General Electric fought back Thursday after the company was accused of fraud causing its stock to experienced its worst one-day percentage drop since April 2008. Shares of General Electric plunged more than 11% Thursday after Harry Markopolos, who is famous for blowing the whistle on Bernie Madoff’s Ponzi scheme in 2008, accused GE of orchestrating a massive fraud. GE Board Director Leslie Seidman called the fraud allegations “baseless” and “inflammatory” . Markopolos in a report released on Thursday, accused GE of hiding nearly $40 billion of losses in its insurance business. Markopolos also took issue with how GE accounts for its majority stake in oil services firm Baker Hughes and accused the company of hiding more than $9 billion in losses in its separately traded BHGE unit. Markopolos claims his findings are the largest case of accounting fraud he and his team have investigated. Markopolos made several comparisons to Enron in his report and also on a new website with the URL www.gefraud.com. He accused GE of using what he dubbed “the ‘GEnron’ playbook.”
Macy’s has announced it will dip its toes into both the clothing subscription and apparel resale businesses. The department store operator will start a pilot this month with resale marketplace ThredUp at 40 Macy’s stores across the country, taking up about 500 square feet of space at each location. As Macy’s puts merchandise from ThredUp into its stores, it will be taking items from brands and categories that Macy’s doesn’t currently. The move comes as millennial and Gen Z shoppers especially are looking for rental and resale options. The company hopes the new strategy will be a way for Macy’s to acquire new customers. Meanwhile, at its Bloomingdale’s business, Macy’s is working with CaaStle, a start-up that assists retailers in rolling out subscription clothing services as an increasing number of busy professionals would rather rent there wardrobe insert of going to the expense of buying it.
Asia: Asian shares closed mixed Friday as investors watched yields on longer duration U.S. Treasurys as well as for developments on the U.S.-China trade front.
Europe: European markets ended lower on Thursday a global bond yields continued decline.
U.S: U.S. stocks stabilized on Thursday as upbeat data on American shopping habits easier investors fears of recession. DJIA: +99.97 25,579.39 NASDAQ: -7.32 7766.62 S&P: +7.00 2847.60
Word of The Day:
The highest possible rating assigned to bond issuer by credit rating agencies. It signifies the issues has an exceptional degree of creditworthiness and can easily meet its financial commitments.
Diner or Drink:
8 large mint leaves
1 (750-milliter) bottle Cava sparkling wine, chilled*
3/4 cup white grape juice, chilled
1/2 cup sliced fresh strawberries
1/4 cup orange liqueur
Garnish: fresh sugar cane sticks
1. Press mint leaves against sides of a large pitcher with back of a wooden spoon to release flavors. Stir in sparkling wine and next 3 ingredients. Serve immediately over ice. Garnish, if desired.
Have a safe and wonderful weekend, Ya’ll!