Jul 10, 2017

Making money off retail failure just got easier

Stephan Savoia / AP

ProShare Advisors LLC is proposing a new trio of exchange-traded funds (ETFs) that would be used to bet against traditional retail, per Bloomberg.

Why it matters: Making money off America's floundering retail industry in America is "about the get a whole lot easier," as Bloomberg's Rachel Evans writes. Plus, there is reason to believe it would be lucrative — State Street's traditional retail ETF has lost more than 9% this year whereas an e-commerce ETF from Amplify has gained 30%.

How it would work: ETFs work like index funds to track a basket of assets, and are attractive to investors since their fees tend to be lower than those of mutual funds. One of the ProShare ETFs would short (i.e. bet against) shares of traditional retailers and go long on shares in companies that could benefit from increased e-commerce activity. The other two would use leverage to "boost the returns on their bets against the [traditional retail] industry."

Go deeper

Minnesota AG: Prosecution of officer in George Floyd case shouldn't be rushed

Minnesota Attorney General Keith Ellison cautioned in an interview on "Fox News Sunday" that the case against Derek Chauvin, the former Minneapolis police officer involved in the death of George Floyd, is "very early in the process" and that charges could be amended or added.

Why it matters: Chauvin was arrested last week and charged with third-degree murder and manslaughter, which implies that he did not intend to kill Floyd. Some protestors have demanded more severe charges and Floyd's family has asked Ellison to serve as a special prosecutor in the case.

Robert O'Brien: "I don't think there's systemic racism" in law enforcement

White House national security adviser Robert O'Brien said on CNN's "State of the Union" on Sunday that he doesn't believe there is "systemic racism" among law enforcement in the U.S., arguing that there are "a few bad apples" that are giving police a bad name.

Why it matters: The mass protests that have swept across the United States are not just a response to the death of George Floyd, but of the dozens of high-profile instances of unarmed black men dying at the hands of police officers over the years.

Atlanta mayor on Trump's riot response: "He speaks and he makes it worse"

Atlanta Mayor Keisha Lance Bottoms responded on CNN's "State of the Union" Sunday to President Trump's tweets and comments about the mass protests that have swept across the United States, urging him to "just stop talking."

What she's saying: "This is like Charlottesville all over again. He speaks and he makes it worse. There are times when you should just be quiet. And I wish that he would just be quiet."