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US futures fall as key inflation data arrives

US futures fall as key inflation data arrives

On my list for today is the highly acclaimed cloud game Snowflake (SNOW).

So I'm driving home last night and I'm listening to Frank Slootman, CEO of Snowflake – a mega-gazillionaire who loves sailing yachts but is also a master at building tech companies – conducting an interview with a YF competitor. With him is someone I've never heard of before, Sridhar Ramaswamy. This person is described as Snowflake's new CEO.

My first reaction was, “Wait – how did I miss this tonight and why did I pay so much attention to Salesforce (CRM) earnings?”

I slam on the brakes of my new car and pull off the busy highway to watch the interview (yes, really), where I find two smiling executives chatting with the presenter. The moderator suggests that Slootman clearly signaled to him in a recent conversation that he was resigning.

Memo to Frank and the entire Snowflake board: They did a terrible job signaling that this would happen in some form. And now the average investor (who doesn't have access to Frank Slootman) is stuck with a highly touted tech stock – shares are plunging more than 23% as of this writing.

The street here was generally shocked.

“Snowflake surprised investors in several ways last night: Its wildly successful CEO is retiring effective immediately, after declaring just seven months ago that he wasn't going anywhere,” Guggenheim analyst John Diffuci said in a note to clients.

Stifel analyst Brad Reback also called Slootman's exit a “surprise.”

End effect: CEOs have a responsibility to signal when they may no longer want the top job, whether because they are burned out, want to play golf or want to buy another yacht. And it is the board's job to ensure that this process, from external communication to internal communication, is handled in a first-class manner.

If not handled properly, you could end up in a slootmanned attack – excuse me, a major stock sell-off due to a surprise shift in the C-suite.

US futures fall as key inflation data arrives Read More »

Here's how much money you need to make to be in the richest 1% in the world

John Carney, business and finance editor at Breitbart, discusses how Bidenomics is hurting the American middle class in “The Bottom Line.”

It is becoming increasingly expensive to break into the top 1% of wealth in the US

According to Knight Frank's upcoming 2024 Net Worth Report, you now need a net worth of at least $5.8 million to be part of this small but elite group. That's a significant 12% increase compared to the $5.1 million needed just a year ago.

By comparison, Americans needed a net worth of $4.4 million in 2022 to earn the coveted 1 percent status.

Although the US economy is the largest in the world, the barrier to being in the top 1% is much higher in other countries.

MORE AMERICANS GET A SECOND JOB TO COMPENSATE FOR HIGH INFLATION

This photo shows a view of moored yachts in Hercules Harbor during the 32nd edition of the International Monaco Yacht Show in Monaco on September 27, 2023. (Photo by VALERY HACHE/AFP via Getty Images / Getty Images)

The hardest country to join the ranks of the richest countries is Monaco, where it requires a whopping $12.9 million. This means an increase of 3.2% compared to the previous year.

Luxembourg and Switzerland also have a higher threshold, with respective requirements of $10.83 million and $8.5 million, respectively, to be in the top 1%, according to Knight Frank findings, first published by Bloomberg were published.

The US ranks fourth in the world in terms of assets required to join this ultra-exclusive club. This is followed by Singapore, Sweden, Australia, New Zealand, Ireland and Germany.

High inflation is still weighing on Americans' households

“Our results confirm the significant differences in wealth distribution between countries,” Knight Frank said in the report. “Expect policy to focus more on where wealth is located, how it is distributed across economies, and how governments can both tax it and promote its growth.”

The findings come at a time when high inflation and rising interest rates continue to hurt low- and middle-income Americans.

A recent study found that the power of a six-figure salary is rapidly diminishing in America. (iStock / iStock)

A recent study published by GOBankingRates found that the power of a six-figure salary is rapidly waning in America, especially in more expensive cities like San Francisco, Arlington, Virginia, and San Jose, California. In fact, in some of these cities, a salary of $150,000 is even considered “lower middle class,” the study says.

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But even as the purchasing power of ordinary families has fallen due to rising prices, the net worth of the 400 richest people in the US has soared thanks to the stock market recovery and the AI-driven technology boom.

Forbes reported in December that the richest 400 Americans earned a combined $500 billion in 2023 and are now worth a combined $4.5 trillion. This is the highest level since 2021, according to Forbes' Real-Time Billionaires List.

Here's how much money you need to make to be in the richest 1% in the world Read More »

1709205505 Snowflake39s Frank Slootman is stepping down from his position as

Snowflake's Frank Slootman is stepping down from his position as CEO and will remain as chairman of the board

(Bloomberg) — Snowflake Inc. is heading for its biggest decline ever after the software maker gave disappointing sales guidance and announced that Chief Executive Officer Frank Slootman is stepping down from his position.

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Product sales – a closely watched metric – will be $745 million to $750 million in the first quarter, Snowflake said in a statement on Wednesday. Analysts on average had forecast $769.5 million, according to data compiled by Bloomberg. A full-year forecast also fell well short of forecasts.

After the forecast was released, shares plunged 22% in premarket trading on Thursday. If the decline continues, it will be Snowflake's largest decline on record.

Snowflake's revenue growth slowed sharply in 2023 after many companies scaled back their software purchases. This trend, known as cost optimization, also affected cloud providers such as Amazon.com Inc. and Microsoft Corp. But both companies, which lead the computing power and storage rental market, recently signaled that this cost-cutting behavior among customers has begun to fade.

The challenge of revitalizing Snowflake falls to the company's senior vice president of AI, Sridhar Ramaswamy, who is taking on the role of CEO. He joined Snowflake last year when the company acquired Neeva, an AI-powered search engine. Ramaswamy previously led Google's advertising products.

Read more: Google Ads Chief Ramaswamy Exits; Search, AI veteran replaces him

His rise underscores the focus on AI for Snowflake. The company, which makes data analytics and storage software, is expected to benefit from new projects related to generative artificial intelligence, Bloomberg Intelligence's Mandeep Singh and Damian Reimertz said ahead of the earnings release. Snowflake's products may be attractive if “enterprises want to leverage their proprietary data to refine fundamental large-scale language models without having to move the data to public clouds.”

The story goes on

The bust weighed on shares of Snowflake's tech rivals, with Datadog Inc., MongoDB Inc., Cloudflare Inc. and Confluent Inc. all sliding.

The CEO change is effective immediately and Ramaswamy will join the board. According to a filing Wednesday, the 57-year-old will receive about $100 million in stock awards over the next five years, in addition to an annual salary of $750,000. He also receives an annual incentive bonus equal to 100% of his salary.

Slootman, who has led the company since 2019, remains chairman. He took Snowflake public in 2020, turning the company into a major force in the software industry. It was the third IPO for Slootman, who previously oversaw IPOs at ServiceNow Inc. and Data Domain Inc.

Frank Slootman, Chairman and CEO of Snowflake, presents a snowboard as a gift to NVIDIA CEO Jensen Huang at the Snowflake Summit 2023 in Las Vegas, Nevada, USA, June 26, 2023.  Courtesy of Snowflake/Handout via REUTERS THIS IMAGE WAS PROVIDED BY A THIRD PARTYFrank Slootman, Chairman and CEO of Snowflake, presents a snowboard as a gift to NVIDIA CEO Jensen Huang at the Snowflake Summit 2023 in Las Vegas, Nevada, USA, June 26, 2023.  Courtesy of Snowflake/Handout via REUTERS THIS IMAGE WAS PROVIDED BY A THIRD PARTY

Snowflake Chairman and CEO Frank Slootman presented Nvidia CEO Jensen Huang with a snowboard as a gift in June. Courtesy of Snowflake/Handout via Portal (via Portal / Portal)

It's “a huge loss for Snowflake,” said Mike Spencer, investor relations chief at software maker Salesforce Inc. “Just look at his track record – the guy has been a great leader over the years and has taken three companies public “He's a proven winner.” Spencer added that he had heard good things about Ramaswamy.

Slootman has long been considered one of the toughest tech leaders. In a 2023 episode of the No Priors podcast, he said a CEO needs to be “insanely confrontational,” adding that leaders need to push for more urgency. In 2021, he caused a stir when he said diversity goals were secondary to merit in hiring. Slootman later apologized and said he did not mean to suggest that diversity and merit were “mutually exclusive.”

His departure from the top job at Snowflake was a “big surprise,” Evercore ISI analyst Kirk Materne said in a note, adding that Ramaswamy has “big shoes to fill.”

In a call with analysts on Wednesday, Ramaswamy said AI spending would benefit the company.

“There is no AI strategy without a data strategy, and this has opened up a huge opportunity,” he said. “We need to have a clear focus and move even faster to bring innovation to our customers and partners on the Snowflake platform. That’s what I’m going to focus on.”

In contrast to the weak forecast, Snowflake's results were stronger than expected. In the fiscal fourth quarter, product sales increased 33% to $738.1 million. Analysts on average estimated the value at $723.3 million. Profit (excluding some items) was 35 cents per share for the period ended Jan. 31. In comparison, the average forecast was 18 cents.

The “halo effect” of generative AI helped drive data modernization efforts among Snowflake customers, Guggenheim Securities analyst John DiFucci said in a note ahead of earnings.

Snowflake now has 461 customers who spent more than $1 million in the last 12 months, up from 436 in the previous quarter. Remaining performance obligations – another key measure of growth – came in at $5.2 billion, beating estimates.

Consumption trends “are improving, but not returning to pre-fiscal 2024 levels,” Chief Financial Officer Mike Scarpelli said on the call. The finance chief, who joined the company in August 2019, said he is committed to staying at Snowflake for at least another three years.

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Snowflake's Frank Slootman is stepping down from his position as CEO and will remain as chairman of the board Read More »

Crypto exchange Gemini returns 11 billion to customers

Crypto exchange Gemini returns $1.1 billion to customers

CNN –

Gemini Trust, a cryptocurrency exchange founded by Cameron and Tyler Winklevoss, will return at least $1.1 billion to customers of its now-defunct lending program following a settlement with a New York regulator.

Gemini will also pay a $37 million fine to the regulator “for significant failures that jeopardized the safety and soundness of the company,” the New York Department of Financial Services (NYDFS) said in a statement on Wednesday.

NYDFS has the right to “take further action against Gemini if ​​the company fails to comply with its obligation,” the statement said.

Gemini is run by the Winklevoss twins, best known for being embroiled in years of legal battles accusing Meta (META)'s Mark Zuckerberg of stealing their idea for Facebook, and ultimately seeking compensation of up to 1,000 of $65 million.

In a blog post on Wednesday, the crypto exchange said that as a result of the agreement, customers of its lending program Gemini Earn would receive 100% of their digital assets back in kind, plus any appreciation.

Gemini Earn marketed itself as a low-risk investment where customers can lend crypto assets to another company, Genesis Global Capital (GGC), while earning interest payments of up to 8%.

“We will return over $1.8 billion in value (at today’s prices),” the Gemini blog says. That is $700 million more than when GGC stopped withdrawals in November 2022.

At this point, the trillion-dollar crypto market collapsed due to the collapse of FTX, the once-successful crypto exchange. Its co-founder, Sam Bankman-Fried, was convicted in November of seven counts of fraud and conspiracy for his role in the company's demise.

On Tuesday, Bankman-Fried's lawyers filed a memo in federal court in Manhattan recommending a prison sentence of between five and six and a half years. According to federal guidelines, he faces a maximum of 110 years. His sentencing is scheduled for March 28.

Wednesday's settlement doesn't mean Gemini's legal troubles are over. New York's attorney general filed a separate lawsuit in October accusing three companies – Gemini, GCC and Digital Currency Group, GCC's parent company – of lying to investors and covering up more than $1 billion in losses .

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What is it When is it Meaning origin of the

What is it? When is it? Meaning, origin of the date February 29th

How to get a discounted dozen donutsplay

What is a leap year? Here's the science behind the extra day.

Why do we have leap years? The reason for this extra day on February 29th is more complicated than you think.

2024 is a leap year, meaning Thursday, February 29, is a quadrennial event.

Since leap years typically occur every four years (although there are some exceptions), our last leap days were 2020 and 2016, and the next leap year will occur in 2028.

And since this day doesn't happen often, people celebrate in different ways: companies offer special offers to commemorate it, others finally celebrate their birthday on February 29th.

Here's everything you need to know about Leap Day, including what it is, why it occurs every four years, and when it was created.

Leap day offers 2024: Get discounts and free food at Wendy's, Chipotle, Krispy Kreme and more

What is a leap day?

A leap day is an additional day added to the calendar. During a leap year, which occurs every four years, leap day falls on February 29, giving the shortest month of the year an extra day.

Why is there a leap day every four years?

The reason there are leap days and years is because of the Earth's orbit.

The number of days it takes the Earth to complete one revolution around the Sun is not a whole number. According to the National Air and Space Museum, the 365 days we experience are actually 365.242190 days.

Getting rid of those 0.242190 days adds up.

This fraction allows the seasons to be arranged correctly each year. If leap day were omitted from the calendar, the months in which we normally experience each season would eventually shift. This would impact other aspects of life, such as growing and harvesting crops.

Added together, four 0.242190 days equals approximately one full day, which is why February 29 is added to the calendar of most years divisible by four, including 2024.

When do we skip Leap Day?

To compensate for decimals, we sometimes skip leap years, but this is rare. Prepare for a bit of math: Years divisible by 100 but not 400 are skipped, meaning we skipped leap years in 1700, 1800, and 1900, but not in 2000. Next Leap year, which we will skip, is quite far away, in the year 2100.

How often is there a leap year? Here's the next leap day after 2024 and when we'll (eventually) skip one

Who created Leap Day?

The concept of adding leap days is not new and has been around for thousands of years, Britannica reports. Some calendars – such as the Hebrew, Chinese and Buddhist calendars – included intercalary months, also known as “intermediate months,” according to the History Channel.

While Julius Caesar is often credited with inventing leap days, the idea originated with the Egyptians. In the third century B.C. In the 4th century BC, the Egyptians followed a solar calendar that was 365 days long and included a leap year every four years, reports National Geographic.

In ancient Rome, their calendar varied and included a 23-day intercalary month called “Mercedonius.” But it wasn't a standalone month. According to the History Channel, Mercedonius was added to February to make up for the difference between the Roman year and the solar year.

When creating the Julian calendar, Caesar took inspiration from the Egyptians and decided to add an extra day to the month of February every four years. The Julian calendar officially began on January 1, 45 BC. BC

This method would continue for several centuries, but not without problems. Caesar's calculation of 365.25 days was obvious, but it was not the exact 365.242190 days that the solar year contains. To be precise, “Caesar overestimated the solar year by 11 minutes,” reports the History Channel. According to National Geographic, this meant the Julian calendar would be one day shorter every 128 years.

In the 16th century, time had shifted again, and not in a positive way. Important dates had changed, including Easter. The holiday is said to occur on the first Sunday after the first full moon on or after the vernal equinox. At this point, the date of Easter had shifted by about ten days.

To remedy this, Pope Gregory XIII introduced introduced the Gregorian calendar, which, according to the History Channel, included a leap day every four years but eliminated it in century years that were not divisible by 400. For this reason, 1700, 1800 and 1900 were not leap years, but 2000 was.

Despite its accuracy, the Gregorian calendar is not without errors. Instead of deviating by one day every 128 years, like the Julian calendar, the Gregorian calendar deviates once every 3,030 years, the History Channel reports.

Upcoming leap days

This year, 2024, is a leap year. Leap Day falls on Thursday, February 29th.

The next leap years will be 2028, 2032 and 2036.

Leap Day Deals: Where to score on groceries, produce and more on February 29th

Grocery chains like Wendy's, Chipotle and Krispy Kreme are offering specials and free food in honor of Leap Day. Here you can score points with discounts.

What happens if you are born on a leap day?

February 29th is the rarest birthday someone can have. According to the History Channel, at least 5 million people still celebrate their birthdays on a leap day. Your chance of being born on February 29th is one in 1,461.

Many “leaplings” (or those born on a leap day) celebrate their birthday on February 28th or March 1st during a typical 365-day year, even if the documents show it to be February 29th.

25 has never looked so good: An Oklahoma woman born on Leap Day is celebrating her 100th birthday

Meet Mary Lea Forsythe: She turns 100 on Leap Day, but it's only her 25th birthday.

Just curious for more? We'll cover you

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Dynamic pricing is being tested at Wendy39s

Dynamic pricing is being tested at Wendy's

Fast food chain Wendy's will test dynamic pricing of its products next year, similar to what we've already seen with companies like Uber.

• Also read: Dissatisfied Ticketmaster customers: missing access code, denied refund, seat swap and possible class action lawsuit

This means that the price of the products could increase if demand increases.

This was announced by the multinational company's CEO Krik Tanner when publishing the company's financial results. According to CNN, this is part of a $20 million investment in new digital menu boards.

Mr. Tanner also spoke of “advanced features such as dynamic pricing with AI-powered menu changes and suggestive selling.”

These new scoreboards have already been observed in certain locations across the United States.

They would be operated entirely by artificial intelligence and not by an employee.

“We expect our digital menu displays to benefit order accuracy, customer experience and sales through a more efficient merchandising protocol,” adds Tanner.

The restaurant chain McDonald's had also tried dynamic pricing with its mobile application, but its implementation had caused many negative reactions from customers.

Dynamic pricing is being tested at Wendy's Read More »

Bitcoin BTC posts its biggest daily gain since October with

Bitcoin (BTC) posts its biggest daily gain since October, with market-neutral bets yielding three times as much as government bonds

According to charting platform TradingView, Bitcoin (BTC) rose 9.5% on Wednesday, posting its largest daily percentage gain since October 23.

Prices rose to $64,000 on several exchanges, reaching their highest level since November 2021. The parabolic move from Monday's low of nearly $51,500 was largely attributed to Wall Street's acceptance of spot-based Bitcoin ETFs. The CoinDesk 20 Index, the broader market indicator, is up over 10% this week.

The consensus is that the rally will continue in the coming months and push prices into six figures.

“Our analysis predicts a conservative price target of $100,000 to $120,000 to be achieved by the fourth quarter of 2024 and the peak of the cycle, as measured by total crypto market cap, sometime in 2025,” said analysts at Crypto Exchange Bitfinex.

“The ETFs have introduced 'passive demand', meaning the demand comes from investors who are largely independent of price. “They view Bitcoin as a store of value rather than a tradable, volatile asset, which was the case for several years before the ETFs were introduced,” analysts added.

Earlier this week, technical analysis expert Peter Brandt said that Bitcoin could reach a peak of $200,000 by September 2025.

These predictions are sure to please directional traders. Nonetheless, untargeted traders need not feel left out, as cash-and-carry arbitrage now yields three times more than the yield on the 10-year U.S. Treasury note, the so-called risk-free rate.

Cash and carry arbitrage is a market-neutral strategy that aims to profit from price differences in the spot and futures markets. The arbitrageur combines a long spot market position with a short futures position when futures trade at a premium to spot prices. As futures expiration approaches, the premium evaporates and on settlement day, futures converge with spot prices, providing the arbitrageur with a relatively risk-free return.

According to blockchain analytics firm Glassnode, the Bitcoin cash-and-carry strategy returns over 14% using three-month futures. That's more than three times the 10-year Treasury yield of 4.27% and 2.8 times the 1-year Treasury yield of 5%.

The relatively higher return could attract more money into the crypto market.

“The yields available in futures markets are likely to attract market makers back into the digital asset space and increase market liquidity,” Glassnode said in the weekly newsletter.

Bitcoin (BTC) posts its biggest daily gain since October, with market-neutral bets yielding three times as much as government bonds Read More »

Cycling with Bixi will cost more this year

Cycling with Bixi will cost more this year

With record ridership in 2023 and a first winter season with mild temperatures, Bixi plans to increase its prices from March 1 due to inflation and network expansion.

In the future, fans of self-service bikes who like to use them occasionally will have to pay $1.35 ($1.25 in 2023) to unlock their car, then $0.20 per minute or $0.35 US dollars for an electric bike, each US$0.05 per minute more.

So someone who wants to use a Bixi bike for a 15-minute ride will now have to pay $4.35 ($3.50 in 2023) if they use their legs alone, and $6. $60 ($5.75 in 2023) to enjoy the luxury of getting around on an electric bike.

Monthly subscriptions are now $22, down from $20 last year. These subscriptions offer the ability to unlock a bike for free and include 45 minutes of free use for regular bikes, but the user is then charged a fee of $0.17 per minute, which is the equivalent amount for a regular bike or an electric bike corresponds. These fees were previously $0.11 for the regular bike and $0.13 for the electric bike.

To counteract these increases, Bixi is offering the opportunity to purchase an annual subscription for $96 until April 15, which is $3 less than the cost of the subscription in 2023. After this date, the annual subscription will apply, which is the cost covering period April 15th to November 15th, is offered for $107. As with monthly subscriptions, the per-minute price increases to $0.17 for both types of bikes, but the subscription also includes the first 45 minutes free for regular bikes.

Bixi justified its increases by citing the “significant costs associated with its development,” particularly for the addition of new electric bikes to its fleet and new stations. The renewal of equipment and the increase in labor and equipment costs are also noted.

These increases come as Bixi had a record year in 2023 with 576,000 users, a 31% increase compared to 2022, which was already a record year. No fewer than 11.7 million journeys were made on self-service bicycles last year.

The increases at a glance

Occasional travel

Regular Bike – 2023: $1.25 + $0.15 per minute /// 2024: $1.135 + $0.20 per minute

Electric Bike – 2023: $1.25 + $0.30 per minute /// 2024: $1.35 + $0.35 per minute

Subscriptions (first 45 minutes free for mechanical bikes)

Monthly – 2023: $20 + $0.11 or $0.13 per minute depending on bike /// 2024: $22 + $0.17 per minute

Seasonal – 2023: $99 + $0.11 or $0.13 per minute depending on bike /// 2024: $107 + $0.17 per minute

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