Veteran trader Peter Brandt has warned that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler should not be trusted. He stressed that Gensler “has a long history of not looking out for the interests of investors.” Brandt further emphasized that the SEC chairman “was instrumental in the bankruptcy” of a major company and was […]
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Meta Platforms Inc., under the leadership of CEO Mark Zuckerberg, flagged an unusual concern to its investors in its latest report filed with the Securities and Exchange Commission (SEC).
The company’s 10-K filing, an exhaustive review of its activities for 2023, for the first time listed the CEO’s penchant for high-adrenaline hobbies as a “risk factor,” hinting at the potential for “serious injury and death.”
Zuckerberg, 39, is known for his adventurous streak, engaging in activities like hydrofoiling and mixed martial arts — passions that come with risks.
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During the pandemic, Zuckerberg discovered a new hobby in Brazilian jiu-jitsu, frequently updating his social media with images of his training and toned physique. His efforts in the sport were recognized when he won gold and silver medals at a Brazilian jiu-jitsu tournament in May.
His dedication to these pursuits was underscored last November when he sustained a torn ACL during a mixed martial arts training session, a mishap he shared with his followers on Instagram. The post featured Zuckerberg in a hospital bed, his left leg wrapped and secured in a brace, evidence that his ventures often come at a price.
Zuckerberg’s enthusiasm extends to surfing, an activity that, despite his earnest participation, has drawn playful critique from online communities.
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Showcasing his zeal for pushing boundaries, Zuckerberg has ventured into aviation, pursuing a pilot’s license. Records from the Federal Aviation Administration reveal that he achieved his student pilot certificate last year, signaling progress in this often dangerous endeavor.
Meta’s recent SEC disclosure points out that Zuckerberg’s array of “high-risk activities,” including combat sports, extreme sports and recreational aviation, pose a unique challenge to the company.
The filing candidly addresses the potential repercussions on Meta’s operations should these pursuits lead to severe consequences for Zuckerberg, emphasizing the critical role he plays within the company. It notes that if the worst happens, “there could be a material adverse impact on our [Meta’s] operations.”
The filing added, “We currently depend on the continued services and performance of our key personnel, including Mark Zuckerberg.”
Meta hasn’t spoken about its decision to add this warning to its most recent 10-K. Just the same, there’s no word on whether Zuckerberg has plans to take a step back from his many thrill-seeking hobbies.
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This article Meta Warns Of Zuckerberg’s Death-Defying Lifestyle — ‘There Could Be A Material Adverse Impact On Our Operations’ originally appeared on Benzinga.com
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Meta has warned investors that Mark Zuckerberg’s martial arts hobby carries the risk of serious injury or death.
The social media giant said that its founder’s fondness for competitive fighting, which saw him undergo surgery for a torn ligament last year, could affect the company if he was sidelined.
In an unusual disclosure to investors, Meta said: “Mr Zuckerberg and certain other members of management participate in various high-risk activities, such as combat sports, extreme sports, and recreational aviation, which carry the risk of serious injury and death.
“If Mr Zuckerberg were to become unavailable for any reason, there could be a material adverse impact on our operations.”
The Meta chief has become increasingly obsessed with mixed martial arts, building an “octagon” in his garden and training with former professionals.
Last year, he discussed setting up a “cage match” with Elon Musk, although talks over the fight went nowhere.
Mr Zuckerberg said later that the Tesla tycoon was not serious about the offer.
He has also enthusiastically taken up hydrofoiling, a type of surfing, and reportedly obtained a pilot’s licence last year.
US-listed companies are required to disclose various “risk factors” to investors to protect themselves from lawsuits.
The disclosure came as Mr Zuckerberg surpassed Bill Gates as the world’s fourth-richest man.
His net worth swelled to more than $166bn (£132bn) on Friday as Meta shares jumped by 21pc following stellar financial results.
Meta, which owns Facebook, Instagram and WhatsApp, said on Thursday that profits had trebled.
This led to the business unveiling plans to return $50bn to shareholders through share buybacks and pay its first dividend.
In the global rich list, Mr Zuckerberg now sits behind Amazon founder Jeff Bezos, French luxury magnate Bernard Arnault, and Elon Musk – the world’s richest person with a $205bn net worth.
Mr Bezos regained his status as the world’s second richest person on Friday, overtaking Mr Arnault, after a leap in Amazon shares.
Meanwhile, Mr Musk is at risk of falling behind Mr Bezos after he lost a key legal battle over a $56bn Tesla pay package this week.
Mr Zuckerberg will be a direct beneficiary of Meta’s plans for a quarterly 50 cents-a-share dividend, as he will receive $700m a year from the company.
Meta’s founder receives a $1 salary and no other compensation, with his net worth directly tied to Meta’s share price.
The company does, however, pay for his personal security at a cost of $14m.
A notable perspective recently came from the Glassnode co-founders Jan Happel and Yann Allemann, Negentropic on X, who recently shared insights into Bitcoin price dynamics. Notably, the analysts highlighted liquidity as a crucial factor for Bitcoin’s price trajectory.
Negentropic revealed that BTC’s recent ascent above $42,200 has created a significant liquidity pool for long positions, marked by a “neutral impulse” in the market.
This trend indicates that Bitcoin aims to bridge the liquidity gap above the $42,000 mark, which hints at potential volatility and significant market changes.
So far, about $659 million in liquidations have taken place, leading Negentropic to predict that continuing the bullish momentum could trigger liquidations worth $1 billion in short positions.
“Liquidity is KEY.”
1. Bitcoin Analysis: Bitcoin surged to $42.2k, providing liquidity for long positions, with a neutral impulse.
2. Liquidity Gap: The price is moving to fill the liquidity gap above $42k, indicating potential volatility. Approximately $659 million in… pic.twitter.com/wStqXqmLRN
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) January 29, 2024
This scenario could catalyze a market uplift through a “short squeeze,” a rapid price increase forcing short sellers to exit their positions. Such market movements often result in dramatic shifts, providing a fertile ground for Bitcoin’s growth.
Meanwhile, in a post uploaded last week, Negentropic linked the burgeoning liquidity in the crypto market to China’s efforts to stabilize its markets by injecting substantial liquidity. According to the Glassnode co-founder, this development could serve as a crucial catalyst for crypto like Bitcoin and equity markets as we progress into the first half of 2024.
The Liquidity surge begins.
China will try to prop up its markets by massive liquidity. It is very to be the catalyst that will make crypto and equity markets soar into the first part of 2024 🚀🚀@HenrikZeberg
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) January 23, 2024
This perspective aligns with the broader market recovery, as Bitcoin shows signs of resurgence following reduced selling pressure, particularly from the Grayscale Bitcoin Trust (GBTC).
Bitcoin trades for $43,166, up 6% in the past week. However, despite this uptick, the asset’s daily trading volume remains subdued, down from $26 billion last Monday to $14 billion today, indicating a cautious market sentiment.
Amid these market developments, bullish forecasts continue to emerge. Crypto analyst Jelle recently suggested that with Bitcoin reclaiming the $42,000 level, it might be “time to focus on longs once again.”
#Bitcoin made stellar progress over the weekend, reclaiming $42,000 and making it back into the range.
Time to focus on longs once again. Bull market stays on! pic.twitter.com/T7fgmsVIGs
— Jelle (@CryptoJelleNL) January 29, 2024
Echoing this sentiment, Michael van de Poppe, a prominent crypto analyst and pundit, expressed optimism in his latest YouTube video. He argued that the recent price correction in Bitcoin might have reached its conclusion.
Further supporting the bullish sentiment, Ali’s chart analysis reveals an increase in large Bitcoin holders. An additional 46 entities now possess 1,000 BTC or more, a 3% rise in just two weeks.
Even amidst this market correction, #Bitcoin whales are not slowing down – they’re accumulating more $BTC!
In fact, there’s been a notable increase in major players: 46 new entities now hold 1,000 #BTC or more, marking a 3% increase in just two weeks. pic.twitter.com/GVNInKW7A2
— Ali (@ali_charts) January 24, 2024
Featured image from Unsplash, Chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Tesla Inc. entered its earnings day under a cloud, and some of what investors had feared played out on Wednesday as the EV maker warned it may grow slower this year to focus on its next-generation vehicle.
Its 2024 vehicle volume-growth rate “may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas,” the EV maker said in a letter to shareholders accompanying fourth-quarter results after the bell Wednesday.
The company is in between “two major growth waves.”
Shares fell 6% after hours.
On a call with analysts following results, Chief Executive Elon Musk echoed that in-between time, adding that Tesla
TSLA,
will make sure the next wave “is executed as well as possible.”
The company is “very far along” on the next-generation vehicle and currently planning to start its production in the second half of 2025, Musk said, adding that after a production start in Texas, a future factory in Mexico likely would be the newest EV’s second production location.
Tesla will identify other locations outside of North America at the end of the year, he said.
In the fourth quarter, Tesla earned $7.9 billion, or $2.27 a share, compared with $3.7 billion, or $1.07 a share, in the year-ago period. Adjusted for one-time items, the EV maker earned 71 cents a share.
Sales rose 3% to $25.17 billion, from $24.32 billion a year ago, as rising vehicle sales and growth in other parts of the business were offset by a reduced average vehicle selling price and lower revenue recognition from “Full Self Driving,” Tesla’s suite of advanced driver-assistance systems for urban driving.
Analysts polled by FactSet expected the EV maker to report adjusted earnings of 73 cents a share on sales of $25.6 billion. The miss led to the stock dropping more than 5% in after-hours trading.
Tesla’s GAAP gross margins dropped to 17.6% from 23.8% in the fourth quarter of 2022.
The volume outlook for the year was “inconclusive,” said Barclays analyst Dan Levy. “Overall, with significantly negative expectations into the print, the result is arguably not as bad as feared, albeit with a number of questions to be addressed,” he said in a note Wednesday.
A “big positive” was that Tesla confirmed its next-generation EV, CFRA analyst Garrett Nelson said.
“The guidance was not all that surprising, as we think sales growth for the Model Y will slow after an extremely strong year and it is being cautious with managing expectations regarding the Cybertruck ramp-up,” he said.
For Karl Brauer, an analyst at iSeeCars.com, the problems go beyond Wednesday’s print.
“We are watching a company, and an industry, transition from high growth and high aspirations to modest, predictable growth with increasing competition and reduced opportunity for each participant,” Brauer said.
“Tesla’s latest numbers reflect both its shrinking market dominance and the challenges it faces in appealing to mainstream consumers,” he said.
In the letter to shareholders, Tesla reiterated that it expects that the Cybertruck ramp will be “longer than other models given its manufacturing complexity.”
The next-generation vehicle, of which little concrete is known, has been dubbed the Model 2. A question about whether the new EV would be launched by 2025 has been the top query on Tesla’s investor-relations site.
“We are focused on bringing the next-generation platform to market as quickly as we can, with the plan to start production at Gigafactory Texas. This platform will revolutionize how vehicles are manufactured,” the company said in the letter.
Investors first got official word of a next-generation vehicle last March as Tesla and Chief Executive Elon Musk held an investor day to tout their “Master Plan 3.”
See also: Apple said to be scaling down self-driving Apple car features
Tesla’s stock has gotten off to a rough start of the year, falling more than 16% this month, versus gains of 2% for the S&P 500 index
SPX.
Its shares are up more than 44% in the past 12 months, however, outpacing the S&P 500’s gains of around 21%.
Check out On Watch by MarketWatch, a weekly podcast about the financial news we’re all watching — and how that’s affecting the economy and your wallet. MarketWatch’s Jeremy Owens trains his eye on what’s driving markets and offers insights that will help you make more informed money decisions. Subscribe on Spotify and Apple.
The CEO of a top financial services firm is sounding the alarm over a “very ugly” real estate market in the next two years.
Speaking to FOX Business host Maria Bartiromo at the World Economic Forum in Davos, Switzerland, Cantor Fitzgerald CEO Howard Lutnick said a “generational” shift was on the horizon, warning of a massive default in loan sales.
REAL ESTATE INVESTOR WARNS US IS ENTERING THE ‘GREATEST’ CORRECTION OF HIS LIFETIME
“I think $700 billion could default… The lenders are going to have to do things with them. They’re going to be selling. It’s going to be a generational change in real estate coming, end of 2024 and all of 2025. We will be talking about real estate being just a massive change, $700 billion to $1 trillion in defaults coming,” Lutnick stressed.
“I think it’s going to be a very, very ugly market in owning real estate over the next, you know, 18 months, two years,” he added.
NEW CONSTRUCTION HOMES POPULAR AMONG MILLENNIALS DESPITE HIGH HOUSING COSTS
He explained that high rates would result in commercial loans being “wiped out.”
“I think what’s going to happen is loan sales, which no one talks about, are going to become a huge business. Because when mortgages on commercial buildings come to a trillion coming due in the next two and a half years at these high rates, you’re not going to get proceeds. Meaning when you have $120 million loan on a building and somebody says, ‘I’ll give you $90 million at a much higher rate,’ you throw the keys back to the lenders… Real estate equity rates are going to be in trouble,” he said.
MARKET EXPERT WARNS FED WILL ‘CRUSH’ US HOUSING IN ‘DECADE-LONG FALLOUT’ FROM RATE HIKES
The CEO also revealed his candid assessment of the markets, warning that people are “overly optimistic” about the Federal Reserve and the future of rate hikes.
“I think rates are going to stay sort of steady Eddie. I think all this talk of 175 basis point cuts, that’s just way too much. Way too much. I think [it] could be 50 basis points, maybe 75. But that’s it. So I just think it’s overdone. People are overly optimistic for rates. I think we’re going to stay around here. But that’s okay. The world is ready for steady,” Lutnick said.
Original article source: US real estate market will be ‘very ugly’ next year, Howard Lutnick warns
The IMF has also warned that AI could further broaden income and wealth inequality among countries. AI benefits and challenges would be key points of discussion at World Economic Forum (WEF) meeting in Davos.
The International Monetary Fund (IMF) issued a cautionary statement, indicating that the proliferation of artificial intelligence (AI) could impact nearly 40% of jobs worldwide. The assessment, released on Sunday from the Washington D.C.-based institution, highlighted that high-income economies face more significant risks compared to emerging markets and low-income nations.
The IMF, led by Chief Kristalina Georgieva, emphasized the potential exacerbation of overall inequality due to AI technology and urged policymakers to address this concerning trend. Georgieva stressed the importance of proactive measures to prevent AI from escalating social tensions. The IMF chief also stressed:
“We are on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world. Yet it could also replace jobs and deepen inequality”.
According to the International Monetary Fund, approximately 60% of jobs in high-income nations could see the integration of artificial intelligence. Around half of them are likely to experience enhanced productivity due to AI adoption. In contrast, the exposure to AI impact is projected to be 40% in emerging markets and 26% in low-income countries, respectively.
The IMF’s findings suggest that emerging markets and low-income nations may encounter fewer disruptions from AI in the short term. The report highlights that many of these countries lack the infrastructure and skilled workforce to immediately harness the benefits of AI, thereby raising concerns about the potential for increased inequality resulting from technological advancements.
The International Monetary Fund (IMF) has issued a cautionary note about the potential impact of artificial intelligence (AI) on income and wealth inequality within countries, highlighting the risk of “polarization within income brackets.”
The IMF report emphasizes the possibility of workers benefiting from AI experiencing increased productivity and higher salaries, while those unable to access these advantages may face a widening gap.
This concern aligns with previous warnings from Goldman Sachs, which estimated that generative AI could impact up to 300 million jobs globally. However, the Wall Street bank acknowledged that AI technology has the potential to drive labor productivity, economic growth, and boost gross domestic product by as much as 7%.
The release of the IMF report coincides with the World Economic Forum (WEF) meeting in Davos, Switzerland, where global business and political leaders are convening. The WEF event, themed “Rebuilding Trust”, focuses on open and constructive dialogue between policymakers, business leaders, and civil society. The benefits and challenges of AI are likely to be a central topic of discussion at Davos, as leaders address the evolving landscape of technological advancements. The annual event has faced criticism in recent years for perceived shortcomings in relevance and effectiveness.
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Gensler disclosed that the SEC is actively reviewing rules that could potentially hurt the crypto industry.
In a recent interview with CoinDesk, Gary Gensler, chairman of the United States Securities and Exchange Commission (SEC), voiced his concerns regarding the crypto industry, noting that the space is rife with fraud and bankruptcies.
The SEC chair said while he respects investors’ decision to explore the crypto market, he does not believe they receive adequate disclosures regarding the projects they invest in.
Gensler also questioned the genuineness of the value proposition of some of the digital assets categorized as securities.
“If there’s a good or service, we can understand that, but what’s the value proposition of actually having a decentralized token?” he asked.
He further stated that “many of these projects are just “speculative investment contracts,” including Bitcoin (BTC), which is recognized as a commodity.
Gensler warned that investors should be careful and do due diligence before investing in any crypto because they could lose 100% of their funds.
“Investors should be wary, they should be careful, they should be ready to lose 100% of their assets – if you can find a website, if you can read about them in CoinDesk, you’re likely making a bet on those entrepreneurs,” Gensler said.
The SEC chair further pointed out that his agency is concerned about companies commingling user’s funds. Recall that the financial regulator has sued many crypto companies, including the bankrupt exchange FTX, for allegedly misappropriating user’s funds.
In addition to misappropriating users’ funds, Gensler said that some of these companies engage in wash trading and trade against their customers to enrich their pockets at the expense of their users.
In response to the escalating fraud in the emerging market, Gensler disclosed that the SEC is actively reviewing rules that could potentially hurt the industry.
So far, the SEC has not introduced any rules to govern the crypto industry. Instead, the agency has taken a regulatory stance through enforcement actions. The SEC has filed lawsuits against major industry players, including Coinbase, Binance, Kraken, and Gemini, for operating in the United States without proper registrations.
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A panel of regulators warned that the rapid adoption of artificial intelligence (AI) could pose new risks to the United States financial system if the technology is not adequately supervised.
The Financial Stability Oversight Council (FSOC), which is comprised of top financial regulators and chaired by U.S. Treasury Secretary Janet Yellen, flagged the risks posed by AI for the first time in its annual financial stability report published on Dec. 14.
FSOC acknowledged AI’s potential to drive innovation and efficiency in financial institutions, but it stressed the need for companies and regulators to remain vigilant due to the swift technological advancements.
In its annual report, the organization emphasized that AI carries specific risks, such as cybersecurity and model risks. It suggested that companies and regulators enhance their knowledge and capabilities to monitor AI innovation and usage and identify emerging risks.
According to the report, specific AI tools are highly technical and complex, posing challenges for institutions to explain or monitor them effectively. The report warns that companies and regulators may overlook biased or inaccurate results without a comprehensive understanding.
The report also highlighted that AI tools increasingly depend on extensive external data sets and third-party vendors, bringing forth privacy and cybersecurity concerns.
Certain regulators, including the U.S. Securities and Exchange Commission — whose chair sits on the FSOC — have examined firms’ AI usage. The White House has also issued an executive order to address and reduce AI risks.
Related: Is OpenAI about to drop a new ChatGPT upgrade? Sam Altman says ‘nah’
Pope Francis, in a letter on Dec. 8, expressed concerns about the potential threats of AI to humanity. He advocates for an international treaty to ethically regulate AI development, cautioning against the risk of a “technological dictatorship” without proper controls.
Tech figures like Elon Musk and Steve Wozniak have also voiced concerns about the swift progress of AI. Over 2,600 tech leaders and researchers, including Musk and Wozniak, signed a petition in March 2023, urging a “pause” in AI development. They emphasized the potential “profound risks to society and humanity” posed by AI advancements surpassing GPT-4.
Magazine: Real AI use cases in crypto: Crypto-based AI markets, and AI financial analysis
A group of four senior judges in the United Kingdom have issued judicial guidance for artificial intelligence (AI), which deals with the “responsible use” of AI in courts and tribunals.
The guidance, published on Dec. 12, is directed toward magistrates, tribunal panel members and judges in England and Wales, and it is intended to inform and warn court officials.
The guidance points out potentially useful instances of AI usage, primarily in administrative aspects such as summarizing texts, writing presentations and composing emails.
England’s second most senior judge, Sir Geoffrey Vos, said AI provides “great opportunities for the justice system, but because it’s so new we need to make sure that judges at all levels understand [it properly].”
However, most of the guidance cautions judges to be vigilant about consuming false information produced through AI searches and summaries, as well as cautious about anything false being produced by AI in their name. Particularly not recommended is the use of AI for legal research and analysis.
The guidance said information provided by AI tools “may be inaccurate, incomplete, misleading or out of date.” Also, it noted that United States laws may influence most AI systems. “Even if it purports to represent English law, it may not do so.”
As it stands, judges in England and Wales are not obliged to reveal any prep work before producing a judgment.
According to the issuing judges, this guidance is the first step in a “suite of future work” to support judiciary interactions with AI. In the future, the judiciary in both courts and tribunals will have the opportunity to take a survey and submit any questions.
Related: Microsoft faces UK antitrust probe over OpenAI deal structure
This judicial guidance comes shortly after the U.K. held its inaugural AI Safety Summit at the beginning of November.
The event gathered officials from countries worldwide, heads of prominent tech companies developing in the space, and other thought leaders to discuss the future of AI safety.
On Dec. 8, the European Union reached an agreement about its landmark AI regulation, which touches on various facets of regulating the technology, including governmental use, transparency requirements and regulating powerful AI models such as ChatGPT.
Magazine: Real AI use cases in crypto: Crypto-based AI markets, and AI financial analysis