Category Archives: Business

Robinhood Agrees to Pay $70 Million to Settle Regulatory Investigation

WASHINGTON—Robinhood Financial LLC has agreed to pay nearly $70 million to resolve sweeping regulatory allegations that the brokerage misled customers, approved ineligible traders for risky strategies and didn’t supervise technology that failed and locked millions out of trading.

The enforcement action is a blow to the fast-growing online brokerage, which was launched in 2014 and has won over users with commission-free trades and its sleek mobile app. The company took on millions of new customers and attracted more scrutiny this year as many investors accessed Robinhood to speculate on so-called meme stocks such as GameStop Corp. and AMC Entertainment Holdings Inc. Its forthcoming initial public offering is one of the most anticipated of the year.

Robinhood’s growth has continued, with its biggest source of revenue, stemming from customer trading, more than tripling in the first quarter, even as many customers complained about its technology snafus and limited customer service. It enraged clients earlier this year when it restricted trading in some popular stocks that had become so volatile that Robinhood’s clearinghouse told the brokerage to post billions of dollars in additional collateral.

The Financial Industry Regulatory Authority, the front-line inspector of broker-dealers, unveiled the settlement Wednesday. Robinhood neither admitted nor denied the claims.

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Traveling for July 4th Weekend? Expect Crowds. Everywhere.

Travel for the July Fourth holiday weekend is expected to reach levels not seen since before the Covid-19 pandemic, as millions of Americans make bucket-list trips or reunite with family and friends after a year-plus of lockdowns and distancing.

With 46% of Americans fully vaccinated, according to the U.S. Centers for Disease Control and Prevention, and mask mandates lifting in theme parks and cities nationwide, the travel industry expects a frenzy from now through Labor Day weekend.

AAA forecasts that some 47 million people are expected to travel from July 1 to 5. This weekend is expected to have the highest auto-travel volume on record, surpassing 2019 levels.

Pent-up demand among travelers has caused shortages and price spikes. Daily rates for rental cars are currently at $166, about a 140% increase from 2019 prices, according to the automobile association. Some will be out of luck because of a surge in demand for road travel continuing from last year and chip shortages causing supply problems at car-rental companies.

Gas prices are expected to be upward of $3 a gallon on average, the most expensive since 2014, according to AAA. Prices soared because of the oil industry’s recovery and climbing consumer demand.

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Target Store Closings Show Limits of Pledge to Black Communities

BALTIMORE — When Target announced that it was opening a store in Mondawmin, a predominantly Black neighborhood in this city struggling with crime and poverty, it seemed like a ticket to a turnaround.

And from the start, it was a practical success and a point of community pride. The store, which opened in 2008, carried groceries, operated a pharmacy and had a Starbucks cafe, the only one in this part of Baltimore’s west side.

People came from across the city to shop there, helping to soften the Mondawmin area’s reputation for crime and the looting that followed protests over the 2015 death of Freddie Gray, who was fatally injured while in city police custody. As an employer, Target seemed to cater to the community’s needs, making a point of hiring Black men and providing an office in the store for a social worker to support the staff. Elijah Cummings, the congressman from Baltimore, was known to shop there.

But in February 2018, with almost no warning or explanation, Target closed the store.

Residents, especially those without cars, lost a convenient place to shop for quality goods. And a marker of the community’s self-worth was suddenly taken away.

“To open a store like Target in an African American neighborhood gave this area legitimacy,” said the Rev. Frank Lance, pastor of Mount Lebanon Baptist Church in Mondawmin. “When the store closed, it was like saying, ‘You are not worthy after all.’”

Three years later, the store remains empty, and its closing still stings Mondawmin residents and Baltimore officials, who had granted $15 million in subsidies to help develop the property.

Many national retailers have faced criticism in the past for failing to open in Black and poor communities, creating food deserts or a lack of access to quality goods. In Mondawmin, Target invested in a struggling area, but the outcome was almost more disheartening: The company ultimately decided that, despite its social goals, the store wasn’t financially successful enough to keep open.

The closing is a sobering reminder of the realities of capitalism in a moment when corporations are making promises to support Black Americans, saying their commitment to racial equity is stronger than ever.

This year, Target made a highly public pledge to help Black communities nationally in the wake of George Floyd’s killing in the retailer’s home city of Minneapolis, vowing to spend $2 billion with Black-owned vendors and other businesses.

In a statement in response to questions about the Mondawmin location, a Target spokeswoman said closing a store was a “last resort” and happened only after “it’s had a consistent history of underperformance, following several years of investments to help it succeed.”

The company pointed out that it has rebuilt and revamped stores in Atlanta, Philadelphia, Minneapolis and Oakland, Calif., that were damaged during protests last summer, and that it was opening stores in other diverse communities across the country.

In many of these new and refurbished stores, “we’ve seen early progress” in their performance, the spokeswoman said.

Like other big-box retailers, Target has closed numerous stores over the past few years, in both white and Black areas, as it has built out a wildly successful e-commerce business and cut other expenses.

But as in Mondawmin, closings in some of those Black neighborhoods have hit their communities particularly hard.

In 2019, Target shut two stores in predominantly Black neighborhoods on Chicago’s South Side as the company made plans to build a new store on the wealthier and mostly white North Side.

“They were like a thief in the night,” said Carrie Austin, who has represented parts of the South Side on the City Council for 27 years. “They were here one day and then, boom, gone the next.”

In Milwaukee, city officials only recently found a company to occupy the building vacated five years ago when Target closed its store in Northridge, an area with a large Black population. The building’s new occupant is a cold storage business, though, not another retailer as local leaders had hoped, said Chantia Lewis, a city alderwoman.

In the majority-Black city of Flint, Mich., Target closed one of its two stores in January 2016, around the time a state of emergency was declared because contaminated drinking water was endangering local children, and after years of disinvestment by businesses in the city.

Target has no immediate plans to open stores in those areas, nor in Mondawmin.

“This was supposed to be a public-private partnership,” Nick Mosby, president of the Baltimore City Council, said of the Mondawmin store. “To just up and leave the neighborhood like that was unacceptable.”

The Mondawmin Target was built on the grounds of a former estate, perched on a hill, that once belonged to a Baltimore banker.

The estate was called Mondawmin at the suggestion of the poet Henry Wadsworth Longfellow, who, according to local legend, visited the property in the 19th century and observed the area’s bountiful cornfields. Mondawmin is derived from a Native American phrase for “spirit of corn.”

In the 1950s, the property was sold to a real estate developer, who turned the rural lot into the city’s first shopping mall.

The Mondawmin Mall featured a Sears, a five-and-dime, and eventually an indoor fountain and spiral staircase, advertised as the “seventh wonder of Baltimore,’’ according to Salvatore Amadeo, an amateur historian who makes YouTube documentaries about malls, including a segment on Mondawmin.

When the assassination of the Rev. Dr. Martin Luther King Jr. in 1968 sparked protests across Baltimore and caused “white flight” to the suburbs, the mall struggled. Over time, it ceased to be a big draw for shoppers outside the area.

The stores became more focused on Black fashion and neighborhood services. A large barbershop occupies the mall’s bottom floor, and there is an agency that helps formerly incarcerated people find jobs.

“Mondawmin became perceived as a Black mall,” said Pastor Lance, whose church is nearby.

For years, Baltimore had been working to develop the Inner Harbor, an upscale area that includes shops, sports stadiums and corporate offices, and officials were under pressure to spread subsidies into neighborhoods like Mondawmin. So the city approved $15 million in financing to help the developer of the Mondawmin Mall create retail space that eventually became the Target store.

Target seemed to recognize the area’s potential. Not far from the mall, there have long been pockets of wealth and spending power: tree-lined streets with large brick houses owned by Black professionals. Nearby Druid Hill Park is a lush 745-acre expanse of green fields, walking trails and the Baltimore Zoo. On some warm afternoons it can be sparsely occupied, but on others, there is a farmers’ market and people hold cookouts or play basketball.

This Target also promised to be a different type of employer that recruited heavily from the neighborhood, including hiring people who had never had steady work.

“We had a different paradigm for how we approached the work,” said Sadiq Ali, who was hired when he was 25 to be the store’s manager. “The store was providing a community service.”

When Mike Johnson applied for a job at the Target, he was “down on his luck,” having run out of tuition money to stay enrolled at Coppin State University, a historically Black college near the mall.

At 19, he got a position stocking shelves overnight and worked his way up to earning $16.50 an hour as a supervisor. It was the first time he had worked somewhere with Black people in leadership roles, he said.

“They helped me become a man,” Mr. Johnson said. “I grew up in that store.”

Carolyn Carey, 76, went to the store regularly to pick up snacks or browse for books — James Patterson and other thrillers. She walked there because, like some Mondawmin residents, she doesn’t drive or shop online much. This was not a Walmart or a dollar store, known for low prices. Target had a certain cachet.

Something else about the Target stood out. “A lot of Caucasians were shopping there,” Ms. Carey said.

Mr. Ali couldn’t help but take pride that his Target was attracting white shoppers who had previously steered clear of Mondawmin.

“When white folks started shopping in the store, it meant they felt safe enough to cross the tracks,” Mr. Ali said. “However backhanded that compliment was, it meant we were doing something right.”

Four days after George Floyd’s death, Target’s chief executive, Brian Cornell, released a forceful statement, promising to reopen one of its stores in Minneapolis damaged in the protests against police violence.

“The murder of George Floyd has unleashed the pent-up pain of years, as have the killings of Ahmaud Arbery and Breonna Taylor,” Mr. Cornell said in the statement. “We say their names and hold a too-long list of others in our hearts. As a Target team, we’ve huddled, we’ve consoled, we’ve witnessed horrific scenes similar to what’s playing out now and wept that not enough is changing.”

One of the names on that “too-long list” is Freddie Gray. Mr. Gray was from Baltimore’s west side and was arrested a few blocks from the Mondawmin Mall in April 2015 for possessing a knife.

Mr. Gray died after being transported, handcuffed but not secured to his seat, in the back of a police van. After he was taken on what prosecutors described as a “rough ride,” his spinal cord was 80 percent severed.

One of the first big waves of protests over his death occurred at the Mondawmin Mall. Protesters began throwing rocks at police officers, and the mall was looted. Some students from Frederick Douglass High School, across from the mall and the alma mater of the civil rights giant Thurgood Marshall, the first Black man to serve on the U.S. Supreme Court, were caught up in the melee.

Target was spared serious damage. But for a time, many shoppers, both Black and white, stayed away from the store, recalled Mr. Johnson, who now works for the Postal Service.

“Mondawmin already had a bad rap with out-of-towners,” he said.

Shoppers eventually returned to the Target in Mondawmin, he said. But he noticed that the city’s other Target store, which had opened in a trendy area near the harbor in 2013, was getting more popular.

In November 2017, Mr. Mosby, then a state lawmaker, got a call from a resident whose family worked at the store: The Target in Mondawmin was shutting its doors in a few months. “I thought it was a just a rumor at first,” Mr. Mosby said.

Some residents and neighborhood leaders were told that the store struggled with high rates of theft, known in the retail industry as “shrinkage.” But Mr. Ali, the store’s former manager, said, “That was untrue,” at least while he worked there. The store met its profit and shrinkage goals during his four years as manager, which ended in 2012, years before the store closed.

Still, Mr. Ali, now the executive director of a youth mentoring group, acknowledged challenges that he said were unique to a store in a “hyper-urban area.”

A significant amount of inventory was once damaged in a fire in a storage area next to the store, and the company had to spend $30,000 a month for an armed Baltimore police officer to keep watch, he said.

There may have been additional considerations. “I think what happened after Freddie Gray spooked Target,” Mr. Ali said.

Other national chains reacted differently. TGI Fridays stuck with its plans to open a restaurant at the Mondawmin Mall, months after the protests. The restaurant remains one of the neighborhood’s only free-standing, sit-down chain restaurants.

Mr. Mosby and other officials tried to negotiate with Target to keep the store open, but the company said its mind was already made up.

“They weren’t interested in talking to us,” Mr. Mosby said. “They wouldn’t budge.”

The temperature gauge outside Pastor Lance’s car registered 103 degrees as he drove through Greater Mondawmin and its surrounding neighborhoods. He was wearing a white shirt emblazoned with his church’s logo — a group of people, of all races and backgrounds, walking toward the sun, holding hands.

A Baltimore native, Pastor Lance used to work as a computer programmer at Verizon. He made “lots of money,” he said. “But I didn’t feel fulfilled.”

He became a pastor and took over a nonprofit company that develops park space and playgrounds and hosts a summer camp for schoolchildren with a garden surrounded by a meadow near the mall.

“But some days, I wonder if I made a mistake,” he said. “It’s great to have a park, but if you don’t have a good job, you aren’t going to be able to enjoy a park.”

He drove along a street with liquor stores and houses with boarded-up windows. A woman tried to flag him down for a ride. But the poverty he saw was not what made him most upset.

It was when Pastor Lance steered through an enclave of big houses and immaculate lawns, only a short distance away, that the anger rose in his voice.

“You are telling me that these people wouldn’t shop at Target for lawn furniture or school supplies,” he said. “I am not trying to gloss over the problems, but there is also wealth here.”

“If shrinkage was a problem, hire more security guards or use technology to stop people from stealing,” he added.

He circled back to the Mondawmin Mall, where families ducked into the air conditioning for a bubble tea or an Auntie Anne’s pretzel. He drove past the TGI Fridays and then past the Target, its windows still covered in plywood and the trees in the parking lot looking withered and pathetic.

Pastor Lance refused to accept that a Target could not succeed here.

“If you are really interested in equity and justice,’’ he said, “figure out how to make that store work.”

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As housing boom begins to fizzle, weekly mortgage demand falls

Record high home price appreciation is sidelining ever more buyers and finally taking the bang out of the pandemic-induced housing boom. Weekly mortgage demand is falling along with it, down 6.9% for the week according to the Mortgage Bankers Association’s seasonally adjusted index. That is the lowest level in almost a year and a half.

Mortgage applications to purchase a home dropped 5% for the week and were 17% lower annually. That is the slowest pace since the start of May 2020, when lockdowns were in full force.

Demand is now slumping due to weakening affordability, especially at the lower end of the market where demand is strongest. Home prices rose more than 14% in April year over year, according to the latest S&P CoreLogic Case-Shiller national price index released Tuesday. Craig Lazzara of S&P Dow Jones Indices called the unprecedented jump, “Truly extraordinary.”

Both the types and size of loans for which borrowers are now applying also point to an overheating in the homebuying market.

“Purchase applications for conventional loans declined last week to the lowest level since last May,” said Michael Fratantoni, chief economist at the Mortgage Bankers Association. “The average loan size for total purchase applications increased, indicating that first-time homebuyers, who typically get smaller loans, are likely getting squeezed out of the market due to the lack of entry-level homes for sale.”

Housing demand took off a year ago, as stay-at-home orders due to Covid-19 had more Americans seeking more space in larger homes, especially in suburban areas. Mortgage rates also set more than a dozen record lows last year, giving buyers more purchasing power and helping to inflate home prices.

Now higher mortgage rates are doing just the opposite for buyers. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.20% from 3.18%, with points decreasing to 0.39 from 0.48 (including the origination fee) for loans with a 20% down payment. At the start of this year that rate was around 2.85%.

The increase in rates caused an 8% weekly drop in applications to refinance a home loan. Refinance volume is now 15% lower than the same week one year ago.

“Mortgage rates were volatile last week, as investors tried to gauge upcoming moves by the Federal Reserve amidst several divergent signals, including rising inflation, mixed job market data, strong consumer spending, and a supply-constrained housing market that has led to rapid home-price growth,” added Fratantoni.

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Chinese grocery delivery company clings to gains after slashing IPO

Workers at grocery delivery company Dingdong pack up vegetables for orders the company claims customers can receive in about 30 minutes.

Dingdong

BEIJING — Chinese grocery delivery company Dingdong closed 2 cents higher in its U.S. IPO Tuesday, following a 70% cut in the offering size.

The lackluster performance comes amid a surge in Chinese stock listings in the U.S. and concerns about growth in the grocery delivery industry, in which tech giants Alibaba, Meituan and JD.com have all invested significantly.

In its initial public offering, Dingdong still gained a market value of $5.5 billion. That is more than double the value of Tencent-backed rival Missfresh, which fell more than 25% in its Nasdaq debut Friday.

Earlier this week, Dingdong disclosed it would price its IPO on the New York Stock Exchange at $23.50 a share, on the low end of the proposed range and with fewer than 30% of the initial number of shares. Dingdong raised $95.69 million as a result, versus an offering that could have been as large as $357 million.

From our perspective, the IPO itself is a milestone and how much money we raised isn’t that essential. We have adequate cash flow and that is our situation.

Liang Changlin

Founder and CEO, Dingdong

Founder and CEO Liang Changlin told CNBC’s Eunice Yoon Tuesday he planned to use the IPO proceeds for expanding the company in China, and investing in technology and talent.

“We just finished a Series D round of funding, and everyone knows we raised $1.03 billion dollars,” he said in Mandarin, according to a CNBC translation. “So, from our perspective, the IPO itself is a milestone and how much money we raised isn’t that essential. We have adequate cash flow and that is our situation.”

Liang has a 30% stake in the company.

Dingdong said in its prospectus it had 1.45 billion yuan ($226.56 million) in cash, cash equivalents and restricted cash. Together with anticipated cash flows from financing activities, the company said it expected to meet its financial needs for at least 12 months.

The company said it operates in 29 cities in China, with a monthly average of 6.9 million transacting users in the first quarter and gross merchandise value (GMV) of 4.3 billion yuan. That’s up from 2.92 billion yuan in the same period a year ago.

GMV measures the total value of merchandise sold over a period of time.

However, Dingdong also disclosed a net loss of 1.38 billion yuan in the first quarter, up from 244.5 million yuan in the year-ago period.

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In May, SoftBank invested $330 million in Dingdong, following a $700 million investment a month earlier from Coatue, Sequoia Capital and others, according to advisor Cygnus Equity.

As Chinese consumer demand for delivery grows, Dingdong claims it can send fresh produce in about 30 minutes. The company’s strategy is to work out of warehouses, rather than retail stores which need consumer-friendly interior design. Location can also add to costs.

Liang claimed Dingdong has grown an average of 300% a year for the past three years, and was confident in “booming” demand for grocery delivery in China.

“If something becomes popular during a pandemic but fades when the pandemic is over, then it is not a good business,” he said. For Dingdong, “our price per order might have dropped a little, but the strength of orders is there. So we think the pandemic only accelerated our development.”

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China manufacturing slows as supply shortages roil Asia industry

Growth in China’s June factory activity dipped to a four-month low on higher raw material costs, a shortage of semiconductors and a COVID-19 outbreak in the major export province of Guangdong, amid wider supply chain disruptions in Asia.

The chip supply crunch has hammered other manufacturing powerhouses in Asia. Industrial output in Japan and South Korea slumped in May from the previous month as auto production declined due to semiconductor shortages, adding to concerns of flagging momentum in their respective economies.

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China’s June official manufacturing Purchasing Manager’s Index (PMI) eased slightly to 50.9 versus 51.0 in May, data from the National Bureau of Statistics showed on Wednesday. It, however, exceeded analysts’ forecast for a slowdown to 50.8.

It remained above the 50-point mark that separates growth from contraction on a monthly basis.

“This was largely a result of COVID, which has affected factory output and also new export orders due to the rising waves of infections and resultant restrictions in some neighboring economies,” said Iris Pang, Great China chief economist at ING.

“Overall, (it’s) not a great month but no really worrying signs…China’s growth rate is still positive, though it would be a lot lower in H2 than H1, mostly because of the change in base effects,” said Pang, referring to year-ago comparisons with 2020’s pandemic disruptions.

CHINA’S DIDI WILL REPORTEDLY PRICE IPO ABOVE EXPECTED RANGE

The sub-index for production eased to 51.9, a four-month low, from 52.7 the previous month. Zhao Qinghe, a senior statistician at the NBS, attributed the slowdown in production to constraining factors such as a shortage of semiconductors, inadequate coal supply, a power crunch and maintenance of equipment.

A shortage of coal supply in China’s southern regions, which started in mid-May, hit factory operations though the government has said the power crunch should ease soon.

New export orders fell for a second consecutive month in June and at a faster pace, likely due to the global resurgence of COVID-19 variants, forcing some countries to reimpose lockdowns.

A sub-index for raw material costs in the official PMI stood at 61.2 in June, compared with May’s 72.8, as the government cracked down on high raw material prices.

Growth in new orders, however, picked up, as domestic demand improved.

The world’s second-largest economy has largely recovered from disruptions caused by the pandemic, but Gross Domestic Product (GDP) growth is set to moderate.

“Much of the recovery has occurred and the momentum is slowing. Combined with a relatively higher base, this means year-on-year GDP growth is expected to slow to 7.2% in Q2 from 18.3% in Q1,” said analysts at HSBC.

However, in two-year average terms, they expect growth to pick up to 5.2% from 5.0%, though this is still below pre-pandemic levels of 6.0% growth.

An outbreak of coronavirus infections in China’s major export province of Guangdong has also disrupted shipments.

The official non-manufacturing Purchasing Managers’ Index (PMI) fell to 53.5 in June from 55.2 in May, a separate survey from the NBS showed, dampened by a sharp pull-back in the recovery of the services sector due to local COVID outbreaks.

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The construction index held steady at 60.1, although analysts expect the sector to face headwinds amid Beijing’s clampdown on the property market.

 (Additional reporting by Colin Qian; Editing by Jacqueline Wong)

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UPDATE 1-Berkshire’s Munger says China right to clip Ma’s wings

(Recasts with quotes about Jack Ma, adds details from interview, changes date in dateline)

June 30 (Reuters) – Berkshire Hathaway Inc Vice Chairman Charlie Munger praised China’s move to impose a sweeping restructuring on Jack Ma’s Ant Group, the fintech giant whose record $37 billion IPO was derailed by regulators in November.

The 97-year-old told CNBC in an interview alongside Berkshire CEO and billionaire investor Warren Buffett that the United States should take a leaf out of China’s book and “step in preemptively to stop speculation”.

“I don’t want the, all of the Chinese system, but I certainly would like to have the financial part of it in my own country,” he said in the interview aired on Tuesday in the United States.

Communist Party-ruled China “did the right thing” by reining in Ma, the founder of e-commerce giant Alibaba Group Holding , who has hardly been seen in public since he criticised regulators in a speech in October last year.

Chinese regulators pulled the plug on Alibaba affiliate Ant’s IPO and forced it to turn itself into a financial holding firm, a move expected to curb some of its freewheeling businesses.

Alibaba was also hit with a record $2.75 billion antitrust penalty as China tightens controls on the booming “platform economy”.

“Communists did the right thing. They just called in Jack Ma and say, “You aren’t gonna do it, sonny,” Munger said.

He also praised China’s response to the novel coronavirus. China imposed strictly enforced lockdowns and widespread curbs on movement, measures that would be less acceptable to Americans.

“They simply shut down the country for six weeks. And that turned out to be exactly the right thing to do,” Munger said.

Buffett said the pandemic had hurt smaller companies the most.

“I don’t know how many but many hundreds of thousands or millions of small businesses have been hurt in a terrible way, but most of the big, big companies have overwhelmingly done fine, unless they happen to be in cruise lines or, you know, or hotels or something,” he said. (Reporting by Maria Ponnezhath and Aakriti Bhalla in Bengaluru; Editing by Amy Caren Daniel and Stephen Coates)

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China’s Didi raises $4.4 bln in upsized U.S. IPO -sources

  • Didi sold 317 mln ADS, more than planned 288 mln -sources
  • Sells ADS at $14 a piece – sources
  • Would give Didi $73 bln valuation on fully diluted basis

June 29 (Reuters) – Chinese ride hailing company Didi Global Inc (DIDI.N) raised $4.4 billion in its U.S IPO on Tuesday, pricing it at the top of its indicated range and increasing the number of shares sold, according to two sources familiar with the matter.

Didi sold 317 million American Depository Shares (ADS), versus the planned 288 million, at $14 apiece, the people said on condition of anonymity ahead of an official announcement.

This would give Didi a valuation of about $73 billion on a fully diluted basis. On a non-diluted basis, it will be worth $67.5 billion. The company is expected to debut on the New York Stock Exchange on June 30.

The increase in deal size came after the Didi investor order book was oversubscribed multiple times, one of the sources said.

Investors have been told to expect their orders to be scaled back once allocations are completed on Wednesday, according to a separate source with direct knowledge of the matter.

Didi did not respond to a request for comment.

The listing, which will be the biggest U.S. share sale by a Chinese company since Alibaba raised $25 billion in 2014, comes amid record IPO activity this year as companies rush to capture the lucrative valuations seen in the U.S. stock market.

Didi’s IPO is more conservative than its initial aim for a valuation of up to $100 billion, Reuters has previously reported. The size of the deal was cut during briefings with investors ahead of the IPO’s launch. read more

This suggests increasing investor worries about China’s potential anti-trust related crackdown and a more volatile IPO environment globally in 2021, said Douglas Kim, a London-based independent analyst, who writes on Smartkarma.

A Didi logo is seen at the headquarters of Didi Chuxing in Beijing, China November 20, 2020. REUTERS/Florence Lo/File Photo

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“But it seems like many investors like this deal, the volatile IPO environment helped to lower IPO price and valuation looks attractive,” Kim told Reuters.

Didi’s IPO was covered early on the first day of the book-build last week and the investor books were closed on Monday, a day ahead of schedule. read more .

An over-allotment option, or greenshoe, exists where another 43.2 million shares can be sold to increase the deal size.

DIDI HISTORY

Didi was co-founded in 2012 by former Alibaba employee Will Wei Cheng, who currently serves as the chief executive officer. Cheng was joined by Jean Qing Liu, a former Goldman Sachs banker and the current president of the ride-sharing company.

The company counts SoftBank (9984.T), Uber Technologies Inc (UBER.N) and Tencent (0700.HK) as its main backers.

Didi is also known for successfully pushing Uber out of the Chinese market after the U.S. company lost a price war and ended up selling its China operations to Didi for a stake. Liu Zhen, the head of Uber China at the time, is Didi’s Liu’s cousin.

Like most ride-hailing companies, Didi had historically been unprofitable, until it reported a profit of $30 million in the first quarter of this year.

The company reported a loss of $1.6 billion last year and an 8% drop in revenue to $21.63 billion, according to a regulatory filing, as business slid during the pandemic.

Its shares are due to start trading under the “DIDI” symbol.

Reporting by Echo Wang in New York and Anirban Sen in Bengaluru and Scott Murdoch in Hong Kong; Editing by Greg Roumeliotis, Bill Berkrot and Himani Sarkar

Our Standards: The Thomson Reuters Trust Principles.

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Four Microsoft employees accuse Bill Gates of being an office ‘bully’ who pursued sexual affairs

Four Microsoft employees have accused founder Bill Gates of being an office ‘bully’ whose catchphrase was ‘that’s the stupidest f*****g idea I’ve ever heard’ and claimed he pursued sexual affairs with employees and journalists.

Gates’ reputation as a hot-tempered boss began not long after he launched tech giant Microsoft with childhood friend Paul Allen in 1975, Insider reported Tuesday. A spokesperson for the billionaire has denied he mistreated employees.

Gates, 65, came under scrutiny after he and Melinda Gates announced their divorce in May and reports emerged of his alleged extramarital affairs and concerns over the nature of his relationship with convicted pedophile Jeffrey Epstein. 

A former Microsoft executive who spoke on condition of anonymity told Insider that ‘having a meeting with Bill was just an opportunity to get yelled at, so I tried to avoid that.’

Other sources who spoke to Insider described his catchphrase as ‘That’s the stupidest f**king idea I’ve ever heard’ and said he was known for swearing at his employees.

Four Microsoft employees have accused founder Bill Gates of being an office ‘bully’ whose catchphrase was ‘that’s the stupidest f*****g idea I’ve ever heard’ and claimed he pursued sexual affairs with employees and journalists. Gates is pictured in New York City in May

Bill Gates, left, is pictured with Jerrold Kaplan and Mitchell Kapor at an annual conference in Naples, Florida in  1988. Gates was allegedly often inebriated at tech events and after-parties and ‘got drunk pretty easily’

Gates would allegedly track his employees by memorizing their license plates, according to the outlet.

Some Microsoft workers who spoke to the outlet, however, defended Gates with one saying he ‘yelled at everyone the same’ and that she appreciates his candor but conceded that his management style could intimidate some employees.  

‘He doesn’t know how to joke really or how to connect with people,’ said another former executive, who described solo meetings with Gates as awkward.

‘If he told you he liked your hair, he wasn’t trying to flirt with you. He just actually liked your hair.’

A current Microsoft employee told Insider: ‘He’s just an awkward human being as far as social interactions go.’

Maria Klawe, a former Microsoft board member from 2009 to 2015, said ‘a person like Bill Gates thinks the usual rules of behavior don’t apply to him’ and accused him of being unreceptive to suggestions about improving diversity.

Klawe said that Gates behaved as if he was the ‘smartest person in the room’ and that diversity was not something Gates ‘was interested in hearing about.’ 

She said that when female executives would suggest diversity initiatives, Gates would allegedly respond with: ‘Are you trying to effing destroy the company?’ 

The spokesperson for Gates told Insider that Klawe’s allegations are a ‘gross mischaracterization.’

Gates’ relationships and encounters with employees have long been a topic of discussion surrounding the billionaire, according to the outlet.

Maria Klawe, a former Microsoft board member from 2009 to 2015, right, said that ‘a person like Bill Gates thinks the usual rules of behavior don’t apply to him’ 

Klawe said that Gates behaved as if he was the ‘smartest person in the room’ and that diversity was not something Gates ‘was interested in hearing about’ 

Melinda Gates herself was an employee at Microsoft, having been hired as a product manager in 1987, when the billionaire first asked her out months after flirting with her at a conference dinner. 

In 2006, Bill Gates allegedly asked a female Microsoft employee out to dinner in an email after attending a presentation she had given, The New York Times reported. 

‘If this makes you uncomfortable, pretend it never happened,’ Gates wrote in the email obtained by The New York Times.

A Gates Foundation employee told the outlet that the billionaire asked her on a date while they were at a cocktail party in New York. 

‘I want to see you. Will you have dinner with me?’ Gates allegedly told the woman. 

In the 1992 biography Hard Drive: Bill Gates and the Making of the Microsoft Empire, author James Wallace revealed Gates had an alleged affair with a married woman 13 years older than him when he was 27 years old.

Gates’ alleged affair was with the wife of an Osborne Computer executive who lived abroad, according to the biography.

Melinda Gates herself, pictured, was an employee at Microsoft, having been hired as a product manager in 1987, when the billionaire first asked her out months after flirting with her 

A photo shows Bill and Melinda Gates while they were dating before getting married

An Osborne Computer executive who knew about the alleged affair told Wallace that ‘Bill had a real fondness for older women then.’

Adam Osborne, who developed the first commercially successful PC known as Osborne 1, allegedly demanded that Gates stop seeing the wife of his employee.

‘Gates told Osborne to mind his own business,’ Wallace wrote.

Gates himself told BBC that he would hack his school’s scheduling software to ensure he would be the only boy in class.

‘I was the one who benefited by being able to have the nice girls at least sit near me. It wasn’t that I could talk to them or anything, but they were there,’ Gates said.

Wallace told Insider that, while Gates attended Harvard University in 1973, he would allegedly visit strip clubs in an area of Boston once referred to as the Combat Zone because of its notorious strip clubs, porn theaters, and prostitution.

Gates had an alleged affair with a married woman 13 years older than him when he was 27 years old

Gates himself admitted to frequenting the area, centered on Washington Street between Boylston Street and Kneeland Street, in a 1994 interview he did with Playboy magazine.

‘Just because I went there doesn’t mean I engaged in everything that was going on,’ Gates said.

‘I ate pizza, read books and watched what was going on. I went to the diners.’

Wallace claimed to Insider that Gates’ penchant for socializing with women remained even after he started dating Melinda Gates in 1987.

Gates was allegedly known to invite friends to swim naked at his bachelor pad in Laurelhurst where he ’rounded up’ dancers from local all-nude nightclubs, Wallace said.

‘I don’t know if he physically transported them or if he just told them where to show up,’ Wallace told the outlet.

Robert X. Cringely, who wrote a popular computer gossip column for InfoWorld, told Insider that Gates was allegedly often inebriated at tech events and after-parties and that he ‘got drunk pretty easily.’

‘All of us will have been at some affair where Bill was clearly impaired. He was happier’ drunk, Cringely said.

Gates, then 33, took a helicopter to Les Arcs ski resort in the French Alps for an international sales meeting for Microsoft in the summer of 1988 where he was allegedly caught lying on top of a woman on the lawn.

The pair were ‘just snuggling’ after Gates joined his employees for drinks in a Swiss chalet and partied until the early morning, Dan Graves, a former Microsoft export manager, told Insider.

After he started dating Melinda, Gates allegedly struggled to commit to her and she was allegedly aware of his ‘womanizing,’ the outlet reported. The couple even broke up for at least a year early in their relationship. 

‘Bill wanted to be married, but he didn’t know whether he could actually commit to it and have Microsoft,’ Melinda said in an interview for the Netflix docuseries Inside Bill’s Brain: Decoding Bill Gates.

Bill Gates is pictured in a 1977 police mugshot when he was arrested for bad careless driving in Albuqerque, New Mexico

Even after marrying Melinda, Gates told Time magazine in 1997 that he still went on annual vacations to the Outer Banks of North Carolina with his ex-girlfriend Ann Winblad, the software entrepreneur whom he had dated from 1984 to 1987.

Bill and Melinda Gates’  personal affairs have been managed by Watermark Estate Management since at least 2001, which would allegedly arrange Gates’ annual beach trips with Winblad. 

Meanwhile, Gates is reported to have taken meetings with Epstein including a flight to Palm Beach on Epstein’s private plane.

Gates’ spokesperson told the outlet that Gates had ‘absolutely no business partnership or personal friendship’ with Epstein, and any meetings between the two were about philanthropy.

‘It is extremely disappointing that there have been so many lies published about the cause, the circumstances and the timeline of Bill Gates’s divorce,’ the spokesperson said. 

‘The rumors and speculation surrounding Mr. Gates are becoming increasingly absurd and it’s unfortunate that people who have little to no knowledge are being characterized as ‘sources.”

Bill Gates, not pictured, still went on annual vacations to the Outer Banks of North Carolina with his ex-girlfriend Ann Winblad, pictured, the software entrepreneur whom he had dated from 1984 to 1987, even after marrying Melinda Gates

Bill Gates, and Microsoft co-founder Paul Allen, are pictured in 1987. Allen said in his memoir that Gates tried to dilute his equity in the company because he was ‘unproductive’ while dealing with his first bout of cancer

Gates’ relationship with Epstein reportedly dates back to 2011, but it became a point of contention for the couple in September 2013, the Daily Beast reported. 

Melinda Gates reportedly told friends she was furious about their alleged friendship and wanted nothing to do with Epstein but sources said Bill Gates allegedly visited Epstein’s house numerous times.

Bill Gates even reportedly talked about his ‘toxic’ marriage to Epstein who allegedly gave Gates advice on ending his marriage, according to the Daily Beast.

Wallace claimed to Insider that ‘there were some big-name journalists who knew about this behavior’ over the years.

However, they ‘never reported on it because they knew Microsoft would have taken away their access,’ he said.

Gates allegedly even gained a reputation for hitting on female reporters who covered industry conferences such as Comdex, Wallace said. 

‘The journalists said that it was their understanding that they weren’t the only ones either,’ he added.

Stories about Gates have allegedly been kept quiet over the years but ‘the halo broke’ when  Melinda divorced Gates, a Microsoft employee told Insider. 

‘Anyone who had stories could bring all those stories out,’ the source said.

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64 Cryptocurrency Firms Have Withdrawn Applications to Operate in UK, FCA Says – Regulation Bitcoin News

A growing number of crypto firms in the U.K. are withdrawing their applications to register with the Financial Conduct Authority (FCA). Around 64 firms have already withdrawn their applications and will not be able to operate in the U.K.

  • The list of cryptocurrency companies abandoning their attempts to register with the U.K.’s financial regulator is growing, Reuters reported Monday.
  • Under the current crypto regulation, the Financial Conduct Authority (FCA) is responsible for ensuring crypto companies’ compliance with laws on the prevention of money laundering and terrorist financing.
  • Companies wanting to provide crypto-related services in the U.K. must register with the FCA before conducting business.
  • An FCA spokesperson said Monday that registration data shows the number of companies that have ditched their applications jumped by 25% in less than a month.
  • Around 64 companies have withdrawn their applications, the spokesperson said, up from 51 in early June.

  • Only six firms have successfully registered with the FCA so far, the publication conveyed, adding that dozens more companies are being assessed but they are not yet deemed “fit and proper.”
  • The FCA issued a consumer notice on Binance Friday, banning the exchange from engaging in “regulated activities” in the U.K.

What do you think about crypto firms exiting the U.K. due to regulation? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.



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