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    george soros

    • Billionaire George Soros' firm made big bets on the music-streaming industry in the second quarter, according to regulatory filings.
    • Soros Investment Management took stakes now worth $178.7 in newly-public Spotify and Pandora, the documents showed.

    Billionaire investor George Soros bet big on music-streaming platforms in the second quarter.

    His fund, Soros Fund Management, bought 728,700 shares of Spotify currently valued at $122.6 million in the second quarter, according to documents filed Tuesday. It also loaded up on 7.12 million shares of Pandora stock currently valued at $56.1 million, the filing showed. That's a total of $178.7 million invested across the two services.

    Although it's not known when exactly Soros took these positions, Spotify spiked 27% in the period from its initial public offering at $132 per share through the end of June. It's since risen another 15%. Meanwhile, Pandora soared 57% in the second quarter, ending the period at $7.88.

    Spotify was Soros' fourth-biggest position at the end of the second quarter, trailing Liberty Broadband ($556.1 million), VICI Properties ($443.7 million), and NXP Semiconductors ($209.9 million).

    It's possible Soros exited its position at some point during the first half of the third quarter.

    According to the 13F, Soros also made the following decisions in the second quarter:

    • Bought 500,000 shares of Coupa Software, valued at $31.1 million
    • Bought 159,200 shares of Facebook, valued at $30.9 million
    • Sold 5.91 million shares of Kennedy-Wilson, valued at $102.9 million
    • Sold 283,230 shares of Lam Research, valued at $57.5 million

    Now read:

    SEE ALSO: There’s a $1 trillion question hanging over stocks right now — and the answer could determine the ultimate fate of the market

    Join the conversation about this story »

    NOW WATCH: How movie theaters are ruining your movie

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    Jack Dorsey

    • A Twitter engineer has launched a scathing public attack on CEO Jack Dorsey, and said he is deleting the app, at least for 3 months. 
    • Jared Gaut criticised leadership's attempts to remain neutral — an apparent reference to Twitter's decision not to ban conspiracy theorist Alex Jones.
    • "I believe leadership truly have their hearts in the right place and genuinely want Twitter to be a safe place, but right now leadership is failing us," Gaut wrote.
    • His tweets have since been retweeted thousands of times.

    Twitter CEO Jack Dorsey is facing sharp criticism from an unlikely source — one of his own engineers.

    Early on Tuesday morning, Twitter IT system engineer Jared Gaut took to the social network to voice his displeasure with recent decisions by the company leadership, and to announce he was deleting the app completely for the next three months in protest. 

    "I love @twitter, the company and service, but right now we are making the wrong decisions," he wrote. "Everyone at Twitter passionately wants to make the world better. I believe leadership truly have their hearts in the right place and genuinely want Twitter to be a safe place, but right now leadership is failing us."

    His thread quickly drew widespread attention, and it has now been retweeted almost 3,500 times, and been liked over 10,000 times.

    Gaut's criticism appears to be a rebuttal to Dorsey's decision to allow conspiracy theorist Alex Jones to remain on Twitter — even as other tech companies, from YouTube to Facebook, booted him from their platforms in the face of sustained public criticism over the spread of misinformation on their platforms. 

    Dorsey has insisted that Jones has not violated Twitter's rules (a claim that an investigation from CNN has contested), arguing that Twitter has a duty to remain impartial and should not "react to outside pressure." 

    It is this pro-neutrality line of argument that Gaut appears to have taken issue with, and suggests it may be backfiring. "We are not a government. We do not need to be neutral. The feeling that we are making the tough, right call by remaining neutral is wrong. Our inaction is suppressing voices — disabling conversation."

    He added: "We may come around and make the right decision this time, but how long until we are right here again? We are stuck in an infinite loop."

    As such, Gaut said, he is deleting the app for the rest of the third quarter of 2018, and "signing out of all browsers." His Twitter bio now says he is "on a twitter break."

    It's not clear what Twitter's response to the engineer's actions is, or whether he will be reprimanded for speaking out. A spokesperson did not immediately respond to Business Insider's request for comment.

    Here's Jared Gaut's full thread:

    Join the conversation about this story »

    NOW WATCH: NYU professor says Facebook should pay taxes for making us less productive

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    Tom Brady

    • Tom Brady was spotted sporting a new helmet during Patriots practice on Sunday.
    • The change comes as Brady's usual helmet is set to be banned from the league after the 2018 season after tests conducted by the NFL.
    • Brady has played with the same helmet for most of his career, and won't have to make the switch until 2019.

    While the New England Patriots prepare for the 2018 season in training camp, a new helmet worn by Tom Brady in practice indicates that he's already getting ready for 2019 and beyond.

    Brady was spotted at Patriots practice testing out some new headgear on Sunday, which the Twitter account Helmet Stalker identified asRiddell Precision Fit SpeedFlex with and SF-2BD-SW facemask and a Riddell softcup chinstrap.

    For anyone who has watched Brady play over the years, it's quite a new look for the Patriots quarterback, who has with few exceptions spent the entirety of his career wearing a Riddell VSR-4 helmet.

    Tom Brady

    Brady's practice with the new helmet appears to be a forward-thinking move. Back in April, the league and the NFLPA announced an upcoming ban on 10 helmets that performed poorly in testing, including Brady's preferred headgear. While he will be allowed to stick with his Riddell VSR-4 for the 2018 season, he will be forced to make a switch in 2019, and apparently is already preparing for the eventual change.

    The switch is likely a good move for Brady if he really hopes to play until he's 45 — the Riddell Precision Fit SpeedFlex was one of the top performing helmets in the NFL's study. While Brady has never missed a game due to a concussion, his wife Gisele Bündchen has said that he has suffered them before. Beyond what the injury reports say, any regular NFL viewer has seen Brady shaken up after a big hit only to re-enter the game on the next drive or even the next play.

    Brady says he intends to play in New England's upcoming preseason game against the Philadelphia Eagles, meaning Patriots fans might not have to wait long to see their franchise and his new helmet in action.

    SEE ALSO: We ranked every NFL team's quarterback situation heading into the 2018 season

    Join the conversation about this story »

    NOW WATCH: This pit crew member got hit by a race car — here's why he still loves his job

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    Paul Manafort

    • The defense in the high-stakes criminal case against Paul Manafort rested on Tuesday without calling any witnesses.
    • Manafort also did not take the stand.
    • Legal experts say it's not an unusual move.
    • "It is hard in a case like this for the defense to find witnesses to dispute the essential facts proven by the prosecution," said one Justice Department veteran.

    Sign up for the latest Russia investigation updates here»

    The defense in the Paul Manafort criminal trial rested its case Tuesday without calling any witnesses.

    Manafort has pleaded not guilty to 18 counts in Virginia related to tax fraud, bank fraud, and failure to report foreign bank accounts. He was indicted as part of the special counsel Robert Mueller's investigation into Russia's interference in the 2016 presidential election.

    Manafort's lead defense lawyer, Kevin Downing, said Tuesday that his client was choosing to let the case go to the jury because he and his attorneys "do not believe that the government has met its burden of proof."

    Specifically, the defense said the prosecution failed to show that one of the banks Manafort is accused of defrauding relied on false information. They also said, more broadly, that the government had not proven that Manafort acted intentionally to commit the alleged crimes.

    It's not unusual for the defense to rest without calling any witnesses, particularly in white collar cases, legal experts say.

    Alex Whiting, a former federal prosecutor in Boston and Washington, DC, said that's doubly true in a case like Manafort's.

    "It is hard in a case like this for the defense to find witnesses to dispute the essential facts proven by the prosecution," Whiting said. "Therefore the defense will often not call witnesses in order to keep the focus on their challenges to the prosecution's case. So not calling witnesses is part necessity and part strategy."

    The prosecution paraded out over a dozen witnesses over the last two weeks to lay out their case that Manafort, with the help of his former right-hand man Rick Gates, engaged in a years-long tax and bank fraud scheme to line his pockets.

    Gates was initially a codefendant with Manafort, but he struck a plea deal with prosecutors in February. He was the government's star witness in the Manafort trial and his testimony spanned more than two days.

    'All the defense counsel can do is point at someone else as the culprit'

    judge ts ellis rick gates manafort trial

    The key pillar of Manafort's defense was to pin the blame on Gates while painting Manafort as a fall guy.

    Experts said the defense also likely had limited options when it came to calling witnesses to the stand.

    "Sometimes you get a character witness, but those would be hard to find and would open the door to cross-examination," said Jeffrey Cramer, a longtime former federal prosecutor who spent 12 years at the Justice Department.

    Robert Weisberg, co-director of the Stanford University Criminal Justice Center, echoed that view.

    "In very broad terms, you can imagine three kinds of defense witnesses in a criminal case," he told The Washington Post. "One would be witnesses who offer testimony that the criminal acts never occurred. Two, witnesses who would testify as to the good character of the defendant. Third, witnesses who say the criminal acts occurred but someone else did them."

    Weisberg said the first type of witness is unlikely given the lengthy paper trail prosecutors presented to document Manafort's alleged crimes. He added that the second type of witness is also likely a lost cause because it would be difficult to convince the jury of Manafort's good character.

    But Manafort's defense team may have had some luck with the third case, given Gates' testimony, Weisberg said.

    Gates pleaded guilty in February to lying to the FBI. While testifying in Manafort's trial, he also admitted to committing crimes with Manafort, embezzling money from his former boss, and having a secret affair over a decade ago.

    The defense latched onto Gates' testimony, arguing that he was testifying against Manafort to save his own skin. Manafort's lawyers also sought to discredit him while he was on the stand.

    At one point last week, Downing asked Gates: "After all the lies you've told, you expect this jury to believe you?"

    "Yes," Gates replied. He added that he was "here to tell the truth" and to take responsibility for his actions.

    "All the defense counsel can do is point at someone else as the culprit," Cramer said. "Gates allows them to do that."

    Renato Mariotti, a former federal prosecutor in Chicago, said Tuesday that it was a "smart move" for the defense to rest without calling any witnesses. "Putting on just a witness or two can seem weak in the face of overwhelming evidence from the prosecution," he wrote.

    Separately, Cramer also noted that the defense only needs its argument to resonate with one juror for Manafort to be let off the hook.

    But even then, experts say it's an uphill battle for Manafort.

    "Bottom line is that Manafort, with Gates' help, did set up over a dozen offshore companies," Cramer said. "They did funnel money from those entities to pay for Manafort's lifestyle. Manafort never declared the income. Manafort submitted false documents to banks and others to hide the fact that he was broke. Hard to dispute those facts."

    On Tuesday, US District Judge T.S. Ellis III asked Manafort if he wanted to take the stand.

    "No, sir," Manafort replied.

    SEE ALSO: New email shows how much influence Paul Manafort had over the Trump transition team months after being ousted from the campaign

    Join the conversation about this story »

    NOW WATCH: A North Korean defector's harrowing story of escape

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    Diane Bryant

    • Diane Bryant made what seems to be her first public appearance since departing Google in July.
    • Bryant was a 32-year veteran of Intel before she became the COO of Google Cloud in December 2017. But she left the search giant a little over six months later. 
    • In her appearance, Bryant still had a surprising amount to say about Google's business.
    • She discussed how Google's IT department is using AI to help provide employees with those famous free meals, as well as how the company is working to prevent the kind of attacks that occurred in April at YouTube. 
    • She did not discuss why she left Google or her future plans.

    For someone who was employed at Google for less than a year, Diane Bryant had a surprising amount to say about the company on Tuesday.

    Before leaving late last year, Bryant spent 32 years at Intel, where she forged her reputation as a star in its IT systems and data center businesses. In contrast, she left Google after being COO of Google's cloud division for about 7 months.

    That didn't stop her from dropping Google's name plenty during her speech before a gathering of IT admins at the University of California at Davis, her alma mater. At one point, she asked who in the crowd still had mainframe computers plugged in, and then offered an anecdote. 

    "As COO of Google cloud, I recently met with the CIO of McDonald’s," said Bryant, whose departure from Google was announced six weeks ago. "He very sternly told me 'Yes, I have mainframes and I’m not ashamed of it. I like my mainframes.'"

    A senior executive leaving before even completing a year raises questions 

    Rare is the high-profile senior executive who departs a company like Google after less than a year. When it occurs, that often signals buyers remorse on one side or the other. If that's the case, though, neither Google nor Bryant are talking.

    Following her speech, Bryant did not take questions from the audience, and according to several campus employees, quickly departed for meetings elsewhere on campus. A source with knowledge of the situation said last month that Bryant's duties were never very clear and she had few people reporting to her. 

    Though she has not publicly discussed her plans for the future, she undoubtedly is still a sought after manager. Fortune magazine named her in 2015 and 2016 among the “50 Most Powerful Women in Business.” When Diane Greene, Google's cloud chief, hired Bryant, it was considered a coup. 

    Diane Bryant

    Bryant's name is often mentioned among the people that would make a good choice to replace Brian Krzanich, Intel's former CEO, who resigned in June following revelations that he had an affair with a subordinate

    Google IT provides more security with facial recognition technology

    In her speech, Bryant did offer a few interesting details about Google's IT department. She said Google possesses a "highly, highly ssophisticated security system that was developed and is run by IT." She noted April's shooting attack at YouTube's headquarters. 

    She said Google's IT group "took upon themselves the challenge to augment the existing (security) solution and to augment it with facial recognition, with AI. So the face on campus has to match the badge or building access is shut and security is alerted."

    Bryant told the crowd that Google's IT managers are using AI to analyze data surrounding the 175,000 free meals Google serves every day to employees; a benefit that costs the company $600 million a year.

    "They feed that information to the cafeteria managers on a daily basis to drive his and her purchasing decisions," Bryant told the crowd. "They look at many, many data sources. For instances, is there a three-day weekend coming and hence fewer people will come to work. What’s the weather prediction? Is it going to rain? Are people more likely then to eat in or go out...They look at campus data. How many employees at a given campus?

    Bryant concluded with a joke. "The result is," she said, "Kale is extremely popular amongst Googlers." 

    SEE ALSO: An insider says that the top Google Cloud exec who just stepped down struggled to find her role at the company

    Join the conversation about this story »

    NOW WATCH: INSIDE WEST POINT: What it’s really like for new Army cadets on their first day

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    Theresa May EU citizens

    • Theresa May's government is considering a plan to register EU citizens who wish to remain in the UK after Brexit alphabetically to cope with the flood of expected applications, sources tell Business Insider.
    • Alternative plans to register applicants sector by sector, or by geographical region, are considered politically sensitive.
    • The Home Office needs to register up to 3.6 million EU citizens before the UK leaves the EU.
    • EU citizens' campaigners voiced concerns about the "unprecedented scale and timeframe" for the scheme.

    LONDON — Theresa May's government is considering plans to register EU citizens who wish to stay in the UK after Brexit in alphabetical order, as it struggles to design a system which will cope with the millions of applications expected to flood in, multiple sources have told Business Insider.

    The Home Office, a department seeking to rehabilitate its reputation after the Windrush citizens scandal, faces the huge administrative task of processing residency applications from up to 3.6 million EU citizens living in the UK.

    Under the planned "settled status" scheme, citizens from EU member states residing in the UK will be able to apply for the right to continue living in the country once they have been resident here for five years.

    However, while the Home Office has publicly announced that the scheme will be the subject of a "phased rollout towards the end of 2018," it has so far declined to release further details about how they plan to cope with the millions of expected applicants.

    Multiple sources have told BI that under a confidential plan being discussed by senior officials, caseworkers would process European applicants in "bite-sized chunks" in alphabetical order based on the first letter of their surname.

    Applicants will likely be able to apply for settled status once the scheme opens, but have their applications processed at different times.

    'Least politically sensitive' option

    Eu citizens

    Home Office officials believe that the plan to register EU citizens alphabetically would be the least politically sensitive of all those under consideration.

    Figures within government believe two alternative plans to register applicants industry sector by sector, or by geographical region, could cause a backlash among those left at the back of the queue.

    While banks and other big businesses are pressing the government for a sectoral scheme, one industry source said that a scheme could risk a political backlash if it was seen to favour big business.

    The geographical scheme could be complicated and risk a hostile reaction from whichever regions were not selected for processing first, they said, especially if London and the southeast were among the first to be processed.

    A source briefed on discussions said early tests of the scheme indicated it was "light touch, simple, and very quick" for most applicants.

    But they said the real concern for UK Visas & Immigration, the department which will process applications, was how to deal with EU citizens who simply fail to apply for the scheme, which could number millions.

    "This system only captures those [applicants] who are compliant," the well-placed source said.

    "It doesn't catch anyone who doesn't intend to comply. This is not the time it's going to be difficult," they added.

    Britain's Communities Secretary Sajid Javid applauds during the Conservative Party conference in Birmingham, Britain October 3, 2016. REUTERS/Toby Melville

    'Thousands of people will have no clear immigration status by 2020'

    Campaigners from the3million, which represents EU citizens living in the UK, told BI they were concerned about the "unprecedented scale and timeframe for the scheme."

    Maike Bohn, co-founder of the3million, told BI: "Little has been done to inform EU citizens, with many unaware of what they will have to do.

    "Thousands of people will have no clear immigration status by 2020, and this can turn people’s lives upside down as they lose the right to rent, work, access to healthcare."

    She added: "Many EU citizens will not apply and not understand the consequences."

    A Home Office spokesperson said: "Securing the rights of citizens has always been our priority and we have delivered on this commitment.

    "The EU settlement scheme will make it easy for EU citizens to get the status they need.

    "It will be opened on a phased basis from later this year and will offer a streamlined, user-friendly way for EU citizens to obtain their status. It will be fully open by the end of March 2019.

    "Most EU citizens will only need to prove their identity, evidence their residence in the UK and declare any serious criminal convictions when applying for settled status."

    SEE ALSO: Exclusive: This Home Office leak reveals Theresa May could keep free movement in a no-deal Brexit

    DON'T MISS: Exclusive: Conservative MPs plan to avoid their party conference 'like the plague' amid fears of a Brexit 'bloodbath'

    Join the conversation about this story »

    NOW WATCH: A North Korean defector's harrowing story of escape

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    • MoviePass' parent company, Helios and Matheson, has less than two months of cash left at the rate it was burning through its funds in the second quarter.
    • Even if it was able to reduce its burn rate as much as executives have stated, it still would have less than a month's worth of cash.
    • When it's run low on funds in the past, Helios and Matheson has repeatedly issued and sold new shares to raise cash.
    • But that tactic may be coming to an end; it already increased its share count by more than 9,000% in the last two weeks, and its stock price is inching closer and closer to $0.

    Enjoy your MoviePass subscription while you've got it. You may not be able to use it two months from now.

    Helios and Matheson, the parent company of MoviePass, has less than two month's worth of cash left, the company revealed Tuesday in its quarterly report.

    And that may be overstating things. It could run out of cash much sooner than that if it has overstated the degree to which new restrictions on the service — including a new three-movies-a-month limitation — will reduce the rate at which it burns through cash. 

    The company cautioned investors in the report that its cash is running low and reissued a previously stated "going concern" warning. The company did not immediately respond to a request for further comment. 

    "Without additional funding, the company will not have sufficient funds to meet its obligations within one year from [Tuesday]," the company said in its quarterly report. "These factors raise substantial doubt about the company’s ability to continue as a going concern."

    As of Friday, Helios and Matheson had just $26 million in cash on hand. It had another $25.4 million on deposit at its merchant bank, which processes payments on its behalf.

    By contrast, the company burned through more than $219 million in the second quarter. That's a rate of about $73 million a month — or nearly 50% more than all of the company's cash and accounts receivable on Friday.

    MoviePass has been making changes to save cash

    But Helios and Matheson has been making changes to its MoviePass service, which is its only significant business, to conserve cash. Most notably, it plans to limit the number of movies subscribers can see at no extra price to just three a month — down from one a day. MoviePass CEO Mitch Lowe told the Wall Street Journal he expected the changes, which take effect Wednesday, to reduce the company's cash burn rate by 60%.

    Assuming that figure is accurate, it would mean that Helios and Matheson is now burning cash at a rate of about $29 million a month — or, again, more than the entire amount of cash it had on hand as of Friday.

    And that's assuming things don't get dramatically worse, which again may be a big assumption. One of the things Lowe has repeatedly crowed about is the sharp rise in the number of MoviePass subscribers and the value of the data the company is collecting from them.

    But all the recent changes to the company's service seem to be taking a toll on its users. As of Saturday, the company had 3.2 million subscribers, which was up by just 200,000 in the six weeks since the end of June. Between December and the end of June, MoviePass added 2 million subscribers, or about 333,333 per month.

    Helios and Matheson has repeatedly sold shares to raise cash

    When the company has run low on cash in the past, it has issued new shares to raise funds. And in the report it raised the prospect of doing that again, noting that it has already filed a regulatory document indicating its intent to sell as much as $1.2 billion worth of new shares.

    MoviePass CEO Mitch Lowe and Helios and Matheson Chief Executive Ted Farnsworth.In fact, the company has already been issuing lots of new shares to generate cash. Between June 30 and last Friday, the company issued and sold 232.4 million new shares on the market, raising some $50.2 million.

    But the company's ability to keep repeating that tactic seems dubious. It's already in danger of being delisted from the Nasdaq stock market for having a share price of less than $1, a move that would severely limit its ability to sell new shares.

    Last month, Helios and Matheson attempted to boost its stock price above that threshold by reverse splitting its stock, giving investors one of its new shares for 250 of its old ones. The move worked only temporarily; within a week, the company's stock was again trading at less than $1 a share. On Tuesday, it closed regular trading at 5 cents a share, and sunk under 4 cents a share in after-hours trading.

    It looks set to fall even farther after the company revealed in the report just how much it has diluted shareholders in just the last several weeks.

    Helios' share count has increased by 9,423% in two weeks

    After its reverse stock split, Helios and Matheson had just 1.7 million outstanding. By July 31, it had 6.7 million shares in circulation. However, by Monday it had 636.9 outstanding shares. That's an astounding 9,423% increase to its number of shares in less than two weeks.

    In after-hours trading Tuesday, shareholders seemed to already be starting to take the new, previously unreported dilution into account. In recent exchanges, Helios and Matheson's stock was down more than a penny, or about 29%, to 4 cents a share.

    The farther the company's stock falls the more shares it will have to sell to raise additional funds. And the more shares it sells, the less each share will likely fetch on the open market.

    For the quarter, Helios and Matheson reported a loss of $63.3 million on sales of $74.2 million. In the same period a year earlier — which was before it took control of MoviePass — the company lost $5.2 million on $1.1 million in sales.

    The company's cash burn was more than triple its stated loss in part because it recognized big paper gains due to the reduction in some of its liabilities.

    All of which is to say that something could change soon — the company could get a strategic investment from another, larger company, or it could get acquired wholesale. But with things being as they are, MoviePass subscribers should, perhaps, buckle up for the worst-case scenario. 

    SEE ALSO: The owner of MoviePass keeps repeating the same move to raise the cash it needs to stay alive — and it’s getting absurd

    SEE ALSO: MoviePass' parent company has flooded its investors with a 3,000% increase in new shares — this chart shows how devastating it's been to the stock price

    SEE ALSO: MoviePass may be in bigger trouble than people realize

    Join the conversation about this story »

    NOW WATCH: This machine perfectly pours concrete

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    CEO of MoviePass Mitch Lowe attends 'An Evening with Beverly Luff Linn' Dinner presented by MoviePass on January 20, 2018 in Park City, Utah.

    • MoviePass's parent company, Helios and Matheson, revealed Tuesday that it has increased its share count by 9,423% in just the last two weeks.
    • The massive dilution comes just weeks after the company executed a 250-1 reverse stock split to soak up excess shares and boost its stock price.
    • Helios and Matheson has a history of issuing gobs of shares to raise cash to fund its money-losing MoviePass service.

    Shareholders of the parent company of MoviePass just found out their stakes are worth about 1% of what they previously thought — at least in terms of the portion of the company they thought they owned.

    In its quarterly report it filed on Tuesday, Helios and Matheson revealed that between July 31 and August 13, it increased its share count by an incredible 9,423%. Its total outstanding shares went from 6.7 million to 636.9 million over that period.

    The company now has more shares in circulation than it did before it reverse split its stock by a ratio of 250-1 last month.

    Between June 30 and August 9, MoviePass' parent company issued and sold 232.4 million shares on the public markets, raising $50.2 million. It also swapped convertible notes it issued in November and January for another 266 million shares of stock over that time period, raising some $31.4 million in the process. The company didn't reconcile those figures to the total share count or the increase just since the end of last month.

    Ever since Helios and Matheson acquired a majority stake in MoviePass and instituted its $10-a-month unlimited movie ticket subscription service, it's been losing gobs of money. It blew through $219 million in cash in the second quarter alone.

    Helios has a history of massive dilution

    To replenish its coffers, its repeatedly issued new shares. From August of last year to July this year, for example, its share count swelled by 3,429%.

    All those new shares weighed heavily on its stock. With its shares trading at less than a $1 a share, Helios and Matheson received a warning in June from the Nasdaq that its stock didn't meet the market's standards and was in danger of being delisted.

    To prop up its stock, the company did its reverse split last month, temporarily boosting its stock to more than $20 a share. But within days, the company had resumed its diluting ways.

    Near the end of July, the company had to take out an emergency loan from a creditor to stay in business. It repaid the loan days later. It did so, apparently, by issuing new shares; from the time right before to right after the crisis, its share count increased by nearly 300%.

    Helios and Matheson's share price fell almost in tandem with the dilution. Within a week of the reverse split, it was again trading below $1 a share. It closed regular trading Tuesday at 5 cents a share.

    With the news of the latest round of extreme dilution, it looks set to fall even farther. In after-hours trading Tuesday, Helios and Matheson's shares were down about 2 cents, or 30%, to 3.6 cents a share.

    SEE ALSO: MoviePass has less than two months left before it runs out of cash — and its latest changes won't save it

    SEE ALSO: The owner of MoviePass keeps repeating the same move to raise the cash it needs to stay alive — and it’s getting absurd

    SEE ALSO: MoviePass' parent company has flooded its investors with a 3,000% increase in new shares — this chart shows how devastating it's been to the stock price

    Join the conversation about this story »

    NOW WATCH: NYU professor says Facebook should pay taxes for making us less productive

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    • A grand jury in Pennsylvania released a 1,300-word report Tuesday detailing allegations about the Roman Catholic Church's decades-long cover-up of sexual abuse of nearly 1,000 children by 300 "predator priests."
    • The report details what investigators described in the report as a "a playbook for concealing the truth" that was used by officials to cover up 70 years of abuse of children by 300 Roman Catholic priests.
    • Across files from six dioceses, special agents identified several patterns using special language and illegitimate investigations to downplay accusations and protect the priests.

    A grand jury in Pennsylvania released a 1,300-word report Tuesday detailing allegations that the Roman Catholic Church spent decades covering up sexual abuse claims against 300 "predator priests" who are said to have targeted nearly 1,000 children.

    The report covers 70 years of alleged abuse and the lengths that church officials went to cover up the accusations, using what investigators described in the report as a "a playbook for concealing the truth."

    Special agents identified several common practices across the files from the six dioceses they investigated that kept the accusations within the church, and avoided recording any criminal identifications in the documents.

    The report lays out what it said were mechanisms for shielding accused priests from legitimate punishment, including:

    • Using euphemisms for the sexual assaults. "Never say 'rape'; say 'inappropriate contact' or 'boundary issues.'"
    • Choosing fellow clergy members, not unbiased professionals to "ask inadequate questions and then make credibility determinations about the colleagues with whom they live and work."
    • "For an appearance of integrity, send priests for 'evaluation' at church -run psychiatric treatment centers," as the priest's diagnosis would be mostly based on his own "'self -reports,' regardless of whether the priest had actually engaged in sexual contact with a child."
    • To completely conceal any wrongdoing even if the priest is removed, "don't say why. Tell his parishioners that he is on "sick leave," or suffering from 'nervous exhaustion.' Or say nothing at all."
    • "Even if a priest is raping children, keep providing him housing and living expenses, although he may be using these resources to facilitate more sexual assaults."
    • If a predator's conduct becomes known to the community, don't remove him from the priesthood to ensure that no more children will be victimized. Instead, transfer him to a new location where no one will know he is a child abuser."
    • "Finally and above all, don't tell the police," though sexual abuse of minors is a universally punishable crime, "don't treat it that way; handle it like a personnel matter, 'in house,'" the text said, according to the report.

    The report goes on to list 300 cases of individual priests from Harrisburg, Pittsburgh, Allentown, Scranton, Erie and Greensburg dioceses with names and graphic details from their accusers.

    Some of the accused priests protested the report after it was announced, saying it would unfairly damage their reputations. Some information in the document is redacted, but the court released it in full.

    For decades, the Catholic Church has been hit with sexual abuse allegations in parishes worldwide. Pope Francis has recently accepted a number of resignations from church officials in Chile and Argentina as a result.

    The Pope admitted in 2017 the Catholic Church was "a bit late" in realizing the damage done by predatory priests who had been accused of raping and molesting children, and was only made worse by the decades-long practice of moving pedophiles around rather than punishing and removing them. 

    Read the full report below:

    SEE ALSO: Landmark Pennsylvania grand jury report finds more than 300 'predator priests' sexually abused more than 1,000 children

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    Elon Musk

    • Some members of Tesla's board of directors are hiring lawyers to protect themselves in the ongoing fallout from CEO Elon Musk's public declarations about taking the company private.
    • Fellow board members are also urging Musk to cool it with the public statements about a go-private deal, according to a New York Times story published Tuesday night.
    • By all appearances, Musk has ignored that advice.
    • In the days since he tweeted that a privatization deal was "funding secured," the chief executive has only waded further into murky legal territory, seemingly hashing out the plan in real time, on Tesla's blog and on social media.
    • Tesla is now facing multiple lawsuits over this.

    Some Tesla board members are getting nervous while Elon Musk publicly ruminates about taking his electric-car company private — so much that some have hired attorneys to protect themselves from legal exposure, The New York Times reported Tuesday night.

    Fellow board members are also urging Musk to cool it with the social media posts about a go-private deal. But by all appearances, Musk has ignored that advice. The chief executive has talked out the plan on Tesla's blog and on Twitter, even as the Securities and Exchange Commission said it was monitoring the situation.

    It is unusual for the CEO of a publicly traded company to approach financial strategy the way Musk has in the past week. The company is now facing multiple lawsuits over this.

    Musk's online musings have rattled shareholders, and, according to the Times, that anxiety is most tangible among some on the board. Independent members have hired Paul, Weiss, Rifkind, Wharton & Garrison to address the emerging SEC inquiry. A source familiar with the matter cited by the newspaper said the board believes the SEC matter could become a "full-blown investigation."

    Three directors have retained the law firm, Latham & Watkins, to assist them with an official proposal from Musk to take Tesla private.

    Musk's first tweet about going private reportedly caught the board off guard, The New York Times reported on Monday.

    Citing two people familiar with the internal response to Musk's August 7 posting, The Times said the tweet was sent "with little forethought," and that "some members of the board had been totally blindsided" by Musk’s move to announce the plan on Twitter.

    Read more about Tesla possibly going private:

    SEE ALSO: Pressure mounts on Tesla as it gets hit with a third securities fraud lawsuit in wake of Elon Musk's 'funding secured' tweet

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    • Apple could release a pair of augmented reality smartglasses in 2020, highly respected Apple analyst Ming-Chi Kuo predicts.
    • Apple could also release an "Apple Car" by 2023, according to the note.
    • The note is speculative, but Apple does have hundreds of employees working on both automotive projects and augmented reality prototypes.

    Apple could release augmented reality glasses by 2020, and a car three to five years after that, highly-respected analyst Ming-Chi Kuo predicted in a TF Securities research note distributed on Tuesday.

    Kuo's research has a strong track record of accurately describing Apple products often months before they officially launch.

    In the speculative note, seen by Business Insider, Kuo discusses how Apple could reach a $2 trillion market cap after it reached the $1 trillion mark earlier this month.

    "Services, AR, and Apple Car will create Apple’s next trillion-dollar market cap," he wrote in the research note. 

    Augmented reality, combining the digital and physical worlds through smartglasses, is going to become Apple's next major user interface, he predicts, like how the iPhone introduced multi-touch touchscreens. 

    "We predict that AR is the next-generation revolutionary UI; we therefore think that AR does not need any killer applications given it is a killer application already," he wrote in the note. 

    "We expect Apple will redefine the UIs of existing products by offering an AR experience created by the AR glass, which will likely be launched in 2020," he continued. 

    Apple has hundreds of employees working on augmented reality technology. Some work on Apple's current augmented reality software for the iPhone, ARKit, which developers can use to easily create augmented reality apps. Others are working on prototypes and other R&D projects. Apple is working on a new chip and operating system for the device, Bloomberg reported last year

    Google Glass

    Apple's not the only company working on smartglasses. Google released Google Glass in 2013, and although it was not well-received at the time, Google ccontinues to develop the technology. Magic Leap, a startup that has raised over $2 billion in funding, started shipping its gaming and creativity-focused smartglasses earlier this month. 

    Kuo also makes a few predictions in the note about an Apple Car, which he says could be Apple's next "star product" and could launch between 2023 and 2025. Apple is likely to tightly integrate services into the car, which could allow Apple to enter into the car financing market, he forecasts in the note. 

    Apple has a large car division, called Project Titan, and is currently running autonomous driving tests on California roads. However, the company has never revealed the extent of its automotive ambitions. 

    pokemon go apple arkit

    SEE ALSO: Here's what to expect from the Samsung Galaxy S10, including a new feature you won't find on iPhones

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    Ellen + EV1 Tag

    • Walmart and Ellen DeGeneres are launching a new affordable fashion line called EV1. 
    • The line, which is launching September 10, will feature denim, t-shirts, accessories, and sneakers that cost less than $30.
    • The new line is part of a series of moves that Walmart has made this year to establish as a fashion destination.

    Walmart is partnering with Ellen DeGeneres to launch a new fashion line featuring denim, t-shirts, accessories, and sneakers that all cost less than $30. 

    The brand, called EV1, will launch September 10 on Select styles from the range will also debut in more than 2,300 Walmart stores. The line will initially feature nearly 60 items.

    "The core of the EV1 collection is denim — an iconic American staple," Denise Incandela,'s head of fashion, wrote in a blog post on Wednesday. "We, along with Ellen, wanted to make a line that worked for everyone (EV1). Designed to be effortlessly stylish, EV1 was inspired by Ellen's own confidence and optimism (think tees with inspirational sayings, elevated denim and, of course, fantastic sneakers). It's cool, fun and accessible."

    By partnering with Ellen DeGeneres, Walmart is following in the footsteps of Target and Kohl's, which are well-known for their celebrity fashion collaborations.

    Most of Target's collaborations — aside from a recent partnership with HGTV stars Chip and Joanna Gaines — are temporary, however, and some sell out in a matter of days. 

    Walmart's collaboration with Ellen DeGeneres will instead be a permanent collection with new styles rolling out seasonally.

    Shoppers will be able to find EV1 under the "everyday brands" tab on's fashion landing page.

    The new line is part of a series of moves that Walmart has made this year to establish as a fashion destination, Incandela wrote.

    Walmart redesigned its website earlier this year to make it easier to shop and has partnered with Lord & Taylor to add a new "premium brands" tab to its website, featuring 125 upscale brands sold by the department-store chain.

    Now, the company says it is focusing on growing its fashion assortment. 

    "With the foundation now laid, we're excited to focus on broadening our fashion assortment," Incandela wrote.

    SEE ALSO: Walmart has a new website for wealthy shoppers — here's what it's like

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    unhinged an insiders account of the trump white house omarosa

    Omarosa Manigault-Newman, the firebrand communications director of the White House Office of Public Liaison who was abruptly fired in December, has released her tell-all book, "Unhinged: An Insider's Account of the White House."

    In the book, she recounts her alleged experiences inside the Trump administration and campaign, making startling claims that include an accusation she heard a recording of Trump saying a racial slur.

    But the Trump administration is fighting back, with the president leading the charge by downplaying her credibility and calling her names on Twitter.

    The relationship between the two former reality TV stars — Trump was the host of NBC's "The Apprentice" while Omarosa was a contestant — was not always strained. Even in a phone call between Trump and Omrosa shortly after her ouster from the White House, the two appeared to share a compassionate moment with Trump offering his condolences.

    "Damn it, I don't love you leaving at all," Trump appeared to say on a secretly recorded phone call from Omarosa.

    Here's a timeline of Omarosa's journey from a star on "The Apprentice," to her eviction from the White House:

    Omarosa Manigault-Newman was involved in politics long before Donald Trump's presidency.

    Omarosa held various roles in government during the Clinton administration. She answered invitations for Vice President Al Gore and eventually landed a job with the Department of Commerce.

    Her former colleagues described her tenure as rocky, including Cheryl Shavers, the former Under Secretary for Technology at the Commerce Department, who said that "she was asked to leave as quickly as possible, she was so disruptive," according to People.

    "One woman wanted to slug her," Shavers said.

    Omarosa made her primetime debut on NBC's "The Apprentice" in 2004.

    She was eliminated from the show by Trump in Week 9 of the first season. 

    Source: Bustle

    Omarosa continued to make appearances in various "Apprentice" spinoffs. She also starred in her own show "The Ultimate Merger," in which 12 men, selected by Donald Trump, competed against each other for her favor.

    See the rest of the story at Business Insider

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    Wells Fargo

    • The FBI reportedly sent a confidential email to banks Friday outlining a potential ATM security threat.
    • The scheme is known as an "ATM cash-out."
    • Hackers use malware to access machines, lift controls and access large sums of money.

    The FBI is privately warning banks of a potential global hacking scheme that could be carried out through their ATMs.

    The bureau sent a confidential alert to banks Friday to notify them individuals are planning a large-scale fraud scheme known as an "ATM cash-out," journalist Brian Krebs first reported on his cybersecurity news website. 

    FBI spokesperson Lauren Hagee did not comment on the matter specifically, but sent Business Insider the following statement in response to questions about it:

    "In furtherance of public-private partnerships, the FBI routinely advises private industry of various cyber threat indicators observed during the course of our investigations. This data is provided in order to help systems administrators guard against the actions of persistent cyber criminals."

    In an ATM cashout scheme, hackers can use malware to access a bank or payment card processor and sometimes make fraudulent copies of cards by imprinting stolen card data on reusable magnetic strip cards.

    Krebs said they can also manipulate account information and security settings to make large sums of money available for withdrawal.

    "Just prior to executing on ATM cash-outs, the intruders will remove many fraud controls at the financial institution, such as maximum ATM withdrawal amounts and any limits on the number of customer ATM transactions daily," Krebs wrote.

    SEE ALSO: 'Tech trendiness' has spiked to dangerous levels — here's why that could be signaling widespread market pain

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    elon musk

    • Elon Musk tweeted late Monday that he was "excited to work with Silver Lake and Goldman Sachs" in his plan to take Tesla private. 
    • Goldman Sachs' analyst is one of the most bearish Tesla analysts on Wall Street, with a "sell" rating and $210 price target — 40% below where shares are trading.
    • Companies generally favor banks whose analysts rate them favorably. 
    • Musk is no stranger to hating Tesla bears, and interrupted two analysts with "sell" ratings on the company's first-quarter conference call. 
    • Follow Tesla's stock price in real-time here. 

    Elon Musk hasn't been one to hide his disdain for Tesla skeptics on Wall Street.

    But when it came time to hire bankers to advise him on taking the company private, the Tesla CEO enlisted a bank home to one of the most bearish Tesla analysts on Wall Street. Goldman Sachs' automotive analyst David Tamberrino has had a "sell" rating on the stock since February 2017.

    Even Goldman's most optimistic scenario for Tesla doesn't even reach Musk's tweeted goal of $420.

    "Our current valuation framework looks at potential upside scenarios where Tesla achieves mass market volumes —in the 2 million to 3 million vehicle range in 2025, versus our base case forecast for approx. 800k," Tamberrino wrote earlier in August. "In those upside scenarios, we ascribe valuations (discounted back to early 2019) for the overall company that average to approx. $414 per share."

    Despite the blue-sky scenario, his price target remained $210 — a 45% discount to where shares were trading at the time. "Of course, our base case valuation implies a much lower potential value per share for Tesla —given the slower growth rate and forecasted lower margin profile," he said.

    The dichotomy isn't unusual for Wall Street. Most brokerages and banks have a research arm attached, which writes and disseminates reports on stocks in order to win trading business for the firm as clients decide to buy or sell based on the notes.

    Technically, there is a "firewall" between these two businesses — and any business relationships are disclosed at the bottom of every research report — but human nature can still cloud decisions, a professor told Business Insider.

    "Human nature being what it is, no CEO is likely to throw business to a bank whose analyst is negative on the CEO's company," Erik Gordon, a professor at the University of Michigan's Ross School of Business, told Business Insider in a recent interview.

    "There are examples of analysts reiterating 'buy' ratings 30 days before a company went under," he continued.

    In addition, "sell" ratings are rare. The research firm FactSet said last year that only 6% of about 11,000 recommendations on stocks in the S&P 500 were sell (or equivalent), according to The Wall Street Journal

    Here's what Goldman's disclosure looked like on its latest Tesla note, which was published on August 8:

    Goldman Sachs has received compensation for investment banking services in the past 12 months: Tesla Inc.

    Goldman Sachs expects to receive or intends to seek compensation for investment banking services in the next 3 months: Tesla Inc.

    Goldman Sachs had an investment banking services client relationship during the past 12 months with: Tesla Inc.

    Goldman Sachs had a non-securities services client relationship during the past 12 months with: Tesla Inc.

    Goldman Sachs makes a market in the securities or derivatives thereof: Tesla Inc.

    Still, the choice of Goldman Sachs is significant due to Musk's loudly voiced disdain for Wall Street skeptics. On an earnings call in May (one that he has since apologized for) he interrupted two analysts, calling their questions "boring" and "boneheaded."

    His explanation on Twitter after the contentious call was that the "the 'dry' questions were not asked by investors, but rather by two sell-side analysts who were trying to justify their Tesla short thesis." He added: "They are actually on the *opposite* side of investors. HyperChange represented actual investors, so I switched to them."

    Tesla surged to fresh highs last week after Musk's snap announcement of taking the company private, but had given up all of their gains by Tuesday, showing a lack of confidence from investors that the deal will actually get done. The stock is currently trading at $355 — 18% below the $420 price where Musk said he would take the company private.

    Goldman Sachs declined to comment.

    More on Tesla's proposal to go private:

    Now read:

    Tesla stock price

    SEE ALSO: 'A private life is a happy life': Here's what Wall Street is saying about Tesla's plan to leave the stock market

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    Jeff Bezos India

    Good morning! This is the tech news you need to know this Wednesday.

    1. Tinder's founders have filed a bombshell $2 billion lawsuit claiming the former CEO 'groped and sexually harassed' an executive at a company partyThe lawsuit alleges that the former Tinder CEO and IAC Chairman Greg Blatt harassed Rosette Pambakian, Tinder's vice president of marketing.

    2. Tesla has been hit with a third securities fraud lawsuit in the wake of CEO Elon Musk's 'funding secured' tweet. A complaint filed alleges that some investors purchased Tesla stock "at artificially inflated prices and suffered significant losses and damages once the truth emerged" that Musk had not secured the funding necessary to convert Tesla into a private company.

    3. The world's biggest tech companies are at serious risk of losing out on the $32 billion market Indian ecommerce market. India's government is drawing up new policies that would favour domestic ecommerce startups over foreign competitors such as Amazon, Facebook, and Google.

    4. Some members of Tesla's board are hiring lawyers to protect themselves in the ongoing fallout from CEO Elon Musk's public declarations about taking the company private. Fellow board members are also urging Musk to cool it with the social media posts about a go-private deal.

    5. MoviePass has less than three months left before it runs out of cash. The company burned through more than $219 million in the first six months of the year, and said it now has $26 million in cash on hand, and another $25.4 million on deposit at its merchant bank.

    6. Apple could launch smart glasses in 2020 and an Apple Car in 2023, according to an analyst with strong track record. Respected TF Securities analyst Ming-Chi Kuo suggested the new services could take Apple's valuation to $2 trillion.

    7. Tinder and Match Group were a poor match from the beginning, according to the lawsuit filed by the dating app's founders. As well as harassment, the lawsuit alleges that the management of Match Group and its corporate parent IAC repeatedly reneged on formal agreements and shorted the founders of money and ownership.

    8. Apple is reportedly arguing that buildings at its headquarters are worth just $200 so that it can reduce its tax bill. In a 2015 appeal, Apple claimed that a "cluster of properties" around Apple Park was worth $200, rather than the $1 billion figure alighted on by Santa Clara County's tax assessor.

    9. A Twitter engineer has said he's deleting the app from his own phone in a protest of CEO Jack Dorsey's policies. Jared Gaut criticised leadership's attempts to remain neutral — an apparent reference to Twitter's decision not to ban conspiracy theorist Alex Jones.

    10. Twitter has suspended Alex Jones' ability to tweet, but not from the platform altogether. Jones can read his posts but can't interact with any other users or post.

    Have an Amazon Alexa device? Now you can hear 10 Things in Tech each morning. Just search for "Business Insider" in your Alexa's flash briefing settings.

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    Omarosa Manigault

    Hello! Here's what's happening on Wednesday.

    1. White House Press Secretary Sarah Huckabee Sanders says she "can't guarantee" that we'll never hear a recording of Trump saying the N-wordFormer White House senior adviser Omarosa Manigault Newman wrote about the tape in her new explosive memoir "Unhinged."

    2. UK Prime Minister Theresa May may be considering a plan to register 3 million EU citizens "alphabetically." Alternative plans to register applicants sector by sector, or by geographical region, are considered politically sensitive.

    3. South Korea's President Moon Jae-in said plans to build a railway across the Korean peninsula will kick off this year. A third summit between North Korean leader Kim Jong Un and Moon is planned for September.

    4. Beijing furiously protested after the US targeted China in a new defense actThe act targets Chinese activities in the South China Sea and Chinese investments in the US and aims to bolster Taiwan's defenses.

    5. Members of Tesla's board of directors are lawyering up to protect themselves from CEO Elon Musk's latest public statements. Musk tweeted that he planned to take the company private, and Tesla is now facing multiple lawsuits.

    6. A US grand jury released a report that found more than 300 "predator priests" sexually abused more than 1,000 childrenInvestigators described "a playbook for concealing the truth" about abuse over 70 years.

    7. Japan activated an elite marine unit for the first time since World War II to counter ChinaThe new unit – tasked with defending Japan’s remote islands – carried out its first training exercise in early April.

    8. The founders of the dating app Tinder are suing its parent company IAC in a $2 billion lawsuit. The suit features allegations of sexual misconduct by former Tinder CEO and IAC Chairman Greg Blatt.

    9. At least 26 people are dead after a huge highway bridge collapse in Italy. It is unclear what caused the bridge to collapse in Genoa. 

    10. Australia will soon build the tallest skyscraper in the Southern Hemisphere. The $2 billion project, called the "Green Spine," will reach over 1,168 feet (356.20 meters) in height.

    And finally ...

    Omarosa taping Trump's Situation Room may be one of the worst White House security breaches ever

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    Karma founders

    • A Swedish startup that sells spare food from cafes and supermarkets at a discount has raised $12 million.
    • Karma's Series A round includes US investor, Bessemer, in an ongoing trend of American capital flowing into Nordic startups after the success of Spotify and Supercell.
    • Karma could provide a cheaper alternative to takeaway startups like Deliveroo.

    A European startup that sells off spare food from local cafes and supermarkets at a discount has raised $12 million (£9.4 million) from investors, including US firm Bessemer Venture Partners.

    Karma is headquartered in Sweden and expanded to the UK earlier this year. It partners up with supermarkets, restaurants, and even food delivery services to sell off leftover food direct to consumers, who then go and pick up their discounted items directly.

    The startup wants to help reduce food waste, but it has the bonus side effect of providing consumers with a cheap alternative to takeaway services like Deliveroo.

    The Series A round was led by Swedish firm Kinnevik, appliance manufacturer Electrolux, with Bessemer also taking part. US startup investments in Europe are slowly ticking up, and American backers are particularly interested in the Nordics after the success of companies such as Spotify, Supercell, and Zendesk.

    Karma's restaurant partners include Mayfair restaurant Aubaine, Italian chain Polpo, and Caravan. While it has supermarket partners in its home market of Sweden, it doesn't have any British supermarkets on board yet.

    Hjalmar Ståhlberg Nordegren, CEO and cofounder of Karma, said in a statement: "We are delighted to announce this investment which will accelerate our mission to reduce food waste globally."

    Join the conversation about this story »

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    Pedestrians walk past an electronic board showing currency exchange rates in Buenos Aires' financial district, Argentina, June 29, 2018. REUTERS/Agustin Marcarian

    • The collapse of the Turkish lira and the strong dollar have hit emerging market currencies globally.
    • If the trend continues, countries may start to have trouble paying back dollar-denominated debts.
    • Analysts say Argentina, Pakistan, South Africa, and Colombia are among those most at risk.

    LONDON — The collapse of the Turkish lira against the dollar is the focus of global markets but emerging market currencies are getting hammered across the board and there are concerns that the issue could spiral from a currency crisis into a debt crisis.

    The Indian rupee hit an all-time low against the dollar overnight, the South African rand has been diving, Argentina's central bank hiked rates by 5% on Monday to arrest the peso's decline, and Indonesia's government is meeting to discuss emergency measures to defend the sinking rupiah.

    "EM [emerging market] currencies (judged by the Bloomberg EM currency basket) are now at their lowest nominal value in the past three years – below the level reached in early 2016 at the time of the commodity price fall and period of US$ strength," analysts Stuart Culverhouse and Hasnain Malik from emerging market specialist bank Exotix said in a note on Tuesday.

    UBS and Credit Suisse have both flagged the danger that Turkey's currency crisis could spiral into a debt crisis. If this does happen, we could see similar issues in other emerging markets.

    Many emerging markets loaded up on dollar-denominated debts when interest rates were low. But a combination of falling local currencies and a soaring US dollar mean those debts are getting more expensive to pay off.

    Turkey's foreign currency debts across businesses, banks, and the government are at 55% of GDP, according to the Telegraph. The newspaper reports that The Institute of International Finance "thinks events in Turkey are just the start of a long and painful hangover for those emerging markets that drank deepest from this cup." The report warns that South Africa, Indonesia, and Columbia are most at risk.

    David Jones, chief market strategist at, said in an email: "Given that the memories of the far-reaching effects of the Greek crisis have not been forgotten, do not be surprised if we see cautious trading and further US dollar strength in the days ahead as investors decide that it is better to be safe and late to any recovery - rather than be too early and very wrong."

    Exotix's Culverhouse and Malik say that emerging markets are currently suffering mainly from the "risk off" sentiment rather than a belief among investors that they share similar characteristics with Turkey. But the pair refers to a ranking they made in May showing which countries could be most at risk if sentiment does shift.

    Here's the ranking:scorecard

    The Exotix pair writes: "Most of the others in our sample (except India) are too small to pose wider systemic risks. But difficulties could lead to localised, country-specific problems, especially for those with pre-existing weaknesses."

    Lale Akoner, a market strategist in BNY Mellon’s global investment strategy group, said on Tuesday: "In our view, Turkey is mostly the exception and not the rule, and not necessarily demonstrative of the larger EM complex.

    "Nevertheless, what is largely an idiosyncratic risk for Turkey did feed into the negative sentiment towards EMs in general."

    SEE ALSO: UBS: Turkey could be heading into a balance-of-payments crisis

    DON'T MISS: India's rupee hits an all-time low as the Turkish lira crisis spills over to other currencies

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