How the GM strike could start a Midwest recession
- Detroit (CNN Business) - The nearly 50,000 striking General Motors workers are just the beginning.
- The strike by the United Auto Workers union could even tip large swaths of the Midwest into recession.
- The company said some 10,000 American companies supply it with products and services, making things that end up on the cars like seats, tires, brake linings, windshields and computers chips.
- And the 10,000 GM suppliers spread across the United States are only part of the affected base of manufacturers.
- Restaurants, retailers and other businesses in Midwestern towns where most of GM's plants are located are also likely to take a hit because they depend on money spent by GM employees and the employees of the automaker's suppliers.
- One area that isn't likely to suffer layoffs in the near term is GM's network of dealerships, which are privately owned businesses and not part of the company.
Can a Data Center Outage Database Help Prevent Outages?
- This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.
- Informa PLC's registered office is 5 Howick Place, London SW1P 1WG.
- Suppose a service outage at a data center were an unsolved crime in a detective novel — a good one.
- No database of data center event logs is as interesting as a crime novel, but it should contain all the data pertaining to the cause of an incident.
- Here’s the challenge: How much data must be pooled from all the facilities before we can determine not only a pattern but a formula for incidents, one that can be used to diagnose them before they occur?
- The answer may lie in determining first just how many similarities there are from one data center to another – an amount that appears to be shrinking.
THE EVOLUTION OF THE US NEOBANK MARKET: Why the US digital-only banking space may finally be poised for the spotlight
- Neobanks, digital-only banks that aren't saddled by traditional banking technology and costly networks of physical branches, have been working to redefine retail banking in major markets around the world.
- That's largely because of an onerous regulatory regime, which has made it very difficult to obtain a banking license, and the entrenched position incumbents hold in the financial lives of US consumers.
- Navigating the tedious and costly scheme for obtaining a banking charter and appropriate approvals has been a major stumbling block for the country's digital banking upstarts.
- Startups and tech-savvy players are redefining the retail banking space and forcing incumbents to either evolve or lose out on this key business segment.
- In The Evolution of the US Neobank Market, Business Insider Intelligence maps out the factors contributing to this shifting tide, examines how key players are positioning themselves to take advantage, and explores how incumbents can embark on their own digital transformations to stave off disruption.
I tried KFC's new fried-chicken-and-doughnut sandwich, and it's a near-perfect answer to the craze over the sold-out Popeyes sandwich
- KFC is testing a "Chicken and Donuts" menu that features pairings of glazed doughnuts and the chain's classic fried chicken.
- One of the new menu items is a fried-chicken-and-doughnut sandwich.
- Customers can also order a basket of fried chicken on the bone or chicken tenders with one or two doughnuts or add a doughnut to any meal for $1.
- I tried the new menu at a KFC restaurant in a Chester, Virginia location, and I now think that KFC should make the chicken-and-doughnut sandwich available nationwide.
- A KFC representative told Business Insider's Kate Taylor that the doughnuts are shipped to restaurants already cooked.
- When a customer orders them, the doughnuts are dipped in fryers and glazed.
Gap's CEO says the retailer wants to shift Banana Republic from a 'historically' 'skinny brand' to one that's more 'inviting'
- When it comes to sizing, it's time for a regime change at Banana Republic, according to the CEO of the struggling retailer's parent company.
- Peck said that Banana Republic as a brand must open its doors to a more diverse audience by making room for plus-size options.
- Bloomberg reported that Banana Republic stocks up to size 16 in stores and up to size 20 online for some articles of clothing, but that the company would like to boost its selection up to size 26 or larger.
- Banana Republic started out as a safari-themed clothing retailer, according to AdWeek, but Gap tweaked the brand to become more upscale and preppy.
- Peck's comments come after a series of slips on the part of Banana Republic.
- Gap is shutting down all remaining Banana Republic stores in the United Kingdom, according to the Guardian.
Rent the Runway CEO Jennifer Hyman says she has to justify her company’s “right to exist” to male investors
- Rent the Runway CEO Jennifer Hyman runs a unicorn-status company with a billion dollar valuation in a rapidly growing industry, but she still finds herself explaining her business’ “right to exist” to venture capitalists — nearly 90 percent of whom are men.
- In March, the company raised $125 million at a billion dollar valuation.
- She said the company’s subscriber base is growing 100 percent year over year, and that Rent the Runway stores are seeing 10 times the volume of transactions that they were two years ago.
- Hyman was also thankful for the female investors who helped lead the company’s last round of funding and said there should be more women with the opportunity to fund new businesses.
- Correction: A previous version of this article misstated a statistic about Rent the Runway’s in-store transactions.
5 things that get cheaper when the Fed cuts interest rates
- Greg McBride, chief analyst at Bankrate, told Business Insider in July that some interest rates are more closely tied to the Fed's fund rate than others.
- "When interest rates go down, consumers will typically see a similar decrease in credit card rates, home equity lines of credit, variable rate student loans, and small business loans," he says.
- Interest rates on credit cards are closely tied to the prime rate, so you'll likely see decreases near .25% on interest rates.
- Variable rate loans are closely tied to the Libor or prime rate, and with that decreasing, you'll likely pay less in interest.
- While the rate cut will have no effect on existing loans, it might be a better time to look around and refinance your auto loan if you're feeling like your interest rate is too high.
WeWork founder Adam Neumann joked about changing the United States Constitution so he could run for president
- Embattled WeWork founder Adam Neumann has been eating humble pie as his company's IPO plans have been heavily ridiculed — and are now on pause.
- And that was before The We Company, WeWork's parent, said this week that it would postpone its IPO from its expected launch this month.
- A story by Gabriel Debenedetti in New York Magazine's Intelligencer reveals how big Adam Neumann dreams and thinks, and how hard it may be for him to humble himself at all.
- Whether he's dreaming of political power or not, there's plenty of evidence that Neumann thinks so big, he's often over the top.
- Meanwhile, he controls for perpetuity nearly all of the supervoting shares of stock issued by his company, even the stock that is owned by other people.
- Yet, given how poorly received the planned IPO was Neumann may have to humble himself far more seriously to get it back on track.
It might seem like travel bloggers write off lavish vacations and luxurious meals without a thought, but the reality is more complicated
- Nisall says clients regularly come to him believing they can throw up a travel website and immediately begin expensing all their trips to their business, but they're usually wrong.
- That's because most people start a blog as a "side gig," meaning both the time involved and the reliance on the income factors are not generally met, says Nisall.
- Blogging for profit is actually rather difficult; it takes a lot more than adorable bikini pictures or family vacation photos to earn real income with the main avenues bloggers use (affiliate marketing, display ads, PPC ads, etc.) Like it or not, most bloggers shouldn't expect to make any money for the first six to twelve months.
- Nisall says that, realistically, you can still expect to deduct many of your regular expenses right away, including costs involved in setting a website up, getting it running, and creating a design.
TELEMENTAL HEALTH REPORT: How telehealth can help US hospitals and health systems manage the $238 billion mental health crisis
- One way hospitals can more effectively triage patients and gain quicker access to mental health specialists when they need them is by equipping EDs with telemental health technology — which allows doctors to virtually connect with remote psychiatrists when patients come into the ED in need of a psychiatric consultation.
- Telemental health solutions have helped hospitals better allocate a meager army of mental health specialists, pare down wait times for patients, and optimize the flow of patients in and out of ED beds.
- In this report, Business Insider Intelligence explores how the onus of the US' mental health crisis falls on health systems and hospitals, and how they can navigate the costly dilemma via telemental health.
- We first dive into the challenges providers are presented with amid the crisis and how traditional mental health strategies are falling short in addressing them.