Marketplace Morning Report
Start your day with an up-to-the-minute report on the world of business and finance with host David Brancaccio.
For trading stocks and other securities, there are stock exchanges, which are highly regulated. There are also alternative trading systems called "dark pools," which are lightly regulated. There's news this morning that IEX, an upstart, alternative system has gotten some big new investors to help it try become a fully-fledge, regulated exchange. IEX is designed to mute the effects of high speed trading, advanced technology that some argue serves Wall Street middlemen and not investors. The CEO of IEX--Brad Katsuyama was cast as the protagonist in Michael Lewis' bestselling critique of high-speed trading, and he joins us today. Plus, H&R Block is expected to report its profits later today. Analysts are feeling good about the tax-prep giant's future and the industry as a whole. That industry can thank the health care reform law. In just a few months, millions of people may end up with tricky tax questions now that they've received federal subsidies to help cover the cost of health insurance. And there's word from the mayor's office in New York that nine of about 1100 sites for city-funded, privately-run pre-kindergarten will not open because of safety questions and other issues. There will be delays for 36 others. Still, beginning tomorrow, about 50,000 four year olds in New York City will start attending full-day pre-kindergarten. It'll be free for families, which is especially significant in a city where early education had been the most expensive in the country.
First up, a German court has imposed a temporary ban on the car-sharing service Uber. The company, which has been valued at $17 billion dollars, has been expanding; setting up shop in cities around the world. As that's happened, Uber's faced criticism, especially from taxi drivers. That's led to strikes in some markets, and legal action in others. Plus, just a few months after he lost his primary in Virginia's seventh congressional district, Eric Cantor, the former House Majority Leader has a new job. Cantor will become Vice Chairman and Managing Director at Moelis and Company, an investment bank. And all this week, Marketplace Tech is looking at how technology is changing how we read. Marketplace Tech host Ben Johnson joins us to talk about it.
Two more casinos in Atlantic City is closing down. That makes three that have announced their closure in the last month. The gaming industry is suffering due to foreign competition, and Atlantic City is the most obvious casualty. Plus, insurers can no longer reject customers with expensive medical conditions thanks to the Affordable Care Act. But consumer advocates warn that companies are still using wiggle room to discourage the sickest — and costliest — patients from enrolling. What are those loopholes and can they be closed?
First up, more on the news that after two terrible disasters this year involving Malayasia Airlines, the government moved today to keep its national airline in business. But thousands of employees will lose their jobs. Plus, the difference between a bonus versus a raise: a raise lives on, abonus can be a one-off. A new survey suggests employers are using bonuses rather than traditional raises to compensate their workers. We ask whether this is an artifact of the recession or a trend that will persist. Also, a Chicago ad agency uses its ground-floor lobby as a gallery, with picture windows facing the street. This summer's exhibit now wrapping up: The company's interns, doing their jobs, working around a long, black table. Among the signs in the windows one that reads "feeding the interns is permitted and appreciated," which seems less than respectful. "But they're just interns," you say. They are also human beings, for Pete's sake.
First up, more on the news that the FBI is looking into a major attack by computer hackers directed against more than one major U.S. bank. Bloomberg News was first to report -- Sources then told the New York Times that it was JP Morgan and as many as four other financial firms were the target of a sophisticated attacks. Plus, in Detroit, the city's water department is back to shutting off supplies to residents who are behind on their water bills. Thousands of people -- many of them very poor -- have already had their water cut off or are at risk of having it shut off. A handful of fundraising campaigns have been launched to assist. We look into whether those efforts are helping. And the Federal Communications Commission is thinking about getting rid of what's known as the NFL television blackout rule. The rule says NFL games can't be broadcast locally unless they're sold out. The Congressional Black Caucus is opposed to the change and here's why: they say the elimination of the blackout rules will drive the NFL to air games on cable.
In a couple weeks, voters in Scotland will vote on whether they want independence from the United Kingdom. In the waning days of a big referendum, the propaganda battle intensifies on both sides. In an open letter published today, about 130 businesses argue that it would be better for Scotland's economy to stay not go. And there's new data that millennials are just as likely to use credit and debit cards or smart phone payment apps as they are cash when buying stuff in person (think cappucino, think a bottle of advil). Plus, during a health emergency, depending on where you live, the ambulance that arrives could come from local government, a hospital, a private ambulance company, maybe even a volunteer service. And unlike when the police arrive or most fire trucks, you or your insurance will likely get a bill for that ride. We take a closer look into the often misunderstood business of ambulances.