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One day after Apple reported a disappointing 15% drop in iPhone sales, and just hours before Chinese Vice Premier Liu He was set to kick off high level trade talks in Washington, Taiwan-based Foxconn, one of the consumer-tech giant’s largest suppliers, told Reuters that it is shelving plans to hire thousands of workers at its new plant in Wisconsin as it reconsiders plans to build LCD displays (Apple’s most recent crop of iPhones uses these displays).

Instead of the manufacturing workforce FoxConn promised when it received billions of dollars in tax breaks and state aide to build the $10 billion campus – the company, which has extensive operations in the PRC – said it instead plans to hire engineers and researchers. When Foxconn’s investment was announced in 2017, President Trump praised it as evidence that manufacturing jobs would return to the US under his administration. The investment marked the largest greenfield investment by a foreign company in US history, according to Reuters. The company had initially planned to build LCD screens for TVs and other larger gadgets, but had more recently pivoting to building screens for “smaller products” like smartphones. While it’s unclear whether these smartphone screens would have been used for Apple products, Foxconn is one of Apple’s largest suppliers, and has been cutting back iPhone-related production at facilities in China because sales of the latest batch of iPhones has been slower than Apple had initially anticipated.

A company spokesman blamed the change of plans on competition from Chinese and Japanese producers,

Now, those plans may be scaled back or even shelved, Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, told Reuters. He said the company was still evaluating options for Wisconsin, but cited the steep cost of making advanced TV screens in the United States, where labor expenses are comparatively high.

“In terms of TV, we have no place in the U.S.,” he said in an interview. “We can’t compete.”

When it comes to manufacturing advanced screens for TVs, he added: “If a certain size of display has more supply, whether from China or Japan or Taiwan, we have to change, too.”

Instead of building a “factory”, Foxconn wants to instead focus on building a “technology hub”. But suddenly, plans to hire as many as 13,000 workers are now in jeopardy. The company told Reuters that rather than manufacturing the LCD panels in the US, it would make more sense to produce them in greater China or Japan, ship them to Mexico for the finishing touches, then bring them into the US for assembly of the final product.

Rather than a focus on LCD manufacturing, Foxconn wants to create a “technology hub” in Wisconsin that would largely consist of research facilities along with packaging and assembly operations, Woo said. It would also produce specialized tech products for industrial, healthcare, and professional applications, he added.

“In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Woo said.

Earlier this month, Foxconn, a major supplier to Apple Inc., reiterated its intention to create 13,000 jobs in Wisconsin, but said it had slowed its pace of hiring.

The company initially said it expected to employ about 5,200 people by the end of 2020; a company source said that figure now looks likely to be closer to 1,000 workers.

It is unclear when the full 13,000 workers will be hired.

And in another blow to former Gov Scott Walker, who negotiated the $4 billion in incentives provided to Foxconn, Democrats who had decried the giveaways as a bad deal for the state of Wisconsin can now say “I told you so.”

Foxconn had reiterated its commitment to hiring the workers as recently as earlier this month. But according to Reuters, its scaled-back plans could involve hiring as few as 1,000 workers.

Earlier this month, Foxconn, a major supplier to Apple Inc., reiterated its intention to create 13,000 jobs in Wisconsin, but said it had slowed its pace of hiring. The company initially said it expected to employ about 5,200 people by the end of 2020; a company source said that figure now looks likely to be closer to 1,000 workers.

Foxconn Chief Executive Terry Gou plans to meet with Wisconsin’s new Democratic Gov. Tony Evers to discuss “modifications” to the original deal (to qualify for its tax credits, Foxconn must meet certain hiring and investment goals).

The timing of the reports certainly seems interesting, as Chinese companies pull money out of Silicon Valley and US real estate. And with trade talks with China entering there must critical stage, is this one more nudge to the Trump Administration that, if it doesn’t play ball, Beijing won’t hesitate to put the screws to companies that have a large presence in China?

Or is it simply another sign that Apple – which has blamed slowing sales in part on the trade war – needs to cut prices?

via ZeroHedge News http://bit.ly/2Gce06D Tyler Durden

Authored by Michael Lebowitz via RealInvestmentAdvice.com,

There are countless ways to evaluate equities, and they all have glaring flaws. Equity valuation is not a science with predictive formulas. It is subjective, and the formulas themselves and the interpretation of the results rely on an estimate of what the future holds.

Some models use historical data under the assumption that the current trend will be predictive of the future while others use forecasts that differ from the past. It is a rare occasion that the past neatly maps out the future or, for that matter, that anyone accurately predicts the future. No model represents the holy grail of investing, but understanding their inputs and outputs can reveal a lot about relative valuations and the sentiment of a market. As investors, we need to take into account all types of valuation techniques and their assumptions, especially those that may not confirm our current investment thesis.

Differences between various valuation models allows one to construct a bearish or bullish outlook simply by choosing the model that produces the appropriate outcome. Recently, Price to Forward Earnings (P/fE) has been flashing a buy signal and has been used by many investors as evidence that stocks are cheap. At the same time, as shown below, most other traditional valuation models are pointing to a market that is anywhere from 65% to 95% overvalued. What gives?

Choosing E?

Price to earnings is one of the most popular forms of equity valuation. It is a logical approach given that earnings, the profits available after all expenses, are ultimately what investors are buying. The basic price to earnings ratio (P/E) simply tells us what multiple the market is paying for profits. For instance, a P/E of 20 means investors are willing to pay 20 times the current level of earnings to own shares of the company. Theoretically, in this case, if a company’s earnings are flat for eternity, the investor will earn a 5% (1/20) annual return. If future earnings exceed current earnings, the return will be greater than 5%, and the return will be less than 5% if the opposite is true about earnings..

To provide a framework allowing for the comparison of current P/E valuations to prior valuations or valuations between other stocks or indexes, the E (earnings) in the ratio can be historical, recent or forecasted.  

Our preferred method, Cyclically Adjusted Price to Earnings (CAPE), compares today’s price versus inflation-adjusted earnings over the preceding ten year period. If you believe that future earnings growth will follow the longer term trend of years past, this valuation tool provides a dependable relative valuation metric. 

The most commonly used P/E is based on earnings from the trailing twelve months (TTM). The reason we are not as comfortable with this approach is that, at times, one year earnings periods can differ markedly from prior periods due to one-off events. For instance, earnings over the last 12 months are considerably higher than the previous few years due to the corporate tax cut. As a result, TTM P/E is lower, but does that make stocks cheaper? That is not a trick question and can be answered yes or no depending on other factors. Regardless of your preference, both TTM and CAPE P/E ratios use earnings data that has occurred in the past.

Another popular way to calculate P/E uses estimates of forward earnings for the next 12 months. Theoretically, this approach is the best of the three methods. When you are buying a stock or an index, it is the earnings in the future that matter, not those in the past.

While the price to forward earnings (P/fE) ratio seems like the smartest approach, it is much harder to use as predicting earnings can be very difficult. In fact, the point at which one needs to be most vigilant about avoiding overpriced equities often is the time when misplaced confidence is highest in equities. Of greater concern, most investors rely on forward earnings forecasts from Wall Street. While Wall Street banks may employ the best analysts and have access to knowledge that you and I do not, they are biased. To put it bluntly, Wall Street banks and brokers make money by selling stocks.

This opinion is not cynical, this is how the world works. McDonald’s, for instance, is always quick to point out the health benefits of their salads, but have they ever tried to dissuade customers from ordering a Big Mac, jumbo fries and a large Coke? In fact, they entice customers to order that exact “super-size” combination through pricing deals.

Data Supporting our Cynicism

Given that Wall Street is in the business of selling stocks, they tend to be optimistic. The graph below points this out by showing the difference between forecasted earnings and the true earnings that were released 12 months after the forecasts. The gray-shaded area plots the percentage difference.

Note the following:

• On average, forward earnings expectations are 16.5% higher than actual earnings

• During the last three recessions, forward earnings were 50% greater than actual earnings

• Forward earnings are greater than actual earnings 85% of the time

The ebbs and flows of earnings from quarter to quarter and year to year graphically hide some of the perpetual optimism. The next graph uses the historical earnings trend line (dotted blue) from the graph above to compare to forward estimates. This modification of the first graph allows us to compare more reliable earnings trends to forecasts.

As shown, forward forecasts have been consistently overly optimistic since 1994 except for the 2008/09 recession. While the reliability of optimism is worth stressing, the level of current optimism, represented by the gray shaded area showing the percentage difference, indicates that current forward earnings estimates are the highest they have been compared to the longer term earnings trend over this 25-year period.

Current P/fE

The graph below charts P/fE. As shown, the current P/fE level is below the average of the last 28 years and, dare we say, cheap.

Given this set of information, stating that stocks are cheap on the basis of forward earnings and P/fE alone is foolish. The graph below contrasts current P/fE with various one-year earnings forecasts. To help pick one of the horizontal lines associated with different annual earnings growth rates consider:

• 2012-2017 earnings grew at 4.67%

• 2018 grew at 21.77%

• 2019 expected to grow at 20% (1.56 vs 1.30)

We should also note that growth associated with the tax cuts have a one-year shelf life. While earnings may be higher as companies pay fewer taxes, the growth rate of those earnings should revert towards trend levels as they are married to economic activity.

As shown, forward P/fE is only as good as the forecast. Even if earnings grow at 15% in 2019, which would be impressive, the ratio goes from below to above average. In more pessimistic scenarios, such as a reversion to the longer-term trend growth or a mild recession, the ratio becomes very expensive. Traditionally, this is what happens as the economy moves in to a recession but Wall Street analysts are slow to react.

Summary

• The growth benefits of the tax cut are not recurring

• Will buybacks continue to boost EPS?

• Revenue growth has been running 4%, can corporate profit margins keep expanding?

• Forecasted earnings are overly optimistic 85% of the time

• Forecasted earnings have never predicted a recession or a big drop in earnings

• In the event no recession emerges, then wage pressures are likely to negatively impact earnings and margins

Instead of restating our thoughts on the current “value” exposed by P/fE, we leave you with a simple thought and graph. At current levels, price to forecasted earnings are as “cheap” as they were in November 2007. 

Oddly enough, the National Bureau of Economic Research (NBER), which is responsible for identifying the dates when U.S. recessions begin and end, mark December 2007 as the beginning of the Great Recession. That was not a good time to own “cheap” stocks.

via ZeroHedge News http://bit.ly/2TuJF6Q Tyler Durden

It was just days ago that we brought you  the latest story of liberal hypocrisy in which a billionaire, who was urging the world to eat less meat for global warming purposes, also happened to be jet-setting around the globe in her private jet, leaving a sizable carbon footprint behind.

The “save the Earth hypocrisy” torch continues its journey today, passing from her hand directly to the left’s favorite poster child for all causes environmental, Elon Musk. The Washington Post reported today that Musk’s corporate jet flew more than 150,000 miles in 2018, equal to six times around the Earth and dwarfing numbers put up by other (consistently profitable) CEOs like Tim Cook and Jeff Bezos.

That’s bad, but this is worse: when the Washington Post starts calling out your green energy hypocrisy, you can be assured that there’s a problem. 

Not only that, Tesla shareholders – the ones with an ideological crusade to save the Earth – were said to “largely pay” for Musk’s travel. Elon logged more than 250 flights for work, projects and vacations across Asia, Europe, Latin America and the Middle East during 2018, the same year Tesla was losing up to $100 million a week at one point. That equates to nearly one flight per day.

After all of the hemming and hawing about Musk’s breakneck schedule and 120 hour work weeks, it was a clear reminder that the billionaire still has the luxury to travel at any time to any place in the world. In addition to traveling for work, some of the flights were getaways for Elon or his family.

This story breaks at a time when Tesla is almost assuredly going to face questions about its spending after revealing earnings this week and eventually filing its annual report.

The idea of global jet-setting on a private plane can’t help but be viewed as hypocritical for a man often heralded as a “crusader for renewable energy”. The Washington Post dryly notes that a few days after Musk called fossil fuels “the dumbest experiment in human history,” his plane burned through thousands of pounds of jet fuel flying 300 miles from Los Angeles to Oakland on its way to take him to a competitive video gaming event.

Musk also tweeted “We know we’ll run out of dead dinosaurs to mine for fuel & have to use sustainable energy eventually. So why not go renewable now & avoid increasing risk of climate catastrophe?” – on the same day his jet flew over Mexico for a personal trip.

And surprise: Tesla doesn’t have any problems making excuses for Musk. The company told WaPo “Until we can teleport, there’s unfortunately no alternative that would allow him to do his job as effectively.”

While the company claims that it doesn’t cover the costs for Musk’s personal trips, it was also unable to provide to the Washington Post how it designates which trips are personal and which are for business. The company also didn’t provide an estimate for the bill for how much all of these trips cost. Musk’s travel also stands out versus other CEOs like Jeff Bezos, who flew 100 less flights than Musk last year and Tim Cook, who paid $93,000 in 2017 for private flights when Tesla spent $700,000 the same year.

Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware commented: “Do the rank and file get to use the company plane for vacations? Do the rank and file get to use company property for personal purposes? Of course not. They’re Tesla, as much as he is. This company has some real financial issues, and (he’s) spending other people’s money.”

via ZeroHedge News http://bit.ly/2ShJqPp Tyler Durden

Authored by ‘Dagny Taggart’ via Daisy Luther’s Organic Prepper blog,

If you’ve been feeling like you just don’t have enough “smart” devices spying on you every day, I have great news. “Smart coolers” may be coming to a store near you.

Years ago, you would have sounded like a lunatic if you said that a refrigerator was watching you. But, like other new technology, yesterday’s serious mental health symptom is today’s reality.

Walgreens is piloting a new line of “smart coolers”, which are refrigerators equipped with cameras that scan shoppers’ faces and make inferences on their age and gender. On January 14, the company announced its first trial at a store in Chicago. The drugstore chain plans to put the coolers in stores in New York, Seattle, and San Francisco by the end of January.

Walgreens is getting paid to install smart coolers.

So far, 15 large advertisers have signed up to test the Cooler Screens platform, including Nestlé SA, MillerCoors LLC, and Conagra Brands Inc.  While Cooler Screens is currently only in Walgreens stores, the company is looking to get their product in additional chains as well.

The technology embeds cameras, sensors, and digital screens in cooler doors, creating a network of “smart” displays that marketers intend to use to target ads to specific types of shoppers, explains The Wall Street Journal:

The refrigerator and freezer doors act as a digital merchandising platform that depicts the food and drinks inside in their best light, but also as an in-store billboard that can serve ads to consumers who approach, based on variables such as the approximate age the technology believes they are, their gender and the weather.

This new technology could provide brick-and-mortar stores with a marketplace similar to online advertising. Ice cream brands could duke it out to get the most prominent placement when it is 97 degrees outside; an older man could see ads for different products than a younger woman. (source)

Here’s what the screens look like:

But don’t worry. It’s not facial recognition.

In Now Your Groceries See You, Too, Sidney Fussell writes of the technology:

Crucially, the “Cooler Screens” system does not use facial recognition. Shoppers aren’t identified when the fridge cameras scan their face. Instead, the cameras analyze faces to make inferences about shoppers’ age and gender. First, the camera takes their picture, which an AI system will measure and analyze, say, the width of someone’s eyes, the distance between their lips and nose, and other micro measurements. From there, the system can estimate if the person who opened the door is, say, a woman in her early 20s or a male in his late 50s. It’s analysis, not recognition. (source)

So, wait a second here – the camera takes photos of people and analyses them, but because this isn’t actual “facial recognition” there isn’t anything to worry about?

I’m not buying it.

Here are the minute details that smart coolers record.

Cooler Screens also has “iris tracking” capabilities, meaning the company can collect data on which displayed items are the most looked at.

Most the reporting on this technology is downplaying another detail that should be raising eyebrows: The Cooler Screens website states “We believe brands should be able to measure the performance of media buys in real-time.”

It sounds like what they really mean is “brands should be able to spy on shoppers.” Advertisers think nothing of invading our privacy if it means they’ll make more money. Remember when we showed you how your smart device was tracking every move you made in real time?

Arsen Avakian, Cooler Screens co-founder and CEO, wants us to know that our data is safe:

“The business model is not built on selling consumer data. The business model is built on providing intelligence to brands and to the retailers to craft a much better shopping experience.” (source)

Haven’t we heard this line before?

Walgreens has made another unsavory alliance.

This isn’t the first questionable alliance Walgreens has recently formed. As pointed out by MassPrivateI, the chain has allowed Microsoft access to patient information. On January 15, the Associated Press reported:

The drugstore chain Walgreens is working with Microsoft to improve care, as more companies seek ways to manage patient health, cut costs and improve quality.

The companies said Tuesday that they will work to improve care in part by using patient information and the Walgreens store network. The companies will aim to boost prescription adherence, cut down on emergency room visits and decrease hospital admissions. (source)

The report makes no mention of HOW Microsoft will be accessing private data, other than saying it will be done via the “Walgreens store network.” It seems like customers would have to give permission for their personal information to be shared in such a way, but who knows?

By the way, Microsoft is a Cooler Screens investor.

Do we need yet another invasion of privacy?

Do we really need to be barraged with MORE advertising and more invasion of our privacy? How long until every aisle of every store is equipped with mind-reading technology?

Will commercialism and corporate branding eventually take over every aspect of our lives, as it did in the dystopian comedy Idiocracy?

via ZeroHedge News http://bit.ly/2FWbDFP Tyler Durden

Authored by Garfield Reynolds, Bloomberg markets live commentator

For markets, trade talks dominate everything else this week, so here’s a simplified game plan for how it might play out.

China’s cooling economy, soggy earnings from the likes of Caterpillar, Nvidia, Harley Davidson, plus a slew of weak export data prints have helped create a consensus that what the markets need more than anything else is trade peace.

Such a view may be naïve. China deleveraging, Brexit, Italy, the U.S. shutdown have all done plenty of harm too. Plus, repairing the already-seen trade war damage will be a gradual and difficult process.

But that’s mostly beside the point — the talks are highly likely to set off extreme, sustained market moves because sentiment has become so sensitive to the trade war. Considering that, the potential scenarios could be roughly delineated as follows:

1. Trade talks break down and the trade war escalates
2. No concrete steps, but positive sounds and more talks planned
3. Agreement on tariffs announced, but IP/tech issues go onto a separate track for longer-term talks
4. Agreement announced on both tariffs and IP

The first scenario will be the easiest for traders to react to. JPY would surge and Treasury yields would drop. EM FX and AUD would slump, while global equity markets would be a sea of red.

The second and third may prove sufficient to see January’s risk-asset rebound turn into a sustained rally. Outcome 2, in particular, would represent the sort of can-kicking that markets often welcomed during the euro and Brexit crises.

The fourth should be the purest risk-on scenario in theory, but the devil could be in the details. A Trump-Kim summit redux – declare peace now and worry about the fine print later – could set off a similar fade-the-win moment for risk assets, after the initial euphoria.

Going into the talks, there seems to be too much complacency that Trump and Xi will decide they have to make a deal to end the damage already inflicted. Neither of them has a strong-enough track record of subordinating political aims to economic needs to make that an ironclad proposition.

The bar for success may not be too high this week, but there may be a stumble when the U.S. and China try to hurdle it in tandem.

via ZeroHedge News http://bit.ly/2WrXSnj Tyler Durden

Fresh protests broke out on Wednesday in Venezuela after the highest court in the country froze the bank accounts and restricted the travel of self-declared interim president Juan Guaidó. 

Making a surprise appearance in front of a cheering crowd at the capital’s Central University of Venezuela, Guaidó called for a peaceful demonstration by leaving their homes and offices for two hours, and that he wasn’t losing any sleep over his travel ban according to the Associated Press. 

President Trump and Guaidó spoke over the phone on Wednesday, with Guaidó thanking Trump for committing the US to freedom and prosperity in Venezuela and the region, according to AP, citing the White House. 

White House Press Secretary Sarah Sanders said that Trump and Guaidó committed to maintaining “regular communication to support Venezuela’s path back to stability, and to rebuild the bilateral relationship” between Venezuela and the US. 

….Large protests all across Venezuela today against Maduro. The fight for freedom has begun!

— Donald J. Trump (@realDonaldTrump) January 30, 2019

Earlier Wednesday, Trump tweeted that embattled Venezuelan President Nicolas Maduro is “willing to negotiate with opposition in Venezuela following U.S. sanctions and the cutting off of oil revenues,” adding that Guaidó “is being targeted by Venezuelan Supreme Court.” Trump warned Americans not to travel to the South American country until further notice. 

Maduro willing to negotiate with opposition in Venezuela following U.S. sanctions and the cutting off of oil revenues. Guaido is being targeted by Venezuelan Supreme Court. Massive protest expected today. Americans should not travel to Venezuela until further notice.

— Donald J. Trump (@realDonaldTrump) January 30, 2019

Maduro made the offer earlier Wednesday during an interview with Russia’s RIA news agency, saying he is willing to sit down at the negotiating table “for the good of Venezuela.” But he said there will not be a new presidential election until 2025, rejecting a demand by Guaido, president of the opposition-controlled National Assembly. –VOA

Guaidó declared himself interim president last week after the opposition-controlled National Assembly declared Maduro’s presidency illegitimate, after most opposition candidates were prevented from running or boycotting the May 2018 presidential election. 

On Tuesday US National Security Adviser John Bolton warned the Venezuelan Attorney General, Tarek William Saab, that there would be “serious consequences” if Guaidó is harmed. 

We denounce the illegitimate former Venezuelan Attorney General’s threats against President Juan Guaido. Let me reiterate – there will be serious consequences for those who attempt to subvert democracy and harm Guaido.

— John Bolton (@AmbJohnBolton) January 29, 2019

Bolton also advised the international business community to be careful not to “deal in” Venezuelan oil or other commodities which are “being stolen from the Venezuelan people by the Maduro mafia,” and that the United States stands “ready to continue to take action.”

My advice to bankers, brokers, traders, facilitators, and other businesses: don’t deal in gold, oil, or other Venezuelan commodities being stolen from the Venezuelan people by the Maduro mafia. We stand ready to continue to take action.

— John Bolton (@AmbJohnBolton) January 30, 2019

via ZeroHedge News http://bit.ly/2GdllD4 Tyler Durden

It has been a tumultuous day for Facebook and its investors after Apple revoked the company’s iOS enterprise developer certificates due to damning revelations about Facebook bribing teens into supplying the company with reams of personal data, which it is believed to have used to improve its ad microtargeting and keep tabs on its rivals. This news, and the slight hit to FB stock that followed, was soon followed by a solid earnings report, which sent FB shares higher in after-hours trading.

But employees at Facebook’s office may have been distracted from all of the goings-on on Wednesday. Why? Because Apple’s ban reportedly unleashed chaos inside FB HQ as employees suddenly found it impossible to open the company’s internal apps on their iPhones, according to Business Insider.

Facebook’s thousands of employees are reportedly unable to use the company’s internal iOS apps after it was caught running a data-gathering research app that violated Apple’s developer policies.

Apple said on Wednesday that it had revoked Facebook’s certificates giving it access to a special enterprise program that companies can use to distribute internal apps and tools outside the public App Store.

[…]

While that has made for a hectic day for Facebook employees, Apple’s revocation of Facebook’s enterprise certificates hasn’t affected the public’s ability to download and use the Facebook app on iOS devices.

That followed an initial report from the Verge claiming that the revocation of FB’s developer certificate – in retribution for abusing the license, which is supposed to be for employee-only internal apps, to bribe kids into handing over all their private data – included shutting down all of Facebook’s internal apps.

Apple has shut down Facebook’s ability to distribute internal iOS apps, from early releases of the Facebook app to basic tools like a lunch menu. A person familiar with the situation tells The Verge that early versions of Facebook, Instagram, Messenger, and other pre-release “dogfood” (beta) apps have stopped working, as have other employee apps, like one for transportation. Facebook is treating this as a critical problem internally, we’re told, as the affected apps simply don’t launch on employees’ phones anymore.

The shutdown comes in response to news that Facebook has been using Apple’s program for internal app distribution to track teenage customers with a “research” app.

Facebook initially defended the research app that was at the center of TechCrunch’s report, but later opted to shut down the iOS version of the program.

via ZeroHedge News http://bit.ly/2MFziKZ Tyler Durden

Authored by Tom Luongo,

This is the attitude of those opposed to it. Any real separation of the U.K. from the European Union would result in a catastrophe which knows no bounds.

They have ratcheted up Project Fear to the point now of saying there will be food shortages and permanent supply problems for fresh fruit if a hard Brexit occurs.

Things like this defy all reason. They are based on the stupidest interpretation of how humans react to changing situations. It is like saying the only potential suppliers for the U.K. of certain fruits and vegetables are those from the European Union.

Because people don’t respond to incentives and there aren’t other suppliers ready to take up the slack if the Eurocrats keep their panties in a twist over this.

Parliamentary Deck Chairs

And yet, after another major session of Parliament in which Remainers were supposed to scuttle the entire process we see Brexit moving steadily towards its obvious conclusion.

The six amendments which were on the table yesterday ranged from virtue signaling about not wanting a No-Deal Brexit to parliament wresting control of the law-making process from the Government, over-turning nearly 40 years of tradition.

Four of them, all of the terrible ones, failed.

Because what finally happened is that these corrupt and venal MP’s finally ran up against the reality that they hold what power they have at the pleasure of the people they represent.

Democracy may be a flawed and dangerous form of government, but every once in a while it has its uses.

And it is most useful when the crock of shit our representatives are selling us as a plate of foie gras is so horrible we can’t hold our nose and eat it anymore.

This explains Trump. It explains Italy and it explains succinctly, yesterday’s ride on the fail boat by the Remain camp. Why? Because so many of them went home over the past week and found out exactly what the polls have been telling us for months.

The British people value honoring the Brexit referendum and their voice more than Parliament’s perception of the consequences of that decision.

So, ‘Forget the Bollacks’ as it were and get on with it.

Because of that there was no clear majority to take over the government or even to extend Article 50 (two amendments on that failed). Moreover, these votes gave Theresa “The Calcite Lady” May some clearer direction with which to go back to Brussels with.

1. The Irish Backstop is unacceptable. Here’s how it could be.

2. No permanent customs union.

Jeremy Corbyn tried to get what he wanted, a permanent relationship in the EU customs union, and that failed as well. So, his main opposition within Labour, Yvette Cooper, and him were roundly rejected by the body. That doesn’t bode well for Labour’s future even if this Brexit process ends ultimately with a new General Election.

And that is exactly what was on the minds of Labour MP’s who couldn’t agree on anything of substance.

Peak Davos

It’s sad that it has come to this. The Davos Crowd’s dream of a United States of Europe not beholden to the democratic process (no matter how flawed) is failing. In the process they are willing to destroy anyone or any country saying no.

But, their power is ephemeral, if considerable in the moment. It evaporates when the people withdraw their consent far enough. Don’t believe me? Look across the channel at the Giles Jaunes in France.

I’ve seen reports that the convocation of oligarchs at Davos this year was like a morgue.They are worried about their projects failing and their nests de-feathered.

And that shows in how insane the anti-Brexit rhetoric is. And it speaks to their desperation. George Soros is now warning us about China, when just two years ago they were his best bet to assist him destroying the U.S. His MEP’s are trying to rewrite EU energy rules to wrest control of the Nordstream 2 pipeline from Europe.

These people are running out of answers. None of their usual tactics are working. I’ve been saying this for a long time, we can debunk their nonsense in real time anymore.

Even Trump’s Trio of Foreign Policy Retards — Bolton, Pompeo and Pence — had to openly admit that their little adventure in Venezuela wasn’t about humanitarianism but taking the oil.

But, again, don’t tell that to the MAGApedes, it might make them cry to realize the only thing Trump has a plan for at this point is what he’s having for lunch with his sixth Diet Coke.

And how he can MAGA by bankrupting the country with deficits he didn’t inherit, steal everyone’s oil, cave on immigration reform and shut the U.S. off from all foreign trade.

Good luck with that Orange Obama!

It is this ability to communicate in real time which has The Davos Crowd most scared. It’s why the EU will continue pushing for more control over criticism. And it’s why Project Fear over Brexit has failed.

Yesterday’s session of Parliament proved it and it’s now Theresa May’s job to turn up the heat on her opposition by pushing to March 29th without a deal in place.

• The EU cannot back down here lest they invite a revolt from within that makes Brexit look like an outing to Chucky Cheese with the kids.

• And the Remainers cannot accept a slightly better version of Mrs. May’s deal after giving it a sound thrashing by 230 votes.

At that point everyone who is anyone sees their dreams turn to nightmares. While the rest of the world just gets on with it.

*  *  *

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via ZeroHedge News http://bit.ly/2DKHS8o Tyler Durden

After setting off another firestorm over Facebook’s abusive data privacy practices when it revealed that the social media giant encouraged users as young as 13 to bypass the Apple app store and side-load an app that offered them a small financial incentive to allow the company unfettered access to their personal data, TechCrunch has followed up its earlier report with another bombshell: Google built a very similar app that functioned in practically the same exact way.

The app built by Google, called Screenwise Meter, was available for iOS and Android users. Like Facebook, the app violated Apple’s policies over using its enterprise developer certificate to allow non-employees to download the app. It also encouraged teenagers to download the app, allowing Google to hoover up sensitive personal data about their phone-usage habits.

The only differences are that Google’s app was around longer (it launched in 2012, whereas Facebook’s app wasn’t introduced until 2016, after Apple banned Facebook’s Onavo “corporate spyware” app from its app store), and Google was slightly more transparent about the app’s functionality.

First launched in 2012, Screenwise lets users earn gift cards for sideloading an Enterprise Certificate-based VPN app that allows Google to monitor and analyze their traffic and data. Google has rebranded the program as part of the Cross Media Panel and Google Opinion Rewards programs that reward users for installing tracking systems on their mobile phone, PC web browser, router and TV. In fact, Google actually sends participants a special router that it can monitor. Originally, Screenwise was open to users as young as 13, just like Facebook’s Research app that’s now been shut down on iOS but remains on Android.

Now, according to the site’s Panelist Eligibility rules, Google requires the primary users of its Opinion Rewards to be 18 or older, but still allows secondary panelists as young as 13 in the same household to join the program and have their devices tracked, as demonstrated in this video here (which was created in August of last year, underscoring that the program is still active):

[…]

Originally, Screenwise was open to users as young as 13, just like Facebook’s Research app that’s now been shut down on iOS but remains on Android. Now, according to the site’s Panelist Eligibility rules, Google requires the primary users of its Opinion Rewards to be 18 or older, but still allows secondary panelists as young as 13 in the same household to join the program and have their devices tracked, as demonstrated in this video here (which was created in August of last year, underscoring that the program is still active):

But while Facebook had initially tried to defend its data-hoovering app, Google, probably rattled after witnessing the backlash to Facebook (which led Apple to tear up Facebook’s enterprise development certificate, sowing chaos inside Facebook’s office), skipped straight to the apology.

After we asked Google whether its app violated Apple policy, Google announced it will remove Screenwise Meter from Apple’s Enterprise Certificate program and disable it on iOS devices. The company provided TechCrunch with this statement: “The Screenwise Meter iOS app should not have operated under Apple’s developer enterprise program – this was a mistake, and we apologize. We have disabled this app on iOS devices. This app is completely voluntary and always has been. We’ve been upfront with users about the way we use their data in this app, we have no access to encrypted data in apps and on devices, and users can opt out of the program at any time.”

Eager to give credit where credit is due, TechCrunch praised Google for at least being upfront with users of the side-loaded app about the type of data it collects (again, it’s practically all of the data generated when users on are on their phones) while also providing for a guest mode that can be activated when somebody younger than 13 is using the app.

Still, many users probably ignored all of these implications when Google dangled the financial incentive of a $20 gift card in front of them.

Unlike Facebook, Google is much more upfront about how its research data collection programs work, what’s collected and that it’s directly involved. It also gives users the option of “guest mode” for when they don’t want traffic monitored, or someone younger than 13 is using the device.

Putting the not-insignificant issues of privacy aside – in short, many people lured by financial rewards may not fully take in what it means to have a company fully monitoring all your screen-based activity – and the implications of what extent tech businesses are willing to go to to amass more data about users to get an edge on competitors, Google Screenwise Meter for iOS appears to violate Apple’s policy.

This states, in essence, that the Enterprise Certificate program for distributing apps without the App Store or Apple’s oversight is only for internal employee-only apps.

Google walks users through how to install the Enterprise Certificate and VPN on their phone. Developers seeking to do external testing on iOS are supposed to use the TestFlight system that sees apps reviewed and limits their distribution to 10,000 people.

The question now is whether Apple will revoke Google’s developer credentials, which would throw a wrench in the workflow of employees who rely on internal company apps to do their work, like it did to Facebook. Will Google’s ever-so-slightly more transparent approach be enough to avert such a reaction?

We guess we’ll need to wait and see.

via ZeroHedge News http://bit.ly/2FZNJsZ Tyler Durden

The last time Donald Trump tweeted about the market was on October 31, 2018 when the Dow surged 400 points much the delight of a president who had grown accustomed to see the market as a barometer of his policy performance.

Stock Market up more than 400 points yesterday. Today looks to be another good one. Companies earnings are great!

— Donald J. Trump (@realDonaldTrump) October 31, 2018

And while Trump had a vocal track record of praising the US stock market prior to then, he had gone surprisingly mute in the past three months…

…  when instead he turned to bashing the Fed and its chair Jerome Powell.

Until today.

Following Powell’s complete and total capitulation in the face of market forces to which there is now no doubt the Fed is held hostage, market analyst Trump was back in full force, and delighted clearly delighted by today’s 435 surge in the Dow, to wit: “Dow just broke 25,000. Tremendous news!“

Dow just broke 25,000. Tremendous news!

— Donald J. Trump (@realDonaldTrump) January 30, 2019

 

This was to be expected, because as we jokingly tweeted earlier after today’s Fed presser, Powell is no longer on the chopping block.

“You’re not fired” pic.twitter.com/6IbM7YHJfo

— zerohedge (@zerohedge) January 30, 2019

The question traders have is whether Trump jinxed it, again: the last time he tweeted – when incidentally the Dow also surged over 400 points – marked the start of the next leg lower in stocks. Will this time be different.

via ZeroHedge News http://bit.ly/2GdX7rZ Tyler Durden