QUOTE OF THE DAY
We want free, open markets...we don’t want to build up any barriers” — German Chancellor Angela Merkel not-so-subtly taking a shot at the Donald at the G-20 global summit. Your move, Mr. President.
MARKET CORNER
Market Snapshot
- U.S. markets finished mixed on Friday’s quadruple "witching" and barely positive for the week, boosted by the Federal Reserve raising rates on Wednesday as investors now turn their focus to potential policy changes promised by the GOP
- European markets finished slightly higher as well, as investors eagerly awaited German Chancellor Angela Merkel’s meeting with President Trump along with Saturday's G20 summit
Wall Street’s Pockets Get Deeper
…As annual bonuses begin to climb. This year, bonuses may go up as much as 15% in the first major increase since 2009. Why the big rise? Under the Trump administration, bankers are optimistic about the future of the industry thanks to hopes of looser regulation, among other things. The bonus pool isn’t bigger for everyone this year, though. Goldman CEO Lloyd Blankfein just had his compensation trimmed a whopping 27% after a long-term incentive was eliminated. But don’t lose any sleep over ol’ Lloyd—Blankfein still earned a hefty $22 million in 2016, so we doubt that he’s complaining.
Nintendo Switches Strategy
...And Doubles Production. Attention all gamers: it looks like you might be able to buy the Switch after all. The Nintendo (+1.69%) Switch, the company’s latest and greatest console, has been playing hard to get with video game lovers, but because of the increase in production, you should see more of the hybrid consoles in stores soon. Nintendo believes it can clear 10 million units during the next fiscal year in hopes of putting lackluster results from the Wii U behind it. On another exciting note, Nintendo’s Super Mario Run will be coming to Android on the 23rd. The app has struggled to take off...let’s hope Android can get things up and running.
Porsche Sees A Weakening Auto Market
…And gets proactive instead of reactive. With the rise of ride-hailing giants looking to muddy up new car sales, Porsche (-1.41%) will be dropping $2.3 billion into digital services to help revenue growth keep chuggin’ along. These digital services are, for all intents and purposes, like GPS on ‘roids, allowing drivers to navigate road conditions and find parking spaces. But fancy projects like these ain’t gonna finance themselves—keep an eye out for Porsche cutting production costs by 15%.
Google Home or Big Brother?
…Now featuring unwanted advertisements. Google’s smart home speakers played an unprompted promotion for the new Beauty and the Beast movie, making some customers a little wary. The promotion marked the first sign of how the internet giant can place ads into voice interactions, a perhaps unsettling proposition. Google said the promotion was not an ad, rather a proof of concept partnership with Disney, since Disney didn’t pay for the audio clip. Sounds like quite the blurred line.
What Else Is Happening…
- Uber continues to ride the pain train with accidental email and departure of its president
- Childhood favorite, Monopoly, says goodbye to three original tokens––guess which ones
- Information emerges about Facebook’s top secret hardware group, Building 8
- Disney’s Beauty and the Beast, a live-adaption of the 1991 original, rakes in a whopping $170 million on opening weekend
Economic Calendar
- Friday: Tiffany Earnings (+); Consumer Sentiment (+); Industrial Production (-)
- Today: N/A
- Tomorrow: FedEx, General Mills, Nike Earnings
WATER COOLER
Apple Music Shells Out Big Bucks For Exclusive Rights
Despite the popularity of streaming services like Apple Music and Spotify, there has been little information about what artists are paid for exclusive rights to their songs––until now. A tweet from Chance the Rapper this weekend gave insight into what Apple Music paid him to exclusively stream his mixtape, Coloring Book, for two weeks:
- Cook & Co paid the 23 year old artist $500,000 for the exclusive rights to the mixtape for 2 weeks. Apple also paid for a promotional commercial for the mixtape. Coloring Book ended up winning the Grammy for Best Rap Album. Solid investment.
- In 2015, Drake was paid $19 million for a deal with Apple Music, but that stipulated that Drake would become the face of Apple’s streaming service.
- Tidal, an Apple Music competitor, went a bit of a different route to get exclusive content. Rihanna, Coldplay, Beyoncé, and Kanye West each got 3% equity stakes in Tidal rather than upfront cash.
- How about Spotify? The second most popular music streaming service (behind Pandora) has decided to make the bold call of not going after exclusive content. Spotify hopes that its strong features and user loyalty will outweigh its competitors. Bold move, Cotton.
THE BREAKROOM
Interview Question of the Day
What do you think would happen to the Fed’s balance sheet should Fed Chair Janet Yellen leave her post? (Opinion)
Finance Tip of the Day
How do you become a millionaire? According to self-made millionaire Grant, it is important to break down your money goals into daily goals. How did he do it? It took him five years and he started with only $2.26 in his bank account, but he started thinking about saving as a daily goal, making sizable deposits every day into his investment accounts. Hey, "the more you save, the more momentum you build".
Food for Thought
Netflix for cars? That’s what GM is attempting to do with its new Book by Cadillac subscription plan. This white-glove service will cost $1,500 a month, and is currently only offered in NYC. What’s so special about The Book? You are able to switch into any Cadillac in the 10-vehicle lineup up to 18 times a year. Looks like GM is continuing to test the waters with alternatives to car ownership. First, an investment in Lyft and Maven. Now, Book by Cadillac.
