‘Clock Kid’ Ahmed Mohamed Plans $15M Lawsuit, Plus Google Can Now Do Even More

by 3 years ago

morning-brew

“The destiny of search is to become the Star Trek computer.” Google senior vice president Amit Singh, in a 2012 blog post. Yesterday, Google made that destiny a reality, unveiling a prototype wearable device based on the Star Trek-style communicator.

MARKET CORNER

MARKET SNAPSHOT 

Mockingjay Sets Bad Omen

  • U.S. stocks finished lower on Monday for a series of reasons: oil fluctuated before finishing higher after the Saudi cabinet announced it was fully committed to working with producers to bring stability to the lagging commodity. Theater stocks (IMAX, Cinemark, etc.) were lackluster after the opening weekend of Mockingjay: Part 2 fell drastically short of optimistic expectations. The last bummer: an economic report showing an unexpected 3.4% decline in existing home sales for October.
  • European stocks sank too, and the euro fell against the dollar once again as Fed talk continued pushing up the U.S. currency, which is now at an eight-month high. On the plus side, British defense stocks skyrocketed after Prime Minister David Cameron announced a 12 billion pound increase in defense spending over the next 10 years.
__________
WORLD MACRO 

Argentina Shifts to the Right

The results of Argentina’s presidential election are in: conservative president-elect Mauricio Macri will be inaugurated in December. First on his to-do list: Argentina’s failing economy. After four straight years of little to no growth, high inflation and ineffective capital controls, Macri is on a mission to get Argentina on the right track. His plan? Reduce the government’s role in the economy, shift foreign policy relations away from Venezuela and towards the U.S. and release data about the state of the economy to the public. Admirable goals all around.

__________
CORPORATE PRIMER

Tyson Foods Shines

The U.S. food processing giant kicked off a big earnings week for food companies in prime fashion, topping earnings expectations for the quarter. Since purchasing Hillshire Brands last year, Tyson’s sausage division has been sizzling. The acquisition, paired with an increase in demand for chicken products, all contributed to shares jumping 10% yesterday. Planning for an even brighter future, executives have stated the company aims to become more consumer-focused and stand behind its family-oriented values.

Highly Active Activists

Activist investors were rather busy yesterday, so let’s take a quick look:

  • Hedge fund Elliott Management disclosed a 6.5% position in aluminum producer Alcoa. Elliott likes the stock because of the growing aerospace and automotive industries, which have been overshadowed (unfairly, in Elliott’s opinion) by ailing aluminum prices.
  • Famous activist investor Carl Icahn wants more direct communications between shareholders and executives at AIG—and he wants it now, going so far as to request an immediate change in the company’s CEO.
  • Carl didn’t finish there—he also purchased a 7% stake in printer maker Xerox. He believes the stock is significantly undervalued after discussing operational and strategic plans with the company’s executives (it’s nice to be a major shareholder).
__________

TODAY IN TECH

Your Friendly Neighborhood Search Engine

Google helps you find things all the time. Now, it can even help you buy a home, following the release of Google Compare for Mortgages. Data for the service comes from partnerships with real estate marketplace Zillow and loan broker LendingTree. Compare continues Google’s trend of dominating all things search—with dedicated services Google Flights, Shopping and Hotel Finder, why not a mortgage comparison tool too?

__________

OTHER STORIES

  • “Clock kid” Ahmed Mohamed plans $15 million lawsuit
  • GameStop sinks after earnings
  • Group nears $4.5 billion purchase of Petco
  • Walmart Cyber Monday deals start Sunday night
__________
ECONOMIC CALENDAR
  • Monday: GameStop, Tyson Foods Earnings; Existing Home Sales
  • Tuesday: U.S. Q3 GDP (2nd Revision); Consumer Confidence; Campbell Soup, Dollar Tree, HP Earnings
  • Wednesday: New Home Sales; Weekly Jobless Claims; Durable Goods Orders; PCE Price Index; Deere & Co. Earnings
  • Thursday: U.S. Markets Closed (Thanksgiving)
  • Friday: U.S. Markets Early Close (Post-Thanksgiving)

THE STORY ON AIR TRAVEL

Does flying seem like it’s getting more exhausting each year? It’s not just you—flying is actually getting slower and less efficient. With Thanksgiving travel plans just around the corner, here’s what you can expect:

  • In the first nine months of the year, planes spent an average of 23 minutes and 32 seconds taxiing between gates and runways. And that doesn’t include the wait time just to get on the plane.
  • That’s 50 seconds longer than the average last year, and the slowest since the first data was collected in 1995.
  • As consumers, we know how frustrating this can be, but airline companies are also suffering: the increase in taxiing time translates to hundreds of millions of dollars in added operating costs.
  • However, this taxiing time has been cleverly hidden: flights are still arriving “on time,” but “on time” is later these days than it used to be. For example, 10 years ago, the average flight time between San Francisco and Chicago was 4 hours and 32 minutes. Nowadays, the average time is 4 hours and 43 minutes.

INTERVIEW QUESTION OF THE DAY

What is typically higher—the cost of debt or the cost of equity? (Answer #3)

__________

BUSINESS TERM OF THE DAY

Knock-Out Option — An option with a built-in mechanism to expire worthless, should a specified price level be exceeded. A knock-out option sets a cap to the level an option can reach, in favor of the holder.

__________

FOOD FOR THOUGHT
54 years old: median age of an NPR listener this year, up from 45 in 1995.

#mc_embed_signup{background:#fff; clear:left; font:14px Helvetica,Arial,sans-serif; }
/* Add your own MailChimp form style overrides in your site stylesheet or in this style block.
We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. */

Want to get Morning Brew sent to your inbox daily? Subscribe here!

* indicates required
Email Address *

//s3.amazonaws.com/downloads.mailchimp.com/js/mc-validate.js(function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]=’EMAIL’;ftypes[0]=’email’;fnames[2]=’SCHOOL’;ftypes[2]=’dropdown’;fnames[1]=’FNAME’;ftypes[1]=’text’;fnames[3]=’LNAME’;ftypes[3]=’text’;fnames[4]=’NAME’;ftypes[4]=’text’;fnames[5]=’SOCIAL_ID’;ftypes[5]=’text’;fnames[6]=’REFERRED_B’;ftypes[6]=’text’;fnames[7]=’MMERGE7′;ftypes[7]=’text’;}(jQuery));var $mcj = jQuery.noConflict(true);


TAGSBusinessFinanceMorning Brew