12 people killed in Virginia Beach shooting

Emergency vehicle are seen near the intersection of Princess Anne Road and Nimmo Parkway following a shooting at the Virginia Beach Municipal Center on Friday, May 31, 2019 in Virginia Beach, Va.

Kaitlin McKeown | The Virginian-Pilot via AP

A longtime, disgruntled city employee opened fire at a municipal building in Virginia Beach on Friday, killing 11 people before police fatally shot him, authorities said.

Six other people were wounding in the shooting, including a police officer whose bulletproof vest saved his life, said Virginia Beach Police Chief James Cervera.

Five patients were being treated at Sentara Virginia Beach General Hospital and a sixth was being transferred to the Trauma Center at Sentara Norfolk General Hospital, Sentara Healthcare tweeted.

The shooter opened fire in Building 2 of the municipal center, which is adjacent to City Hall. The building houses the city’s public works, public utilities and planning departments, according to City Councilwoman Barbara Henley, who arrived at City Hall building about 4 p.m. Friday just after the shooting.

Megan Banton, an administrative assistant who works in the building where the shooting happened, said she heard gunshots, called 911 and barricaded a door.

“We tried to do everything we could to keep everybody safe,” she said. “We were all just terrified. It felt like it wasn’t real, like we were in a dream. You are just terrified because all you can hear is the gunshots.”

She said she texted her mom, telling her that there was an active shooter in the building and she and others were waiting for police. Banton works in an office of about 20 people that is part of the public works department.

“Thank god my baby is OK,” Banton’s mother, Dana Showers, said.

Cervera identified the shooter as a disgruntled employee of the Public Utilities Department. He did not release his name.

Christina Pullen, a spokeswoman for the FBI in Norfolk, said the bureau is assisting.

Luxury online reseller The RealReal files for IPO

Founder and CEO of the RealReal Julie Wainwright speaks onstage during Vanity Fair’s Founders Fair at the 1 Hotel Brooklyn Bridge on April 20, 2017 in Brooklyn, New York.

Andrew Toth | Getty Images Entertainment | Getty Images

U.S. online luxury reseller The RealReal on Friday filed for an initial public offering. 

The company intends to list on the Nasdaq under the symbol “REAL”, a filing with the U.S. Securities and Exchange Commission showed.

Earlier in January, Reuters reported the company’s plans to go public later this year, citing sources familiar with matter.

The company set a placeholder amount of $100 million to indicate the size of the IPO. The size in preliminary filings is used to calculate registration fees and the final amount could be different.

The RealReal, which specializes in online secondhand luxury apparel and goods, was valued at $745 million in a funding round in July last year, according to data provider PitchBook.

Founded in 2011, The RealReal’s success is built on a profitable mix of the boom in e-commerce, and a younger clientele’s interest in bargains and recycled clothing.

Second-hand fashion — from Chanel handbags and Gucci dresses to Rolex watches — is a fast-growing business that is outstripping sales growth in the primary luxury goods sector.

In the past year, the company has been focusing on expanding its brick-and-mortar presence with outlets in new areas and more online fulfillment centers.

The RealReal intends to use the money raised from the IPO for general corporate purposes, including working capital and operating expenses.

Investors in the San Francisco-based company include Perella Weinberg Partners and Great Hill Partners.

The company posted a net loss of $75.8 million in 2018, compared with a loss of $52.3 million in 2017, on revenue of $207.4 million, up over 55%, the filing showed.

Credit Suisse, BofA Merrill Lynch, UBS Investment Bank, KeyBanc Capital Markets, Stifel, Cowen and Raymond James are the underwriters to the IPO.

Fed officials and Trump’s latest trade threat could decide whether June starts with a market swoon

Federal Reserve Chairman Jerome Powell holds a news conference following the two-day Federal Open Market Committee (FOMC) policy meeting in Washington, U.S., March 20, 2019.

Jonathan Ernst | Reuters

Federal Reserve officials speaking at a policy conference may get a lot more attention than usual in the week ahead after President Donald Trump’s latest tariff threat against Mexico ramped up expectations for interest rate cuts.

Markets will also start the month of June, which is often flat for markets, coming off a painful 6.6% monthly loss in the S&P 500.

Stocks lost ground in May on worries that the U.S. trade war with China would hurt the global economy and bite into earnings growth. They will begin trading in June with new worries that tariffs on Mexico could hurt the economy and threaten a new trade deal between the U.S., Mexico and Canada.

The coming week has a full calendar of economic data, with the highlight being Friday’s May employment report. There are also monthly auto sales and Institute for Supply Management manufacturing data due Monday, and international trade data expected Thursday.

But it is the Fed that should get the most attention, with central bank officials gathering at a much-anticipated conference hosted by the Chicago Fed Tuesday and Wednesday. Fed Chair Jerome Powell will make the opening remarks at the conference, which is about monetary policy strategy, tools and communications. For months, strategists have been hoping the conference will provide insight into how the Fed intends to address sluggish inflation.

Interest in the event is even higher after the market and Fed watchers are increasingly convinced the central bank will now cut rates this year, and maybe more than once. The futures market priced in increasing expectations for two rate cuts after Trump’s threat to put tariffs on all Mexican goods if the Mexican government does not stop immigration into the U.S.

After the last Fed meeting, Powell said low inflation appears to be transitory, suggesting the Fed would not have to cut rates, but markets still anticipate a rate cut, and inflation continues to run below the Fed’s 2% target.

Michael Gapen, Barclays chief U.S. economists, said investors hoping to hear Fed officials discuss their thinking on current policy could be disappointed. Gapen said the Fed is also about nine months away from its decision on how it will frame inflation, and the conference will be more about academic views on it.

Gapen was one of several Wall Street economists Friday who changed his view on the Fed’s rate policy. He said he now sees the Fed cutting the fed funds target rate by 75 basis points in two cuts this year, with the Fed starting at 50 basis points in September. The Fed has said does not foresee any rate cuts this year, nor hikes, and has stressed it is on hold.

Gapen does not expect to hear much from Fed officials at the conference on rates, though investors will be combing through every word looking for policy clues.

“I don’t think that’s the type of setting where anyone would make a monetary policy comment in advance of an FOMC meeting,” he said. The Fed next meets on June 18 and 19.

Gapen said he went from expecting no Fed move to two rate cuts because the trade war with China has become more extended than expected; manufacturing and business spending are weakening, and because of Trump’s threat to put tariffs on Mexico if it doesn’t control immigrants heading into the U.S. over the southern border.

“It does suggest the administration is willing to pursue multiple fronts. It lowers the bar for tariffs on Europe,” he said.

Interest rates continued to slide Friday, to multi-year lows. The 2-year yield, which most reflects Fed policy, fell sharply and was at 1.93% in late trading. The 10-year yield, at 2.55% in early May, was at 2.13% Friday afternoon. The S&P 500 was down 2.6% for the week, ending its worst week of the year at 2,752.

Sam Stovall, CFRA chief market strategist, said a “May mauling usually leads to a boom in June.” Going back to World War II, whenever there was a strong start to the year, the market traditionally fell in May but rose in June. Plus, this year was the third best start through April.

John Augustine, chief investment officer at Huntington Private Bank, said beyond the trade headlines, there are quite a few market catalysts in June.

“June is going to be very event-driven. It’s going to be the Fed on June 19. It’s going to be OPEC on June 25; it’s going be the G-20 on June 29,” he said.

He added, “We’re going to stay balanced and diversified because we don’t know how things are going to come out.”

What to Watch

Monday

Monthly auto sales

9:10 a.m. Fed Vice Chair Randal Quarles

9:45 a.m. Manufacturing PMI

10:00 a.m. ISM manufacturing

10:00 a.m. Construction spending

12:40 p.m. Richmond Fed President Tom Barkin

9:45 p.m. San Francisco Fed President Mary Daly

Tuesday

7:00 a.m. Chicago Fed President Charles Evans on CNBC’s “Squawk Box” ahead of 2-day conference on ‘Monetary Policy Strategy, Tools, and Communication Practices (A Fed Listens Event)’

9:55 a.m. Fed Chair Jerome Powell opening remarks and takes questions at 2-day policy conference, Chicago Fed

10:00 a.m. Factory orders

3:45 p.m. Fed Governor Lael Brainard at Chicago Fed conference

6:45 p.m. Dallas Fed President Robert Kaplan, Chicago Fed conference

Wednesday

8:15 a.m. ADP

9:45 a.m. Fed Vice Chair Richard Clarida, Chicago Fed conference

9:45 a.m. Services PMI

9:45 a.m. Atlanta Fed President Raphael Bostic on housing in Atlanta

10:00 a.m. Fed Governor Michelle Bowman at Senate Banking Committee

10:00 a.m. ISM nonmanufacturing

11:15 a.m. Boston Fed President Eric Rosengren, Chicago Fed conference

2:00 p.m. Beige book

Thursday

7:45 a.m. ECB rate decision

8:30 a.m. Jobless claims

8:30 a.m. International trade

8:30 a.m. Productivity

8:30 a.m. Labor Costs

10:00 a.m. QSS

1:00 p.m. New York Fed President John Williams at CFR

Friday

8:30 a.m. Employment

10:00 a.m. Wholesale trade

3:00 p.m. Consumer credit

China won in U.S-Mexico tariff battle: Ex-Mexican ambassador to China

There’s no doubt that President Donald Trump’s surprise new tariffs on Mexico are good for China, Jorge Guajardo, former Mexican ambassador to China, told CNBC on Friday.

The U.S. and China have been engaged in an escalating trade war. However, it was Mexico in Trump’s sights on Thursday night, when he blindsided the U.S.’ southern neighbor with the announcement that his administration will impose a 5% duty on all Mexican imports starting June 10. The tariffs will gradually increase to 25% in October, the White House said.

“Mexico and China compete. When Mexico wins, China loses. When China wins, Mexico loses,” Guajardo said on “The Exchange. “

“China won yesterday.”

Chinese President Xi Jinping smiles during the awarding ceremony in the Xingua University on April 26, 2019 in Beijing, China.

Mikhail Svetlov | Getty Images

Trump said he was imposing the tariffs to stop illegal immigrants from coming through Mexico into the U.S. The announcement came just as the approval process for the new trade agreement between the U.S., Mexico and Canada started to get underway.

That’s led to concern about the impact of Trump’s latest tariffs on trade talks with China.

“How can you trust Trump to honor a deal?” Chris Krueger, Washington strategist at Cowen, said in a note.

Trump’s latest move also emboldens Chinese President Xi Jinping, who is the “biggest winner” here, Guajardo said.

Xi has been under pressure because some in his government were accusing him of misjudging the U.S. in trade negotiations, he explained.

Now, “he could have proof to go back to the people of China and say ‘China did not make any concessions to the United States and got the same result as Mexico,'” Guajardo said.

“So, without a doubt, yesterday was a great day for China.”

Earlier this month, Trump accused Xi of backing out of talks and raised tariffs to 25% from 10% on $200 billion in Chinese goods. China retaliated by boosting duties on $60 billion in U.S. goods.

Since then, the two countries have been lodging trade threats against each other. China has reportedly halted U.S. soy purchases and threatened to cut off its rare earth minerals supply to the U.S. Meanwhile, the U.S. has blacklisted Chinese telecom giant Huawei, making it nearly impossible for the company to service customers.

— CNBC’s Yen Nee Lee and Yun Li contributed to this report.

Disney: What it’s like to build lightsaber at Star Wars: Galaxy’s Edge

At Star Wars: Galaxy’s Edge — the new 14-acre, $1 billion Star Wars attraction at Disneyland in Anaheim, California opening  today — in addition to visiting attractions like Millennium Falcon: Smugglers Run (where you can fly a replica starship from the Star Wars movies) and Black Spire Outpost (where you can try Star Wars-themed food and drinks), park-goers can build their own “real” lightsaber at Savi’s Workshop for $200.

Here’s how the Disney Parks blog describes Savi’s Workshop and its backstory:

“[S]eek out the hidden workshop and arrange an appointment to meet with the Gatherers – a group of men and women who have dedicated their lives to restoring balance in the galaxy by passing on their knowledge of the Force and the ancient ways of the Jedi. The Gatherers guide those who seek their assistance in creating their own unique customized lightsaber.

“The Gatherers have amassed a great collection of stories, kyber crystals, and other saber parts from around the galaxy. As ‘keepers of the Force,’ they have passed down their knowledge from generation to generation, striving to keep the flame of hope alive. Savi was one of the original Gatherers … [who] created a salvage business as a front to hide his clandestine mission of guiding the next generation of Force wielders and helping them create their unique lightsabers.”

Here’s how building a lightsaber works.

Amy Susman | Getty Images

Galaxy’s Edge is set in the land of Batuu, and Savi’s scrapyard and workshop are in the Black Spire Outpost (one of the main attraction areas), safely hidden from the First Order, according to the backstory.

Guests, called “Builders” at the attraction (14 maximum per appointment, according to Los Angeles Times), are ushered into the workshop by the group of Disney actors who play the Gatherers, according to the Disneyland blog. To set the scene, the workshop is “packed with unusual parts, whimsical pieces and miscellaneous memorabilia collected from the far reaches of the galaxy,” the blog says. The Gatherers demonstrate how to build a lightsaber and tell stories of past heroes and villains and say they hope for a new hero, maybe it will be one of the Builders who will soon have their own lightsaber.

To make their lightsaber, builders choose from one of four styles, each looks slightly different and has its own theme: Peace and Justice is made from “salvaged scraps from fallen Jedi temples and crashed starships” and its “Republic-era designs honor the galaxy’s former guardians,” according to the Disneyland blog; Power and Control are “originally forged by dark side warriors” and use “rumored remnants from the Sith homeworld and abandoned temples”; Elemental Nature “embodies the Force — an energy created by all living things, like Brylark trees, Cartusion whale bones and Rancor teeth”; and Protection and Defense whose “hilt materials bear mysterious motifs and inscriptions that reconnect users with the ancient wellspring of the Force.”

At the builder’s table, where the lightsabers are assembled, Builders receive their lightsaber parts (including things like a handle, grips and activation switches) and a Gatherer adds a 36-inch lightsaber blade. Builders choose a red, blue, green or violet “kyber” crystal to power up their lightsaber, and when it’s turned on, it glows that color. (Builders also get a carrying case for their weapon.)

Forcing ‘America First’ will lead to ‘America Alone:’ Chinese media

General Joseph Dunford (L), chairman of the US Joint Chiefs of Staff, and Chief of the General Staff of the Chinese People’s Liberation Army General Fang Fenghui shake hands after signing an agreement at the Bayi Building in Beijing on August 15, 2017.

Mark Schiefelbein | AFP | Getty Images

In the wake of the new Mexican tariffs, Chinese state-run media said the U.S. is “bullying others for its own interests” and will end up “alone” in the global trading system.

“Washington has also become more accustomed to abusing its super power status and bullying others for its own interests … Living in a globalized world, every country needs to cooperate with others to survive and thrive. But no one wants a partner that is arrogant, domineering and capricious,” state-run news agency Xinhua said on Friday in a commentary titled “Forcing ‘America First’ on others will lead to ‘America Alone.'”

The piece followed President Donald Trump’s threat Thursday night to slap a 5% tariff on all Mexican imports to protest illegal immigration. The move came as a surprise as the U.S. just signaled its action to kick-start approval of the U.S.-Mexico-Canada Agreement that Mexico had submitted.

The new Mexican tariffs could further inflame the U.S.-China trade fight as the move diminished Trump’s reliability, which China has already been wary of.

The U.S. is “taking reckless step to isolate itself by waging a trade war against many of its major trading partners and trampling on the widely-accepted spirit of free trade and the existing global trading system. Global economic recovery, as a result, is at stake,” the Xinhua commentary said.

“While on a world stage where there is few partners and followers, the country would end up like the lonely king in ‘The Little Prince,'” it said.

The trade war between the U.S. and China heated up this month after both sides slapped higher tariffs on each other’s goods. The two countries also ramped up threats amid the heightened trade tensions, with China reportedly stopping purchases of U.S. soybeans and vowing to cut off its supply of rare earth minerals. The U.S. blacklisted Chinese telecom giant Huawei, halting its ability to purchase American chips.

China said Friday that it will establish a list of unreliable entities of foreign companies and people that “seriously damage” the interests of domestic firms.

— Click here to read the original commentary from Xinhua.

Wall Street strategists react to the tariffs on Mexico

US President Donald Trump tours the border wall between the United States and Mexico in Calexico, California, April 5, 2019.

Saul Loeb | AFP | Getty Images

Wall Street strategists woke up Friday morning to a new front in the trade war. President Donald Trump announced late Thursday night that the U.S. will impose a 5% tariff on all Mexican imports beginning June 10. The White House said it will increase the tariff’s in the coming months if Mexico doesn’t take steps to control its border with the U.S.

Stocks opened down more than 300 points as strategists scrambled to assess the latest fall out and how best to advise clients.

“This is an escalation of trade wars and as such increases global uncertainty and lowers global trade and investment,” Bank of America said.

This may be a way for the White House to also pressure congress to act on the immigration issue, according to strategists at Goldman Sachs.

“We view this as an attempt to show action on the immigration issue while also pressuring congressional Democrats to pass USMCA,” they wrote.

One strategist predicted that the tariffs wouldn’t last long but the damage may already be done.

“President Trump’s latest trade bombshell – the threat to impose tariffs on Mexico if it does not stop the flow of illegal immigrants into the US – might turn out to be a short-lived threat that is quickly defused by commitments on border security, but it nonetheless looks damaging at a number of levels,” Evercore ISI’s Krishna Guha said.

Another analyst noted how things seemed to be on the right track as recently as last month but wondered whether any deal was even possible.

“As we’ve been arguing, these tweets have the potential to change the dynamics of global markets and it now seems like we could get a serious trade escalation that wasn’t likely at the start of last month, especially as it had appeared Trump had looked like he wanted to get a deal done in 2019,” Deutsche Bank said.

“The landscape has changed dramatically and it could be an interesting summer ahead.”

Here are what the major strategists are saying:

Bank of America

“This is an escalation of trade wars and as such increases global uncertainty and lowers global trade and investment. So it negatively affects global growth. The escalation of trade wars in North America does not bode well for the ratification process of USMCA (new NAFTA). Despite encouraging news up to May 30 in the morning with the three countries sending the USMCA to their respective legislatures for ratification, if the US follows through with blanket tariffs to goods exported by Mexico, the Mexican Senate would find it hard to ratify the USMCA. Democrats in the US lower house of Congress would also find it difficult to ratify USMCA (one more reason to add to an already large list).”

Evercore ISI

“President Trump’s latest trade bombshell – the threat to impose tariffs on Mexico if it does not stop the flow of illegal immigrants into the US – might turn out to be a short-lived threat that is quickly defused by commitments on border security, but it nonetheless looks damaging at a number of levels. At the big picture level, it suggests that Trump trade policy might well mean a permanent state of endemic uncertainty and instability in the global trading system not simply a hard-headed sequential re-set of prior arrangements that started with Mexico and proceeds via China to Europe and Japan.”

UBS

“Alongside putting obvious strains on the USMCA ratification process, tariffs on Mexico would increase pressure on the global supply chain. Within tech, we expect hardware companies with exposure to computers, servers and TVs would be most affected. For global automakers, tariffs would pose risks not just to Mexican vehicle exports to the US, but also to US-built cars reliant on parts and components produced in Mexico.”

Nomura

“President Trump’s action could effectively derail ratification of the US-Mexico-Canada (USMCA) agreement this year. Republicans in Congress have pushed back against previous tariffs from the administration targeting Mexico or Canada and the action announced [last night] will likely engender strong opposition in Congress.”

Deutsche Bank

“As we’ve been arguing, these tweets have the potential to change the dynamics of global markets and it now seems like we could get a serious trade escalation that wasn’t likely at the start of last month, especially as it had appeared Trump had looked like he wanted to get a deal done in 2019. The landscape has changed dramatically and it could be an interesting summer ahead. The reality also is that with it being the first day of June tomorrow, tariffs will officially kick in between the US and China with the US applying 25% tariffs on $200bn of China exports to the US, while China will apply 5-25% tariffs on $60bn of US exports to China.”

J.P. Morgan

“Earlier this month we downgraded Mexico based on poor 1Q results. However, we also noted that none of the top down risks which we’ve been highlighting for a while have gone away, and in particular the USMCA approval process was to become a key issue to watch into the 2H of the year. The timing couldn’t have been more perfect. Tonight, Pres. Trump tweeted that he would impose a 5% tariff on all Mexican imports as a measure to curb illegal immigration. Pres. Lopez Obrador responded with a conciliatory (but firm) letter requesting this to be resolved via bilateral dialogue and stating that Mexican officials would travel tomorrow to Washington to meet US representatives in Person. All of this comes after news earlier this month that seemed to point towards the USMCA moving ahead in the right direction: US removing tariffs for Mexican and Canadian steel, P.M. Trudeau sending to Congress an initiative to have USMCA ratified which was echoed by AMLO today in the Mexican Congress. Where to go from here? Remain UW but don’t press the panic button… just yet.”

Goldman Sachs

“We view this as an attempt to show action on the immigration issue while also pressuring congressional Democrats to pass USMCA. While still possible, enactment of USMCA prior to the 2020 election would no longer be our base case if these tariffs are implemented as proposed.”

Trump makes important points on China

The economic relationship between the United States and China needs to change, Tony Ressler, a billionaire veteran of Wall Street, said Friday.

“The Trump administration is making some very important points about how we do business with China,” said Ressler, co-founder of private equity giants Apollo Global Management and Ares Management.

President Donald Trump, through tough talk and tariffs, has been trying to get China to stop what the White House considers unfair trade and business practices.

“We’re seeing some blunt objects help that readjustment,” Ressler said in a CNBC interview as rhetoric from Trump and Chinese leaders and costly reciprocal trade tariffs show no signs of easing.

However, Ressler said, “I’m not as worried as others. Because I think over time, reason will prevail.”

Beijing threatened on Friday to unveil an unprecedented list of foreign firms, groups, and individuals that it believes harm the interests of Chinese companies.

Earlier this month, Washington increased tariffs to 25% on $200 billion of Chinese goods, accusing Beijing of reneging on its previous promises to make structural changes to its economic practices.

That prompted Beijing to hit back with additional levies on the majority of U.S. imports worth $60 billion, due to take effect on Saturday.

“My experience with the Chinese is that they are sophisticated. They understand what’s best for China,” Ressler told “Squawk Box” co-host Andrew Ross Sorkin in an interview from a business conference in Atlanta.

Ressler, also principal owner of the NBA’s Atlanta Hawks, urged Trump and Chinese leaders to “lower the amount of noise” and focus more on substance. “Then you’ll see real progress,” he said.

— Reuters contributed to this report.

The Trade Desk is growing in China, and Wall Street loves it

The Trade Desk rings The Nasdaq Stock Market Closing Bell in celebration of its IPO.

Source: Nasdaq

Wall Street appears to be sweet on The Trade Desk’s foray into China.

The company, which was founded by Jeff Green and Dave Pickles in 2009 and went public in 2016, provides technology that helps brands and agencies target and reach audiences across media formats and devices.

It counts brands like Procter & Gamble and agency holding companies like Omnicom Group as clients, and says the “vast majority” of the S&P 500 has run ad campaigns on its platform. It’s profitable, earning $88 million on revenues of $477 million last year. And it’s growing — first quarter revenue was up 41% from a year ago, with profits up 12%.

It’s also won over investors, who have been mostly sour on ad tech companies in recent years. At close Thursday, The Trade Desk’s stock was up almost 74% this year at $201.89, giving it a market capitalization of $9 billion. It’s up more than 270% in the last two years. It was down 2.4% in Friday’s premarket.

The Trade Desk vs. Criteo, Liveramp and Rubicam Project.

CNBC

In a research note this week, Pivotal Research analyst Michael Levine called The Trade Desk a “truly unique asset, growing at among the fastest rates in the industry as they penetrate the opportunity in programmatic advertising.” He also said it delivers a “rare combination of strong growth and profitability (unlike most other SAAS peers). “

Levine also called out the company’s management team and two “massive incremental legs of potential growth”: China and connected TV.

China

The Trade Desk’s move into China comes as that country has restricted citizens from using services of other U.S. based tech giants like Google, Facebook and Twitter.

The company recently launched its programmatic ad buying platform in China, letting marketers use their own first-party data on the company’s platform and providing access to partnerships with Chinese media companies including Tencent and Baidu Exchange Services.

For instance, instead of having to work with a Chinese ad agency, a multinational advertiser working with a Western agency could buy ads in China easily.

In the next five years, The Trade Desk plans to turn China into one of its top three markets. The company says international revenue currently accounts for about 15% in revenue but expects it to grow to roughly two-thirds of its total revenue as the programmatic industry matures.

It won’t happen overnight. The company said it will likely take years to see material contributions from that market. “China is something that we think we have to play the long game,” Green said on the company’s first-quarter earnings call.

D.A. Davidson analysts said in a note earlier this month that “in some ways, TTD is effectively restricting its China opportunity in the near-term by focusing purely on bringing incremental advertiser dollars to Chinese publishers, rather than targeting existing China ad spend (which could be perceived as another ‘ad tech’ tax paid by publishers.)”

Connected TV

The company also is betting big on connected TV, adding inventory and spending. The Trade Desk says its spending is up 300% from Q1 2018 to Q1 2019, and says the number of advertisers running connected TV on its platform has increased 100% over the past year.

In a recent investor presentation, the company said its goals over the next five years include making connected TV and video its largest channel.

Some analysts do see potential turbulence ahead in the realm of connected TV. Rosenblatt Securities analysts wrote in a note in mid-May that they expect Google and Amazon will have competing capabilities in that area as early as the fourth quarter. Analysts said this could create a “meaningful” supply and demand reset in the connected TV ad market and present headwinds for The Trade Desk’s earnings next year.

An option outside the duopoly

Levine said The Trade Desk has made itself indispensable to the agencies that use it and say it saves them time and money. In terms of their use, “something seismic would need to happen for that to change.”

The company says its customer retention in the quarter remained over 95% (it claims this has been the case for the previous 21 quarters).

Levine said in his note that agencies and advertisers are looking for alternatives to the digital ad duopoly of Google and Facebook, and that The Trade Desk’s independence “has been and will continue to be a key to their success.”

The Trade Desk also sees the future of advertising as being primarily digital, and primarily transacted programmatically. In April, eMarketer estimated that U.S. advertisers would spend nearly $60 billion this year on programmatic display, forecasting that by 2021 almost 88% or $81 billion of all U.S. digital display ad dollars would transact programmatically.

No worries about Chrome privacy changes

Analysts didn’t seem too worried about the impact of Google Chrome privacy changes on The Trade Desk’s business.

“We do not expect this to have any material change on our business. And most of these changes, we welcome because they will make our business better and any of those others that were shrugging their shoulders up, don’t have a negative impact on our business at all,” Green said on the company’s recent earnings call.

“So, overall, this is a very positive change for us. It’s good for the industry. When I spoke to Google yesterday, my very first question is, is there more coming or is this the bulk of it. And they said, this is it. More details to come on these specific things, but in terms of like major headlines, this is it.”

In a note, D.A. Davidson analysts said the company’s “ability to seemingly shake off Google’s upcoming Chrome browser changes highlights the resiliency of TTD’s business.”

Automaker shares plunge after Trump Mexico tariffs: GM, F, FCAU

Trucks carrying cars queue in front of the Otay Mesa border crossing in Tijuana.

Omar Martinez | picture alliance | Getty Images

Shares of the largest U.S. automakers dropped in premarket trading Friday after President Donald Trump announced that the U.S. will impose a 5% tariff on goods imported from Mexico on June 10.

General Motors was hit the worst, down 5.5% in premarket trading Friday. Ford lost 4% while Fiat Chrysler dropped more than 5%.

“Automakers may indeed see large financial impact and uncertainty from the tariffs, as all major OEMs import a considerable portion of the vehicles they sell in the US from Mexico,” Deutsche Bank said.

The big three automakers each have billions of dollars at stake due both production and suppliers in Mexico. According to Deutsche Bank, GM and Fiat Chrysler import 29% and 24%, respectively, of total parts for cars and trucks from Mexico. Ford also has the second highest total imported vehicles from Mexico at 17%, Deutsche said.

Deutsche Bank also warned that U.S. investors may be surprised the amount of full-size pickup trucks and parts that are imported from Mexico.

In the scenario where Trump follows through with his threat to raise Mexico tariffs to 25% in the coming months, Deutsche Bank also estimated the profit each of the big three automakers would lose. The firm said the EBIT (earnings before interest and taxes) hit for a 25% tariff would be $6.3 billion for GM, $3.3 billion for Ford and $4.8 billion for Fiat Chrysler.