Smackdown: Google, Facebook vs. Fake News; Controversy Over New Balance Seems Unbalanced; Ford Revs Up Tariff Debate with Trump

Just faking it…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

As the Trump controversies keep on pouring in, Google and Facebook have now decided to crusade against fake news, as widely shared, yet wholly fabricated stories about the candidates may (or may not) have adversely influenced the presidential election. Part of the problem began when Google realized that the top results for search phrases such as “final election results” and “who won the popular vote” were directing users to a fake news site. By Monday, Google started pulling AdSense from several sites that “misrepresent, misstate or conceal information” and were profiting off such bogus political news stories. As for Facebook, it plans to put the kibosh on ad money from fake sites, but it’s not entirely clear how it will achieve this objective and identify these sites. However, it seems to be a prudent move considering that, according to a Pew study, 44% of Americans get their news from the social network giant. No matter how you slice it, the internet and social media figured prominently last Tuesday and now everyone’s looking to find out what went wrong – or right.

Unbalanced…

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Privately-held company New Balance has inadvertently, and presumably unwillingly, become the unofficial “official shoes of white people.” Unlike its much more enormous rival, Nike, the 110 year old Boston-based New Balance has always been committed to manufacturing its products in the U.S. across 14 factories where it employs over 1,400 people of various races, ethnicities, genders, religions etc. Hence, the company never cared much for the Trans-Pacific Partnership Trade Agreement that gives companies – like Nike – a very humongous edge because they can manufacture a greater quantity of goods abroad, for a lot lot less money than doing it here. The TPP basically jeopardizes companies who choose to domestically produce goods by making for a very un-level playing field. Because Trump is a huge fan of domestic manufacturing and job creation, his election was welcome news for New Balance. And when New Balance said as much, social media either skewered the company and called for boycotts and mass destruction of the sneakers or had white supremacists proclaiming it as their footwear of choice.  Incidentally, New Balance supported the trade policies of Hillary Clinton and Bernie Sanders too.  A fact that both Trump haters and white supremacists seemed to have overlooked.

Have you manufactured a Ford lately?

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

After congratulating Donald Trump on his election last week, Ford Motors CEO Mark Fields shared some thoughts about Trump’s proposed 35% tariffs on imports – he thinks they’re a bad idea. After reporting a 12% decline in car sales for October earlier this month, Fields said in a speech given at the L.A. Auto show, that those tariffs will have a very big bad impact on the U.S economy and trusts (or hopes) that Trump will do what’s in the best interests of the United States. However, Trump, early on in his campaign spoke about how he didn’t appreciate the fact that Fields moved Ford’s small car production to Mexico, where wages are a whopping 80% less than what they are in the U.S. If you recall, Trump thinks NAFTA is “the single worst trade deal ever approved in this country” and he’s licking his chops to put the kibosh on it. Although, to counter that last tidbit, Fields did say that Ford added 25,000 jobs since 2011. In the meantime, experts have said that Trump’s tariffs, which are on this side of punitive, in fact, violate the rules of the World Trade Organization. So it’s anybody’s guess how far those tariffs will actually go.

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Wal-Mart Brings it Home with Great Earnings; A New Pew Study is Out and the Results May Surprise You; SEC Takes a Swing at Golfer Phil Mickelson

Sweet…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Wal-Mart showered us with the news of its higher than expected quarterly profits and that’s a good sign since Wal-Mart’s success is a barometer of the economy and how well it’s behaving. Wal-Mart, in case you weren’t aware, is considered to be less upscale than its rival, Target. Because Target did not do so well this quarter and Wal-Mart did, experts are quick to point out that those in a more modest income bracket are still spending, at Wal-Mart anyways, and that is always a welcome occurrence in a healthy economy. Wal-Mart can thank an increase in drug prices, which is not as bad as it sounds. Hey, people need their medicines. But that’s just one small reason for the impressive digits. Warm weather helped keep Wal-Mart’s utility costs lower, which also contributed to those welcome numbers. Don’t laugh. Any little bit helps, even if it does involve the thermostat. A profit is a profit and Wal-Mart’s was $.304 billion. That figure is actually less than last year’s $3.34 billion, but its because of investments to improve the retailer and not because of any negative reasons. The retailer shelled out $2.7 billion to increase entry level pay and that also helped out with some of that profit. The company added 98 cents per share when analysts expected only 88 cents per share. And who doesn’t like it when analysts get it wrong, right?   As a result of the fiscally delightful news, shares of Wal-Mart made a nice little jump today, which is especially good since shares had gone down over 20% in the last twelve months.

The gig is up…

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The Pew Research Center just released the results of its latest study, this time tackling the ever-popular “sharing economy.” For whatever reason, the center wanted to know what 4,787 U.S. adults think about Uber and Lyft, Kickstarter and Airbnb, to name a few. Turns out that 72% of U.S. adults have used at one of 11 different shared/on-demand platforms.  73% responded that they’d never heard of the term “sharing economy.” But that’s nothing compared to the 89% who didn’t know what a “gig economy” is. Then things started to get dicey. 15% of the people surveyed said they’d used shared and on-demand services like Uber and Lyft, yet 30% said they’d never heard of those apps. Household income and age played a big role in who used the apps. 41% of U.S. adults with annual incomes of more than $100,000 had used at least four of the services, which was more than three times that of adults whose annual incomes were less than $30,000. 39% of college graduates used at least four of the services. Not nearly so much for those who don’t have higher degrees. For those in the 50+ range, 44% said they’ve used at least four of the services. But of the 65 and above set , only 5% used the services. While ride-sharing apps were – no great shock – used primarily by young adults in big cities, middle aged adults were the primary users of services offered by apps like Airbnb. And even though Kickstarter and other crowd-funding apps have only been around since 2009, 22% of U.S. adults apparently gave donations through them. Yet 61% of those who responded said they’d never heard of the term “crowd-funding.”

Inside out…

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Pro-golfer Phil Mickelson is under investigation and it has nothing to do with sports. The SEC has set its sights on the five time major winner for insider trading. Apparently, Mickelson scored almost a million bucks and the SEC wants him to pay it all back…with interest. To be fair, Mickelson is classified as a “relief defendant” which means he hasn’t been officially accused of…anything. He does, however, still have to pay back his insider trading profit of $931,738.12, not to mention another $105,291.09 in interest. But hey, it’s better than doing time, a possibility for the two men who supplied him with the non-publicizied information. And those two men happen to be well known sports gambler Billy Walters and former chairman of Dean Foods, Thomas Davis. It’s no mistake that the “ill-gotten gains” were from Dean Foods. Which explains why Walters and Davis are now both facing criminal charges, while Mickelson’s attorneys get to call their client, who currently ranks 17th in the world, an “innocent bystander.”