Big bank earnings season was in full swing this week. From top execs laying out the rationale behind dealmaking to shedding some light on their plans for the future of the physical office, here are some of this quarter's highlights:
Keep reading to learn more about what engineers are getting paid at Amex, Mastercard, PayPal, Square, and Visa; a leadership shakeup at mortgage giant Fannie Mae; why big investors like Blackstone have been snapping up film and TV production space as a hot real-estate play; and a deep dive on how per-diem lawyers have found creative ways to reinvent themselves.
If you're not yet a newsletter subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals.Mortgage giant Fannie Mae is shaking up leadership in its largest business
Edwin Remsberg/Getty Images
US government-controlled Fannie Mae, a key player in the country's massive mortgage market, is shuffling leadership in its largest business line, according to recent internal memos seen by Business Insider.
The changes inside Fannie Mae, which the government took over during the great financial crisis and has become a political football, come just weeks before the US presidential election that could usher in changes for the organization.
You can read all the details on the shakeup here.
Big money is pouring into film and TV production spaces. Here's a look at the opportunities — and risks — for this hot real-estate play.
Brookfield Property Partners is in talks to take a stake in Blackhall Studios, a production facility with nine sound stages in Atlanta, sources told Business Insider.
Dan Geiger and Casey Sullivan chatted with studio owners, private-equity executives and brokers to learn what's been driving a flurry of activity from big investors.
A Morgan Stanley credit desk has reaped nearly $1 billion thanks to a surge in corporate borrowing and bond-portfolio trading
Morgan Stanley global CEO James Gorman, at West Kowloon, Hong Kong. 13NOV17 SCMP / David Wong (Photo by David Wong/South China Morning Post via Getty Images)
David Wong/South China Morning Post via Getty Images
As Alex Morrell reported, Morgan Stanley has had a huge year in credit trading — reaping nearly $1 billion from its investment-grade desk.
Despite ranking fourth in underwriting IG debt, the firm is a perennial top competitor when it comes to trading it. Helping its cause: Morgan Stanley has one of Wall Street's top operations in algorithmic and bond portfolio trading, which has accelerated in 2020.
You can read all the details on the blowout IG performance here.
AT&T is putting WarnerMedia's huge NYC headquarters under review
AT&T is conducting a strategic review of WarnerMedia's 1.5 million-square-foot headquarters at 30 Hudson Yards, Dan Geiger reported this week.
The reevaluation is expected to be complete early next year and could prompt the $200 billion telecom company to shed some of the space. If it decided to dump a portion of the headquarters, it would be the latest major tenant to back away from the office workplace. Here's a look at what this reevaluation could mean for the NYC office market.
Here's what engineers are getting paid at Amex, Mastercard, PayPal, Square, and Visa
For any payments company, tech is a huge part of the budget. Speed and security of a network can make or break a company like Amex or Mastercard. And as payments become increasingly digital, these infrastructure giants have to keep maintaining and updating rails and systems.
And that means a large part of payments companies' headcount lies in tech. Amex, Mastercard, PayPal, Square, and Visa need to hire the best technical talent to build new ways to pay and keep the systems up and running. Here's a roundup of what they're paying for it.
Per-diem attorneys could make $200,000 a year from freelance lawyer gigs. But as work has vanished, they've become Instagram cooks, motivational speakers, and reiki coaches.
Danielle Caminiti has pivoted from the courtroom to the kitchen.
Hundreds of lawyers in New York and beyond who made a specialty out of showing up for court appearances on behalf of other lawyers have found themselves out of work as courts have moved online. So-called per-diem lawyers could make about $125 per appearance, and for some of them, the numbers really added up.
New York courts have gradually been reopening for in-person trials and arguments, but the events that filled a per-diem's day are mostly virtual, so the lawyers who used to send them work can call in themselves.
Here's a fun look from Jack Newsham at how per-diem lawyers are reinventing themselves.
Goldman Sachs is planning to hire dozens of advisors for the firm's wealth business
Goldman Sachs trading booth on the floor of the New York Stock Exchange in New York, on Thursday, January 6, 2011.
Ramin Talaie/Corbis/Getty Images
In Goldman Sachs' quest to move down-market, part of its newly reorganized wealth management division is preparing to expand. Joe Duran, head of Goldman Sachs Personal Financial Management, told Rebecca Ungarino and Dakin Campbell that the business is looking to hire dozens of financial advisors over the next year.
Here's more on hiring plans, office expansions, and why the firm is so confident in its push.
Private equity and hedge funds
NuStar Logistics, L.P., a wholly owned operating subsidiary of NuStar Energy L.P. (NYSE: NS) ("NuStar Energy”), announced today that it plans to conduct an offering of senior notes pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission ("SEC”). The notes will be fully and unconditionally guaranteed by NuStar Energy, as parent guarantor, and NuStar Pipeline Operating Partnership L.P., a wholly owned operating subsidiary of NuStar Energy, as affiliate guarantor. The net proceeds from the offering are expected to be used for the repayment of indebtedness, including (1) all amounts outstanding under NuStar Logistics, L.P.’s term loan agreement and the related repayment premium and (2) a portion of borrowings outstanding under NuStar Logistics, L.P.’s revolving credit agreement. Amounts repaid under NuStar Logistics, L.P.’s revolving credit agreement may be reborrowed and used for the payment of $300 million aggregate principal amount of NuStar Logistics, L.P.’s 6.75% senior notes due 2021 at their maturity and for general partnership purposes.
Citigroup Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Barclays Capital Inc., BBVA Securities Inc., BMO Capital Markets Corp., Mizuho Securities USA LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc. are acting as book-running managers for the offering. Comerica Securities, Inc. is acting as co-manager for the offering. A copy of the prospectus supplement and accompanying base prospectus relating to this offering may be obtained from Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (800) 831-9146. You may also obtain these documents for free when they are available by visiting the SEC’s website at www.sec.gov.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
NuStar Energy, a publicly traded master limited partnership based in San Antonio, is one of the largest independent liquids terminal and pipeline operators in the nation. NuStar Energy currently has approximately 10,000 miles of pipeline and 75 terminal and storage facilities that store and distribute crude oil, refined products and specialty liquids. NuStar Energy’s combined system has approximately 75 million barrels of storage capacity, and NuStar Energy has operations in the United States, Canada and Mexico.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding future events, including the timing, and expected use of proceeds from the offering. All forward-looking statements are based on NuStar Energy’s beliefs as well as assumptions made by and information currently available to NuStar Energy. These statements reflect NuStar Energy’s current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in NuStar Energy’s 2019 annual report on Form 10-K and subsequent filings with the SEC. NuStar Energy undertakes no obligation to update or revise any forward-looking statement except as may be required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200908005550/en/
A customer walks out of a Walgreens pharmacy store in Austin, Texas
Walgreens is using Adobe and Microsoft's technology to roll out new tools to reach customers digitally.
Walgreens Boots Alliance, the parent company of Walgreens, is using Microsoft's Dynamics 365 customer data platform to build a unified profile of each of its customers, which then connects to Adobe's Experience Cloud.
That allows Walgreens and other stores within the company to let people to order online and pick up in-store, get personalized coupons in their emails, and track their pharmacy information easily.
Business Insider spoke to Walgreens' CIO Francesco Tinto, and Adobe exec Stephen Frieder about the transformation underway.
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Walgreens wants to be able to reach its customers in new ways, including through their phones, and it's leaning on Adobe and Microsoft to make it happen.
The partnership was officially announced at the end of June, and Walgreens and sister retail chain Boots are already beginning to release new tools — yes, in the middle of a global pandemic — that allow customers to access services and goods digitally, as well as in person.
The goal is to create a "seamless experience" for customers around health and wellness and retail, chief information officer Francesco Tinto told Business Insider, by using the wealth of information the firm already had about its customers.
Tinto is CIO at Walgreens Boots Alliance (WBA), the result of the merger between Boots Alliance and Walgreens in 2014 that includes Walgreens and Duane Reade stores and pharmacies in the US, as well as retail store Boots, and pharmacy wholesaler Alliance Healthcare, which are mainly overseas.
The company is using Microsoft's Dynamics 365 customer data platform to build a unified profile of each of its customers — including the 100 million people using its loyalty program — which it then connects to Adobe's Experience Cloud for capabilities like allowing people to order online and pick up in store, get personalized coupons in their emails, and track their pharmacy information easily.
Tinto and an Adobe exec dished on why the new partnership is so important to the firm's future and how it came together in the first place:
How Adobe and Microsoft are powering WBA's digital transformation
Francesco Tinto is the CIO of Walgreens Boots Alliance
Walgreens Boots Alliance
Adobe and Walgreens won out in part because they were already familiar with the company's broader transformation process through pre-existing partnerships. Adobe first partnered with Walgreens in 2015 to provide analytics and customer personalization for Walgreens' mobile app. Microsoft, meanwhile, partnered with Walgreens in early 2019 to use its technology to develop new ways of providing health care, which included having Walgreens move most of its IT infrastructure to Microsoft's Azure cloud.
The foundation of the new project is Walgreens' customer data, which is centralized using Microsoft Dynamics customer data platform. Information about what a customer usually buys, their preferences, their local stores, and their medication information for the pharmacy is collected from multiple places and combined into one single customer profile. Adobe then connects that data to its digital marketing and commerce software.
For the customer, it means that if they buy Vitamin B regularly, Walgreens will automatically email them new promotions for Vitamin B and tell them when it will be in stock at their local store. They can then order online and pick it up at the store. Then, when they're picking the order up, they might also get reminders about their medication refills available at the pharmacy, or a reminder to get a flu shot at the store, alerts which are made possible through Adobe's digital marketing and commerce tools.
Those same tools allow the firm to create groups of customers to send certain information to: For example, it could send info about products to manage diabetes to any customer that it knows takes diabetes medication.
The result is a "really valuable, personalized experience" for customers to help track their wellness, Stephen Frieder, Adobe's president of the Americas, told Business Insider.
Walgreens also makes sure that this sensitive health data and customer information is private, handled securely, and not shared with third parties, Tinto said, while its tools comply with health privacy laws like HIPPA.
As Walgreens Boots Alliance keeps building out its digital offerings using Adobe, customers will get more recommendations and coupons for items they regularly buy. It only introduced the ability to buy items online and pickup in-store a few months ago, because of the pandemic, and while it's only available for certain items now, it will roll out for all goods by the end of the year.
It already seems to be paying off, though. In its most recent earnings report, Walgreens said that sales for online orders picked up in-store increased two-fold from the quarter before, while its "mass personalization" boosted sales generally, too.
Walgreens strength is that so many people live close to one, according to Tinto, while Adobe's Frieder echoed that its accessibility is especially important given the on-going pandemic, and how people get health and wellness services: "I think the role of Walgreens in general has never been more important during COVID."
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