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10 things in tech you need to know today

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Dracula Prince of Darkness

Good morning! This is the tech news you need to know this Thursday.

  1. Federal prosecutors are investigating the Chinese electronics giant Huawei for allegedly stealing trade secrets from US companies. One such incident includes Huawei supposedly stealing robotic technology that T-Mobile uses to test its smartphones, according to the report.
  2. WeWork CEO Adam Neumann reportedly made millions of dollars by renting office space in buildings that he partially owns to his company, according to a Wall Street Journal report on WednesdayIn a filing for prospective investors last year, WeWork reportedly disclosed that it paid $12 million in rent between 2016 and 2017 to buildings "partially owned by officers" of WeWork.
  3. Lime is reportedly set for a $2 billion valuation after taking $400 million in new funding mostly from its existing investors. According to Recode, Lime has been circulating documents gauging interest in the new round.
  4. Apple will cut back on hiring for certain divisions as the company re-adjusts its plans in the face of slowing iPhone sales, according to a Bloomberg report on Wednesday. CEO Tim Cook told employees during a meeting earlier this month that Apple would reduce hiring for certain unspecified groups, but said the company would not impose a hiring freeze.
  5. Niantic, the developer of "Pokémon Go", announced that it's raised $245 million in a deal valuing it at "almost $4 billion." CEO John Hanke said Niantic is cash-flow positive, but the money helps it bunker down for a possible venture capital crunch as it starts the years-long road towards a possible IPO.
  6. Free-to-play video games generated $87.7 billion in revenue during 2018, according to research firm SuperData.  "Fortnite" was the top grossing game of 2018, free or otherwise, with an estimated $2.4 billion in revenue.
  7. Microsoft is building a service that intends to be the "Netflix for games." The goal of the service, named " Project xCloud," is to stream high-end video games to any device.
  8. Lenovo is reportedly planning to release a new Motorola Razr phone with a foldable display as soon as February. The new Motorola Razr will cost about $1,500.
  9. A controversial startup that charges $8,000 to fill people's veins with young blood now claims to be up and running in 5 cities across the US. Ambrosia recently completed its first clinical trial designed to assess the benefits of the procedure, but it has yet to publish the results.
  10. Snap has lost 20 senior executives since it went public almost two years ago. In that time, it has lost two chief financial officers, multiple HR execs, and most of CEO Evan Spiegel's top lieutenants.

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NOW WATCH: Saturn is officially losing its rings — and they're disappearing much faster than scientists had anticipated


Germany ramps up steps to seek merger between battered bank giants Deutsche Bank and Commerzbank

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Christian Sewing

  • German authorities are ramping up discussions about a possible merger between the country's two biggest banks, Deutsche Bank and Commerzbank.
  • The finance ministry asked the banking regulator to share the results of its analysis of a potential merger between the two.
  • Finance Minister Olaf Scholz and Deutsche Bank's CEO Christian Sewing are said to have discussed possibilities, Bloomberg has reported.

The German finance ministry asked the banking regulator to share the results of its analysis of a potential merger between Deutsche Bank and Commerzbank.

People briefed on the matter told the Financial Times that the finance ministry was "definitely looking" at a merger between the banks, important because Germany needs a lender big enough for global expansion.

With close to €2 trillion in total assets ($2.3 trillion) the merged company would be the third-largest European bank after HSBC and BNP Paribas. The move highlights how German officials are worried about the financial helath of the country's two biggest lenders, along with their battered share prices. 

The German government is stepping up its efforts to help Deutsche Bank, and officials have said that they're examining ways in which the bank could merge with Commerzbank more easily.

Finance Minister Olaf Scholz and Deutsche Bank's CEO Christian Sewing are said to have discussed possibilities, Bloomberg has reported.

Deutsche Bank shares have fallen more than 50% in 2018, hitting record lows on numerous occasions.

Takeover or merger talk is nothing new for Deutsche. Last month, Citigroup CEO Michael Corbat reportedly told German business publication Manager Magazin that there was too much "overlap" between Citigroup's and Deutsche Bank's businesses, and that a takeover based purely on cost savings wasn't a good idea.

A combined German lender is said to have been on the country's agenda for a while in an attempt to prevent the exodus of foreign capital from the economy and create a banking heavyweight.

SEE ALSO: A top Deutsche Bank strategist reveals a game plan that earned 10% as stocks plummeted last year — and how investors can profit from it now

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NOW WATCH: The founder of the World Economic Forum shares what he sees as the biggest threat to the global economy

Snap's outgoing CFO reportedly went around Evan Spiegel's back to ask for more money but failed

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Evan Spiegel

  • Snap's CFO Tim Stone is leaving the company after trying to ask for more money behind CEO Evan Spiegel's back, Bloomberg reports.
  • People familiar with the matter told Bloomberg that Stone appealed directly to the board for a raise, which he was denied.
  • Stone was only in the job for eight months, but will stay on until Snap's Q4 earnings call in February.

Snap, the parent company behind Snapchat, revealed on Tuesday that it was losing its chief financial officer Tim Stone after just eight months. In an SEC filing, Snap said that Stone's exit was because he wanted, "to pursue other opportunities," and news of his departure sent Snap's stock spiralling.

Now Bloomberg reports that Stone's departure comes after he went behind CEO Evan Spiegel's back to ask for more money.

Sources told Bloomberg that Stone appealed directly to the board for a "significant raise." Bloomberg and the FT report that his salary when he joined the company just eight months ago was $500,000 a year plus restricted stock units initially worth $20 million.

Read more:Here are 20 senior executives who have abandoned Snap since its IPO less than 2 years ago

The board reportedly rejected Stone's request, but Bloomberg notes that it would have had little power to give him a raise, since Spiegel and his cofounder Bobby Murphy hold the majority of voting power at the company.

The move reportedly fostered animosity between Spiegel and Stone, and prompted Stone's departure. In an earlier statement to Business Insider, Snap said that Stone will stay on until the company's fourth quarter and full-year earnings call on February 5 to help ease the transition.

Bloomberg and the FT also reported that after chief financial officer Imran Khan left Snap, Stone hoped to move into his job. Instead Spiegel hired two outsiders, Jeremi Gorman and Jared Grusd as chief business officer and chief strategy officer to share Khan's duties.

Business Insider contacted Snap for comment.

SEE ALSO: Snap CEO Evan Spiegel claimed Instagram makes you feel ‘terrible’ and Snapchat doesn’t. But data suggests he’s wrong.

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NOW WATCH: Apple forever changed the biggest tech event of the year by not showing up

Brexit chaos looms after Jeremy Corbyn rejects Theresa May's call for talks

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Britain's Prime Minister Theresa May sits with members of her cabinet, December 20, 2018

  • Brexit talks are in deadlock.
  • Theresa May is now focused on finding a way to force Brexit through parliament after her government survived a confidence vote on Wednesday.
  • But opposition leaders are demanding that she makes significant concessions, which she appears unwilling to do.

LONDON — The Brexit process has reached deadlock after Theresa May's attempts to forge a cross-party consensus were rebuffed by the leader of the opposition Labour party who demanded that she drop her threat of leaving the EU without a deal.

The prime minister survived a confidence vote in her government on Wednesday and is now focused on finding a way to strike a Brexit deal which has the support of both opposition and Eurosceptic Conservative MPs, who rejected her current deal by a huge margin on Tuesday.

The prime minister called on politicians to put "self-interest aside" and work together to find a compromise, holding talks on Wednesday night with Liberal Democrat leader Vince Cable, SNP Westminster leader Ian Blackford, and Plaid Cymru's Liz Saville-Roberts. 

However, Labour leader Jeremy Corbyn has refused to meet with May until the government ruled out a no-deal Brexit, something Theresa May — who has so far shown little intention of compromising on the strict red lines she has has set for negotiations — is not willing to do. 

The prime minister must present a new plan for exiting the EU by Monday 21 January.

Is a customs union a way out of the deadlock?

Philip Hammond

There's a growing belief within Cabinet that a Brexit deal which includes permanent customs union membership could secure the support of parliament, with Labour's international trade secretary Barry Gardiner indicating on Thursday that Labour could support such a position, even though a spokesman for Jeremy Corbyn earlier denied that Labour would do so.

Membership of the Customs Union allows the free passage of goods between member countries and would go a long way to preventing the creation of a hard border between Northern Ireland and Ireland after Brexit.

However, senior Conservatives are in open disagreement on the prospect of permanent customs union membership, which was comprehensively ruled out by Downing Street on Wednesday.

A spokesman for the prime minister said: "The principles that govern us as we go into these talks is that we want to be able to do our own trade deals, and that is incompatible with either the or a customs union."

Conservative party chairman Brandon Lewis reiterated the point on the BBC on Thursday that May would not consider a customs union and also ruled out a second referendum.

However, Chancellor Philip Hammond indicated in a leaked private call this week that the government could move to support a permanent customs union. He indicated to business leaders during the phone call that the government is open to talks over staying in the customs union by saying the UK will not enter new discussions with the EU "waving flags with red lines on them."

The chancellor also said that MPs would be able to rule out a no-deal Brexit, suggesting that a controversial amendment tabled by former Conservative Cabinet ministers could provide the "ultimate backstop" to prevent such an outcome. He added that there is a "large majority" in the Commons for preventing the UK from leaving without a deal.

SEE ALSO: What happens now that Theresa May has survived her no-confidence vote?

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NOW WATCH: MSNBC host Chris Hayes thinks President Trump's stance on China is 'not at all crazy'

Global markets slip as investors fear US prosecutor probe of Huawei is a bad sign for the China trade war

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trader surprised skeptical

  • Global stock markets were sliding Thursday as fears about a fresh deterioration in US-China relations spooked investors and sparked selling across the world.
  • Fears come after it was reported that that US federal prosecutors are investigating Chinese tech giant for allegedly stealing trade secrets from US tech companies.
  • Asian and European shares fell in Thursday trade, and US stocks set to open lower.
  • You can follow the latest stock market moves with Markets Insider.

Global stock markets were sliding Thursday as fears about a fresh deterioration in US-China relations spooked investors and sparked selling across the world.

By around 8.50 a.m. GMT (3.50 a.m. ET), major bourses in Europe were losing about 0.5%, and Chinese stocks slid by 0.9% or less.

The moves lower appear to have been driven by fears about relations between Beijing and Washington after reports that federal prosecutors are investigating Chinese smartphone giant Huawei for allegedly stealing trade secrets from US tech companies.

"It goes right to the heart of the unresolved IP issues with China," Jasper Lawler, head of research at London Capital Group wrote. "China are unlikely to shrug this off which is creating a risk-off environment. Signs of retaliation from China could see stocks sink further."

One aspect of the criminal probe involves allegations that Huawei stole robotic technology used for testing smartphones from a T-Mobile facility in Washington, according to a Wall Street Journal report.

A group of US lawmakers also put forward bills Wednesday that would ban the sale of US chips and components to the Chinese giant.

In December, Huawei's CFO was arrested during a stopover in Canada on allegations of violating trade sanctions with Iran.

Read more:A drastic plunge in shipping to China is the latest horrible signal for its economy

Here's how things look around an hour after the start of European trade:

  • Asian stocks were mixed, although the majority of major indexes lost ground following reports about Huawei. China's biggest loser was the Shenzhen Composite, which fell 0.9%. The benchmark Shanghai Composite was down 0.4%.
  • Outside of mainland China, Japan's Nikkei dropped 0.2%, while the Hang Seng in Hong Kong was 0.5% down. Shares in South Korea, New Zealand, and Australia ended the day with small gains.
  • Major European share indexes are lower, but not hugely so, with Germany's DAX the biggest loser, down around 0.5%. The Euro Stoxx 50 broad index has dropped 0.3%.
  • US futures point to a similar story across the pond later today, with the Nasdaq set to see the largest fall, down 0.5%. The Dow Jones Industrial Average is set to open 0.4% down, while the S&P 500 will shed 0.4%.

SEE ALSO: The US could lose its crown as the world's most powerful economy as soon as next year, and it's unlikely to ever get it back

Join the conversation about this story »

NOW WATCH: An exercise scientist reveals exactly how long you need to work out to get in great shape

Drones are no longer a cool novelty only a handful of companies are testing — they're infiltrating a slew of industries and applications

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Drones — also commonly referred to as unmanned aircraft — are no longer a cool, new novelty that companies in only a handful of industries are testing.

Businesses across various industries and levels of government in the US are utilizing at least a handful of drones. But more importantly, drone users are now realizing a deep return on their investments from the aircraft's ability to help save hours of time and labor.

Farmers' Plans for Drones in 2018

However, to successfully get a drone program up and running, businesses need to have an idea of what they want the aircraft to do, and the value they hope to create. To that end, companies need to know what their competitors are doing with the aircraft so they can plan their own projects accordingly.

In this report, Business Insider Intelligence details how unmanned aircraft are disrupting a slew of different industries, including agriculture, construction and mining, insurance, media and telecommunications, and the public sector. We also size the market for global enterprise drone shipments, and pinpoint the features that make drones useful tools within different industries. Lastly, we make predictions for how drone use in these industries will evolve over the next five to 10 years and to what extent their impact will be magnified over this period.

Here are some of the key takeaways:

  • Since the Federal Aviation Administration (FAA) implemented its Part 107 regulations for unmanned aircraft in August 2016, the commercial drone industry in the US has taken off. 
  • Companies across the US have rushed to deploy drones to cut costs, boost operational efficiency, and open up new streams of revenue. Meanwhile, firms elsewhere in the world have taken notice and ramped up their own drone projects.
  • Unmanned aircraft have the potential to create the greatest business value in the construction, mining, and agriculture industries. The agriculture industry was a relatively early adopter of drones, and today one-third of farmers in the US plan to use at least one drone this year. Meanwhile, drones will have a less significant, yet noticeable, impact on media, telecommunications, and insurance businesses.
  • Drones will lead these industries to become highly data-driven in the coming years, making the aircraft a must-have for companies to keep pace with their competitors. They will allow businesses to synthesize and analyze trends in their workflows to bolster their operational efficiency and predict problems before they happen.

In full, the report:

  • Analyzes the development of drone use across five different industries.
  • Offers a look at how drone use in these industries will evolve over the coming years.
  • Sizes the market for enterprise drone shipments over a seven-year period, both in the US and abroad.

Join the conversation about this story »

MELINDA GATES: We're getting closer to wiping several deadly diseases off the face of the earth, but we could easily blow it

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Melinda Gates

In 2000 Melinda and Bill Gates launched the Gates Foundation. Since then, they've spent a chunk of their fortune tackling some of the world's biggest problems. More than $45 billion has been poured into their organization.

One of those problems is that millions of children under age 5 are dying from preventable health issues and diseases. This is particularly true in impoverished areas of sub-Saharan Africa.

Thanks in part to big global health initiatives, the number of deaths has gone down significantly, from 11.2 million children in 1990 to 5 million in 2017. And the number of children dying from infectious diseases has been halved.

Only a handful of polio cases remain in the world, down from 350,000 in 1988 (despite some backward traction last year — there were 22 cases of Polio in 2017 and 29 cases in 2018). The UN has a sustainable development goal to end the epidemics of malaria, tuberculosis and AIDS by 2030.

But four major funds supported by the Gates Foundation and governments around the world are running out of cash: Gavi, the Vaccine Alliance; the Global Fund to fight AIDS, tuberculosis, and malaria; The Global Polio Eradication Initiative, or GPEI, and the Global Financing Facility, or GFF, which aids mothers and children. 

Within the next two years, each will need billions more to help get the job done.

Replenishing these funds may not work. Some see them as bottomless pits of cash — it's hard to predict exactly when or how a disease will be killed off. The original deadline to eradicate polio, for example, was 18 years ago.

Other world leaders are less motivated to give foreign aid now than they have been in the past (Bill and Melinda Gates have invested almost $10 billion in these four funds, but governments are often able to provide much more money than nonprofits can afford).

The Gates believe that if these groups do not receive the cash infusions they're asking for, the chance to eradicate certain deadly diseases will slip away.

"In the early 2000s...it looked like people might give up [on polio], which if you do give up, then the disease comes back and spreads back," Bill Gates said in a conference call on Wednesday. 

"And depending on how much you give up, you could go all the way back to the 300,000 kids a year being paralyzed. And so, even though a lot of money has been put into this, we can also say that we've saved literally millions of kids who were not paralyzed because of that."

He added that if all goes well, at some point soon the investments should stop.

"The magic result is when you get to zero and then you get the benefits forever without having to continue to invest," he said.

Saving the lives of children isn't just a moral decision, Gates explained. It's also an economic one. Young people are a sort of human capital. When they are educated and employed, they can supercharge a country's growth. If health epidemics cause them to die or fall ill, their countries loses that upside.

Business Insider spoke with Melinda Gates about these issues. She also dropped a hint about what her and Bill's annual 2019 letter will be about.

Interview condensed and edited for clarity.

Alyson Shontell: Why is right now such a critical time in global health, and why could the year 2030 look more like 2000 than 2018 if we're not careful?

Melinda Gates: We are seeing that HIV rates are down, malaria deaths are down, and more children are surviving. So it is a hugely good news story. But sometimes people will then think, "Well, is the job done."

If we don’t make these investments, the converse will happen. Not only will the number of childhood deaths go up and the rate of diseases go up, but we have the largest-ever youth population coming through Africa. They are having their population boom right now. And if we make the right investments, they can become like South Korea became.

People seem to have forgotten that, as the US, we made investments in South Korea that helped them with their primary healthcare and their health system. They went on to build a great educational system, and they grew from a low-income to a middle-income country [and graduated from the bulk of aid funding]. There are many African nations that are poised to do that in the next decade, but we have to keep making these investments. They are not forever.

We have got to make these investments or we are going to see more death, more disease, and more instability in the world. And that’s going to show up on the doorstep of the US, and in Europe.

Bill & Melinda Gates Foundation child death chart

Shontell: A key metric you use to measure success in these programs is the death rate of children, or death before age 5. What are some of the most common causes of death?

Gates: The biggest childhood killers right now are diarrhoeal disease and pneumonia. Because of [the global vaccine alliance] Gavi and that fund, there are new vaccines that prevent those diseases.

If you look back to 2000, more children were dying. And if you looked at all the children who were dying, more were dying between 30 days of life and 5 years. That’s where we have cut the most deaths, is from 30 days to 5 years. Now the biggest percentage of children, about 40%, die during first month of life.

So that is why you need something like the Global Finance Facility [which focuses on child and maternal health] because it tackles the newborn issues that you can’t necessarily really get at with a vaccine.

Some of [saving lives comes down to] really basic things, like getting a woman to space her births. If she has children too often and too close together, the children are more likely to be born preterm, and then they have all kind of complications — and a lot of them die in the first 30 days.

Or if the woman doesn’t know to do immediate and explicit breastfeeding and she thinks, "Oh, I gave the child goat's milk" or "My mother-in-law says I should mix something with water" but the water is dirty.

So you have to work on that first 30 days of life, and that’s what Global Finance Facility really goes after.

And of course, the Global Fund goes after HIV, malaria, and tuberculosis. It's getting women to do things like sleep under a malaria bed net when they are pregnant, or getting young children to sleep under a malaria bed net, which is incredibly important in keeping childhood death down.

fertility child death overpopulation chart Bill & Melinda Gates Foundation

Shontell: There is a misconception that if you're saving all these lives, it could lead to overpopulation. Could you explain that?

Gates: That’s a really common myth. When we first started this work, Bill and I started saying to ourselves, "OK, we are going to save all these children, but now aren’t these women and men going to end up with lots of children?"

Luckily, the converse is true. If a parent knows their children will grow up to thrive and survive, they will actually naturally bring down the number of children they have. I have met women all over the world who tell me, "I don't want to have this many children; it's exhausting. I'm tired, and I can't feed five children."

The best longitudinal study ever done in global health was done in Bangladesh, where they gave a set of villages family planning contraceptives and another set of villages didn't get them. The villages that got family planning were healthier and wealthier, and the kids were better educated over time.

Shontell: It's almost like an insurance policy for these parents to have more children because they are afraid the ones that they have won't survive.

Gates: Exactly.

overpopulation chart Bill & Melinda Gates Foundation

Shontell: You have said that contraceptives are the greatest anti-poverty tool ever created, but more than 200 million women don't have access to them. Why are they such a great anti-poverty tool, and what are the benefits?

Gates: If a woman can time and space her births, she’s more likely to survive childbirth and her children are likely to survive childbirth and be healthier when they’re born. We know that there is no low-income country that has made the transition to a middle-income country without first having wide varieties of voluntary contraceptives accessible to their communities.

It’s not unlike in the United States. What is it that allowed women to go in droves into the workforce in the United States? It was the advent of the pill. And when that came out, women then had more economic means for their family, which means they can invest more in feeding their kids and educating their kids.

So it’s this incredible virtuous cycle that family planning starts.

Shontell: The US has the highest death rate for women during childbirth than any developed country, I believe. More than 700 women die a year here, and black women have three times as high a mortality rate than white woman. Are you thinking about maternal health in the US?

Gates: Those statistics are incredibly disturbing, so we are definitely looking at that.

Bill and I are actually writing about that a little bit in our annual letter this year. A lot of those births have to do with preterm birth, which is happening more with African-American women. We need to unpack why that is happening. Is it barriers in their communities? Is it something genetic? Is it both? Is it stress?

We need to focus on that in the United States. So yes, we are looking at that.

Melinda Gates

Shontell: We are close to eradicating a couple of diseases — three by 2030, potentially [TB, AIDS, and malaria]. It sounds like a no-brainer — of course we should get rid of things like polio, AIDS, malaria, and tuberculosis. But are there any unforeseen butterfly effects that could come into play if we wipe these diseases off the face of the earth?

Gates: Smallpox is the best example. It’s the only human disease that’s been wiped off the face of the planet, and there don’t seem to be any negative effects to the environment, humanity, or to animals.

One of the things that is really important to remember is, why do we have infectious disease?

If you go back in the history of the earth, there was far less infectious disease. It is because people lived further away from one another. But once we started to come together and live in these communities and to urbanize, disease spread, and it spreads incredibly quickly.

If you look at the trends of urbanization and you look at places even in Nairobi and townships and slums, you are getting people in closer proximity all the time. Also with jet planes, disease travels really fast. So all the more reason you just want to eradicate these diseases so we are not dealing with them.

Malaria has been particularly hard. It’s been around since the time of the Egyptians, because of the way the parasite moves from the mosquito to the human and in the way it lives in our guts.

But the scientific advances that are coming look incredibly promising. We have new tools like disease modeling so that we can look at, "OK, which tools should be applied in which areas, and how are people moving around and spreading the disease?"

So we don’t see any downside in getting rid of HIV, tuberculosis, malaria, any of them, quite frankly. We would be healthier as a populous.

Join the conversation about this story »

NOW WATCH: 7 science-backed ways to a happier and healthier 2019 that you can do the first week of the new year

Bill and Melinda Gates say they've found something better at curbing immigration than a wall

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Bill Gates Melinda

  • According to the Gates Foundation, fewer babies and toddlers are dying than ever before: the global mortality rate for children under five has declined by more than 50% since 1990.
  • This is mostly because of better public-health initiatives: more vaccines, polio eradication efforts, and better maternal and child healthcare.
  • But the Gates' are worried that as rich countries turn "inward," they'll stop funding some life-saving health campaigns around the world, making the globe less peaceful and stable.
  • That might lead more people to migrate. 

Bill and Melinda Gates love to spread good news about ways the world is getting better. 

On Wednesday, the pair was at it once again — in a conference call about global health, they touted the ways in which people's lives have improved dramatically in the past few decades. 

"The poorest parts of the world not only became less poor, they also became much, much healthier," Melinda told reporters on the call.

She highlighted some impressive stats: the number of kids who die in infancy and toddlerhood has been slashed. Nearly all of those gains are the result of better overall health, fewer polio infections, and more vaccines being delivered around the world.

gates foundation under 5 deaths since 1990

The Gates' said these global health improvements are the result of much-needed investments in life-saving vaccines, polio eradication efforts, and the fight against malaria, tuberculosis, and HIV.

Specifically, Melinda Gates pointed to the years 1999 and 2000 as a turning point. That was when both rich countries like the US and UK and organizations like their own Bill and Melinda Gates Foundation stepped up to the plate with cash. 

But now, Bill and Melinda Gates said they're worried that the progress of the 1990s and 2000s won't continue. The couple warned about what might happen if, as other concerns begin to take the spotlight, wealthy nations forget why it's important to invest in keeping other people healthy. 

Gates is worried the US is becoming too "distracted" 

Melinda Gates highlighted four key programs that were key in these dramatic health advances: Gavi, the Global Polio Eradication Initiative, The Global Fund to Fight AIDS, Tuberculosis and Malaria, and The Global Financing Facility

Investments in these programs, the Gates' argued, are the reason people are living healthier, more productive lives across the world, driving childhood mortality down. 

Read More: The CEO of The Gates Foundation says we’re approaching a dangerous tipping point in global poverty. We still have time to reverse it.

"All four of these [programs] are at kind of a critical point where the level of distraction by domestic issues or issues that are confined to the rich world do make us somewhat concerned," Bill Gates said on the call. "The great success story here and the need to renew these resources may not get the attention it deserves."

(The Global Fund, for example, is due for its sixth round of funding this October.) 

Bill and Melinda Gates

The distractions include the Brexit deal looming over the UK and the US government's current standstill. With the US struggling to fund its own roads, education systems, and even groceries for federal workers, it can be hard to see why the rest of the world should remain a priority.

But Melinda Gates says now's not the time to turn inward.

"We have to make these investments because when you do, people will stay where they are," she said. "They want to stay in their communities and live a healthy life and ... get a great job and form a great economy where they are."

In other words, Melinda Gates suggests that it is by making an investment in the well-being of others — not building walls to keep them out — that we could make the world a place where people wish to migrate less

The Gates' think global health is the best investment we can make

When countries get healthier, people can spend more time educating themselves, generating new creative ideas, and lifting themselves out of poverty. Indeed, Gates noted that many of the countries that are benefitting from the four health programs are doing just that.

"India, Indonesia, and Vietnam are all graduating because of good news that their income's going up, so they'll be getting less money from all of these funds, but making sure they don't drop any vaccines," he said. 

But with a wave of new people expected to be born across Africa, the Gates' said now is the time to double-down on investing in other countries that have yet to "graduate."

In last year's Goalkeepers report, the Gates Foundation pointed out that the wave of prosperity that rushed through China in the 1990s and then India in the 2000s — which lifted more than 750 million people in those countries above $1.90-per-day wage — is not yet guaranteed on the African continent.

Pakistan and Afghanistan are also both behind in the race to eradicate polio because they've been dealing with years of war and unrest. 

"We want to make sure that the low-income countries continue to grow and have the opportunity to move to that middle-income status," Melinda said. "That's why we have to keep making these investments that are paying off incredibly well, for all of us."

bill and melinda gates

In the UK and US, those investments aren't that huge relative to other spending. The UK spends about 0.7% of its budget every year on foreign aid, while the US spends just over 1% of its budget on USAID — $50 billion of its $4 trillion annual cash load. Melinda said those investments provide significant benefits to US and UK citizens.

"If we want peace and stability around the world, we need to make these investments in health," she said. "Because health is what then allows people to go on and get a great education and participate fully and reach their full potential."

SEE ALSO: A $350 toilet powered by worms may be the ingenious future of sanitation that Bill Gates has been dreaming about

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NOW WATCH: How Bill Gates and Warren Buffett are changing the world like no other humans in history


A newborn baby was found dead in a trash can in an Amazon warehouse restroom (AMZN)

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amazon phoenix facility

  • Police in Phoenix, Arizona, found a newborn baby dead inside a trash can at a women's restroom at an Amazon warehouse on Wednesday.
  • The baby was beyond resuscitation when first responders arrived, officers told local media.
  • Amazon said this was a "terribly sad and tragic incident," and that it is cooperating with police.
  • Business Insider has previously documented evidence of ambulance calls for maternity-related issues at Amazon distribution centers around the world.

A newborn baby was found dead in a trash can at an Amazon warehouse in Phoenix on Wednesday.

Someone made the discovery inside a women's restroom at the distribution center and called the police around 8:30 p.m., the local news site Arizona's Family reported.

The baby was beyond resuscitation and confirmed dead when first responders arrived at the scene, police told the local ABC15 news channel.

amazon warehouse

Police have opened an investigation into the death, Arizona's Family said.

The baby's gender was not clear. Amazon declined to give further details to Business Insider on how the baby was found and who raised the alarm.

An Amazon spokesman told Business Insider in a statement: "This is a terribly sad and tragic incident. We are working with local authorities to support their investigation. The safety and wellness of our team is our top priority."

Jeff Bezos

Business Insider has found evidence of poor work conditions at some Amazon warehouses.

A Freedom of Information investigation revealed 600 ambulance calls to Amazon's UK sites between 2015 and 2018, three of which were for maternity and pregnancy-related issues.

Mick Rix, an officer for British trade union GMB, said UK Amazon warehouse workers had suffered miscarriages at pregnancy issues in the past.

amazon warehouse worker

Amazon warehouse workers in the US, UK, and Germany previously told Business Insider's Shona Ghosh that pressure to hit targets makes it difficult to take toilet breaks or eat.

The company has said that it doesn't recognize this portrayal of its work conditions.

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NOW WATCH: China made an artificial star that's 6 times as hot as the sun, and it could be the future of energy

Alexandria Ocasio-Cortez used her first speech on the House floor to rip Trump over the shutdown and 'the erosion of American democracy'

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Alexandria Ocasio-Cortez House floor speech

  • Rep. Alexandria Ocasio-Cortez rebuked President Donald Trump over the government shutdown in her first speech on the House floor.
  • She claimed that the shutdown was not about Trump's demands for a border wall but the "erosion of American democracy."
  • Ocasio-Cortez told the story of a federal air traffic controller in her constituency, who she said was dealing with children, a mortgage, and a stressful job while not getting paid during the shutdown.
  • "It is not normal to hold 800,000 workers' paychecks hostage. It is not normal to shut down the government when we don’t get what we want," she said.

Rep. Alexandria Ocasio-Cortez used her first speech on the House floor on Wednesday to rip President Donald Trump over the ongoing partial government shutdown, saying that the closure was not about the border wall but "the erosion of American democracy."

Ocasio-Cortez, a Democrat representing the Bronx and Queens in New York, claimed that the shutdown, now into a record fourth week, is "not about a wall."

"It is not about a border. And it is certainly not about the wellbeing of everyday Americans," she said. "The truth is, this shutdown is about the erosion of American democracy and the subversion of our most basic governmental norms."

Read more:The government shutdown is in day 26 and has set the record for the longest shutdown in history

"It is not normal to hold 800,000 workers' paychecks hostage. It is not normal to shut down the government when we don't get what we want," she continued.

"And it is certainly not normal to starve the people we serve for a proposal that is wildly unpopular among the American people."

Ocasio-Cortez explained how the shutdown is affecting one of her constituents, an air traffic controller in New York's John F Kennedy International Airport surnamed Obed, who came to the US from Yemen when he was eight years old.

Air traffic controllers are not getting paid during the shutdown, which Trump said could last for months or "years," though workers who are not furloughed will likely be paid after it ends.

Read more: Air traffic controllers working unpaid during the government shutdown are posting their $0 pay stubs on Twitter

Ocasio-Cortez said: "Every single day, air traffic controllers have thousands of people's lives in their hands, with weather changes, flight delays, staffing complexities and a myriad of other issues, their days almost never go exactly to plan."

"And it is terrifying to think that almost every single air traffic controller in the United States is currently distracted at work because they don't know when their next paycheck is coming."

Alexandria-Ocasio Cortez

She added about her constituent: "His childhood dream was to become a pilot, and he knew and felt that in the United States all things are possible, and his dream could come true. Mr Obed's dream did come true."

But he is now stressed paying his mortgage and supporting his two children, she said.

"Federal workers' jobs are stressful enough. The rise in New York City's cost of living is stressful enough," she said. "His several-thousand-dollar-a-month Bronx mortgage is stressful enough. The anti-immigrant sentiment of this administration is stressful enough."

Ocasio-Cortez and other freshman House Democrats marched through the halls of Congress on Wednesday to deliver a letter to Senate Majority Leader Mitch McConnell demanding that he hold a vote to reopen the government.

Read more:Alexandria Ocasio-Cortez secures powerful House committee seat that gives her a huge say over Wall Street

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NOW WATCH: MSNBC host Chris Hayes thinks President Trump's stance on China is 'not at all crazy'

Europe's move to impose steel tariffs tips over another domino in Trump's trade war with China

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  • The EU opted to make previously temporary steel tariffs permanent Wednesday matching US tariffs on imports.
  • The move highlights that protectionism is spreading and Donald Trump's trade war with China is entrenching itself into global economy.
  • European automakers are "extremely disappointed" with the move restricting imports sending carmakers' share prices lower. 

European officials said today they will put tariffs on steel imports to the region to help stem the glut of supply sparked by Donald Trump's trade war against China.

The move highlights that protectionism is spreading and Donald Trump's trade war with China is entrenching itself into the global economy.

The EU will impose quotas on 26 product categories and levy a 25% duty on imports exceeding those quotas, the executive arm said on Wednesday. The move cements proposals laid out last July with the stated aim of protecting European steelmakers amid Chinese overcapacity.

European producers feared that European markets would be flooded by steel products that are no longer being imported into the US.

But automakers railed against the decision. 

The European auto manufacturers association ACEA said it was "extremely disappointed" and called the measures protectionist, citing statistics showing that steel exports to the US had only dropped marginally, meaning little extra steel was being imported to Europe. 

"These measures do not take into account the needs of downstream users of steel, such as the automotive sector," it said in a statement.

Read more: One chart shows just how badly US companies are getting whacked by Trump's trade war

Renault is down 1% as of 10.30 a.m in London (5.30 a.m EST) while German manufacturers such as Volkswagen, BMW, and Daimler are all at least 0.9% lower.

European steel imports jumped to a record in the first 10 months of 2018, up 12% on the same period in 2017, according to the European Steel Association, Eurofer. Similarly, US imports fell 14% and global exporters diverted 60% of that steel to the EU. The EU's decision will see the safeguards remain until July 2021. 

The main exporters of steel to the EU are China, India, Russia, South Korea, Turkey and Ukraine.

SEE ALSO: Trump is winning the trade battle with China, but China could still win the war

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NOW WATCH: An exercise scientist reveals exactly how long you need to work out to get in great shape

Forget FANG — A $135 billion investor says a new group of stocks is poised to dominate the market going forward

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Mark Zuckerberg, Sundar Pichai, and Jeff Bezos.

  • For years, mega-cap tech companies ruled the stock market as investors happily piled into them despite stretched valuations.
  • Don Townswick, director of equities portfolio management at $135 billion investment firm Conning, says the party is over for the formerly dominant group.
  • Townswick outlines the areas of the stock market he thinks will overtake mega-cap tech and lead major indexes in 2019.

Way back in the halcyon days of early- to mid-2018, the mega-cap tech cohort known belovedly as "FANG" was the king of the stock market.

For years, the group — which consists of Facebook, Amazon, Netflix, and Google— seemed like an unstoppable freight train entirely incapable of weakness. Investors hungry for returns piled into already-crowded positions, desperate for the outsized returns, regardless of valuation.

But, like all good things, that reign of utter dominance has seemingly come to an end.

The first signs of duress for mega-cap tech hit Facebook in July 2018, when shares dropped 24% in a single day after the company warned of a significant growth slowdown. That was followed by a similar announcement in early January 2019, when Apple said sales growth would be weaker than expected.

This newfound vulnerability has caught the attention of Don Townswick, director of equities portfolio management at $135 billion investment firm Conning. He says the so-called FAANGM group — which includes the usual FANG suspects, plus Apple and Microsoft— will no longer be the market-leading force it once was. So he's looking elsewhere.

Read more: A fund manager at a $1.7 trillion investing giant reveals how he's preparing in case stocks crash again — and outlines the risks that could plunge the market into chaos

But before we get into the areas Townswick says will comprise the new stock-market elite, it's important to understand why he's turning his back on the recently re-rated FAANGM group.

Put simply, Townswick thinks the torrid pace of growth those companies enjoyed for so long was unsustainable. He notes that they were often growing more than 30% on a year-over-year basis at a time when other companies struggled to expand revenues at all.

"When growth is scarce, people will buy it even if it’s expensive," Townswick said. "It was always a question of not when but if that revenue growth would slow down."

So which areas of the market should investors consider buying instead? Here are Townswick's picks. All quotes attributable to him.

Consumer discretionary

"We look at the fact that we think economic growth is still going to be relatively strong compared to the last decade or so. We're forecasting a 2.6% GDP growth rate for 2019. With that growth still strong, we think the consumer can remain strong. Consumer discretionary stocks could be a place where we could see some strength."

Healthcare

"There could be two phenomena here. One is the ongoing businesses healthcare firms have. But also it appears that the large drug companies are finding smaller biotech companies to purchase, which could give that sector a spark."

Tech, but outside of FAANGM

"We have seen some strength on the technology front, but it really hasn’t been the FAANGM stocks really. It's been in the relatively smaller tech stocks."

"The rotation out of the six FAANGM stocks that had really gotten their valuations pretty stretched on many fronts has favored other technology stocks with more attractive multiples. This will also play out in some consumer-related stocks eventually."

SEE ALSO: A fund manager at a $1.7 trillion investing giant reveals how he's preparing in case stocks crash again — and outlines the risks that could plunge the market into chaos

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NOW WATCH: We compared Apple's $159 AirPods to Xiaomi's $30 AirDots and the winner was clear

BuzzFeed and other digital sites say they’re well positioned to acquire in 2019 despite a tough ad market and a chorus of doomsayers

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Jonah Peretti

  • 2019 looks to be a punishing year for venture capital-backed media companies whose advertising growth has slowed.
  • But the heads of BuzzFeed, Refinery29, and Group Nine Media say they're bullish on their futures.
  • The execs say they're well positioned because they've been diversifying beyond advertising and see themselves as acquirers.

VC-backed media outlets have become associated with stalled growth, layoffs, and fire sales. BuzzFeed CEO Jonah Peretti even floated the idea to The New York Times that a merger of a few of them — BuzzFeed, Vice, Vox Media, Group Nine Media, and Refinery29 — could be the way to survive.

But the CEOs of some of these other companies are standing their ground, saying they’re set up to be the acquirers in a declining market for digital advertising.

“Having a brand that stands for something has always been a differentiator for us," Refinery29 co-founder and CEO Philippe von Borries told Business Insider. "We’re still a significant business with longevity.” 

Read more:With media-merger talk swirling, Vox Media says it will evaluate partnerships and acquisitions

The women’s lifestyle publisher was founded in 2005, raised $125 million as of 2016 from Turner, Scripps Networks, and Hearst. It went through two rounds of layoffs, in 2017 and 2018, and isn’t profitable yet. It’s going to be another tough year, von Borries said. But given the company started with an email product, it’s not in the same boat as other digital media companies like Mic that started later and built big but fleeting audiences on Facebook, he argued.

“We launched in 2005 when building an audience was the hardest possible task in the world,” he said. “You had to build it one subscriber at a time. A lot of people hitched their wagons to third-party platforms where most of the revenue never showed up. We feel like we have the more relevant and differentiated brand with our audience.”

Refinery is still reliant on advertising. 70% of its revenue is advertising, with the rest coming from events and other sources. The plan is to keep growing the non-ad portion this year by expanding live events, growing internationally through advertising, and selling high-quality video to streaming services.

And von Borries said he’s looking at companies to acquire, in areas like events and direct-to-consumer businesses. “There’s significant opportunity for us to be a consolidator," he said. "There’s interesting businesses to roll up. I want the business to be relevant and meaningful 10 years from now. And one way is to acquire but if there’s an amazing company that would allow us to accelerate our vision, of course that’s something we will consider.”

Publishers' millennial pitch is losing relevance

Still, investor interest in funding advertising-based businesses is drying up. And long-form, high-quality video is expensive to make, the sales cycle is long, and the profits are low compared to advertising.

“The biggest challenge they have is that the defining characteristic of millennials is, there is no defining characteristic,” said Chris Wexler, SVP and executive director of media and analytics at Cramer‑Krasselt. “Marketers desperately want millennials to be more monolithic, but the older end are parents with a couple kids, the younger end is just getting out of college. It’s the most culturally diverse group, and they celebrate that. Media companies struggle with mass culture segmenting. You can’t be all things to all people. We’re no longer thinking in large, demographic swathes. We’re thinking of coalitions of like-minded groups.”

The rise of programmatic advertising lessens the value of individual sites to ad buyers, and when they do work on ad buys directly with a site, those deals tend to be bigger but occur infrequently and are low-profit.

BuzzFeed, which missed its 2017 revenue target, laid off staff in 2018, and hasn’t consistently made a profit, talks about managing costs and “sustainability.”

“We’ve been about outgrowing people, now it’s about outlasting people,” Peretti said.

In the race to survive, Peretti insisted BuzzFeed is best positioned, though. “Our model is more diversified, our tech and data is more developed, we have a deep understanding of the ecosystem.”

BuzzFeed has been growing other revenue streams to complement its core business of native advertising. Around this time last year, Peretti said half the company’s revenue would come from non-direct-sold sources like commerce, programmatic advertising, studio, and platforms by 2019. He told Busines Insider the company is “close” to that goal. It’s also started a $5-per-month membership program for BuzzFeed News. The company passed $300 million in revenue in 2018, Peretti said, which The Times reported was up from $260 million in 2017 (but which was below the goal of $350 million).

“One huge difference in BuzzFeed today versus two years ago, when you meet with marketers at CES, they’d just meet with us to do native advertising,” Peretti said. “Now, we’re much more full-service. We’re not a one-trick pony.”

BuzzFeed is already making more money from YouTube

Peretti’s case for a multi-company merger is that a combined company would have more clout to demand more ad revenue from the digital distributors Google and Facebook. He said BuzzFeed has already seen this happen with YouTube. As BuzzFeed has become a bigger share of the inventory in Google Preferred, YouTube’s top content, BuzzFeed’s inventory become more valuable to advertisers, he said.

Another company seen as a candidate for a merger is Group Nine Media, which is itself the product of a rollup of NowThis, The Dodo, Thrillist, and Seeker two years ago, when Discovery Communications put $100 million into the company. Discovery led another round of $40 million in 2017. Media watchers see it as a likely partner with BuzzFeed because they have similar audiences, share an investor in Lerer Hippeau (managing partner Kenneth Lerer is Group Nine CEO Ben Lerer's father and BuzzFeed's chairman), and the CEOs are friends.

Ben Lerer said Group Nine isn’t yet where it wants to be in terms of diversifying its revenue, but that it’s made progress in getting revenue from platforms and selling its video studio output in addition to advertising. In 2019, the company plans to add e-commerce to its revenue mix. Lerer wouldn’t share any financials but said the company has “plenty of growth to validate it’s working.”

“We’re clearly not screwed,” Lerer said. “We had a great last year and I think we’re set up for an even better or equally better in terms of growth, margin improvement.”

Lerer said he expects to add some companies in the next year.

“We own brands people are crazy for and are growing in all kinds of ways," Lerer said. "Consolidating is not easy to do. It’s people and culture and strategy. We’re really, really well positioned to participate meaningfully.”

SEE ALSO: 'It's a buyer's market': Mic's fire sale has the media business buzzing with rumors of deals

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NOW WATCH: Saturn is officially losing its rings — and they're disappearing much faster than scientists had anticipated

Big brands like Verizon and Toyota are backing Amazon's Freedive as the e-commerce giant pushes deeper into OTT advertising

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  • Amazon recently launched its first foray into ad-supported video streaming with its IMDB Freedive service.
  • Business Insider tracked 57 commercials on Freedive and found that 41 of them promote Amazon's products like Echo or Amazon Music.
  • The remaining 16 ads come from a handful of big TV advertisers including Verizon, Geico and Toyota.
  • Marketers said that they're interested in seeing how Freedive plays into Amazon's bigger play for OTT advertising.

Amazon is moving into ad-supported streaming, and marketers see the shift as evidence of a larger push into TV and over-the-top advertising.

Last week, Amazon's IMDB unveiled its ad-supported streaming service, Freedive, that lets consumers watch TV shows and movies from Amazon's website, apps and Fire TV devices. Experts see Freedive as Amazon's entry into OTT advertising as it builds out an ad network that will allow third parties to sell ads in connected TV apps, similar to the way Crackle and Pluto allow ad-tech vendors like SpotX and The Trade Desk to sell ads within their connected TV apps.

While IMBD only represents a portion of Amazon's ad inventory, the company is beginning to rival Facebook and Google in digital advertising, and marketers expect video to be a big part of Amazon's ad pitch this year. Amazon says that IMDB drives 250 million people to its properties every month while an estimated 48.6 million consumers own an Amazon Fire TV, according to eMarketer.

Several observers were skeptical of Amazon's plans to compete for video budgets from streaming, which is dominated by big names like Roku and Hulu. Plus, the number of direct-to-consumer streaming services continues to grow. NBCUniversal, AT&T, and Disney plan to roll out streaming services over the next two years. Sony-owned Crackle has run a similar model to Freedive for years but never gained significant traction with consumers.

Amazon Fire TV Cube

"They haven't pushed it particularly hard," said Noah Mallin, head of experience, content and sponsorship at Wavemaker. "The fact that it's tied to Amazon IMDB and within Amazon's Prime app, I think it's more about them experimenting with the kinds of ads that they can place."

Brands are running their TV ads on Freedive

The ads on Freedive are mostly house ads, showing Amazon is just starting to ramp up ad sales there. Business Insider looked at ad loads for more than six hours worth of Freedive programming and tracked 57 commercials. Forty-one of the ads were for Amazon services like its voice-activated Echo devices, Amazon Storefronts, Amazon Music, and men's clothing line Goodthreads. The other 16 ads were bought by a handful of big TV advertisers including Toyota, Verizon, Geico, Progressive Insurance and Hyundai.

"True Romance" is one of the movies Amazon is promoting within Freedive. The movie is two hours long and includes 12 commercial pods that each last 45 or 60 seconds. To compare, a 45-minute episode of NBC's "This is Us" streamed on Hulu contains six commercial pods, suggesting that Amazon's ad load is competitive to other services.

Many of the ads are the same length and creative that marketers run on TV. For example, Geico repurposed a campaign dubbed "Nature Sounds"that began running on TV and digital platforms in August, and Verizon is running a spot from its long-running campaign with actor Thomas Middleditch.

Read more:Amazon's timid move into ad-supported video has little chance of shaking up the market -- at least for now

John Nitti, Verizon's chief media officer, said Verizon bought 20% of the ad slots that Amazon pitched to a small group of beta advertisers. The Freedive ad buy is part of Verizon's larger investment in OTT through Amazon's demand-side-platform (or DSP).

While Google and Facebook dwarf Amazon's ad business, opening up video inventory is the latest sign that Amazon wants to aggresively grow its advertising, he said.

"Facebook and Google have had video inventory at scale that's ad-supported for some time now," he said. "While Amazon's ad business had been relegated to display and other ad formats, now they're starting to scale into video. Amazon becomes more viable across more advertising touch points with more inventory across the ecosystem."

Amazon wants to control a larger chunk of OTT ads

Advertisers buy Freedive programmatically from Amazon's demand-side platform (or DSP), meaning that advertisers cannot specifically purchase Freedive ad inventory. Instead, ad buys are a mix of Freedive and OTT inventory within Amazon Fire, said Brittany Rollheiser, director of digital investment at Mindshare.

"It's still in the early days so it seems to be a bit of a slow roll," she said. "[Freedive] is not necessarily a stand-alone product — it's more something that's bundled up into other OTT inventory."

According to Wavemaker's Mallin, it's not clear how Amazon will present its ad-supported and subscription-based videos to consumers, which could muddle Amazon's long-term video ambitions.

Within Amazon's Prime video apps, Freedive content is promoted next to Amazon's original content — including shows like"The Marvelous Mrs. Maisel" and "Jack Ryan"— that require a Prime subscription to watch.

"There's a disconnect between 'I'm paying for Prime' and then, 'Here's this thing that's free with ads,'" he said.

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NOW WATCH: What will happen when Earth's north and south poles flip

Michael Cohen reportedly admitted his talks with Ivanka Trump and Donald Trump Jr. about the Trump Tower Moscow deal were far more detailed than previously known

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  • Michael Cohen, Donald Trump's former longtime attorney, gave "very detailed updates" on the status of the proposed construction of a Trump Tower in Moscow to members of Trump's family, according to investigators cited in a BuzzFeed News report.
  • Trump's daughter, Ivanka, who now serves as a White House senior adviser, was reportedly expected to oversee the development of a spa at the proposed tower.
  • Representatives for Ivanka reportedly downplayed her knowledge of the project and said she was only "minimally involved."
  • Previous denials from Donald Trump Jr. and a Trump Organization executive, were also scrutinized by investigators involved in the probe.

Michael Cohen, Donald Trump's former longtime attorney, told the special counsel he had extensively briefed Trump and members of his family on the status of a proposed Trump Tower in Moscow, according to a BuzzFeed News report published Thursday night.

Cohen, who pleaded guilty to lying about the Trump Tower Moscow deal in his previous testimony to lawmakers, reportedly admitted in his plea deal with the special counsel Robert Mueller that he gave the Trumps "very detailed updates" about the project, federal law enforcement officials familiar with the investigation said to BuzzFeed News.

Trump's daughter, Ivanka, who now serves as a White House senior adviser, was reportedly expected to oversee the development of a spa at the proposed tower. Ivanka owns her own spa brand, "The Spa by IVANKA TRUMP," which has locations in family projects like the Trump International Hotel and Tower in Vancouver.

Ivanka is also believed to have recommended an architect for the project and told Cohen to confer with a Russian athlete who had "synergy on a government level" to fast-track the multimillion the Trump Tower Moscow deal.

In a memo filed by Mueller in December, Cohen revealed to prosecutors that a "trusted person" in Russia had offered "political synergy" to members of the Trump campaign a year prior to the 2016 US presidential election.

Emails reviewed by BuzzFeed News indicated that Cohen, who had turned down the Russian athlete's suggestions, angered Ivanka.

Donald Trump and Donald Trump Jr.

Representatives for Ivanka reportedly downplayed her role in the project and said she was only "minimally involved."

"Ms. Trump did not know about this proposal until after a non-binding letter of intent had been signed, never talked to anyone outside the Organization about the proposal, never visited the prospective project site and, even internally, was only minimally involved," Peter Mirijanian, a spokesperson for Ivanka's attorney, said to BuzzFeed News.

Previous denials from Donald Trump Jr. were also reportedly scrutinized by investigators involved in the probe. Investigators in the report claimed Cohen and Trump Jr. had several conversations about the project during the campaign.

Trump Jr. previously testified to Congress that he "wasn't involved" in the project and was only "peripherally aware" of it. He also claimed he was unaware of Cohen's dealings with the Kremlin, which, according to the investigators, resulted in a conversation with a government aide.

Trump Jr.'s statements were already under scrutiny by Democratic lawmakers, who alleged he had committed a felony by lying to the House Intelligence Committee during his testimony.

The bombshell report centers around Cohen's allegations that Trump directed him to lie to Congress about the timeline of the negotiations around the project, "in order to obscure Trump's involvement." Cohen reportedly walked back his previous testimony that the negotiations ended in January 2016, when in fact they continued through June.

SEE ALSO: Trump Jr. says he 'probably would have done things a little differently' amid fallout over Russia emails

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NOW WATCH: MSNBC host Chris Hayes thinks President Trump's stance on China is 'not at all crazy'


How smart is your fridge? Smart appliances have built-in sensors to tell consumers when to buy more groceries — or even buy them automatically (AMZN, TGT, GOOGL, WMT, GE)

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This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here. Current subscribers can read the report here.

Smart speakers in shoppingConsumers are finally starting to adopt smart home devices, with nearly 60% owning at least one device. This presents an opportunity for e-commerce companies to enter the smart home and encourage purchasing through the devices.

The smart speaker has become the face of the smart home in many ways, attracting the lion’s share of attention as companies look for ways to take advantage of the growing platform. But there’s a problem: Consumers aren’t using the smart speaker to actually buy products very often.

Instead, one of the clearest opportunities outside of the smart speaker is home goods and grocery replenishment through large appliances. Smart devices in the home — especially appliances — can take advantage of built-in sensors to either tell consumers when they need to buy more of a product, or make that purchase autonomously. This will create an opportunity for appliance manufacturers, e-commerce vendors, and product suppliers to ink supply agreements to meet consumers' needs.

In this report, Business Insider Intelligence examines several areas of opportunity for e-commerce companies to leverage smart home technologies to provide new and better services to their customers. First, we explore how smart appliances, including connected dishwashers and laundry machines, are building on one-click purchasing systems to enable automated replenishment. We then discuss the smart fridge and detail how apps, cameras, and voice assistants are enabling takeout and grocery delivery through these appliances. Finally, we examine the role of the voice interface beyond smart speakers as it relates to purchasing products in the home, and how omnipresent voice will be used to organize and interact with automated services.

The companies mentioned in this report are: Amazon, Blue Apron, Costo, GE, Google, Instacart, Keurig, KitchenAid, LG, Ocado, P&G, Plated, Reynolds, Samsung, Target, Walmart, Whirlpool.

 Here are some key takeaways from the report:

  • Companies have a clear opportunity to leverage sensors, cameras, and connectivity in a variety of home appliances to revolutionize the way consumers buy home goods.
  • Smart appliance manufacturers, e-tailers, and CPG companies will be able to collaborate and partner to develop new methods of resupplying consumers' homes.
  • The smart fridge will transform into the hub of the kitchen and become the autonomous organizing device that oversees grocery purchasing and food delivery.

In full, the report:

  • Provides an overview of the key players and types of products in the smart appliance space.
  • Highlights the models that companies can adopt to take advantage of the developing sector.
  • Identifies the key services that will boost automated e-commerce engagement in the home.

 

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William Barr answered 2 questions during his confirmation hearing that could spell trouble for Trump in the Russia investigation

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William Barr

  • BuzzFeed News published a bombshell report on Thursday night, alleging that President Donald Trump instructed his longtime lawyer Michael Cohen to lie to Congress about how long the Trump Tower Moscow deal had been worked on.
  • Following the release of that report, people began sharing a clip from William Barr's confirmation hearing. Barr is Trump's nominee for attorney general. If confirmed, he would oversee the special counsel Robert Mueller, who is leading the Russia investigation.
  • In an exchange with Democratic Sen. Amy Klobuchar from Wisconsin, Barr answers questions on what he considers obstruction of justice.

During his Tuesday hearing, William Barr, President Donald Trump's nominee for attorney general, answered a series of questions from Sen. Amy Klobuchar of Minnesota about obstruction of justice.

In June 2018, Barr sent an unsolicited memo about obstruction of justice to the White House. The memo addressed the special counsel Robert Mueller's investigation into Russian interference in the 2016 US presidential election and whether the Trump campaign coordinated with Russia to sway the election in Trump's favor.

The memo, which has prompted skepticism from Democrats over Barr's ability to serve as attorney general, questions the scope of Mueller's investigation — and whether the special counsel can probe Trump about obstruction of justice.

During the hearing this week, Democrats questioned Barr about the memo — including the following exchange with Klobuchar— and where he did acknowledge that a president can obstruct justice.

"In your memo, you talk about the Comey decision and you talk about obstruction of justice, and you already went over that, which I appreciate," Klobuchar says. "You wrote on page one that a president persuading a person to commit perjury would be obstruction. Is that right?

"That — yes," Barr replies. "Or any, well any person who persuades another."

"You also said that a president — or any person — convincing a witness to change testimony would be obstruction," Klobuchar continues. "Is that right?"

"Yes," Barr says.

"OK. And on page two you said that a president deliberately impairing the integrity or availability of evidence would be an obstruction?"

"Yes," Barr says.

"OK. So what if a president told a witness not to cooperate with an investigation or hinted at a pardon?" Klobuchar asks.

"I'd have to know the specific — I'd have to know the specific facts," Barr replies.

"OK, you wrote on page one that if a president knowingly destroys or alters evidence that would be obstruction."

"Yes," Barr says.

"OK. So what if the president drafted a misleading statement to conceal the purpose of a meeting?" she asks. "Would that be obstruction?"

"Again, I'd have to know the specifics," Barr says.

Republican Sen. Lindsey Graham, who chairs the Senate Judiciary Committee and who is a close ally to Trump, posed a similar question to Barr:

"If there was some reason to believe that the president tried to coach somebody not to testify or to testify falsely that could be obstruction of justice?"

"Yes," Barr responded.

The exchanges — focused specifically on the first two questions about witnesses — was being shared Thursday night, after a new report from BuzzFeed News alleged that President Donald Trump instructed his longtime lawyer Michael Cohen to lie to Congress about how long the Trump Organization was in talks for a proposed Trump Tower in Moscow.

If these allegations, told to BuzzFeed News by two law-enforcement sources, prove to be true, this could point to obstruction of justice as Democratic lawmakers pointed out on Twitter.

SEE ALSO: Trump reportedly instructed Michael Cohen to lie to Congress about Trump Tower Moscow deal

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NOW WATCH: MSNBC host Chris Hayes thinks President Trump's stance on China is 'not at all crazy'

Here's how Amazon could dethrone UPS and FedEx in the US last-mile delivery market (AMZN)

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This is a preview of a research report from Business Insider Intelligence, Business Insider's premium research service. To learn more about Business Insider Intelligence, click here. Current subscribers can read the report here.

AmazonShipping_CostSavings

Outside of the US Postal Service (USPS), FedEx and UPS have dominated the domestic logistics industry — and in particular, the last-mile of the delivery — for decades. On a quarterly earnings call in 2016, FedEx estimated that itself, UPS, and USPS executed a whopping 95% of all e-commerce orders.

But rapidly rising volumes have put the pair of legacy shippers in a bind. E-commerce sales have risen over 50% and are projected to continue their ascent into the next decade. High volumes are already straining shippers' networks — UPS struggled to bring consumers their parcels on time due to higher-than-anticipated package volume, which upset some big-name retail partners, including Macy's, Walmart, and Amazon. As online sales surge further, package volumes will outstrip legacy shippers' capacities, creating space for new entrants. 

Amazon is uniquely well-positioned to dethrone UPS and FedEx's duopoly. It's built up a strong logistics infrastructure, counting hundreds of warehouses and thousands of delivery trucks.

Further, as the leading online retailer in the US, it has a wealth of data on consumers that it can use to craft a personalized delivery experience that's superior to UPS and FedEx's offerings. Amazon must act soon, however, as UPS and FedEx are hard at work fortifying their own networks to handle the expected surge in parcel volume.

The longer the Seattle-based e-tailer delays the launch of a delivery service, the more it runs the risk that these legacy players will be able to defend their territory. 

In a new report, Business Insider Intelligence, Business Insider's premium research service, explains how the age of e-commerce is opening up cracks in UPS and FedEx's duopoly. We then outline how Amazon's logistics ambitions began as an effort to more quickly get parcels out the door and fulfill its famous 2-day shipping process and how it'll be a key building block for the company if it builds out a last-mile service. Lastly, we offer concrete steps that the firm must take to maximize the dent it makes in UPS and FedEx's duopoly.

The companies mentioned in this report are: Alibaba, Amazon, FedEx, and UPS.

Here are some of the key takeaways from the report:

  • While UPS and FedEx have dominated the US last-mile delivery market for the last few decades, the surge in e-commerce is creating more volume than shipping companies can handle.
  • Amazon is uniquely well-positioned to put a dent in UPS and FedEx's duopoly due to its strategic position as the leading online retailer in the US.
  • Amazon can carry its trust amongst the public, a wealth of consumer data, and its ability to craft a more personalized delivery experience to the last-mile delivery space to ultimately dethrone UPS and FedEx.
  • The top priority for Amazon in taking on UPS and FedEx needs to be offering substantially lower shipping rates — one-third of US retailers say they'll switch to an Amazon shipping service if it's at least 20% cheaper than UPS and FedEx. 

In full, the report:

  • Outlines Amazon's current shipping and logistics footprint and strengths that it would bring to the last-mile delivery space in the US.
  • Lays out concrete steps that Amazon must take if it wants to launch a standalone last-mile delivery service, including how it can offer a more memorable, higher-quality delivery experience than UPS and FedEx.
  • Illustrates how Amazon can minimize operating costs for a delivery service to ultimately undercut UPS and FedEx's shipping rates in the last-mile space.

 

SEE ALSO: Amazon and Walmart are building out delivery capabilities

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10 things in tech you need to know today

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Tim Cook

Good morning! This is the tech news you need to know this Friday.

  1. Netflix's stock fell after a slight Q4 revenue miss and solid subscriber-growth numbers. The results came just days after Netflix unleashed its biggest price hike ever, which increased its most popular plan from $11 per month to $13 per month.
  2. Facebook is restructuring its augmented reality glasses division as it inches closer to launch. Facebook is moving hundreds of employees to a new product-focused augmented reality group as it continues to quietly develop AR glasses.
  3. Apple CEO Tim Cook blasted the invisible "shadow economy" that profits off people's information in a Time op-ed. Cook set his sights on data brokers, saying that they need to be reined in.
  4. Ad data broker giant Acxiom came out in favor of Apple CEO Tim Cook's quest to bring GDPR-like regulation to the United States. The company said that it is "actively participating in discussions with US lawmakers" around the issue.
  5. Amazon investors are cranking up the pressure on Jeff Bezos to stop selling facial recognition tech to government agencies. Amazon shareholders with shares worth $1.32 billion have filed a resolution, which could be voted on at the firm's annual investor meeting.
  6. Instagram influencers are so overwhelmed by hackers, they're hiring hackers of their own to get their accounts back. Hacked influencers told VICE's Motherboard that Instagram has been slow to give them back their accounts, even after creators followed necessary steps for account recovery.
  7. Nearly 773 million email accounts were exposed in a massive data breach known as Collection #1. It appears the data didn't come from a single source, site, or company but is an aggregation that includes cracked passwords.
  8. Twitter CEO Jack Dorsey gave an interview to the Huffington Post, and was asked what Twitter would do if US President Donald Trump ordered his followers to murder a journalist. Dorsey said, "we'd certainly talk about it" but he didn't want to discuss "particulars."
  9. Microsoft announced it will spend $500 million on building affordable housing in Seattle. In cities like Seattle and San Francisco, the arrival of tech giants has been linked with skyrocketing house prices.
  10. Gaming startups Unity and Improbable have ended their feud peacefully after a very public battle that involved the creator of "Fortnite." Unity updated its terms of services on Wednesday to put in writing that Improbable, and any other developer, can continue using the Unity platform without restriction.

Have an Amazon Alexa device? Now you can hear 10 Things in Tech each morning. Just search for "Business Insider" in your Alexa's flash briefing settings.

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General Motors employees claim in lawsuit co-workers hung nooses, drew Swastikas, and hung 'whites only' signs in a factory

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GM General Motors toledo transmission plant factory sign

  • Last year, a group of General Motors employees filed a lawsuit against the company claiming they were subjected to a series of racist taunts by coworkers that included nooses, "whites only" graffiti, and swastikas around the factory. 
  • In a new interview with CNN, one plaintiff says it felt like he was at war every day that he went to work. 
  • GM says it takes "any reported incident with sensitivity and urgency" and it is complying with suit as required. 

A group of eight African-American General Motors employees claim in a lawsuit that the company allowed racist taunts and abuse by white coworkers for more than a year, including nooses, swastikas and "whites only" signs found around its Toledo plant.

GM lawsuit nooseTheir original lawsuit was filed in March 2018, in federal court for the Northern District of Ohio, but one of the plaintiffs, Marcus Boyd, opened up about his experience in a new interview with CNN, published Thursday.

"It was like being at war," Boyd told the news channel about his time in the allegedly abusive workplace.

Court documents reveal a litany of complaints by Boyd and his fellow plaintiffs at the company's Powertrain Toledo Transmission Operations plant in Ohio.

"These acts as well as others, more particularly described below, were considered by all plaintiffs to be acts of violent race discrimination, statements of hate personally affecting them as African-Americans, and as forming a hostile work environment instilling fear, anxiety, and recalling a legacy of reprehensible crimes against African-American," the lawsuit says.

In one instance, the lawsuit claims that a white supervisor, "during a supposed team meeting about racial tolerance," asked “[W]hat’s the big deal about nooses, there was never a Black person who was lynched that didn’t deserve it." And was allegedly not disciplined for the comments.

GM did not respond to a request for comment. But in a statement to CNN, GM said the alleged incidents do not reflect its culture, and that it intended to fully comply with the court to resolve the issues:

Every day, everyone at General Motors is expected to uphold a set of values that are integral to the fabric of our culture. Discrimination and harassment are not acceptable and [are] in stark contrast to how we expect people to show up at work," 

We treat any reported incident with sensitivity and urgency, and are committed to providing an environment that is safe, open and inclusive. General Motors is taking this matter seriously and addressing it through the appropriate court process."

GM Lawsuit whites only signThe lawsuit claims that racist taunts, threats, and jeers "spread like wildfire" through the plant. Here's the full list of alleged incidents from the lawsuit:

  1. White employees calling African-American employees “Boy”;
  2. A female African-American employee being called a “dumb Black crackhead bitch”;
  3. Swastikas painted and scratched on restroom stalls;
  4. Stick figures drawn or scratched on bathroom stalls with nooses around their necks;
  5. Drawings and scratching of pistols and guns on the bathroom stalls;
  6. Magazines such as "Guns and Ammo" touting the use of guns put on machines and in the break room; viii. Caucasian employees publicly stating that they are carrying guns in their cars and trucks parked on GM property;
  7. Caucasians wearing shirts underneath their coveralls with visible Nazi symbols on them; x. Calling African-American employees “monkey”;
  8. African-American employees being warned "to be careful" because a white employee’s "daddy was in the Klu Klux Klan";
  9. African-American employees being told to go back to Africa where they belong;
  10. "Whites Only" signs hung on bathroom stall doors and written on walls outside the Men’s room; xiv. A White supervisor announcing, during a supposed team meeting about racial tolerance, "[W]hat’s the big deal about nooses, there was never a Black person who was lynched that didn’t deserve it.” That White supervisor was not disciplined;
  11. White employees calling African-American employees "DAN", which is an acronym for “Dumb Ass N*****;
  12. A White employee intimidating an African-American employee by yelling in his ear in the breakroom, "Hey you be in my chair," and pulling on the back side of the chair practically knocking the African-American over backwards;
  13. "Blacks suck," and "N*****s not allowed" scratched or written on the bathroom walls; xviii. An African American being told to "watch his back when driving;"
  14. Writing on a White female’s property "N*****” Lover" because she happened to be seen walking with an African-American in the plant;
  15. A White person advising an African-American to get a gun to defend himself; xxi. Refusing to listen and to work for African-American team leaders, including causing the assembly line to shut down;
  16. Making threats of great bodily harm to beat an African-American team leader with a shovel and a clutch, and to shoot him with a gun;
  17. Making fun of the NAACP by cartoon characterization.

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