pharmaceuticals dropped 11% after details emerged that the embattled company was under criminal investigation. The stock was trading around $24.50 yesterday, down from its peak of $264 last year
Macy’s is Going on a Spree
…But it has nothing to do with shopping. Despite beating analysts’ earnings expectations yesterday, the department store announced plans to close around 100 stores to speed up the cost-cutting process. What’s the deal? A little thing called the Internet. With many people shopping online, brick-and-mortar stores are struggling—although it seems that the second quarter has been kinder than the first overall. What’s next? Macy’s plans to better its in-store experience to draw consumers, and will also work to improve its digital platforms. Welcome to 2016, Macy’s.
…Seems like everyone’s leaving Alphabet. The most recent departure from the Google parent is the founder of Google’s venture capital segment (GV), Bill Maris. Who’s next? His successor, David Krane, is said to be more tech-oriented with investments, as he was behind GV’s investment in Uber. One successor was named, but leaders are dropping like flies. The director of Google’s self-driving car effort left just last week, and the CEO of Alphabet’s home-automation unit, Nest, stepped down in June.
Foxconn Gets the Green Light
…To buy Sharp. Chinese anti-monopoly authorities approved iPhone manufacturer Foxconn’s acquisition of Japanese industrialist Sharp for $3.8 billion. The deal was announced back in June, but the Chinese wanted to give an extra long look before giving the thumbs-up. The merger, which is now very close to being all said and done, will create the world’s largest contract electronic manufacturer—combining Foxconn’s powerful list of clients (aka Apple) with Sharp’s high-end screen expertise.
No More Toil
…For oil? One day after OPEC announced that Saudi Arabia pumped out a record-breaking amount of oil last month, the International Energy Agency released a monthly report concluding that the world’s production of crude oil is falling behind demand—by almost one million barrels a day in the July through September period. How can that be? Two main factors: deep output cuts by non-OPEC members and strong global demand for oil. Seems simple enough. Looks like OPEC, and especially Saudi Arabia, have no reason to stop pumping.
- Arianna Huffington to leave the Huffington Post
- Keyless systems of many VW cars can be hacked
- Delta says small fire was partly to blame for computer failure
- EU opens antitrust probe on Dow Chemical, DuPont merger
- Monday: LendingClub Earnings (-); Labor Market Conditions Index (+)
- Tuesday: Coach (+), Valeant (-), Walt Disney (+), Yelp Earnings (+); Wholesale Trade (+)
- Wednesday: Michael Kors (+), Ralph Lauren (+/-), Shake Shack (+/-), Wendy’s Earnings (+); Treasury Budget (+)
- Thursday: Kohl’s (+), Macy’s (+), Nordstrom (+) Earnings; Weekly Jobless Claims (+/-)
- Friday: Retail Sales; Consumer Sentiment
WHAT’S GOLD WORTH?
Michael Phelps’ estimated net worth: $55 million. Well, that makes one Olympic athlete. As it turns out, with the fame of the Olympics doesn’t always come the fortune. Here’s a look at the financial burden that comes with going for the gold:
- Most Olympians receive very little funding and don’t make much money from their sport outside of the Games. According to javelin thrower Cyrus Hostetler, the most he’s ever made in a year is $3,000.
- And Olympic javelin throwers aren’t the only ones. 50% of the top 10 American track athletes earn less than $15,000 a year from the sport.
- Many aspiring Olympians are unemployed and supported by their families, some of which have even gone bankrupt from their efforts to support their child’s dream. A number of these athletes turn to websites like GoFundMe to help keep their dream alive. Olympic Gold, or a living wage?
INTERVIEW QUESTION OF THE DAY
How does inflation affect the exchange rate between two countries? (Answer)
BUSINESS TERM OF THE DAY
Hot Money — Currency that moves regularly, and quickly, between financial markets. Investors ensure they are getting the highest short-term interest rates available for hot money, which continuously switches from low to high interest rate countries.
FOOD FOR THOUGHT
According to an article published yesterday in the journal Science, the Greenland shark may live to be more than 400 years old—which may make it the longest-lived vertebrate on the planet. Looks like Discovery’s Shark Week will have some new material for next summer.