By CultureBanx Team
CBx Vibe: “Go Get the Money” Zaytoven Feat. Rick Ross
Football and finance collide as former NFL player Justin Tuck joins Goldman Sachs (GS -0.07%). He’s joining the firm’s Private Wealth Management (PWM) division that’s looking to take a bigger chunk of the $22 trillion Ultra-High Net Worth market. Is hiring Tuck part of the company’s overall plan to help grow its PWM reach and attract new clients?
Why This Matters: Currently Goldman’s PWM group manages $460 billion which to the naked eye seems like a lot of money, it actually only represents 2% of the Ultra-High Net Worth market, according to a presentation by the firm’s president David Solomon. In its 2017 annual report Goldman said it expects to increase its private advisor workforce of 700 by almost a third between now and 2020.
Tuck will have to use his on the field savviness to find success is his new role as one of Goldman’s PWM vice president’s. As a Notre Dame alum and having recently received his MBA from U-Penn’s The Wharton School, this shouldn’t be to difficult. "At the NFL level, not being prepared means Tom Brady throws 400 yards against you… Not being prepared at a place like Goldman Sachs means that some of your trusted clients are losing money," Tuck said at the Wharton Global Forum.
Goldman wants to bring in $5 billion of new revenue over the next three years. Bloomberg reports the firm’s investment management division, which houses the asset-management group and private wealth managers is going to account for 20% of that growth. Read More
By Colette Jones
CBx Vibe: “Stir Fry” Migos
Media mogul Oprah Winfrey recently announced her investment of an undisclosed amount into the Phoenix-based chain restaurant, True Food Kitchen. The popular eatery is now being operated by former Starbucks (SBUX -1.32%) executive, Christine Barone. Will this be as lucrative as her Weight Watchers (WTW -1.39%) investment?
Why This Matters: In 2015, Winfrey bought an estimated 10% stake, over six million shares, in weight loss company Weight Watchers. Her investment helped raise their shares more than 1,000%, according to CNBC. After selling some of her stock in March of this year, she still owns around eight percent of the company.
Now she’s turned her attention to True Food Kitchen which hopes to capitalize on Winfrey’s prior success in the food business. “When I first dined at True Food Kitchen, I was so impressed with the team’s passion for healthy eating and, of course, the delicious food, that I knew I wanted to be part of the company’s future,” Winfrey said in a press release.
Based on the outstanding return Weight Watchers received from her investment, True Food Kitchen expects their business to double by 2021. Barone wants to utilize Winfrey’s insights and collaborate with her to help build the business. This is different than Weight Watchers approach of only assigning her the role of a spokesperson.
“Her involvement is really key to growth and success as we move forward, and we're excited for her to be on board...She'll really be providing insight as an incredibly successful business woman,” Barone said. Read More
By CultureBanx Team
CBx Vibe: “Buy Back the Block” Rick Ross Feat. 2 Chainz & Gucci Mane
That national unemployment rate for black people inched up in June to 6.5%, after hitting an all-time low of 5.9% in May. While this is the second lowest recording since the Bureau of Labor Statistics (BLS) started tracking this statistic nearly 50 years ago, homeownership in the black community continues to decline.
Why This Matters: Since 2010, which was the height of African American unemployment at more than 16%, the number has steadily decreased. Interestingly enough the black jobless rate remains almost double the 3.5% unemployment rate for whites, while the unemployment rate for Hispanics sits at 4.6%.
Many African American households are worse off than they were 30 years ago. About eight percent of African-American homeowners lost their properties to foreclosure from 2007 to 2009, according to estimates from the Center for Responsible Lending. Only 43% of blacks owned homes in 2017, according to an annual report from the Joint Center for Housing Studies of Harvard University.
With the current low four percent national unemployment rate and steady wage increases, even people with good jobs still have to battle against rising home prices. ATTOM Data Solutions reported the national median home price reached $245,000 during the second quarter of 2018. Read More
By Lamar Johnson
CBx Vibe: “Check Yo Self” Ice Cube Feat. Das Efx
Former Papa John’s (PZZA -4.00%) CEO John Schnatter, can’t seem to keep his foot out of his mouth. On a conference call intended to prevent future public relations snafus, Schnatter let the N-word slip. Since news broke, multiple sports teams have cut ties with the pizza chain causing the company’s stock free fall.
Why This Matters: Schnatter confirmed to Forbes on July 11 that he said the epithet during a May call with the marketing agency Laundry Service. The chain’s stock took an immediate hit, falling as much as 5.9% that day to $47.80, its lowest price since February 2016, according to Bloomberg. Schnatter subsequently resigned as chairman.
The pizza chain’s also lost a number of promotional partners due Schnatter’s racist comments. After being dropped as the National Football League’s official sponsor in February, Major League Baseball ended its promotional deal in the wake of the recent news. Nine MLB teams and Atlanta’s football and soccer teams, the Falcons and United, also pulled marketing deals with the chain. Also, the University of Louisville removed Schnatter’s name from its football stadium.
Papa John’s is now working overtime to distance itself from its founder, ending an agreement that would have allowed him to retain his status as the public face of the company, according to Yahoo Finance. His likeness will be removed from its pizza boxes, and Schnatter’s also been banned from using office space at the company’s headquarters.
He had been in the process of working on a comeback campaign for a prior misstep when he dropped the slur. Even after distancing itself, Papa John’s has a lot of work to do to recoup its losses. In total, shares have fallen 25% since November 2017. Read More
By CultureBanx Team
CBx Vibe: “No Question” Ridali001
Insurers are still seeing dollar signs in President Obama’s landmark Affordable Care Act. As republicans look to dismantle the remaining pieces of the legislation, insurance startups are plunging into even more markets. Is there still money to be made in the business of Obamacare?
Why This Matters: The Affordable Care Act created a boom in Silicon Valley, while many healthcare startups have shut down there’s still growth in the sector. Since the law passed back in 2010, billions of investor dollars have flowed into digital health startups, helping to spur the $990 billion health insurance market. More than a dozen insurers plan to enter new Obamacare markets for 2019, according to the Kaiser Family Foundation. Companies like Bright and Oscar are still finding growth in Obamacare’s profitable markets.
For Bright, the company is launching in nine additional markets and Oscar will expand into six additional states. Bright relies on partnerships with major urban health systems and raised $160 million in 2017. Oscar is valued at $3.2 billion and also works through narrow networks but is technology-focused. The company posted its first-ever quarterly profit during Q1 of this year.
The current administration has taken several steps to destabilize Obamacare markets. This has caused Big national insurers such as Humana (HUM -0.45%) and Aetna (AET -0.23%) to shutter their exchange businesses for next year. Read More
By Denise Garcia
CBx Vibe: “Summertime Magic” Childish Gambino
Emmy-nominated singer-songwriter John Legend is getting into the rosé business, as the de facto summer beverage gains momentum. The rosé is the fourth wine he’s had a hand in producing under the LVE label, which stands for Legend Vineyard Exclusive. Just how ripe is the market for new rosé products?
Why This Matters: The Millennial pink obsession has spawned rosé into a goldmine, with the table version making 48% of its sales in the warmer months, according to research company Nielsen. Right on time to quench the season’s thirst, LVE which is the musician’s wine label in partnership with French vintner Jean-Charles Boisset, launched it’s pink Provence blend.
Just in the two weeks nearing July Fourth in 2017, rosé blends raked in $25.2 million, while sparkling rosé ushered $5.9 million in off-premise sales. For context, that’s a relatively small number when it comes to sales of domestic premium beer, which brings in $648 million.
Rosé influence extends beyond just the summer season. Its inspired pop-ups such as the Rosé Mansion in New York, to music festivals like Pinknic, and a variation of cocktails that cater to those seeking Instagram photo ops. The ubiquitous libation is even expanding wine sales, pushing chardonnay’s market share up two percent in the short span of two years. Read More
By ICO Alert
CBx Vibe: “Run it Up” JayLifted
The people have spoken: big businesses ought to put their ledgers on the blockchain for accountability. Yet there is one question remaining on the idea of this solution. Does blockchain have the scalability to support the nation’s transactions?
Why This Matters: With the world of blockchain abuzz, technology enthusiasts are pushing for the decentralization of financial institutions. Companies like Visa (V -0.69%) use cloud computing to scale tens of thousands of daily transactions. While this is fast, it’s not yet as secure as blockchain, this is because cloud computing carries severe privacy risks. Handing over sensitive information to a third party can be messy.
For perspective, let’s reference some statistics that Vitalik Buterin, co-founder of Ethereum shared with AngelList; the crypto currency is currently able to process five transactions per second, compared to Bitcoin’s average of three. If we look at a national comparison, Visa processes 24,000 transactions per second.
“Unfortunately, existing blockchain applications are far from satisfying the scalability requirements to compete with centralized systems. Current mainstream payment processors, such as Visa, support orders of magnitude higher peak transaction throughput and incurs much lower latency compared to the operational Bitcoin platform,” said Adem Efe Gencer, Cornell University PhD. Read More
By CultureBanx Team
Proceeds from the line will be donated to the United Negro College Fund
Sweatshirts and hoodies range from $550 to $1,790
CBx Vibe: “Win” Jay Rock
Queen Bey is bringing her stage looks straight to your closet through a charitable capsule collection.The ultimate entertainer has partnered with Balmain to help further the education of black students at their respective schools.
Why This Matters: The looks for the collection are inspired by the marching band uniforms of America’s historically black colleges and universities. Make sure you have your coins in order because the clothes aren’t cheap, tees are priced at $290 and the sweatshirts and hoodies range from $550 to $1,790. The proceeds from the line will be donated to the United Negro College Fund (UNCF), which is the nation’s largest private scholarship provider for minorities. This follows Beyoncé’s $100,000 donation to four historically black colleges after her Coachella set back in April. She’s also partnered with Google to create scholarships at an additional four performing arts schools.
The UNCF’s main goal is to increase the total annual number of African American college graduates. Every year the group awards more than $100 million in scholarships, including its network of 37 HBCUs, according to its website.
Revenue last year at Balmain was about €150 million ($182.9 million), up from €64 million five years ago, according to the Wall Street Journal. Olivier Rousteing, the creative director for Balmain who designed Beyonce’s costumes for Coachella is one of only three black men to ever lead a European fashion house. “The donation was the main goal of this collaboration, we don’t forget where we come from,” Rousteing told Vogue. Read More
By CultureBanx Team
CBx Vibe: “Take Off” The Legendary Fruitman
Nigeria’s wealthiest man Aliko Dangote is building the world’s largest single oil refinery through his Dangote Group. Currently, Nigeria exports all of its oil as crude and then reimports expensive refined petroleum. Will this move help to address the ongoing problems in Nigeria’s energy markets?
Why This Matters: The Dangote Group has signed a $650 million loan deal with the African Export-Import Bank (Afreximbank) in order to complete the $10 billion project. As for the $650 million loan, it’s arranged as a seven-year term facility with interest to be paid quarterly. Standard Chartered Bank is also letting the company borrow $3.3 billion for the project and Dangote has put in $6 billion of his own money. The remainder will be funded by equity and through export agencies.
“When we finish this project, for the first time in history Nigeria will be the largest exporter of petroleum products in Africa,” Dangote told the Financial Times.
Just how robust will this new facility be for Nigeria? It will process 650,000 barrels of oil a day, while also pumping out all the plastic the country’s 190 million people need, Reuters reports. If that’s not enough the refinery will produce three million tonnes of fertilizer a year, that’s more than all its farmers currently use on their fields. Read More