Eike Bastista was the world’s eighth-richest man, and the poster-boy for the new Brazil, flashy and flush with wealth—until his oil and gas bubble burst.
One day, some 30 years ago, before the trophy wife and the floodlights, when a berth on the Forbes billionaires list was still a moon shot, Eike Batista was restless. At age 23, he’d had enough of Europe and the golden cage he’d spent his childhood in, and decided to move back to his native Brazil to make something of himself. The engineering school dropout had sold corned beef to Africa and brokered some Brazilian diamonds with mixed success.
Thought the shutdown would tank the recovery? You were wrong—Friday’s jobs report was impressive. It turns out the government is losing its ability to inflict damage on the economy.
It’s been a bad 36 hours or so for American economic declinists. Twitter’s initial public offering demonstrated the ability of the American entrepreneurial engine to create an entity worth $20 billion essentially from scratch. Fannie Mae and Freddie Mac, the two mortgage-giant basket cases that were the ne plus ultra of the 2008 financial debacle, requiring an injection of $180 billion putatively irretrievable taxpayer funds, said Thursday they’d return to Treasury $8.
Despite 16-day government shutdown.
The U.S. economy added 240,000 jobs in October, a surprising gain for a month skewed by the 16-day government shutdown. The unemployment rate ticked up from 7.2 to 7.3 percent, likely because federal workers furloughed by the shutdown were counted as unemployed. In another bright spot in the report, job numbers from September and August were revised upward by 60,000, meaning more jobs were added than originally calculated. The October gain surprised forecasters because the impact of the shutdown had made the month difficult to predict. The Labor Department's report, usually released on the first day of the month, was delayed a week because of the shutdown.
The social network made a huge splash with its IPO today, rocketing above its initial share price. But will the stock go the way of Facebook and Yahoo!—or Webvan and Globe.com?
Twitter staged its initial public offering on Thursday morning. It raised $1.8 billion by selling 70 million shares at $26 a piece to investors. When trading finally opened at about 11:00 a.m., the first price was $45.10—a nice 73.5 percent pop. The company instantly was valued at about $31 billion.The deal is a huge, ginormous, all-enveloping story, in large part due to what I’d call a double example of selection bias.What do I mean? Well, first, journalists are obsessed with the offering in a way that many other people aren’t.
Could prevent 20,000 heart attacks a year.
From the bottom of our artery clogged hearts, thank you. The Food and Drug Administration proposed regulations on Thursday to eliminate artificial trans fat from the U.S. food supply. The measures would deem hydrogenated oils (where trans fats come from) no longer safe. And since the Institute of Medicine says there is no safe level at which to consume artificial trans fats, companies will have a hard time challenged the proposal during the 60-day comment period. The FDA says the rules may prevent 20,000 heart attacks and 7,000 deaths a year.
Grew 2.8 percent in third quarter.
The U.S. economy grew at an annual rate of 2.8 percent in the third quarter, topping analysts' expectations of a two-percent rate. The report was initially due out on October 30, but was delayed because of the shutdown. The growth comes as a surprise as economists were predicting the sequestration spending cuts and tax increases to have a significant drag on the economy.
On eve of going public.
Talk about fidgety. After initially setting a share-price range of $17 to $20, then raising it to $23 to $25, Twitter has settled on $26 a share for the initial public offering of 70 million shares. The company’s shares will be up for grabs Thursday morning on the New York Stock Exchange. Much of the shifting over the price is due to the fears remaining from the messy Facebook IPO when the stock plummeted well below the IPO pricing.
Will focus on streaming.
The good old days of indecisively wandering a movie store for hours are officially over. Blockbuster announced on Wednesday that it would close the remaining 300 stores by early January, stop its mail service in mid-December, and all U.S. distribution centers will shutter. The company's owner, DISH Network Corp., purchased Blockbuster in a bankruptcy auction in 2010 and says the once-powerful brand will be refocused on streaming and on-demand. A few lucky towns might get to keep their video stores though: 50 independently owned franchises will not be affected by the closure.
Burger King just introduced a new burger, the Big King. Clearly a direct competitor to McDonald’s Big Mac, the burger is a fat-laden sign that fast-food joints are getting desperate.
The Burger wars are heating up.On Tuesday, Burger King introduced its latest menu offering: the Big King The alpha male product is bigger than the whopper and is a way of giving meat lovers what they want, while also giving a noogie to McDonald’s.It’s the most recent indication that the stakes for the nation’s largest burger chains seem to be rising at a time when the rewards are actually falling. Fast-food isn’t doing particularly well. The vast industry, which relies on low wages, low prices, and a low-quality dining experience just isn’t working the way it used to.
Watch out Brad Stone—MacKenzie Bezos has her husband’s back. The wife of Amazon founder and CEO Jeff Bezos took to her husband's website to trash Stone's new tell-all The Everything Store. “The book is...full of techniques which stretch the boundaries of non-fiction,” MacKenzie wrote in her one-star review, accusing Stone of making up motives for her husband, who did not cooperate with the book. The book depicts Bezos and Amazon as hard-charging, insatiable, and excessively secretive.
With an Ohio Walmart hosting a holiday food drive for its own workers, The Daily Beast's Michael Tomasky criticizes the notoriously stingy company for not paying them more.
Shakespeare is 450 years young, his words bought to big-screen life by stars like Emma Thompson, Dame Maggie Smith and Sir Ian McKellen. We select our favorite big-screen Shakespeare moments.