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TRANSPORTATION & LOGISTICS STARTUPS TO WATCH: The top 5 startups across digital freight services, warehouse robotics, AI, last-mile delivery robotics, and self-driving cars

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  • Artificial intelligence (AI), robotics, and self-driving technology are helping the transportation and logistics industry finally transform by cutting costs, optimizing delivery routes, and automating mundane tasks.
  • Startups will be the lynchpin of this transformation because they specifically target areas of need  with cutting-edge solutions.
  • Business Insider Intelligence examined the top 5 startups within five key areas: digital freight services, warehouse robotics, AI for supply chain management, last-mile delivery robotics, and self-driving car software.

Transportation and logistics industries have operated largely the same way for decades. But the surge in e-commerce in the last several years, combined with consumers’ appetite for same-day delivery, has brought us to a tipping point.

Total Logistics Costs

Delivery companies are doing all they can to get orders to customers’ doors as quickly as possible, which has facilitated wholesale changes in how they operate.

Cutting-edge digital solutions (including digital freight services, warehouse robotics, AI for supply chain management, delivery robotics, and autonomous driving software) are forcing traditional delivery companies to either evolve or see their core businesses erode.

Transportation & Logistics Startups to Watch, a new report from Business Insider Intelligence, monitors the biggest change agents in the industry to offer unique insight into the development of the transportation and logistics space at large, and shows how traditional companies are adapting to their new environment.

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Business Insider Intelligence's Startups to Watch reports give a high-level overview of the funding trends for startups in a particular coverage area, as well as a list of key startups (by function, what they do, key news, and statistics). Businesses need to understand new competitive threats, technologies, and acquisition opportunities in order to thrive. These reports provide that contextual information in an easy-to-digest manner.

In full, the Transportation & Logistics Startups to Watch report dives into the top 25 companies - five startups across five key disruption areas - that are easing shipping burdens, improving order fulfillment efficiency, optimizing delivery, and automating processes.

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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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International money transfers hit $613 billion this year — here's what young, tech savvy users value most about them

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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.

FORECAST Global Remittance VolumeRemittances, or cross-border peer-to-peer (P2P) money transfers, hit a record high of $613 billion globally in 2017, following a two-year decline.  And the remittance industry will continue to grow, driven largely by digital services.

Several factors will fuel digital growth globally, such as increased smartphone penetration, greater demand for digital transactions, and an overall need for faster cross-border transfers. And with the shift to digital comes an audience of younger, digital-savvy customers using remittances — a segment that companies are looking to target.

As a result, the global remittance industry is becoming increasingly competitive for firms to navigate, with incumbents like Western Union and MoneyGram competing for the same pool of customers as digital upstarts like WorldRemit and Remitly. And in order to win, companies across the board will need to prioritize the four areas consumers value most in remittances: cost, convenience, speed, and safety.  

In The Digital Remittances Report, Business Insider Intelligence will identify what young, digitally savvy users value in remittances. We will also detail the concrete steps that legacy and digital providers can take to effectively capture this opportunity and monetize digital offerings — the primary growth driver — to emerge at or maintain their presence at the forefront of the space. 

The companies mentioned in the report are: MoneyGram, Remitly, Ria, Western Union, WorldRemit, TransferWise, and Xoom, among others.

Here are some key takeaways from the report:

  • The global remittance industry recovered from a two-year decline in 2017 to reach a record $613 billion in transfer volume. That growth will continue and will be fueled by digital remittances, which Business Insider Intelligence expects to grow at a 23% CAGR from $225 billion in 2018 to $387 billion in 2023.
  • There’s a new segment of customers that both legacy and digital firms are competing to grab share of. Young, digital-savvy consumers are the customer segment that all firms are vying to reach, which is creating a highly competitive dynamic. The needs of those consumers will precipitate transformational change in the industry.
  • We’ve identified several tangible steps firms can take to improve in four key areas — cost, convenience, speed, and security — to not only attract but also maintain this customer segment to align with their preferences and ultimately win in the space.

 In full, the report:

  • Outlines the global remittance landscape and sizes the opportunity that the industry presents. 
  • Identifies the new audience for remittances and future drivers of the remittance space going forward. 
  • Discusses four key areas that providers can focus on — cost, convenience, speed, and security — to improve offerings and ultimately capture that shifting audience. 

To get this report, subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to:

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SEE ALSO: These were the biggest developments in the global fintech ecosystem over the last 12 months

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Here's how fintech is taking over the world — and what's coming next

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global fintech funding

Digital disruption is affecting every aspect of the fintech industry.

Over the past five years, fintech has established itself as a fundamental part of the global financial services ecosystem.

Fintech startups have raised, and continue to raise, billions of dollars annually, pushing incumbent financial institutions to get in on the action. Legacy players have begun using fintech to remain competitive in a rapidly evolving financial services landscape.

So what's next?

Business Insider Intelligence, Business Insider's premium research service, explores recent innovations in the fintech space as well as what might be coming in the future in our brand new exclusive slide deck, The Future of Fintech: How Fintech Is Taking Over The World and What Comes Next.

To get your copy of this free slide deck, click here.

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When it comes to VR hardware, consumers are balancing price point and experience

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Global VR Headset

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.

The virtual reality (VR) market is expected to rally in 2018 after seeing slow growth from 2016 to 2017. The uptick will be largely catalyzed by the emergence of the newest headset form factor, stand-alone VR headsets, which address some of the biggest pain points that have prohibited mainstream consumers from adopting VR.

This new form factor is more affordable than cost-prohibitive high-end headsets and more capable than its smartphone-powered counterparts. Additionally, it features in-unit processing that frees the VR headset from wires. The first major stand-alone headset, the Vive Focus from HTC, was launched in January of this year, and more from other major companies like Oculus and Google are expected to follow over the next six months. 

In a new report, Business Insider Intelligence lays out where the VR market is and forecasts how it will grow over the next five years. We dissect the various hardware categories and the unique strengths and opportunities of each, and identify how they will gain traction at different points of the market’s evolution. Finally, we examine various components impacting consumer adoption.

Here are some of the key takeaways:

  • Business Insider Intelligence forecasts shipments of all VR headsets to grow 69% year-over-year (YoY) to reach 13.5 million in 2018. Powering that growth is the stand-alone VR headset category, which is expected to account for 30% of total headsets shipped in the year ahead. 
  • The VR hardware market is volatile because getting a device right is a balancing act. On one hand, the price point needs to be affordable for most consumers, and on the other, the experience has to be distinctive and immersive enough to convince a consumer to strap a visor to their face on a regular basis. 
  • While only a handful of stand-alone VR headsets will hit the market in 2018, they mark the biggest step toward mainstream adoption of consumer-oriented VR headsets by making the technology more accessible for the average consumer. 
  • Declining price points, coupled with high-quality headsets and the introduction of a game-changing app, are crucial for the VR industry to achieve before VR can really gain traction on a global scale.

In full, the report:

  • Forecasts the growth projections and shipment expectations of the global VR headset market, and breaks it up by the major headset categories.
  • Explores the four major segments in the current VR hardware market, defined by the hardware needed to power the experience — stand-alone, smartphone-powered, PC-powered, and game console-powered VR.
  • Identifies the key players shaping the burgeoning stand-alone VR headset segment.
  • Discusses the biggest challenges to VR development and adoption.

Subscribe to an All-Access pass to Business Insider Intelligence and gain immediate access to:

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Traditional TV usage is declining across every demographic — here's how digital media companies are recreating content bundles

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This is a preview of a research report from Business Insider Intelligence. Current subscribers can read the report here.

tv usage decline

As streaming becomes an increasingly mainstream behavior among consumers, the video industry has produced new combinations of streaming video programming services to prepare for the progressive overhaul in how media is distributed.

These streaming bundles have emerged in response to the problems of media fragmentation, cord-cutting, and high consumer costs. Declining usage of traditional TV across every demographic, particularly among young viewers, has also demanded new solutions to the traditional distribution model that is pay-TV.

Although streaming media bundles are still evolving, four distinct models have emerged:

  • Skinny bundles — Cheaper, streaming versions of the traditional pay-TV bundle, but with fewer channels.
  • SVOD aggregators — Facilitate a la carte sign-ups to third-party streaming services through a central user portal. The primary example so far is Amazon Channels, Amazon's SVOD partner program. 
  • SVOD integrations — SVOD services like Netflix that bring their offerings to a traditional operator's service.
  • Streaming service partnerships — Combine one or more streaming services under a single offering, at a lower cost than the total price separately.

In the SVOD Bundling Report, Business Insider Intelligence examines the state of the US video ecosystem and how media companies are refining their distribution strategies to meet the changing needs of consumers. The report situates each of the four bundle model types within the overall SVOD market, and investigates the overarching advantages and challenges each faces. Finally, we predict how player dynamics might transform and adapt, outlining best practices for providers to succeed within the new TV landscape.

Here are some of the key takeaways from the report:

  • SVOD bundles partake in a growing SVOD market in the US. Business Insider Intelligence estimates that the SVOD market totals $13.6 billion in 2018, primarily driven by uptake on services from SVOD giants Netflix, Hulu, and Amazon Prime Video. 
  • Streaming video accessed on over-the-top (OTT) platforms is going mainstream, while consumers — particularly younger viewers — are reducing usage on live, linear TV. Traditional TV usage among viewers ages 18-24 has dropped 48% since 2011, 35% among 25-34 year olds, and 18% in the 35-49 demographic. 
  • Skinny bundle services are growing in popularity, with 7.2 million subscribers in the US, but they suffer fundamental financial sustainability problems. 
  • Distributors with at-scale platforms and powerful back-end tech can capitalize on the growing consumer demand for content consolidation among consumers. Faced with a fragmented and expanding universe of content options, more than two-thirds of consumers say they would prefer to get all their services from a single source, per Hub Entertainment Research. 
  • Winners in the bundling shakeout will have prioritized internet-connected tech, an effective user experience, reasonable pricing, and content diversity. 

In full, the report:

  • Identifies the four SVOD model types that have emerged as alternatives or supplements to traditional distribution.
  • Investigates the top advantages and challenges of each model type.
  • Outlines strategies that players across media and distribution companies can use to address business or market challenges.
  • Explores how the dynamics of each model type will evolve as services converge under new bundled offerings.

 

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AI IN BANKING AND PAYMENTS: How artificial intelligence can cut costs, build loyalty, and enhance security across financial services

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maturity of AI solutions

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

Artificial intelligence (AI) is one of the most commonly referenced terms by financial institutions (FIs) and payments firms when describing their vision for the future of financial services. 

AI can be applied in almost every area of financial services, but the combination of its potential and complexity has made AI a buzzword, and led to its inclusion in many descriptions of new software, solutions, and systems.

This report from Business Insider Intelligence, Business Insider's premium research service, cuts through the hype to offer an overview of different types of AI, and where they have potential applications within banking and payments. It also emphasizes which applications are most mature, provides recommendations of how FIs should approach using the technology, and offers examples of where FIs and payments firms are already leveraging AI. The report draws on executive interviews Business Insider Intelligence conducted with leading financial services providers, such as Bank of America, Capital One, and Mastercard, as well as top AI vendors like Feedzai, Expert System, and Kasisto.

Here are some of the key takeaways:

  • AI, or technologies that simulate human intelligence, is a trending topic in banking and payments circles. It comes in many different forms, and is lauded by many CEOs, CTOs, and strategy teams as their saving grace in a rapidly changing financial ecosystem.
  • Banks are using AI on the front end to secure customer identities, mimic bank employees, deepen digital interactions, and engage customers across channels.
  • Banks are also using AI on the back end to aid employees, automate processes, and preempt problems.
  • In payments, AI is being used in fraud prevention and detection, anti-money laundering (AML), and to grow conversational payments volume.

 In full, the report:

  • Offers an overview of different types of AI and their applications in payments and banking. 
  • Highlights which of these applications are most mature.
  • Offers examples where FIs and payments firms are already using the technology. 
  • Provides descriptions of vendors of different AI-based solutions that FIs may want to consider using.
  • Gives recommendations of how FIs and payments firms should approach using the technology.

Subscribe to an All-Access membership to Business Insider Intelligence and gain immediate access to:

This report and more than 250 other expertly researched reports
Access to all future reports and daily newsletters
Forecasts of new and emerging technologies in your industry
And more!
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Purchase & download the full report from our research store

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How consumers rank the top delivery services in the US — and how they stack up against the growing threat of Amazon (AMZN, FDX, USD)

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The transportation and logistics industry is undergoing a massive shift as a result of surging deliveries. Daily parcel volumes are higher than ever before — but so are customers’ expectations for cheap and fast fulfillment. 

UPS Leads the Pack with the Best Tracking Features

To keep up with mounting demand, retailers and their logistics partners have been racing to develop more efficient processes with experimental supply chain models like crowdsourced delivery — the Uber model in which customers use mobile apps to connect directly with local couriers for on-demand or same-day fulfillment.

And it’s not just startups like Deliv and Postmates getting in on the action. This year Amazon not only launched its own shipping service to deliver packages for other businesses (“Shipping with Amazon”) but also announced its “Delivery Service Partner” program, which provides capital incentives for people to launch their own delivery companies fulfilling orders on behalf of Amazon itself.

With emerging delivery models like these aggressively stealing away customers, the pressure is on for legacy players like FedEx, UPS, the USPS, and the thousands of businesses who depend on them every day, to respond. But it will take more than just material resources or a large fleet of vehicles to truly compete. These companies need to earn the trust of consumers.

Business Insider Intelligence, Business Insider’s premium research service, has obtained exclusive survey data to paint the 2018 delivery landscape and the trends of its major players. The findings comprise the team’s latest Enterprise Edge Report, The 2018 Delivery Trust Report, and give transportation, supply chain, and logistics companies the tools they’ll need to win back customers.

Enterprise Edge Reports are the very best research Business Insider Intelligence has to offer in terms of actionable recommendations and proprietary data, and they are only available to Enterprise clients.

In full, the study:

  • Uses proprietary consumer survey data to evaluate how the largest delivery companies in the US stack up on customer service, package tracking, package protection, and timeliness of delivery.
  • Assesses how at risk these providers are to new challengers entering the space.
  • Shares strategies on how delivery companies can achieve feature parity and, ideally, differentiation, in customer experience.

So, which delivery features do consumers care about?

First and foremost, speed. It makes sense that consumers value fast delivery, but did you know just how many of them prioritize this feature? According to a recent survey from Dropoff, it’s 99%. And with millions of packages delivered nationwide every single day, that’s a lot customers with high expectations.

But customers don’t just want their packages delivered quickly; they want to follow the journey from store to doorstep. Another one of the most important offerings delivery companies boast is real-time tracking, with nearly 90% of consumers noting it in the Dropoff survey.

Amazon package

If they can get it right, tracking is a twofold advantage for delivery companies; it entices consumers who want to know when their packages are coming, and it appeals to merchant partners who might be willing to switch delivery service providers for the added visibility and customer benefit.

And the field is still wide open for companies to differentiate on this feature. Among those who had a package delivered from UPS, FedEx, USPS, or DHL in the last year, nearly 30% of Business Insider Intelligence survey respondents couldn't actually say which company offered the best tracking features. Whether it means using mobile apps, SMS texting, or chatbots to communicate with customers, there’s plenty of opportunity for logistics companies to hone and become known for this feature.

Want to learn more?

This is just a snapshot of the Business Insider Intelligence 2018 Delivery Trust Report, which compiles the complete survey findings to dive deeper into the opportunities delivery companies have to engage and delight customers.

The multi-part report also presents actionable insights that transportation and logistics companies can use to fight back against Amazon’s continuous push into deliveries.

 

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Mark Zuckerberg wasn't warned about the worst crisis in Facebook's history, and it points to something rotten in the firm's culture

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  • Facebook was roasted in a devastating report by British lawmakers on Monday.
  • Among its findings, a British parliamentary committee revealed that three senior Facebook executives failed to warn CEO Mark Zuckerberg about the Cambridge Analytica data breach.
  • It's not the first time Zuckerberg has been accused of not having a handle on Facebook's problems, while a former exec said last week that Facebook's "Game of Thrones" culture could make it hard for execs to admit fault.
  • Lawmakers said it was a "profound failure of governance."

After 18 months, 73 witnesses, 4,350 questions, and countless hours of evidence, British lawmakers delivered an excoriating verdict on Facebook's year from hell.

In one of the most comprehensive accounts of the social network's disastrous 2018, a UK parliamentary committee published a report on Monday accusing Facebook of putting profit over privacy, misleading lawmakers, and being a "digital gangster" that considers itself above the law.

Mark Zuckerberg was singled out for particularly withering criticism. The Facebook CEO showed "contempt" for British Parliament because he failed to give evidence, and, perhaps more stingingly, was said to have displayed a spectacular failure of leadership in gripping Facebook crises.

Nowhere is this better evidenced than in Facebook's early handling of the enormous Cambridge Analytica data breach, a scandal which brought the company to its knees in March last year. Lawmakers were shocked at what Zuckerberg didn't know about the scandal — and said it pointed to structural issues at Facebook.

The Digital, Culture, Media, and Sport Committee's report revealed that three Facebook executives discussed the data breach over email, which impacted 50 million users, before The Guardian first reported on the issue in December 2015.

There isn't much more than this tantalising detail, but the report was clear that several Facebook employees were aware of the Cambridge Analytica issue long before the public. The report doesn't name the employees.

Here's the relevant paragraph, emphasis ours:

"We were keen to know when and which people working at Facebook first knew about the GSR/Cambridge Analytica breach. The ICO confirmed, in correspondence with the Committee, that three "senior managers" were involved in email exchanges earlier in 2015 concerning the GSR breach before December 2015, when it was first reported by The Guardian. At the request of the ICO, we have agreed to keep the names confidential, but it would seem that this important information was not shared with the most senior executives at Facebook, leading us to ask why this was the case."

What the unnamed "senior managers" failed to do, by this reading, was escalate the issue to Facebook's top tier of executives, including Zuckerberg. Instead, he found out around the same time as the rest of us, when Christopher Wylie blew the whistle on the affair last year in explosive interviews with The Observer and New York Times.

The committee wrote: "The scale and importance of the GSR/Cambridge Analytica breach was such that its occurrence should have been referred to Mark Zuckerberg as its CEO immediately."

Using this as a jumping off point, the lawmakers then launched into a bruising verdict on Facebook's approach to crisis management. In the committee's 109-page report, politicians said (emphases ours): 

"The fact that it was not is evidence that Facebook did not treat the breach with the seriousness it merited. It was a profound failure of governance within Facebook that its CEO did not know what was going on, the company now maintains, until the issue became public to us all in 2018. The incident displays the fundamental weakness of Facebook in managing its responsibilities to the people whose data is used for its own commercial interests."

It's not the first time we've heard this charge in recent months.

A blockbuster report by The New York Times in November last year cast light on the way Zuckerberg has dealt with past missteps. It portrayed him as, at times, uninterested in some of the existential issues that have threatened Facebook over the past three years.

The Times said Zuckerberg, and his right-hand woman, the chief operating officer Sheryl Sandberg, were "distracted by personal projects" as Facebook was dragged into danger. As evidence of Russian meddling mounted in 2017, the report said, Zuckerberg was on a "listening tour." It also said he preferred to focus on "broader technology issues," leaving the politics to Sandberg.

Read more: Mark Zuckerberg roasted by group of lawmakers, who accuse Facebook's CEO of spectacular leadership failure

In Zuckerberg's defense at the time, Facebook said he was "deeply involved in the fight against false news and information operations on Facebook."

But the three anonymous executives' failure to flag the looming Cambridge Analytica scandal also raises questions about Facebook's reporting systems. This was also hinted at last week by former security chief Alex Stamos, who told CNN it could be difficult for Facebook execs to admit fault.

iron throne

"The truth is there is a bit of a 'Game of Thrones' culture — among the executives," he said. "One of the problems about having a really tight-knit set of people making all these decisions ... if you keep the — the same people in the same places, it's just very difficult to admit you were wrong, right?"

When you see the words "Game of Thrones" mentioned in connection with company culture, it is not a good thing. It suggests that a toxic current of ambition, politics, profit, and power runs through the company's veins. And presiding over it all at Facebook is Zuckerberg — untouchable as CEO, chairman, and controlling shareholder. 

Damian Collins, the chair of the committee of British lawmakers, said Zuckerberg failed to show the "leadership and personal responsibility" required of the CEO of such a large company. In his remarks last week, Stamos — a senior insider until late last year — put it this way: "Facebook wasn't measuring the bigger impact and thinking about the ways people could twist it to be misused. And in the end, that is Mark's responsibility."

SEE ALSO: Ex-Facebook security boss Alex Stamos says the company is like 'Game of Thrones' at the highest levels of leadership

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NOW WATCH: How Apple went from a $1 trillion company to losing over 20% of its share price

BANK OF AMERICA: A trusted investing strategy is making a comeback from the wilderness, and young Wall Streeters are at the forefront of its profits

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trader phone frankfurt stock exchange

  • Younger financial advisers with fewer assets led a modest revival in single-stock picking last year, according to Bank of America Merrill Lynch. That breaks with a long-lasting shift toward ETFs and passively managed funds.
  • A BAML survey found that advisers had 40% of their holdings in individual stocks in January, up from 37% a year ago.
  • The shift reflects rising turbulence and uncertainty, but BAML says it's not necessarily permanent, and that eventually, US advisers might have far more money in passive funds than active ones.

There's a rally beginning in stock picking, and it's being led by Wall Street rookies.

That's the conclusion of Bank of America Merrill Lynch, which says financial advisers are putting more emphasis on choosing individual stocks instead of moving money to exchange-traded funds and passively managed funds. It's a modest reversal of a longtime trend.

Jill Carey Hall, an equity & quantitative strategist for BAML, says the change comes after an unusually strong year for those funds.

"2018 was a decent year for active funds, it was one of the better years this cycle," Hall said. She added that with competition from ETFs and passive funds rising, fees for active management are coming down.

The market's turmoil last year may have contributed to the shift. Actively managed funds tend to do best when the market isn't doing as well, while passive funds tend to look best when the market is rallying in a broad way.

BAML surveyed 505 financial advisers in January and found that on average, they had 40% of their holdings in individual stocks, up from 37% the year before. It also says readership of its own reports on individual stocks jumped 5% in 2018 after falling for the previous two years.

Hall said that another important shift in the market might also be adding to the appeal of stock picking: there is now more differentiation within individual market sectors, such as Microsoft or Apple in the technology industry, than there is between separate industries such as tech and health care. That makes fine points like company cash flows and profit margins more important.

"For the first time since 2011, stock differentiation within sectors has become more heightened than sector differentiation," she said. "That supports fundamental investing."

BAML's survey found that the main reason for the shift toward stock picking was that advisors with less experience and fewer assets put more money into on individual stocks.

"This year marked a big shift in less tenured advisors with smaller pools of assets increasing stock allocations — from ~30% in 2018 to close to 40% today," wrote equity and quantitative strategist Savita Subramanian and Hall in their report.

It's a noteworthy change because purchases of ETFs have been rising and stock purchases have been falling for years. Investors have been drawn by both the performance of ETFs and passive funds and their lower fees. This chart by BAML shows that more than 40% of US funds are now managed using passive strategies, more than double the total from a decade ago.

Active vs. passive

The less-tenured group had fewer than 11 years' experience and they managed less than $100 million in assets on average.

The entire group of advisers was fairly optimistic about the market: 66% of them think stocks will peak in 2020 or 2021, and only a small minority felt that the S&P 500 won't be able to surpass its September 2018 high.

Overall, the fund managers BAML surveyed allocated 59% of their portfolios in stocks. That was down slightly from the year before, as they shifted slightly toward both bonds and cash.

But the analysts aren’t convinced the new trend will last. Most US assets are still in active strategies despite the recent shift toward passive investing, they say, and it’s possible that the US will eventually look more like Japan, where some two-thirds of assets under management are in passive strategies.

SEE ALSO: An overlooked trade that's crushed the S&P 500 for 20 years has fallen on hard times — but one expert says it's poised for a big comeback

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NOW WATCH: Earth's north magnetic pole is on the move — here's what will happen when our poles flip

A Russian region dependent on coal power is so polluted that its snow turned black

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Siberia black snow

  • Towns in Kemerovo, Siberia, have been covered in black snow due to heavy pollution in the coalmining region.
  • Photos and videos on social media show the region covered in a black film.
  • The head of one coal plant said emissions from the plant escaped and "we can't tackle coal dust in the streets."
  • An environmental activist told The Guardian newspaper that "It’s harder to find white snow than black snow during the winter."

Snow in a region in Siberia has turned black from pollution in the area, blanketing streets and fields with eerie black dust.

Videos and photos posted on social media show parts of the Kemerovo region covered in black snow. Kemerovo, in the southwest of Siberia, is among the world's largest coalmining areas.

The black dust that has transformed the snow comes from numerous open pit mines, UK newspaper The Guardian reported.

Black snow has been reported in the towns of Prokopyevsk, Kiselyovsk, and Leninsk-Kuznetsky, according to The Associated Press.

Anatoly Volkov, the director of the Prokopyevskaya coal plant, said some emissions from the plant manage to escape and that "we can't tackle coal dust in the streets," according to the AP.

He told a local TV channel that a shield that stops coal powder from escaping into the air had stopped working, The Siberian Times reported.

Andrei Panov, the deputy governor of the Kemerovo region, plans to meet with local environmentalists to discuss the problem, according to The Siberian Times.

Read more: Russian authorities covered snow in white paint to hide evidence of pollution

Panov said that coal-burning factories, car exhausts, and coal boilers could also have caused the black snow.

Vladimir Slivyak, a member of Russian environmental group Ecodefense, told The Guardian: "It’s harder to find white snow than black snow during the winter."

"There is a lot of coal dust in the air all the time. When snow falls, it just becomes visible. You can’t see it the rest of the year, but it is still there."

#внашейдеревне #экология #blacksnow Наглядный пример из чего состоит воздух в городе.

A post shared by Artem Romashov (@voilok) on Feb 16, 2019 at 6:50am PST on

Environmental activists say that the black dust contains dangerous heavy metals like arsenic and mercury, according to The Guardian.

In 2018, authorities in Mysky, Kemerovo, reportedly covered snow with white paint to hide evidence of pollution in the coal-mining town.

Footage shared by Russian media showed a woman's hands covered in what appears to be paint after she brushes against a snow bank.

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NOW WATCH: NASA has a $3.5 billion idea to save Earth from a supervolcano apocalypse

The failing automobile industry is pushing us toward a global recession

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  • New car demand in the US is falling, according to HSBC.
  • Honda, Nissan, Ford and General Motors have announced thousands of job cuts in Europe.
  • Trade wars are hurting international auto exports and reducing demand.
  • But there is hope — "industrial recessions" don't last very long and there may be an immediate bounce back.  

The world is cooling off its love affair with cars, and that is a factor pushing the global economy toward recession, according to two economists at HSBC.

They produced this chart (below) comparing new car registrations to retail sales in the US to make their point. The US economy has been doing well, and shoppers have kept up their retail demand. But not for automobiles: 

hsbc car registrations

"Car demand is in decline due to a greater focus on environmental policies, increased urbanization and investment in alternatives – be it on- demand cars or public transport," according to HSBC economists Janet Henry and James Pomeroy. (On a side note: This is another piece of anecdotal evidence that ride-sharing apps like Uber are reducing the demand for cars.)

It's not just the US. The car industry in Europe is also shrinking:

"Parts of the world are already in industrial recession," Henry and Pomeroy said in a note to clients seen by Business Insider.

The HSBC pair are most concerned about the overall reduction in global trade and the effect that has had on global exports. Trade wars — US v China and Britain v the EU — have hit manufacturers the hardest as companies and consumers try to reduce their exposure to uncertain international markets. In so doing they have reduced their total aggregate economic output, hurting jobs.

"Much of the weakness in the global economy has been concentrated in the manufacturing sector"

The damage has been uneven. The US and China are both still doing relatively well thanks to their respective governments' fiscal stimuli. But industrial production in Europe and Japan are suffering.

"The surprise indices for the Eurozone and LatAm have collapsed since mid-2018 and consensus growth forecasts for the major economies have been lowered aggressively over the past six months or so," the HSBC note says.

"The consensus estimates for the US and China in 2018 are still completely unchanged from their June forecasts, while the full-year outturn for German GDP growth of 1.5% was 0.9% percentage points below its April consensus forecast. Japan’s was 0.7ppts below and the latest consensus for Latin America is 1.2ppts below the mid-year consensus high."

HSBC

"Much of the weakness in the global economy has been concentrated in the manufacturing sector: the global manufacturing PMI has dropped by 3.6 points since the beginning of 2018 while the services PMI has edged down by 1.6 points," the note says.

There may already be light at the end of the tunnel. "Industrial recessions" tend to be short, just a couple of quarters. And a majority of the major economies are based in services not manufacturing. In Germany, analysts expect the industrial sector to bounce back from a contraction in the second half of 2018.

"There are tentative signs that the worst of the industrial downturn may now be behind us in Europe and Japan, particularly as some of the one-off country-specific factors start to wane," Henry and Pomeroy say.

Read more about the troubles of the auto industry:

Cars are driving us toward recession

Apps like Uber and DriveNow may be hurting the demand for new cars, studies suggest

The UK car business has 'exactly the same problems' as the mortgage market 10 years ago, according to Morgan Stanley

British people have suddenly stopped buying cars

Join the conversation about this story »

NOW WATCH: Earth's north magnetic pole is on the move — here's what will happen when our poles flip

YouTube is partially to blame for the rise in people believing the Earth is flat, according to a new study

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  • YouTube is partially to blame for people becoming Flat Earthers, according to a new study.
  • Researchers asked people at their annual conferences what made them start to believe the Earth was a flat disc.
  • All but one said it was recommended videos on YouTube.
  • Previous research has shown if you believe one conspiracy theory you're more likely to believe another.
  • Often, it's about standing out from the crowd.

YouTube is fueling people's beliefs that the world is flat, according to a new study. Researchers from Texas Tech University interviewed 30 people at the Flat Earthers annual conference in Raleigh, North Carolina, in 2017, and again last year in Denver, Colorado, about how they came to the conclusion the Earth is a disc, rather than a sphere.

All but one of the people interviewed said they changed their minds about the Earth being round after watching YouTube conspiracy videos.

Most had also been watching videos about other conspiracy theories, like alternative explanations for the 9/11 Twin Towers attack, and whether man really walked on the moon. Apparently, YouTube lined up videos about the Earth being flat to automatically play afterwards.

Science communication professor Asheley Landrum, who led the research, told the Guardian the platform wasn't doing anything wrong, but its algorithm was making it easy for people to fall "down the rabbit hole" because it presents "information to people who are going to be more susceptible to it."

"Believing the Earth is flat in of itself is not necessarily harmful, but it comes packaged with a distrust in institutions and authority more generally," she said. "We want people to be critical consumers of the information they are given, but there is a balance to be had."

Read more: One viral thread shows how quickly YouTube steers people to wacko conspiracy theories and false information

Earlier this year, YouTube announced in a company blog post that it would recommend less "borderline" content, which includes Flat Earth theories and bogus cures for serious illnesses.

"We think this change strikes a balance between maintaining a platform for free speech and living up to our responsibility to users," the company said in its blog post.

False information in a video doesn't necessarily violate YouTube's guidelines unless it involves hate speech, harassment, or scams, but ultimately it's determined on a case by case basis. So it's a challenge for the YouTube algorithm to pick up all content that could potentially be harmful.

The platform is currently working on ways to give users more information about the things they watch on YouTube, for example, adding links to third party sources to give context about the stories, including flat earth videos.

"YouTube is a platform for free speech where anyone can choose to post videos, as long as they follow our Community Guidelines," A YouTube spokesperson told INSIDER.

"Over the last year we've worked to better surface credible news sources across our site for people searching for news-related topics, begun reducing recommendations of borderline content and videos that could misinform users in harmful ways, and introduced information panels to help give users more sources where they can fact check information for themselves."

The company has plans to roll out these changes to more countries soon, and the systems will become more accurate over time.

flat earth

Why people like conspiracies

In 2017, a study published in the European Journal of Social Psychology found that some people like believing in conspiracy theories because they want to be original.

The results also showed that believing one conspiracy theory makes it more likely you'll believe another, and that there was a correlation between this endorsement and the need to not follow the crowd.

The authors concluded that the results highlighted a neglected function of conspiracy theories: to present oneself as distinct from everyone else.

"All humans share not only the need to belong and affiliate with others but also to be different and stick out from them, to be an identifiably unique individual," they wrote.

In other words, if we are seen as the conspiracy theorist, we might not be regarded as always correct, but we will probably be remembered.

Read more: Around a third of certain populations think their governments are 'hiding the truth' about immigration — here's why some people believe conspiracy theories

Astronomer Stuart Clark told Business Insider people may believe the world is flat because there is a tendency to reject the reality of science when it becomes too complicated, and instead accept comfortable myths.

"Things that make them feel at home, things that make them much happier that they know what's going on," he said in a video. "Maybe this obsession with the Flat Earth is one of those. Or maybe they're just contrarian. I don't know, it's one of those things that I find so difficult to get my head around. I really do."

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NOW WATCH: Roger Stone explains what Trump has in common with Richard Nixon

Bernie Sanders announces he's running for president again in 2020

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Bernie Sanders

  • Sen. Bernie Sanders on Tuesday announced he's running for president in 2020.
  • Sanders' 2016 presidential campaign made him a household name, even though he lost the Democratic primary to former Secretary of State Hillary Clinton.
  • The ghosts of the 2016 primary season may continue to haunt Sanders in 2020, but he also remains one of the most popular US politicians.

Sen. Bernie Sanders of Vermont on Tuesday announced he's running for president in 2020.

Sanders, an independent who caucuses with the Democrats, ran for the Democratic presidential nomination in 2016. Though he lost to former Secretary of State Hillary Clinton, his campaign took him from being a relatively obscure political figure to a household name.

In a video released Tuesday, Sanders launched into some of his best-known arguments, including the ideas that the US economy is "rigged" and that "nobody in America who works 40 hours a week should be living in poverty."

The video includes clips of town and city life in America and footage from his 2016 presidential bid. It shows news footage of policies backed by Sanders gaining popularity in the US — such as Medicare expansion, free college tuition, and the addressing of income inequality.

It also shows footage of Sanders on the Women's March and speaking out President Donald Trump's immigration policies. It also highlights Sanders' campaign to force Amazon to increase wages.

"Brothers and sisters, we have a lot of work in front of us," Sanders says in the video. "If we are prepared to stand together, there is no end to what the great people of our nation can accomplish."

According to a campaign email Tuesday, Sanders will launch a multistate tour "in the next few weeks" to "share his vision to transform the country for the many, not the few."

"I am asking you to join me today as part of an unprecedented and historic grassroots campaign that will begin with at least a million people from across the country," he said in an email to supporters.

His 2016 campaign shocked much of the country, as few expected him to pose a significant challenge to Clinton at the start. But his populist platform and matter-of-fact style of speaking, along with his thick Brooklyn accent, won over a significant cohort of voters.

The Vermont senator was especially popular with young voters in 2016, garnering more votes from this demographic than the two major-party presidential nominees combined.

But he struggled to win over the Democratic establishment, and many dismissed his policy proposals as idealistic and unrealistic.

Read more: Bernie Sanders says the 'simple truth' is Trump is an ‘authoritarian leader,’ and several experts tell INSIDER they largely agree

Some of Sanders' supporters accused the Democratic National Committee of rigging the primaries in Clinton's favor and robbing the election from him, though there's no concrete evidence to support this notion.

After a heated primary season, Sanders supported Clinton in her effort to defeat Trump in the general election. Some Clinton supporters felt he should've conceded and dedicated his support to her earlier in the campaign season, pointing to Sanders as one of the reasons she lost the general election.

Some of these issues could haunt Sanders along the campaign trail in the coming presidential election, on top of sexual-harassment allegations involving members of his campaign.

Read more: Bernie Sanders campaign alumni want to address the sexual harassment they say took place in 2016 as he mulls another presidential run

The allegations were not directed at Sanders, but several women who worked on the campaign said they were harassed by staff members and also experienced pay disparities. Sanders has apologized for this, saying he was not aware of the allegations amid the campaign season.

Despite some of the obvious challenges Sanders will face moving forward, he remains one of the most popular politicians in the country.

SEE ALSO: Here's the difference between a 'socialist' and a 'Democratic socialist'

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NOW WATCH: Michael D'Antonio reveals Donald Trump's 'strange' morning ritual that boosts his ego

10 things you need to know before the opening bell (SPY, SPX, QQQ, DIA, HSBC, HMC)

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Forbidden City

Here is what you need to know.

  1. Revenue collapsed at the end of the year at Europe's biggest bank, and it's being blamed on Trump's trade war. "Growth rates are certainly lower on the balance sheet; we are seeing a softening in the asset side," HSBC CEO John Flint told the Financial Times. "Given the trade uncertainty, that's not surprising, but, yes, we're seeing a reduction in the rate of growth."
  2. 2 of the biggest investors in SoftBank's Vision Fund aren't happy. Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala Investment Co. have invested almost two-thirds of the Vision Fund's $100 billion pledged capital and are unhappy with the valuations being paid to invest in some companies, The Wall Street Journal reports.
  3. Payless Shoesource is seeking bankruptcy protectionThe discount-shoe retailer filed for Chapter 11 bankruptcy protection for the second time Monday, saying it would shutter all of its North American operations by the end of May, Reuters says. 
  4. The world's cooling love affair with cars is pushing the global economy toward a recession. Slowing new car demand in the US and Europe is having a big impact on global trade, according to analysts at HSBC. 
  5. Young investors are bringing back one of Wall Street's most trusted investing strategiesA Bank of America Merrill Lynch survey found advisers had 40% of their holdings in individual stocks in January, up from 37% a year ago.  
  6. A plastic-surgery app backed by Tencent is going public. The Chinese cosmetic-surgery website SoYoung confidentially filed for a US initial public offering, Bloomberg says, citing people with knowledge of the matter.
  7. Honda is closing its UK plantThe Japanese automaker confirmed Tuesday that it was closing its Swindon vehicle-manufacturing plant — which produces 150,000 cars a year and employs about 3,500 people — in 2021 because of global market conditions.
  8. Stock markets around the world were mostly lower. China's Shanghai Composite (+0.05%) eked out a gain in Asia, and Britain's FTSE (-0.43%) trailed in Europe. The S&P 500 was set to open down 0.19% near 2,770.
  9. Walmart reports ahead of the opening bell. The retail giant is expected to earn $1.37 a share on revenue of $138.7 billion, according to analysts surveyed by Bloomberg. 
  10. US economic data trickles out. The NAHB Housing Market Index will be released at 10 a.m. ET. 

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NOW WATCH: How Apple went from a $1 trillion company to losing over 20% of its share price


Grilling ex-employees in job interviews and interrogating suppliers: How Huawei tried to discover Apple's secrets

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Ren Zhengfei Tim Cook

  • Chinese tech company Huawei reportedly tried to glean trade secrets about Apple from suppliers and former employees, The Information reports.
  • An unnamed executive at an Apple Watch supplier said a Huawei engineer tried to pump them for information under the pretence of setting up a business deal.
  • A former Apple employee said they were grilled about Apple's upcoming tech during a job interview at Huawei.

Chinese phone giant Huawei's attempts to unearth secrets about Apple has been laid bare in a report by The Information.

The report revealed how a Huawei engineer attempted to pump an Apple supplier for information about the Apple Watch, while it also said ex-Apple employees were grilled during job interviews.

Messages viewed by The Information showed a Huawei engineer setting up a meeting with an unnamed executive at an Apple supplier. They arranged to meet in November last year, and the engineer reportedly dangled a potential deal with the supplier.

"Our design is similar to Apple's," the engineer wrote in a text. "Let's first talk generally about the cost of a prototype before we provide the schematic." They added that sales of Huawei's wearables were expected to hit 1 million.

The engineer arrived at the meeting along with four Huawei researchers. Huawei's representatives then spent an hour-and-a-half trying to pump the supplier for information, according to The Information. "They were trying their luck, but we wouldn't tell them anything," the supplier said.

When contacted for comment by The Information, Huawei denied any wrongdoing. "In conducting research and development, Huawei employees must search and use publicly available information and respect third-party intellectual property per our business-conduct guidelines," a spokesman said.

This is not the first time Huawei has been accused of trying to dig up information on a US rival. The US charged Huawei in January with trying to steal trade secrets from T-Mobile, specifically information about a phone-tapping robot named "Tappy."

Read more: Huawei is accused of attempting to copycat a T-Mobile robot, and the charges read like a comical spy movie

The Information further reports that Huawei grilled former Apple employees for information about the company's technology in job interviews.

One ex-Apple worker said in a job interview for Huawei, they were asked repeatedly about Apple's upcoming products and features. "It was clear they were more interested in trying to learn about Apple than they were in hiring me," they said.

Business Insider contacted Huawei and Apple for comment.

SEE ALSO: 'There's no way the US can crush us': Huawei’s founder issued a defiant message to Trump's administration

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NOW WATCH: The science behind why your phone shuts down when it's cold outside

Trust is the main barrier to smart speaker adoption – here's what companies can do about that

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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.

trust smart speaker makersSmart speakers comprise one of the fastest-growing device segments in the consumer technology market today. Ownership levels have nearly doubled from early 2017 to summer 2018. 

With this rapid growth, there are a few pivotal questions that both companies looking to develop and sell smart speakers as well as those looking to sell products, deliver media, and offer access to services like banking over these devices need answers to in order to craft successful strategies. In particular, they need to know who is and isn’t buying smart speakers, and what consumers who own smart speakers are actually doing with them. 

To offer these stakeholders insight, Business Insider Intelligence asked more than 500 US consumers about their knowledge of smart speakers, the devices they do or don’t own and what led them to their purchase decisions, as well as the tasks they’re using their smart speakers for.

In this report, Business Insider Intelligence will look at the state of the smart speaker market and outline how each of the major device providers approaches the space. We will then focus on the key factors that affect whether or not someone owns one of these devices. Next, we will use our survey data to outline the reasons why people don’t own devices in order to offer guidance for who to target and how. Finally, we will discuss what consumers are actually doing with their smart speakers — specifically looking at how the devices are used and perceived in e-commerce, digital media, and banking — which can help companies determine how well they’re publicizing their smart speaker services and capabilities.

The companies mentioned in this report are: Amazon, Google, Apple, Samsung, Facebook, Sonos, LG, Anker, Spotify, Pandora, Grubhub, Netflix, Hulu, Instagram, Snap.

Here are some key takeaways from the report:

  • Despite their growing popularity, nearly half of respondents still don't own a device — which presents a long runway for adoption. Our survey data reveals a number of key factors that impact whether or not someone owns one of these devices, including income, gender, and age.
  • Smart speakers are establishing themselves as a key platform for e-commerce, media, and the smart home.
  • The introduction of a screen to some smart speakers will expand the possibilities for companies developing for the device — but developers will need to resist the compulsion to use speakers to accomplish too much.

In full, the report:

  • Provides an overview of the key players and products in the smart speaker market.
  • Highlights critical adoption rates broken out by key factors that define the segment.
  • Identifies how consumers are using devices in important areas where companies in various industries are trying foster greater use of the voice interface.

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Penn Badgley was annoyed that everyone thought he was 'the nice guy' until he played a murderous stalker in 'You'

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Penn Badgley on Tuesday, January 22, 2019 -- (Photo by: Nathan Congleton/NBC/NBCU Photo Bank via Getty Images)

  • Penn Badgley is done with being the nice guy.
  • The actor told GQ that before his role as a murderous stalker in "You," everyone thought he was such a nice guy.
  • Badgley was previously known for playing the archetypal nice guy Dan Humphrey in the CW's "Gossip Girl."
  • While being a nice guy is great, the actor admitted, it didn't do his career any favors.
  • Production for season 2 of "You" is officially underway.

No more Mister Nice Guy, says Penn Badgley, the actor who plays a murderous stalker in the Lifetime-born, Netflix-viralized series "You."

Badgley was being profiled by GQ when he told the interviewer that he was tired of being perceived as "the nice guy."

Prior to his role as creepy heartthrob bookstore manager Joe Goldberg, the actor was known for playing the archetypal nice guy Dan Humphrey in "Gossip Girl."

The show, which ran from 2007 to 2012, enjoyed enormous success and Badgley became a cult actor-local in his own New York City, where he was often recognized from his character.

However, that perception didn't do his career any favors, he told GQ.

"Up until this role, everybody thought I was such a nice guy," Badgley said.

"And it's great to be a nice guy, but the kind of nice guy that makes 'nice guy' an insult — that's actually not a nice guy. I think that's what frustrated me.

"Lo and behold, I play somebody who's not a nice guy, and that everybody loves. We don't like Dan Humphrey. We like Chuck Bass. We like Joe Goldberg. So in a sense, what do you expect?"

You beck and joe creeping bookstore

The 32-year-old has found some similarities between Joe Goldberg and Dan Humphrey, though. Spoiler alert: Badgley's character in "Gossip Girl" turns out to be the eponymous blogger.

He told the New York Times last month: "First of all, any part of me that was resisting the Dan Humphrey comparison has stopped because I've come to recognize how much of this is a surreal progression of Dan Humphrey.

"He's the very special white man who somehow thinks that he's an outsider, and it's like, 'Bro, you're not an outsider — you are the inside; everyone else is on the outside.'

"It would all be so comical, if it wasn't also the generating impulse for so much prejudice which can get translated into violence."

Earlier last month, Badgley stepped in on Twitter to point out that fans really shouldn't be fawning over his character in "You."

Read more: Penn Badgley wants fans to stop defending his character in 'You': 'I've been really repulsed by certain parts of Joe'

In a series of tweets, the actor reminded fans that Joe is a murderer and has a "whole new level" of problems. He added that putting an end to the romanticization of his character will be his motivation for season 2.

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

Iconic fashion designer Karl Lagerfeld has died at age 85

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Karl Lagerfeld

  • Karl Lagerfeld died in Paris on Tuesday at the age of 85, representatives of Chanel confirmed.
  • The German couturier and photographer was best known as Chanel's creative director. A cause of death is not known.
  • Lagerfeld missed two Chanel fashion shows in Paris last month, prompting speculation about his health.

The iconic fashion designer Karl Lagerfeld is dead.

The German-born couturier and photographer died on Tuesday, The Associated Press and Agence-France Presse reported, citing representatives of Chanel, where he worked as creative director. He was 85.

French news site Pure People, which first reported the death, said Lagerfeld died in hospital in Paris after being urgently admitted on Monday night. The report did not suggest a cause of death.

karl lagerfeld chanel.JPG

French newspaper Le Figaro also reported the news, saying the designer "had been very weak for many weeks."

Neither Chanel nor Lagerfeld's social media channels had posted anything about Lagerfeld's condition at the time of publication.

INSIDER has contacted representatives of Lagerfeld for comment, but has yet to receive a response. Chanel's press office was not available for comment.

His health came under speculation recently after he missed two Chanel fashion shows in Paris last month. He had appeared at the end of every show since he joined Chanel in 1983, Harper's Bazaar said.

Chanel told WWD in a statement that Lagerfeld had been "feeling tired," and an announcer at the show said: "We wish Mr. Lagerfeld to recover quickly," without providing details.

Before joining Chanel in 1983, Lagerfeld worked for Fendi.

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Amazon is taping up windows and hiring security to keep its 'Lord of the Rings' series secret

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Head of Amazon Studios Jennifer Salke

  • Amazon Studios' boss told the Hollywood Reporter about the steps it is taking to keep its "Lord of the Rings" series secret.
  • She said the show's writers are being kept in a secure room with no natural light in order to prevent leaks.
  • Amazon announced it was turning JRR Tolkien's fantasy epic into a TV series in late 2017.

Amazon Studios boss Jennifer Salke has revealed that the firm is going to extraordinary lengths to keep its "Lord of the Rings" series under wraps.

In an interview with The Hollywood Reporter, she said the show's writers are being kept in a secure room with no natural light in order to prevent leaks. She said:

"There's a fantastic writers room working under lock and key. They're already generating really exciting material. They're down in Santa Monica. You have to go through such clearance, and they have all their windows taped closed. And there's a security guard that sits outside, and you have to have a fingerprint to get in there, because their whole board is up on a thing of the whole season."

Salke also said that Tolkein's descendants are going to spend some time with Amazon CEO Jeff Bezos.

"His daughters and the grandchildren, they're coming to New York, and Jeff Bezos, me, Jeff Blackburn, a team of us are going and they've invited us to a dinner and see some art, some creative work that they haven't shown the world yet," she said.

Amazon revealed it had bought the rights to adapt JRR Tolkien's fantasy epic into a multi-season TV series in November 2017. The company announced in July last year that it had selected writing duo, JD Payne and Patrick McKay, to head up the project.

Now Amazon seems to be starting the process of ramping up the hype, as on Friday it released an interactive map of Middle Earth.

SEE ALSO: Amazon Prime Video has a bootleg movie problem and many subscribers probably have no idea

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NOW WATCH: The science behind why your phone shuts down when it's cold outside

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