Unless you are one of three people to purchase a winning powerball ticket, the financial news is not great this morning.
Stocks continued to slide overseas, after entering correction territory in the U.S. yesterday. Albert Edwards, strategist at Société Générale, has taken the prize for the most bearish market prediction, saying stocks could fall as much as 75% from their peak – worse than in the financial crisis. Edwards also regularly wins the prize for “Analyst Who Cried Wolf Most Often”, but the markets don’t seem to be in a mood to remember that today. In the U.S., heavily indebted energy companies continue to get pummeled the hardest, but media/technology darling Netflix was also one of the hardest hit. Surprisingly, Exxon Mobil shares rose yesterday. Investors apparently think the company’s conservative balance sheet will give it an opportunity to gain market share in the energy wreckage.
At Fortune, we think all this pessimism has gotten a bit overblown. My colleague Shawn Tully offers an antidote here.
Separately, a Paris-style gun and bomb terror attack broke out in Jakarta today, killing at least six people.
More news below. Here’s hoping for a better report tomorrow.
• GoPro unveils weak sales, layoffs
The once high-flying action camera maker continued to see its stock stumble after reporting pre-announced disappointing fourth quarter results and saying it would cut 7% of its workforce. GoPro has faced woes for a while now, especially after its latest camera – the Hero 4 Session – failed to catch on with consumers. The market for action cameras has become saturated, putting pressure on GoPro after it essentially created the category in the first place. Fortune
• General Electric to relocate to Boston
General Electric is relocating the conglomerate’s global headquarters to Boston, opting to leave its longtime campus in suburban Connecticut. GE plans to employ about 800 people in Boston, a move that is seen as a major victory for Massachusetts politicians that worked to lure GE for several months and ultimately bested New York and other cities. Boston Globe
• Chipotle planning big marketing push
The fast-casual Mexican restaurant chain is planning to debut aggressive marketing next month in a bid to lure diners back to its burrito bars. Once a high-performing restaurant operator, Chipotle has seen its sales and stock price battered since November after a series of food safety disasters. To help improve the brand’s perception, it is going to invest in a big ad campaign to vow that the Chipotle customers grew to love is safer than ever. Still, it warned that the E. coli crisis will hurt sales throughout 2016. Fortune
• SurveyMonkey hires new CEO
SurveyMonkey, a creator and publisher of online surveys, appointed its chairman Zander Lurie to the CEO post – replacing Bill Veghte, who is leaving the post after serving in that role for less than six months. Lurie previously worked at camera maker GoPro, where he served as senior vice president of entertainment. SurveyMonkey was previously steered by Dave Goldberg, who died suddenly over the summer. Fortune
• Volkswagen CEO meets with EPA
Volkswagen Chief Executive Matthias Müller met with a senior government official in the United States for the first time, discussing a crisis that has stung the German auto maker since it was revealed VW installed software aimed at cheating on emissions tests on hundreds of thousands of cars sold in the U.S. While the Environmental Protection Agency declined to comment on the talks, it said it “appreciated” the conversation and was working “toward a solution.” New York Times (subscription required)
Around the Water Cooler
• Winning Powerball tickets sold
At least three winners scored history’s largest-ever lottery jackpot, splitting a $1.5 billion lottery that captured the nation’s attention in recent days. Even presidential candidates like Democratic frontrunner Hillary Clinton weighed in on what they would do with the winnings. NBC said three states – California, Florida and Tennessee – sold winning tickets. The split prize amounts to $528.8 million for each winner. NBC News
• Al Jazeera America to shut down
The American cable news outlet owned by Qatar-based Al Jazeera is planning to shut down by the end of April, closing the operation less than three years after it was launched after failing to overcome low ratings. The U.S. arm of the network launched in the summer of 2013 after buying Current TV, the cable news channel that was co-founded by Al Gore. Though the network was able to eventually reach 55 million homes in the U.S., analysts speculated it never broke six digits for ratings. USA Today
• Google reports self-driving car incidents
Google filed a report this week that disclosed 272 occurrences during a 14-month period where the software on its self-driving vehicles detected a problem that required an immediate handover to the human test drivers. Of those, Google said that if a human hadn’t taken over, there would have likely been 13 contacts with other vehicles or objects. Auto companies in California are required to make such disclosures when testing autonomous vehicles, and according to the Wall Street Journal, Google has the most extensive fleet of those cars driving on public roads today. Wall Street Journal (subscription required)