3/25 Article Summary 2

Lyft is leading a pack of companies going public to wall street in the dot-come era. However, in the dot-come era, companies going public have seen a lot of red instead of green. Lyft is expecting its IPO this week and will serve as a huge test. Some statistics about Lyft, last year they posted a loss of 911 million dollars. WeWork, another huge startup, has reported a loss of 1.9 billion with 1.8 billion revenue. History shows that out of the 5 largest losses before a company IPO’s, 4 out of the 5 saw poor performance on the stock market. The only thing that is appealing to lyft is the fast growth it has seen. We will see how well Lyft will do this week. In my opinion, I think that Lyft will do poorly after it IPO’s because I think it might be a little bit overvalued at this point. It is one of the biggest losing companies right now in terms of startups and data has shown that previous startup’s with huge losses does really bad in the market.

3/26 Article Summary 1

“FHA Clamps Down on Risky Government-Backed Mortgages” By: Ben Eisen

The federal agency is tightening its standards because it is concerned with too many risky loans being given out. The FHA or Federal Housing Administration told lenders they it would be flagging more loans as risks. One of the goals of the FHA is to boost homeownership by lessening the risk for lenders. The FHA estimates 40,000 to 50,000 loans to be affected. The agency’s chief risk officer admits that he has seen loans with more credit risk being endorsed. In 2016, there was a decision to loosen underwriting standards. This is a huge change that will see some lenders being more careful on who to lend to.

Daily Article Summary 2

“The Bond Market’s Blind Faith in a Do-Nothing Fed” By: James Mackintosh

There were many questions brought up weather inflation increasing because of widespread pay rises. The Fed recently dropped its forecast saying the economy would overheat and that they would need to push interest rates above their long-run sustainable level. Investors think that after the screaming reversal in January, the Fed would not change course again. As expected, the Fed’s reaction is that it wont react. Investors also think that another recession is plausible based on the state of this economy. I think with the Federal Interest Rate coming to a stop with increasing, the economy looks weaker than it looks in a while now. I think we might see a small recession.

Daily Article Summary 1

“Hundreds of Millions of User Passwords Exposed to Facebook Employees” By: Jeff Horwitz and Robert McMillan

Facebook Inc. stored hundred of millions of user passwords in a place where employees where able to access the information for years. Facebook will notify the hundred of millions of users effected, which also include tens of thousands of users from Instagram. The reason why this is so major is because a lot of people tend to reuse their passwords. A professor from the University of California Berkeley who specializes on data privacy said that if passwords are accessible to employees, one can only imagine how poorly other data is kept. This follows a data breach six months ago where attackers managed to get data from 50 million users. Facebook has been under fire for the past year over data-security issues and this problem just keeps on adding on. In order for Facebook to keep all of their users safe, they should do a full security check on everything that they own so that they can catch these mistakes earlier.

3/20 Article Summary 2

“Inside U.S Airlines; Decisions to Keep Flying the 737 MAX” by: Scott McCartney

The CEO of Southwest, American and United decided to keep flying the plane after two crashes within 5 months. The decision came to the surprise for some people because they thing potential revenue loss and schedule disruption came first before safety. The airlines say that their decisions were dat driven. However, data doesn’t always capture the unknown. Some customers were even calling the airline to change flights that are booked on the MAX. Even employees were feeling nervous flying this model plane as well.

3/20 Article Summary 1

“Stocks Slip After Fed Decision, Erasing Earlier Gains” By: Amrith Ramkumar

The Federal Reserve signaled that they might not raise interest raise at all this year. This raises fear about a slow growth for the economy. This slowdown of the economy is predicted to swing stocks in the coming weeks. Along with the Federal Reserve signaling that they might not raise rates this year, they said it will slow the pace of runoff of its $4 trillion asset portfolio in May and end the runoff in September.

Vocabulary:

Runoff- Routine thinning of a mortgage-based portfolio as existing loans are paid off.

3/19 Article Summary 2

“Jury Finds Bayer’s Roundup Weedkiller Caused Man’s Cancer” By: Sara Randazzo and Ruth Bender

A man developed cancer from exposure to Roundup weedkiller. This is the second case to go on trial over the harms of the product. I’m very surprised to see that as I am typing this, Bayer’s stock has not taken a hit at all and actually went up 2.5 percent today. With such news, I don’t understand why nobody is trying to sell their shares. In August, a jury reached a 289.2 million dollar verdict in the first case against the product which sent Bayer shares down drastically. Bayer faces lawsuits in from 11,200 people. In my opinion, I think that this company should release a statement apologizing to everyone affected. In the news article, the jury stated that there was substantial evidence that the product causes cancer. Instead of fighting, I think that the right thing to do is apologizing and keep moving forward.

3/19 Article Summary 1

“High-Level U.S China Trade Talks to Resume in Final Push for Deal” by: Bob Davis

The U.S and China are aiming to close a deal by late April to end the dispute between the two largest economies. The two countries are scheduling meetings both in China and in the U.S in the coming weeks. Sources say that these talks appear to be in their final stages. The deal aims for a increase in U.S exports to China and China increasing their protection on intellectual property, ending pressure on the U.S companies to transfer technology to their Chinese partners and reduce subsidies for Chinese firms. The U.S also wants China to permit U.S companies to set up cloud computing operations in China so they can market their goods and services in China and not have to license anything to Chinese firms.

3/18 Article Summary 2

“Fidelity National Information Services to Buy Worldpay for $35 Billion” by: Ben Dummett and Paul J. Davies

Fidelity National Information Services Inc. is buying Worldpay Inc. for $35 billion in cash and stocks. This deal would create a global giant in payments and back-office financial services with its goal to reach more customers. The payment sector is under pressure to cut costs, develop new products and add customers. In 2017, Worldpay Group PLC was aquired by U.S rival Vantiv Inc. for $10.6 billion. Previously, Fidelity aquired Sungard for $5.1 billion. The FIS shareholders will own about 53 percent of the company and Worldpay shareholders will own about 47 percent. This acquisition expects to generate around $500 million in revenue and cuts annual cost of $400 million.

3/18 Article Summary 1

“Lyft Seeks Valuation of Up to $23 Billion in IPO” By: Maureen Farrell

Lyft is going to IPO soon. Lyft is trying to get its valuation between $21 billion and $23 billion. The range will be around $62 and $68 a share. Lyft is expected to raise around $2 billion dollars in the offering. This IPO will be followed by others like Uber, Pinterest, and Slack Technologies. In 2018, Lyft was valued at $15.1 billion compared to the $21-$23 billion they want now. Lyft ended off 2018 strong doubling the revenue of 2017. They tripled there amount of active riders from the end of 2016 through 2018. The reason why this IPO is so big is because other tech companies. for example Uber, is watching and will play a huge role in the target the Uber and the underwriters settle on.