Say goodbye to hotel turndown and these other services people simply don’t want to pay for anymore

hotel maid
  • Hilton discontinued daily housekeeping this week, part of a wider trend in hospitality.
  • It’s one of several things that customer-facing businesses are realizing they don’t need anymore.
  • The economy of 2021 is leaving behind parts of the economy of 2019: the physical ones.
  • See more stories on Insider’s business page.

For Americans, early July marks Independence Day. This year, it also marks independence for hospitality workers.

A record number of hospitality workers are simply quitting their jobs with no intention of ever going back, declaring a certain kind of independence. And those still on the job just gained independence from daily housekeeping as Hilton announced this week that the service will only be performed upon request, Travel Weekly reported.

As hotel stays plummeted in 2020 at the height of the pandemic, daily housekeeping was one of the first services to be cut, but even as travel revived, it’s not coming back. It’s part of a wider trend within hospitality, the same publication previously reported, fueling the rise of third-party operators like New York-based Butler Hospitality, a “ghost kitchen” for room service. It’s one of the starkest examples of how the economy of 2021 will be different from the one of 2019.

The issue comes down to staffing. In March and April, as a record number of workers were quitting their jobs, the quit rate for hospitality workers actually increased, along with job openings. That means hospitality firms were trying their hardest to hire just as more of their workers were deciding to leave.

As Bloomberg Opinion columnist Conor Sen wrote on Twitter: This is a job that just “won’t exist in the future because it’s uneconomical.” In other words, you’re going to have to make your own hotel bed.

Here’s what today’s economy is finding it just doesn’t need.

Daily housekeeping service and breakfasts at hotels

day room hotel

Before Hilton’s announcement that housekeeping was a thing of the past, Baird analyst Michael Bellisario told The Washington Post that many hotels were considering permanent cuts to a range of services, including cleaning but also free breakfasts. 

The new American consumer doesn’t mind too much, as reflected by an August 2020 survey by the American Hotel and Lodging Association. Almost two-thirds of travelers said daily housekeeping should be done without. 

After the pandemic, contactless is what travelers want. Insider’s Michelle Gross reported in July 2020 that technology and safety will be paramount to the future hotel experience. Vanessa Ogle, CEO of hotel technology company Enseo, said, “Technology will be the bridge that enables and manages safety and cleanliness procedures and communicates those procedures to guests as well as associates.” 

A Hilton spokesperson told Insider that daily housekeeping is available “upon request” in the US and will be automatically done on the fifth day of an extended stay. Visitors to the Hilton brands Waldorf Astoria, Conrad and LXR properties will still automatically receive daily housekeeping. 

Menus at restaurants

qr code menu restaurant

The QR code could be the ATM machine of our day. Before ATMs, people would wait in line to get money out from a bank with the help of a bank teller. Today, many restaurants don’t use a physical menu, but instead instruct guests to access it via phone from a laminated QR code on the tabletop. 

Similar to the ATM, the QR code has been around for decades. As Insider’s Kristen Hawley reports, it dates back to the 1990s, and widespread adoption of it has waxed and waned. Insider’s Ben Winck reported that the pandemic accelerated automation’s adoption in restaurants, with QR codes leading the way at Cracker Barrel, Dave & Buster’s, and Olive Garden parent company Darden.

More automation means less cashiers, too, so be prepared to wait longer to pay for the food that you ordered on your phone. With the persistent rising trend of ordering to-go, there’s a chance you’ll have to wait for the restaurant staff to sort through their flood of online orders first, too. You could also end up eating more. Insider’s Grace Dean reported diners could feel less judged, and end up ordering a lot more food.

 

 

Dressing rooms at retail stores

dressing room

During the year of lockdown, ecommerce took off and looks to be holding its gains. A report this week from a Deutsche Bank team led by Senior US Economist Brett Ryan found the online shopping trend that accelerated in 2020 “appears to be holding onto the pandemic gains,” meaning that shopping for clothes online could well be a sticky habit.

At the same time, Ryan’s team found consumer spending well above pre-pandemic levels for three straight months. That means a lot fewer brick-and-mortar stores where you can walk in and physically try on clothing. At the start of 2021, Coresight Research predicted 14% more store closures this year than last, meaning up to 10,000 stores will disappear.

Instead of more visits to more stores, think a lot of cardboard boxes piling up at your door instead. And probably a lot of returns of clothes that don’t quite fit.

[Editor’s note: This article has been updated to correct a reference to Butler Hospitality as a “ghost kitchen” third-party operator, not a room-cleaning service.]

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The S&P 500 will tumble as much as 10% in the summer as growth peaks, Deutsche Bank predicts

new york stock exchange
The S&P 500 is due a correction, Deutsche Bank said.

  • The S&P 500 will fall between 6% and 10% in the summer before rebounding, Deutsche Bank predicted.
  • The bank’s analysts said rising inflation may unsettle investors, while earnings growth would cool.
  • Investors have become more cautious about US stocks, with many strategists looking towards Europe.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

The S&P 500 is likely to drop as much as 10% in the summer as economic growth peaks and investors lose their nerve, Deutsche Bank has said.

The benchmark US stock index has risen more than 15% so far this year. That has taken it to 4,344, already putting it above Wall Street analysts’ average year-end target of 4,276, as compiled by CNBC.

Deutsche Bank strategists on Tuesday said investors had gotten ahead of themselves and that they expected the index to fall between 6% and 10% in the summer.

The strategists, led Marion Laboure, said one concern is economic growth is likely peaking after the rapid rebound from the COVID-19 pandemic.

Read more: A weaker economy and stronger dollar threaten to sink the S&P 500 by 11% and send bitcoin tumbling to $12,000, Stifel strategists warn. Here are the 9 industries they recommend hiding in for the rest of 2021.

Laboure and the team said analysts are unlikely to keep upgrading companies’ earnings forecasts, which has been boosting stocks. And they said inflation remains a risk which could unsettle investors, after prices growth hit a 13-year high in the US in May.

However, the Deutsche strategists said the 6% to 10% drop should be a healthy correction for US stocks. “We then see equities rallying back as our baseline remains for strong growth but only a gradual and modest rise in inflation,” they wrote in Deutsche Bank’s quarterly “House View” report.

Investors have become more cautious on US stocks as of late, after a rapid rally in the first few months of the year. Many strategists are looking towards Europe as a place to find more affordable stocks that can benefit from a rebound in the global economy that will help sectors such as financials.

JPMorgan Asset Management said in its mid-year outlook that it expects stocks to rise in the second half of the year, but said investors should expect a bumpier ride as inflation worries “contribute to the jitters.”

Analysts at Barclays said in a recent note: “We believe that concerns over peaking global growth, inflation risk, and a hawkish [Federal Reserve] derailing the market are overstated.

But they said they were only “grudgingly” positive about stocks, given equity prices have already risen sharply in 2021.

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Deutsche Bank’s UK boss says she wants investment banking graduates in the office 5 days a week, even as the company moves to flexible working

Deutsche Bank UK and Ireland CEO Tiina Lee next to a picture of a man outside the bank's office
Deutsche Bank UK and Ireland CEO Tiina Lee.

  • Tiina Lee, Deutsche Bank’s UK CEO, told Insider she wants graduates in the office five days a week.
  • The bank is adopting a hybrid work model that lets most employees work from home three days a week.
  • Lee said graduates learn more from speaking to their team in the office, rather than over video calls.
  • See more stories on Insider’s business page.

Tiina Lee, CEO of Deutsche Bank UK and Ireland, wants investment banking graduates to be in the office five days a week, even as the company adopts a hybrid-working model.

“My personal view in terms of grads and interns is that they should want to spend as much time in the office as they possibly can,” Lee said in an interview with Insider.

“Actually, I would like to see our grads in the office five days a week,” she added, specifically referring to those in investment banking. Working from the office full-time will not be mandatory for all these graduates.

As part of its flexible-work model, Deutsche Bank is planning to let most staff work from home for up to three days a week.

Essential staff have been working from the bank’s offices throughout the pandemic. The lender hopes to get more staff back to the office when COVID-19 restrictions ease in England. This was due to happen on June 21, but Prime Minister Boris Johnson delayed the plan by four weeks because of rising infections.

Some staff in Deutsche Bank’s investment banking sector, including traders, would be expected in the office every day once coronavirus restrictions lift in England – this includes graduates, Deutsche Bank confirmed to Insider.

Other investment banking staff aside from traders may not have to come into the office full-time, Deutsche Bank said, adding that the rules depended on government guidance. When asked, it declined to say which departments this policy covered.

For graduates in these departments, coming into the office every day would not be mandatory, it said. Graduates in departments working under a hybrid model would work at least two days a week in the office.

Lee, who has worked at the bank for around 24 years, said investment banking graduates can benefit more from the scheme and mentorship of senior staff if they’re in the office.

Graduates learn more if they’re able to talk and directly ask questions to their boss and colleagues, compared with doing so over video calls, Lee said.

But Lee said some graduate training sessions worked better over video calls, especially in their first year, Lee said. “I think it’s super important for our junior population to be in the office, but it’s only helpful if they’re around seniors that are able to oversee what it is they’re doing,” she said.

“Where there are opportunities to speak to business leaders and infrastructure leaders, I think those types of conversations are always best done in person,” she said.

Citing a survey of Deutsche Bank’s summer interns in the UK, Lee said 75% of the respondents wanted to be in the office. The remaining 25% wanted to be in the bank but couldn’t because of travel restrictions, she said.

In the US, 92% of summer interns elected to work from one of the bank’s offices, according to an internal memo to US employees seen by Insider.

Deutsche Bank is encouraging all its staff to spend as much time in the office as they can, Lee said. She works from home once a week.

In a separate internal memo to UK employees seen by Insider, Lee said being back in the office “will be an opportunity to meet, manage and learn in person and further develop all-important contacts across the organisation, particularly with our summer interns and other new joiners to the bank.”

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The Fed is reportedly weighing fines for Deutsche Bank over the bank’s insufficient anti-money-laundering controls

Deutsche Bank CEO Christian Sewing
Deutsche Bank CEO Christian Sewing

  • In recent weeks, the Fed has pressed Deutsche Bank to enhance its anti-money-laundering controls.
  • The Fed may resort to fines, the Wall Street Journal reported, citing sources familiar with the matter.
  • The bank has been under regulatory scrutiny for years, and its CEO has acknowledged that more work is needed.
  • See more stories on Insider’s business page.

Tensions between Deutsche Bank and the Federal Reserve are rising.

In recent weeks, the Fed has told Deutsche Bank to address flaws in its anti-money-laundering controls, according to a report by the Wall Street Journal.

The Fed could end up fining the bank, the Journal reported, citing sources familiar with the matter.

While Deutsche Bank has said it’s allocating significant resources to revamp its controls, the Fed says that the bank is actually backsliding.

In 2017, Deutsche Bank paid a $41 million fine to the Fed over its anti-money-laundering practices.

Potential fines are the latest development in a years-long dialogue between the bank and the regulator. In 2018, the Fed classified Deutsche Bank’s US operations as being in “troubled condition,” one of the lowest classifications. In May 2020, it sent a letter to the bank saying that it had failed to improve past its “troubled” status.

Deutsche Bank passed the Fed’s stress test for the first time in 2019, but its CEO Christian Sewing has recognized the bank’s continued shortcomings.

“Are we there yet regarding our controls? The answer is no,” Sewing said in prepared remarks at the bank’s annual general meeting in 2020.

New York’s Department of Financial Services fined Deutsche Bank $150 million last July in part due to its dealings with convicted sex offender and financier Jeffery Epstein. The DFS said that Deutsche Bank processed payments that should have been flagged through its compliance systems, including payments to people who were publicly alleged to have been connected to Epstein.

Even so, Deutsche Bank reported its most profitable quarter since 2014 in the first quarter this year, largely driven by its investment banking unit, an area where it’s aggressively hiring.

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Wall Street and Main Street are both scared of inflation, and how the US economic recovery will hit their wallets

Wells Fargo ATM
Banks large and small, both national and regional, are seeing increased interest in digital and contactless services, as the coronavirus pandemic has forced consumers to rethink the kind of banking interactions they’re comfortable having.

  • Americans of varying backgrounds are growing increasingly concerned of rampant inflation.
  • Google searches for “inflation” reached a record high this week, according to Deutsche Bank.
  • Surveyed fund managers now see high inflation as riskier to markets than the pandemic, BofA found.
  • See more stories on Insider’s business page.

Forget the pandemic. Inflation is the new issue haunting Americans, on Wall Street and Main Street alike.

Celebrations over vaccine approvals and falling COVID-19 case counts are giving way to concerns over just how quickly the economy will recover – and what that means for prices.

New stimulus signed earlier this month promises to send hundreds of billions of dollars directly to Americans and supercharge consumer spending. And shortly afterward, the central bank underscored that it will support a strong recovery this year, as the Federal Reserve reiterated that it plans to maintain ultra-easy financing conditions at least through next year.

The potent combination of monetary and fiscal support has many fearing a sharp jump in inflation. The eventual reopening of the US economy is expected to revive Americans’ pre-pandemic spending habits. Yet an overshoot of expected inflation could spark a cycle of increasingly strong price growth that leaves consumers with diminished buying power.

Worries of such an outcome are shared among both the investor class and the general public. Google searches for “inflation” surged to their highest level since at least 2008 last week, according to research by Deutsche Bank Managing Director Jim Reid. Dovish investors might highlight that similar spikes emerged after the financial crisis, but hawks can point to the unprecedented scale of pandemic-era relief for why today’s situation stands out, Reid said in a note to clients.

“Whether or not inflation ever materializes there is a rational reason why this time might be different. That’s reflected in the increased attention on inflation,” Reid added.

The theme that this time might be different was echoed by a UBS team led by Arend Kapteyn, who wrote in a March note that “pandemic price movements have been unusually large … and are historically difficult to model/predict.”

More recently, a survey from data firm CivicScience shows 42% of adults being “very concerned” about inflation, according to Axios. That compares to just 17% saying they’re “not at all concerned.”

Inflation worries investors more than Covid

Also, institutional investors are shifting their focus from the pandemic to the risk of rampant inflation. Higher-than-expected inflation is now the biggest tail risk among fund managers, according to a recent survey conducted by Bank of America, higher even than the pandemic itself. Snags to vaccine distribution fell from the top of the list to third place, while a potential bond-market tantrum was the second most-feared risk.

To be sure, younger Americans seem less perturbed. The gap in inflation expectations between the baby boomer generation and millennials is the widest its ever been, a team of Deutsche Bank economists led by Matthew Luzzetti wrote earlier this month.

The disparity is likely a product of vastly different circumstances, according to the team. Older investors lived through the “Great Inflation,” a period from the mid-1960s to the early 1980s during which inflation surged and forced interest rates to worrying highs.

Younger Americans have only known a quarter-century of inflation landing below the Federal Reserve’s 2% target, and millennial investors could have a massive influence on whether inflation expectations and real price growth trend higher as the economy reopens, the bank’s economists said.

“With memories of the Great Inflation possibly already lifting inflation expectations for older age groups today, a more material drift higher in expectations likely would require a lift from the younger age groups,” they added.

CivicScience’s newer data suggests that gap is quickly closing. More than half of respondents aged 18 to 24 said they’re “very concerned” about inflation, more than any other age group surveyed. By comparison, just 37% of Americans aged 55 and older said they’re “very concerned.”

Respondents aged 35 to 54 were still the most worried overall, with 48% saying they’re “very concerned” and 36% saying they’re “somewhat concerned,” according to CivicScience.

Kapteyn’s note for UBS highlighted that the conversation around inflation closely resembles the one following the Great Recession: “A decade ago, following the global financial crisis, we were having very similar conversations with clients as we are now.”

At that time, fears of a quick recovery fueling an inflation bubble were similarly strong, “but instead we wound up in secular stagnation,” the bank wrote, referencing the phrase made famous by prominent economist Larry Summers to describe prolonged low growth and low inflation.

This suggests that Americans’ worries about future price growth – including warnings from Summers himself – could starve the US economy of healthy growth and rehash the last decade’s plodding recovery.

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Weekly inflows into stocks hit $68 billion globally last week, the most since 2003 as investors position for further growth, Deutsche Bank says

stock traders

Investors piled the most money into stocks since 2003 last week as optimism for further growth continues, according to Deutsche Bank.

A team of strategists from the firm found that global equity funds saw $68 billion of inflows last week, the largest input since 2003, driven by a record $53 billion into US funds. According to Deutsche Bank, this brings the cumulative flows from November 2020 to $450 billion.

On a sector level, tech funds saw $3.2 billion in inflows, with financials ($2.2 billion) and energy ($1.3 billion) trailing right behind in a sign that investors are betting for further growth.

“Scaled by assets under management, the pace of equity inflows is at the top of its historical range. It is also well supported by forecasts of strong growth ahead,” the strategists wrote.

The firm also found that the percentage of investor portfolios in stocks has continued to grow higher. The level of equity positioning is now near the all-highs last since in early 2018.

Deutsche Bank said positioning in stocks is likely to continue in the near term. However the firm anticipates a peak in growth sometime in the second quarter of 2021 that will cause a pullback in stocks as investors position their attention away from markets and “find something else to do” as the economy re-opens.

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Stocks could pull back 10% in the second quarter when stimulus-fueled growth peaks, Deutsche Bank’s chief strategist says

NYSE Trader worried red
A trader works on the floor at the New York Stock Exchange (NYSE) in New York, U.S., February 28, 2020.

  • Stocks could pull back as much as 10% in the second quarter, Deutsche Bank said.
  • The pullback will be prompted by a peak in economic growth and a downturn in retail investor inflows as people return to their pre-pandemic routines.
  • In the near-term, Deutsche Bank sees stocks continuing to gain.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Deutsche Bank’s chief global strategist expects stocks to pull back as much as 10% in the second quarter of 2021 as economic growth peaks.

In a Friday note a team of strategists led by Binky Chadha said they expect a “significant market consolidation” between 5%-10% sometime in the second quarter.

“The more front-loaded the impact of the stimulus, and the direct stimulus checks at around a quarter of the new package clearly are one off, the sharper the peak in growth is likely to be,” the strategists said. “The closer this peak in macro growth is to warmer weather (giving retail investors something else to do); and to an increased return to work at the office, the larger we expect the pullback to be.”

In the nearer term, Deutsche Bank expects stocks to continue to go up as investors pile into stocks with new stimulus money. On Monday morning the Dow Jones hit a record high, buoyed by optimism for strong economic growth following President Biden signing the $1.9 trillion stimulus program into law last week.

The strategists also raised their year-end S&P 500 price target to 4100, up from 3950 previously, because they see stocks rallying back after the second quarter pullback. That gives the benchmark index nearly 4% upside from current levels.

But investors should be selective about stocks they choose against this backdrop. Deutsche Bank’s top sectors are energy and financials, while industrials, materials, and cyclical consumers received a “neutral” rating, because these groups have already priced in strong macro growth after outperforming since November.

Meanwhile, returns on mega-cap growth stocks and technology names are likely to remain flat throughout the year, Deutsche Bank added.

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Big banks, including Deutsche Bank and Bank of America, are testing employees for COVID-19 before they step into the office. Insider took a closer look at their plans.

Arizona covid-19 testing coronavirus
Physician John Jones, D.O. tests administrative assistant Morgan Bassin for COVID-19 at One Medical in Scottsdale, Arizona.

  • As COVID-19 continues to spread, big banks worldwide are monitoring staff that come into the office.
  • Deutsche Bank, Credit Suisse, and BoA are all testing employees for COVID-19, sources told Insider.
  • JPMorgan and Wells Fargo said they require employees to complete a health check before they arrive.
  • Visit the Business section of Insider for more stories.

Major banks worldwide have launched COVID-19 testing programs in order to enable a return to work for some employees during the pandemic.

Some banks are offering their staff lab-based PCR tests, which are considered the most accurate way of detecting coronavirus, but they can cost around $100 to process, per The New York Times. Results of PCR tests usually come back within a couple of days.

Other banks are providing antigen tests, also known as lateral flow tests, which give results in about 15 to 30 minutes. Both antigen and PCR tests require swabbing the nose or throat.

“I have been back at work since the start of the year and have been asked to produce three negative test results every week,” a source who works in a bank in London told Insider on the condition of anonymity. “It’s a bit stressful but the antigen tests are quick and I have got into a nice routine now. It’s also nice to be able to go back to work, although I miss the pre-COVID office environment,” they said.

However, a number of other banks are asking employees to fill out questionnaires about possible symptoms and exposure to the virus before they come into the workplace.

Insider spoke with sources working in banks across the world to get a sense of return-to-work plans. 

Deutsche Bank

Twice a week, Deutsche Bank is testing UK employees considered key workers that work on the busiest floors in the office, sources familiar with the system said. They are being tested with PCR tests. It’s unclear whether staff working on other floors are being also tested.

Deutsche Bank declined to comment to Insider.

Bank of America

Bank of America is testing employees on a weekly basis if they’re coming into the office, according to sources familiar with the matter. The testing is currently targeted at UK offices, and there are plans to roll out the tests to the rest of Europe, the Middle East, and Africa region. 

Bank of America declined to comment.

Read more: Bank of America has promoted 86 managing directors in its sales and trading, research, and operations groups – here are all the names

JPMorgan

JPMorgan told Insider that employees coming into the workplace in all locations are required to take a daily health check before entering an office. The health check is a survey that can be completed via mobile or laptop, and asks if you’ve been exposed or in close contact with someone who is infected with COVID-19 or showing related symptoms.

The bank said the daily health checks had been in place since the pandemic began in March.

On top of this, JPMorgan is also sending at-home testing kits to staff, if they want one. Employees are also able to book a PCR COVID-19 test at one of the bank’s on-site health and wellness centers.

Wells Fargo

A Wells Fargo spokesperson confirmed to Insider that all workers who go into the bank are required to complete a self-screening assessment, which involves filling out a questionnaire about whether they have symptoms or have been exposed to COVID-19. They must complete this every day before entering the workplace, the spokesperson said.

In its largest US locations, the bank has an on-site nurse to check staff for COVID-19 symptoms and refer them for testing.

Credit Suisse

Sources familiar with the situation at Swiss bank Credit Suisse said it is offering its staff in London weekly testing, despite only a small number of them coming into the workplace. Credit Suisse declined to comment.

Citibank and Barclays could not be reached for comment. HSBC didn’t respond to Insider’s request for comment.

Are you an employee in the banking sector being tested for COVID-19 on a daily basis? Get in touch with this reporter via email: kduffy@insider.com.

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Square gets a street-high $330 price target from Deutsche Bank on Cash App stimulus potential

jack dorsey
Jack Dorsey Square’s Co-founder.

Square received a street-high $330 price target from Deutsche Bank on Wednesday ahead of the company’s February 23 earnings date.

Analysts at Deutsche Bank, led by Brian Keane, said Square may have been a “recovery play in 2020,” but the “bigger recovery story” is set to come in 2021.

Square is a financial services and mobile payments firm that was founded in 2009 by Jim McKelvey and Twitter’s Jack Dorsey. The company’s stock has risen more than 220% over the past year as its flagship product, Cash App, blossomed due in large part to stimulus checks and the stay-at-home audience.

Deutsche Bank’s Brian Keane said another round of stimulus checks might be a significant win for Cash App in a note to clients on Wednesday.

“Although benefits from the first round of stimulus have started to fade, Cash App should benefit from the second smaller round starting in 1Q21,” Keane said.

The analyst also said his team expects “Cash App to benefit from monetizing new users, cross-selling products across the platform, and expansion into new products” throughout the year, but sees gross profit growth falling.

While some analysts and investors have been worried about Cash App’s profit potential, Deutsche Bank analysts said they “expect margins” for the all-important business sector “to scale over time.”

Deutsche Bank analysts also noted the benefit Square’s stock brokerage products have had on the top line. The company added 2.5 million transacting customers since its launch less than a year ago as of the end of the third quarter. 

The record surge in the price of bitcoin has been “a boon” for Square’s revenue and gross profits as well.

The company made headlines back in 2017 when it started allowing cryptocurrency trading through its Cash App. And more recently Square bought $50 million worth of bitcoin in an investment that has already paid big dividends for the company.

Deutsche Bank’s Keane said he raised his fourth-quarter “Total Net Revenue growth” forecast to “~140% Y/Y primarily due to higher Bitcoin revenue.”

However, the analysts added that they are “lowering our Gross Profit growth from ~55% Y/Y to ~48% Y/Y due to the lower Seller volumes and Cash App Gross Profit growth.”

Deutche Bank is forecasting net revenues of $9.49 billion when Square reports earnings on Feb 23 vs. consensus estimates of $9.51 billion. And the firm expects net income of $118 million vs. a $94 million consensus estimate.

Square traded down 1.86% on Wednesday as of 3:44 PM ET, at $270.80, giving the company a market cap of $122.08 billion.

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All the businesses cutting ties with the Trump Organization

trump thanksgiving
Former President Donald Trump.

  • After the insurrection at the Capitol, some entities severed ties with Trump and his business.
  • Several prominent business leaders spoke out against the riot.
  • Deutsche Bank, Aon, Cushman & Wakefield, and even New York City moved to cut ties.
  • Visit Business Insider’s homepage for more stories.

In the weeks since early January’s violent insurrection at the Capitol by a pro-Trump mob, some businesses are cutting ties with the Trump Organization.

On January 6, the Capitol went into lockdown as thousands of President Donald Trump’s supporters descended upon the building, resulting in chaos, damage, and violence. At least five people have died.

In the wake of the riot, politicians – including Republican House Minority Leader Kevin McCarthy – spoke out about the responsibility that the president bears for inciting violence. Prominent business leaders, including Apple CEO Tim Cook and Google CEO Sundar Pichai, also spoke out against the siege. Business Roundtable released a statement calling on the president to “put an end to the chaos.”

Platforms including Twitter and Facebook moved to ban the president’s accounts. Twitter CEO Jack Dorsey broke his silence on the ban last night, saying it set a “dangerous precedent.” And, as Deadline reports, the outgoing president was soon facing expulsion from the performing arts union SAG-AFTRA (although he’d still receive his pension of over $90,000); he resigned instead of accept expulsion.

In a historic vote, Trump became the first president to be impeached by congress twice. If he’s convicted by the senate (a move that requires a two-thirds majority), it can vote on whether to bar him from holding office again.

But some actions have gone beyond statements: Businesses and other entities are severing their financial connections to Trump and the Trump Organization. 

In the wake of the insurrection and impeachment, some groups formerly affiliated with the Trump Organization are opting to sever ties. The Trump Organization did not immediately respond to Insider’s request for comment.

Here are all the businesses and entities that have publicly split from the Trump Organization.

SAG-AFTRA planned on holding a hearing on whether to expel Donald Trump from the labor group – but he resigned in a pointed letter.

Trump The Apprentice

On February 4, Trump sent in a resignation letter addressed to SAG-AFTRA union President Gabrielle Carteris.

“I write to you today regarding the so-called Disciplinary Committee hearing aimed at revoking my union membership,” Trump wrote.”Who cares!”

He went on to say he was “not familiar with your work” but that he’s proud of his own performances in movies such as “Home Alone 2” and “Zoolander” and television shows including “Saturday Night Live” and “The Apprentice.”

He closed his letter with: “I no longer wish to be associated with your union. As such, this letter is to inform you of my immediate resignation from SAG-AFTRA. You have done nothing for me.”

In response, SAG-AFTRA released a two-word statement: “Thank you.”

New York City is ending its contracts with the Trump Organization.

donald trump and fred trump
Donald and Fred Trump at the opening of the Wollman Rink on November 6, 1987.

New York Mayor Bill de Blasio said on Wednesday that New York City “will no longer have anything to do with the Trump Organization.”

Insider’s Grace Dean reported that the city had contracts with the Trump Organization to run two ice-skating rinks (and a carousel) in Central Park, as well as a golf course in the Bronx.

The Washington Post reported those contracts brought in $17 million in annual revenue for the Trump Organization.

The PGA pulled its 2022 championship from Trump’s Bedminster, New Jersey, golf club.

trump golfing
Trump at the Trump National Golf Club in Sterling, Virginia, on November 21.

Insider’s Julie Gerstein reported the decision came after last week’s insurrection; board members voted to pull the plug. 

In a statement to The Washington Post, the Trump Organization said it was “a breach of a binding contract and they have no right to terminate the agreement.”

Trump was more upset about no longer hosting the tournament than getting impeached for a second time, The New York Times’ Maggie Haberman reported.

Deutsche Bank and Signature Bank are reportedly ending their banking services for the Trump Organization.

Deutsche Bank
Germany’s Deutsche Bank in Frankfurt.

Bloomberg reported on Monday that both banks were severing ties. In a statement to Bloomberg, Signature said, “We believe the appropriate action would be the resignation of the president of the United States.”

According to the Bloomberg report, Trump owes Deutsche Bank over $300 million, and Signature Bank will close two personal accounts with about $5.3 million in them.

Professional Bank won’t provide services for Trump or the Trump Organization.

trump wind
Trump borrowed $11 million from the bank in May 2018.

“Professional Bank has decided not to engage in any further business with the Trump Organization and its affiliates, and will be winding down the relationship effective immediately,” the bank said in a statement to Bloomberg on Tuesday.

Bloomberg reported Trump borrowed $11 million from the bank in May 2018 to buy a home for his sister Maryanne Trump Barry next to his Mar-a-Lago club in Florida.

Insider’s Kate Duffy reported Trump had a money-market account with the bank worth as much as $25 million.

The Girl Scouts want to end their lease in a Trump building.

Trump Building
The Trump Building.

The Girl Scouts’ New York chapter told Insider’s Daniel Geiger that the organization was trying to get out of a 15-year lease at 40 Wall St., which is known as the Trump Building.

The real-estate giant Cushman & Wakefield will no longer do business with the Trump Organization.

trump tower
A guard outside Trump Tower on Fifth Avenue in Manhattan on August 24, 2018.

The firm was an agent for Trump Tower and 40 Wall St.

“Cushman & Wakefield has made the decision to no longer do business with The Trump Organization,” a spokesman said in a statement to Insider.

Curbed reported last week that the real-estate brokerage JLL was no longer involved in marketing the Trump hotel in Washington, though it’s not clear when the brokerage backed out.

Shopify closed the Trump Organization’s store.

Shopify app phone
The Shopify app.

Vox reported on January 7 that Shopify closed both the Trump Organization’s store and the e-commerce section of Trump’s election website.

The insurance brokerage Aon has ended its relationship with the Trump Organization.

michael cohen donald trump regular
The insurer was subpoenaed in 2019 after Michael Cohen said Trump inflated the value of his assets.

Bloomberg first reported on Wednesday the insurer had cut ties with the Trump Organization. 

Aon was subpoenaed in 2019 by New York’s financial regulator over Michael Cohen’s allegation that Trump had inflated the value of his assets.

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