SmileDirectClub, a provider of at-home teeth straightening systems, raised $1.3 billion in its IPO. It priced 58.54 million shares at $23, above $21-$23 range, for an initial market cap of $8.9 billion, and will trade on the Nasdaq (SDC). J.P. Morgan was lead underwriter.
Why it matters: It shows that rule-muddying isn't just for transportation and housing unicorns. SDC has been the subject of numerous safety complaints to state dental boards from orthodontist organizations, which the company pushes back on as more about profits than patients.
The European Central Bank announced a series of measures Thursday in an effort to help worsening economic conditions and low inflation in the euro zone, including cutting interest rates by 10 basis points to negative 0.50% (signaling even lower rates may be coming) and re-starting its bond-buying program "as long as necessary."
Why it matters: This is one of the most contentious and important policy decisions for outgoing ECB president Mario Draghi, who is facing doubts from economists about the effects of moving rates further below zero. His successor is vowing to look at the “costs and benefits“ of negative rates, while others are critical that re-starting quantitative easing is too aggressive.
While news that President Trump plans to postpone the latest round of tariffs on $250 billion worth of Chinese imports for 2 weeks will likely soothe the market, his tariffs have already done a number on the U.S. economy.
Why it matters: "The data speaks for itself," Torsten Slok, chief economist at Deutsche Bank Securities, says in a note to clients. "The trade war is having a serious negative impact on the U.S. economy."
President Trump announced on Twitter Wednesday he would delay the increase on existing tariffs on $250 billion worth of Chinese goods ahead of the U.S. resuming trade talks with China.
Why it matters: There's evidence that the U.S.-China trade war has hurt both of the world's 2 leading economies. It's dented consumer sentiment and a survey of members of the American Chamber of Commerce in Shanghai released Wednesday found 51% said U.S. and Chinese tariffs had a negative effect on revenue.
Just this week, Amazon, Target and Wendy's have announced plans to hire a combined 180,000 new workers or temps, adding to the swelling number of jobs that so far outpaces the number of people who are available to work.
Why it matters: The tight labor market — and the scarcity of workers — may come in the way of those ambitions.
BuzzFeed CEO Jonah Peretti unveiled an 8-step plan on Tuesday to save the internet from the "dumpster fire" that it has become. He's calling on the public, media, government and corporate America to pressure platforms into elevating quality journalism and weeding out bad content online.
Why it matters: Peretti made his name by making things go viral on the internet. Now, he says that society needs to "unbreak" the modern web that he helped pioneer, before internet trolls take it over.
Hong Kong Exchanges and Clearing proposed on Wednesday to acquire the London Stock Exchange for around $39 billion, contingent on the LSE dropping its $27 billion purchase of financial data company Refinitiv from The Blackstone Group and Thomson Reuters.
Why it matters: Both Hong Kong and London are worried about remaining global financial centers, due to the anti-China protests and Brexit. This could either firm up their position or obliterate it.
WeWork is moving forward with its IPO, as this space has repeatedly predicted, despite recent reports that major investor SoftBank was pushing for a delay.
Between the lines: It's unclear if SoftBank leaked word of its own resistance. But lots of people think SoftBank was the source, which might as well be the same thing in terms of future perception among founders and venture capitalists.
As Western tech companies compete for shares of India's increasingly crowded market, they're confronting the challenges of a customer base largely dependent on cash payment and mobile internet access.
The popularity of the recently unveiled — and more recently shelved — Popeyes chicken sandwich was unlike anything KeyBanc Capital Markets equity research analyst Eric Gonzalez had ever seen.
What it means: For the short time in August that it was available, Gonzalez estimates Popeyes' store traffic doubled and about 1,000 chicken sandwiches were sold in each store every day, accounting for about 30% of total sales.
More than half of all issue advertising this year has been on health care, and that spending will only increase as the 2020 campaign gets closer.
Between the lines: Most of the top health care spenders are focused on issues like surprise medical bills and drug prices — many of which would cut into the health care industry's profits.
China's Ministry of Finance announced in a statement Wednesday that it's exempting 16 types of exported U.S. goods from import tariffs ahead of stalled trade talks resuming with the Trump administration. The exemption is effective Sept. 17 through Sept. 16, 2020.
Why it matters: President Trump's trade war has led to bigger trade deficits with China, it's dented consumer sentiment, and the International Monetary Fund has said the prolonged tensions weighed down the global economy.
The California state Senate passed a bill late Tuesday imposing more stringent requirements for companies to classify workers as independent contractors.
Why it matters: Gig economy companies including Uber, Lyft, DoorDash, and Postmates are fiercely opposing bill AB5 as it would force them to convert their drivers into employees with benefits and other protections. The bill will go back to the state Assembly to reconcile it with that chamber's version before the end of this week. If approved, it will head to the desk of Gov. Gavin Newsom (D), who endorsed the bill this month.
