Business Newsletter by Refresh

GOOD IDEA Business Newsletter

PAGE 3 MOST LOVED AND HATED STOCKS RIGHT

THE STOCKS WALL STREET SAYS TO BUY, AND THOSE IT SAYS TO SELL

PAGE 8 HAS A MAJOR COUNTERFEIT PROBLEM

ALIBABA HAS LAUNCHED A CRACKDOWN ON FAKES IN ADVANCE OF ITS IPO

PAGE 12 VERIZON GIVES NFL A VOTE OF CONFIDENCE

CEO OF MAJOR NFL SPONSOR VERIZON SAYS HEâ&#x20AC;&#x2122;S SATISFIED WITH STEPS

BUSINESS NEWSLETTER - ISSUE #01 - FEBRUARY 2020 - FREE COPY

CONTENTS

GOOD IDEA Business Newsletter

Brandon Avery

Cameron Buckland

Connor Chapman

FEDERAL RESERVE BUILDING FED INTEREST

‘POOR REWARD’ FOR POCKET MONEY SAVERS

RETAILERS WARN OF BREXIT PRICE RISES

PAGE 04

PAGE 05

PAGE 06

Leonard Davidson

’GIG’ ECONOMY ALL RIGHT FOR SOME

PAGE 07

TIME FOR CHANGE In ipsum nisl, viverra vel lacinia eget, pellentesque nec mauris. Fusce pulvinar sapien ac eros faucibus pretium. Vivamus sed elementum arcu, nec vehicula lacus. Integer cursus leo mi, in gravida libero feugiat eu. Cras placerat nisi in ligula varius, in viverra felis fermentum. Vivamus sed elementum arcu, nec vehicula lacus. Integer cursus leo mi, in gravida libero feugiat eu. Cras placerat nisi in ligula varius, in viverra felis fermentum.

THEME

GOOD IDEA Business Newsletter

POWERFUL BUSINESS PLAN The move lifted the price of oil, with Brent crude hitting a one-year high. “Russia is ready to accede to joint measures to reduce [oil] production, and is calling on other oil exporters to do so,” said Russian President Vladimir Putin. “We support the recent Opec initiative to set production limits,” he added. In late afternoon Brent Crude oil was trading up by 2.5% at $53.21 a barrel, just off the $53.73 high hit earlier on Monday. Speaking at the World Energy Congress in Istanbul, Mr Putin said that oil prices had “more than halved” in two years due to surplus production, provoking a “cycle of decreasing investment”. ‘Avoid fluctuations’ He said that if the trends persisted, they would give way to oil shortages and “new, unpredictable price hikes”. He expects to reach an agreement to support a cut at Opec’s next meeting in November, he said. “Of course, this will also cool down speculative activities and help avoid new price fluctuations,” he said. In September, members of the The Organisation

BY MICHAEL HARRIS

of the Petroleum Exporting Countries (Opec) voted to cut production for the first time in eight years. The group’s 14 members produce about a third of the world’s oil and have been hit hard by falling prices, as has Russia. High prices Opec aims to agree to cut around 700,000 barrels per day at its policy meeting on 30 November in Vienna, bringing its output to 32.5-33 million barrels per day. Opec ministersImage caption In September, Opec ministers agreed to cut oil production for the first time in eight years But some analysts have questioned whether all of its members will stick to the agreement. Differences between Iran and its regional rival, Saudi Arabia, have thwarted efforts to reach a deal in the past, and Russia’s latest intervention may have little impact, said John Hall, chairman at Alfaenergy group “Russia and Opec have not worked well in the past, and while Vladimir Putin promising joint measures is welcome, whether he sticks to it is another matter,” he said. “You’ve also got to see the wider context: Saudi Arabia and Iran are

SOFTWARE

GOOD IDEA Business Newsletter

powerful business SOFTWARE BY RICHARD HAMILTON

Others, such as Tesla boss Elon Musk, have gone further - declaring AI to be the biggest threat to the survival of the human race. Acting Science and Technology Committee chairwoman Dr Tania Mathias said: “Artificial intelligence has some way to go before we see systems and robots as portrayed in films like Star Wars. “At present, ‘AI machines’ have narrow and specific roles, such as in voice-recognition or playing the board game Go. “But science fiction is slowly becoming science fact, and robotics and AI look destined to play an increasing role in our lives over the coming decades. “It is too soon to set down sector-wide regulations for this nascent field, but it is vital that careful scrutiny of the ethical, legal and societal ramifications of artificially intelligent systems begins

or playing the board game Go. “But science fiction is slowly becoming science fact, and robotics and AI look destined to play an increasing role in our lives over the coming decades. “It is too soon to set down sector-wide regulations for this nascent field, but it is vital that careful scrutiny of the now.” Others, such as Tesla boss Elon ethical, legal and societal ramifications Musk, have gone further - declaring AI of artificially intelligent systems begins to be the biggest threat to the survival now.” Others, such as Tesla boss Elon Musk, have gone further - declaring AI of the human race. to be the biggest threat to the survival of the human race. TECHNOLOGY COMMITTEE Acting Science and Technology Committee chairwoman Dr Tania Acting Science and Technology Mathias said: “Artificial intelligence Committee chairwoman Dr Tania has some way to go before we see Mathias said: “Artificial intelligence systems and robots as portrayed in has some way to go before we see films like Star Wars. “At present, ‘AI systems and robots as portrayed in machines’ have narrow and specific films like Star Wars. “At present, ‘AI roles, such as in voice-recognition or machines’ have narrow and specific playing the board game Go. roles, such as in voice-recognition

SOFTWARE British company DeepMind, which is owned by Google, has more than 250 research scientists working on AI at its London headquarters. It has created a machine capable of beating one of the world’s greatest Go players and is currently working on developing an artificial hippocampus - the part of the brain believed to be responsible for memory and creativity. In its submission to the committee it said: “The impact of AI will reflect the values of those who build it. AI is a tool that we humans will design, control and direct and it is up to us all to direct that tool

GOOD IDEA Business Newsletter

towards the common good.” DeepMind recently, along with Facebook, Amazon, IBM and Microsoft, set up the Partnership on AI, a group aiming to address concerns about where the technology is heading. British company DeepMind, which is owned by Google, has more than 250 research scientists working on AI at its London headquarters. It has created a machine capable of beating one of the world’s greatest Go players and is currently working on developing an artificial hippocampus - the part of the brain believed to be responsible for memory and creativity.

JUST ONE CLICK BRITISH COMPANY DEEPMIND, WHICH IS OWNED BY GOOGLE, HAS MORE THAN 250 RESEARCH SCIENTISTS WORKING ON AI AT ITS LONDON HEADQUARTERS. IT HAS CREATED A MACHINE CAPABLE OF BEATING ONE OF THE WORLD’S GREATEST GO PLAYERS AND IS CURRENTLY WORKING ON DEVELOPING AN ARTIFICIAL HIPPOCAMPUS - THE PART OF THE BRAIN BELIEVED TO BE RESPONSIBLE FOR MEMORY AND CREATIVITY.

OUR HAPPY CUSTOMERS “But science fiction is slowly becoming science fact, and robotics and AI look destined to play an increasing role in our lives over the coming decades.

NETWORK Shone Crowe, manager “It is too soon to set down sector-wide regulations for this nascent field, but it is vital that careful scrutiny of intelligent systems begins now.”

E-TECHNOLOGY Joe Kostner, manager “It is conceivable that we will see AI technology creating new jobs over the coming decades while at the same time displacing others,”.

REFRESH Boris Cupac, manager

FINANCE

GOOD IDEA Business Newsletter

WOLFSON OFFERS £250,000 PRIZE FOR ROADS SOLUTION AMANDA FERGUSON Dr Mathias wants the commission, which MPs said should be set up at the Alan Turing Institute, “to identify principles for governing the development and application of AI, and to foster public debate”.

According to the research, which was prepared for the Wall Street Journal, a Speedy 30 handbag from Louis Vuitton cost £645 in London as of 7 October, or $802. That compared to €760 ($850) in Paris and $970 in New York. In China the bag cost 7,450 yuan, or $1,115.

Nick Pope, fashion and luxury lead at Deloitte, told the BBC a “period of affordability” after the EU referendum vote was proving a “demand pull” for tourists, who account for more than half of the UK’s luxury goods market “The trend in luxury pricing in the UK is being driven mainly by the depression on the sterling - thus making the same item more affordable in the UK market than in any other major luxury market,” he said. “People don’t like paying more for the same product.” That chimes with official statistics that show overseas residents made 3.8 million visits to the UK in July - up 2% on the same month last year. In total, they spent some £2.5bn. Chinese touristsImage copyrightAFP Image caption Tourists are flocking to Britain to pick up luxury bargains, Deloitte said Myf Ryan, chief marketing officer at shopping mall operator Westfield, told the BBC: “The number of tourist shoppers at Westfield centres in July increased year on year with average international spend up nearly 70%.” “What we have seen is Chinese tourists bulkbuying designer items,” she added. In August, Chinese spending at Westfield’s malls was up 53%

compared with August 2015, she said. The fall in sterling has pushed up the price of some everyday goods, but Deloitte said luxury retailers had kept prices stable for fear of scaring off consumers. It said 64% of comparable luxury products were now cheaper in the UK than anywhere else. ‘New normal’ Other examples include Balenciaga’s Foulard Fringe Dress, which currently costs about $400 less in the UK than in the US. A Brunello Cucinelli cashmere v-neck for men, meanwhile, costs £650, or $843, in Britain compared to $942 in France and $995 in the US. Mr Pope warned the discounts would not necessarily last, however, adding that a small number of brands had already put prices up. “Luxury brands are usually - and rightly - cautious about en masse pricing adjustments,” he said. “But if over six to 12 months this sterling position becomes the ‘new normal’ and hence margins are under continued pressure - I would expect more brands to respond with pricing adjustments.”

64% OF COMPARABLE LUXURY

86%

IN AUGUST, CHINESE SPENDING

24%

THE POUND HAS FALLEN MORE THAN 17%

53%

MARKETS

GOOD IDEA Business Newsletter

POWELL BUSINESSMAN INDICTED FOR TAX EVASION

EXPORTS FROM CHINA FELL BY 10%

We support the recent Opec initiative to set production limits,” he added. The Dow Jones was down 122.99 points, or 0.7%, at 18,021.21.

The campaigners object to the fact that parts of Ceta will be implemented EU trade ministers are to decide on Ceta next Tuesday. If they all It would be the EU’s most comprehensive trade deal to date, and the

IN SEPTEMBER FROM A YEAR EARLIER WHILE IMPORTS SHRANK 1.9%

Last month, it said Mr Stumpf, who was paid $19.3m last year, would not receive a salary during the inquiry. He will be succeeded by the bank’s current president and chief operating officer, Timothy Sloan. The bank’s independent chairman, Stephen Sanger, will take over as board chairman. e support the recent Opec initiative to set production limits,” he added. REVIVING QUESTIONS OVER THE STRENGTH OF THE COUNTRY’S ECONOMY

Last month, Wells Fargo was fined $185m and accused of “widespread illegal practice” by US regulators. The fine imposed on the bank by the US Consumer Financial Protection Bureau was the largest to date by the watchdog. The Dow Jones was down 122.99 points, or 0.7%, at 18,021.21.

Opponents fear that Ceta will be used as a model to push through

Property magnate Wang Jianlin of Dalian Wanda tops the list of 594 billionaires in the country, ahead of 535 billionaires in the US. Alibaba’s Jack Ma was second, with his wealth having risen 41% from last year. The annual list is compiled by Shanghai publishers Hurun and often compared to the Forbes list in the US. The Hurun Report’s rich list is one of the most closely-watched and accurate assessments of wealth in China. The annual report has been published for the past 18 years. Earlier this year, the publisher released a separate, global list, showing that the number of billionaires in China outnumbered those in the US for the first time.

GLOBAL REACH At the top of the China rich list is Wang Jianlin, who sits on a personal fortune of $32.1bn (£26.4bn). His company Dalian Wanda has made headlines throughout the year with a number of high profile forays into the US movie markets. It has taken over Legendary Pictures, as well as stepping into US and UK cinema chains and striking an alliance with Sony Pictures. Alibaba’s Jack Ma is a close second with $30.6bn, and Pony Ma of internet and online gaming giant Tencent comes third with $24.6bn.

5 Reasons Why Trying to be Successful 35

116

COMPARED

SHOWING

RELEASED

MARKETS

INTERNET

GROW

GOOD IDEA Business Newsletter

Growing Business Offers

BY OWEN HAMILTON

If you were surprised the IT department let you do this, don’t be - many companies have absolutely no idea what their staff are up to it seems. For example, when cybersecurity firm Imperva asked one of its banking clients how many apps it thought its staff were using, the firm estimated between 75 and 100 in total. The figure was actually closer to 800. Why does this matter? Cloud-based apps often gain access to the camera, location, data and contacts on your phone. So you never know how much sensitive company information they may be snaffling.

We could be giving hackers, fraudsters and spies the keys to our company’s back door, particularly if we naively use the same log-in details for external apps as we do for internal work apps. “It’s a mission-critical problem if you don’t know which third-party apps have access to your data,” says Ryan Kalember, senior vice president of cybersecurity strategy at Proofpoint. If you were surprised the IT department let you do this, don’t be - many companies have absolutely no idea what their staff are up to it seems. For example, when cybersecurity firm Imperva asked one of its banking clients

how many apps it thought its staff were using, the firm estimated between 75 and 100 in total. The figure was actually closer to 800. Why does this matter? Cloud-based apps often gain access to the camera, location, data and contacts on your phone. So you never know how much sensitive company information they may be snaffling. We could be giving hackers, fraudsters and spies the keys to our company’s back door, particularly if we naively use the same log-in details for external apps as we do for internal work apps. “It’s a mission-critical problem if you don’t know

Technology of Business 2010 - 2020 Marketing

78%

Design

84%

Production

62%

Finance

47%

WHILE APPS SUCH AS SLACK, EVERNOTE, WHATSAPP, AND DROPBOX, CAN HELP US DO OUR JOBS MORE EFFICIENTLY - IN THE OFFICE AND AWAY FROM IT - WE OFTEN DON’T KNOW IF THEY’VE BEEN APPROVED BY OUR IT DEPARTMENTS OR HOW MUCH CORPORATE DATA WE MAY BE SHARING - WITTINGLY OR UNWITTINGLY - WITH THE CLOUD.

ENTREPRENEURSHIP

GOOD IDEA Business Newsletter

Business Insider non-profit body promoting open source software While companies take great pains to protect personally identifiable information, such as social security and credit card numbers, it’s often the seemingly innocuous information that can give fraudsters the ammunition to make a phishing email more believable, say, or an invoice payment request more plausible.

“Many organisations have lost money via these phishing apps - which often pretend to be something else, such as a Flash player or even a Bible app - when they’ve allowed people in their finance departments to access corporate bank accounts via mobile devices.”

Cloud-based apps often gain access to the camera, location, data and contacts on your phone. So you never know how much sensitive company information they may be snaffling.

We could be giving hackers, fraudsters and spies the keys to our company’s back door, particularly if we naively use the same log-in details for external apps as we do for internal work apps.

Terry Ray, Imperva’s chief product strategist, says: “Staff often don’t think about security or know what is or isn’t sensitive data. “And the risks of a data breach are massively exacerbated by the cloud, even though cloud-based apps, such as Microsoft’s 365, are proving increasingly popular because they dramatically reduce IT costs.” Using AndroidImage copyright Image caption Data breaches are exacerbated by cloud-based apps, experts say The worry for IT departments is that these third-party apps may not have particularly robust security protocols in place because many were developed primarily with consumers in mind. And the data itself may be stored in foreign countries governed by less stringent data protection laws. “App security is the skeleton in the closet,” says Cesare Garlati, chief security strategist at Prpl Foundation, a non-

profit body promoting open source software standards. “Software is assembled these days, no Terry Ray, Imperva’s chief product strategist, says: “Staff often don’t think about security or know what is or isn’t sensitive data. “And the risks of a data breach are massively exacerbated by the cloud, even though cloud-based apps, such as Microsoft’s Office 365, are proving increasingly popular because they dramatically reduce IT costs.” Using AndroidImage copyright GOOGLE Image caption Data breaches are exacerbated by cloud-based apps, experts say The worry for IT departments is that these third-party apps may not have particularly robust security protocols in place because many were developed primarily with consumers in mind. And the data itself may be stored in foreign countries governed by less stringent data protection laws. “App security is the skeleton in the closet,” says Cesare Garlati, chief security strategist at Prpl Foundation 9

MONEY

GOOD IDEA Business Newsletter

THE SWEDE LEADING THE WAY TO A CASHLESS SOCIETY

ANDREA GLOVER Dr Mathias wants the commission, which MPs said should be set up at the Alan Turing Institute, “to identify principles for governing the development and application of AI, and to foster public debate”.

According to the research, which was prepared for the Wall Street Journal, a Speedy 30 handbag from Louis Vuitton cost £645 in London as of 7 October, or $802.

Serial entrepreneur Jacob de Geer was about to “get a real job” when he stumbled upon a gap in the market, and launched one of the most successful start-ups in his country’s history. “We’d just had our second child. I was at a place in life where I really felt like I could use some stability,” says the 40-year-old Swede. “You know, a nice fixed salary that would actually hit my account on a monthly basis, possibly a company car, and a pension would have been nice as well; some of the things that you never get if you run your own business.” This was back in 2010, and as the global financial crisis continued to engulf Sweden, Mr de Geer said it definitely didn’t feel like the right time to launch a new business. But it was in January of that year that his wife, a sunglasses importer, returned from a trade fair and complained that she’d lost out on business because she couldn’t accept debit cards from her customers. Mr de Geer says this was because, at the time, most sole traders and small firms couldn’t

afford the expensive mobile card processors available from banks. “My wife said ‘someone must have solved this for small businesses, so that it makes sense for us’,” he remembers. Except they hadn’t, at least not in Europe. And Mr de Geer - who had previously set up and sold a number of media companies - was determined to do something about it. iZettleImage copyrightIZETTLE Image caption Mr de Geer says Sweden was quick to warm to the iZettle system The Stockholmer started to research the market, and discovered that there were some 20 million small businesses in Europe in need of an affordable solution. Four months later, he joined forces with his friend Magnus Nilsson and founded iZettle. The company’s technology works by turning smartphones and tablets into credit and debit card processors, by linking them to a £35 card reader that connects via the

MR DE GEER SAYS SWEDEN WAS QUICK TO WARM TO THE IZETTLE SYSTEM The Stockholmer started to research the market, and discovered that there were some 20 million small businesses in Europe in need of an affordable solution. Four months later, he joined forces with his friend Magnus Nilsson and founded iZettle.

GLOBAL

GOOD IDEA Business Newsletter

GLOBAL MARKET

70%

56% 67%

42%

33%

70%

67%

56%

RESTRUCTURING

OPERATIONS Voluntary redundancy packages will also be offered with compulsory redundancies happening as a “last resort”. Another part of the strategy to cut costs and modernise is the closure of hundreds of branches of the bank.

Employee unions Accord and Unite were consulted prior to the announcement, the bank said, but Unite national officer Rob MacGregor called the move “horrific”. Lloyds said its policy was to use natural turnover and to redeploy people wherever possible in

42%

33%

INVOLVED

OFFERED

SECTOR

“Lloyds continues to cut jobs as part of its efficiency drive, which comes as no surprise given the uncertain economic environment the banking sector now faces,” said Laith Khalaf, a senior analyst at Hargreaves Lansdown.

In July, the bank said it was doubling the number of planned branch closures to 400. They will all close by the end of 2017. The bank attributed the cuts to changes in people’s banking habits, with more demand for online services, as

The bank, which is 9% state-owned, and has been working to reduce costs and improve returns for shareholders. The jobs will go from the group operations, retail, customer products and marketing, finance and risk divisions.

LESSONS ON LIFE AND BUSINESS BY MATT GIBSON

Lance is the founder and owner of Vibe Radio SA, an internet radio station based in the Cape Town township of Athlone. Set up in 2011, Vibe is aimed at South Africa’s teenagers and young adults. With listeners across the country, it engages with them on topics ranging from bullying, to fashion, and advice on becoming an entrepreneur. Lance says: “The point of Vibe Radio is to provide a platform that focuses solely on the youth voice, and gives young people the opportunity to say what’s on their mind, and be heard.” He adds that the radio station was born from his own frustration at the lack of support given to young people in South Africa, and the failure to make them heard on a national level. “The scariest realisation I had was that the young didn’t have a voice, or were seldom heard,” says Lance. “It was at that realisation that I knew I had to find a way to start my own radio station.” A former TV producer, Lance set up the station using his own savings, and support from a Cape Town-based social enterprise called Reconstructed Living Lab (RLabs). Vibe now has 16 employees, and makes money from advertising. With the youth unemployment rate in South Africa standing at 37.5% (for people between the ages of 15 and 34), job opportunities are few and far

YOU NEED HELP? l OUR SERVICES Advisory Audit and assurance Consulting Deals

NEED SUPPORT?

ABOUT US

World Bank Group that investigates and compares tax regimes across 189 economies.

The 2020 Global State of Information Security Survey is underway.