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    Give us your nominations: CNBC is ranking the world’s top fintech companies

    In 2022, the fintech world took a beating, with some of the world’s most richly valued companies seeing their valuations slashed. But innovation is still happening — with a vengeance.
    Oscar Wong | Moment | Getty Images

    CNBC and independent research firm Statista are working together to identify the world’s top fintech companies, to be named in a published CNBC report in August.
    The research will identify fintechs disrupting the giants of finance with services that are faster, cheaper and more accessible — from established firms in payments and digital banking, to rising stars in emerging fields like cryptocurrency.

    In 2022, the fintech world took a beating. Some of the world’s most richly valued companies saw their valuations slashed as investors reexamined the sector against a backdrop of climbing interest rates, higher living costs, and the prospect of stricter regulation.
    But innovation is still happening — with a vengeance. The rising cost of living has opened opportunities for firms to develop tools that can help people navigate economic uncertainty — whether through better budgeting and financial planning, or education on how to manage money.
    That has made the need for a transparent overview of the top fintech companies more important than ever.
    As part of the research, we are inviting entries from eligible fintech companies to register their interest in being considered for the list. To qualify, a fintech — defined as a company that provides innovative, technology-based and finance-related products and services — must have successfully completed at least one Series A funding round.
    Firms will be required to submit information on their business model and certain key performance indicators.
    If you would like your company to be considered for this research, please click on this link, which will take you to the short application form hosted by Statista. Further information about the project can be found here.

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    UK inflation rate breaks 3-month stretch of declines with surprise rise to 10.4%

    British households continue to contend with high food and energy bills, while workers across a range of sectors have launched mass strike action in recent months.
    The Bank of England has been hiking interest rates aggressively in a bid to rein in inflation and will announce its latest monetary policy decision on Thursday.

    U.K. inflation data paints a picture of the British economy.
    Bloomberg / Contributor / Getty Images

    U.K. inflation unexpectedly jumped in February, as food and energy bills continued to rise, placing further pressure on households.
    The consumer price index (CPI) increased by an annual 10.4%, above the 9.9% consensus forecast among economists in a Refinitiv poll and up from 10.1% in January. On a monthly basis, CPI inflation was 1.1%, exceeding a forecast of 0.6%.

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    “The largest upward contributions to the monthly change in both the CPIH and CPI rates came from restaurants and cafes, food, and clothing, partially offset by downward contributions from recreational and cultural goods and services (particularly recording media), and motor fuels,” the U.K. Office for National Statistics said.
    The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 9.2% in the 12 months to February 2023, up from 8.8% in January.
    The surprise increase in February marked a break from three consecutive months of slowing price increases since the 41-year high of 11.1% reached in October.
    British households continue to contend with high food and energy bills, while workers across a range of sectors have launched mass strike action in recent months amid disputes over pay and conditions.
    Sterling rose by 0.4% against the dollar early on Wednesday.

    Speaking to the House of Lords Economic Affairs Committee, U.K. Finance Minister Jeremy Hunt on Wednesday stressed that reducing inflation from its current “dangerously high” levels remains at the top of the government’s agenda:
    “It’s the prime minister’s first priority to halve inflation,” he said. “Of course, we will do that in a way that maintains, as best as we are able, stability in financial markets. But we should remember that inflation itself is destabilizing, so it is not an answer to say that we’re going to suddenly change our minds and say that it’s acceptable to have an rate of inflation that as destabilizingly high as over 10%.”

    He acknowledged arguments that the accelerated pace at which central banks have lifted interest rates in efforts to combat inflation has contributed to recent unrest across multiple sectors of the financial markets:
    “You’re absolutely right to say that the speed of interest rate rises is the root cause of the volatility that we’ve seen in recent months,” he noted.
    The Bank of England Monetary Policy Committee will adjourn on Thursday to pronounce on interest rates. Last week, the European Central Bank moved to increase its own rates by 50 basis points despite storms in the banking sector.
    Bank of England ‘on a knife edge’
    The print will pose a further headache for the Bank of England, which has been hiking interest rates aggressively in a bid to rein in inflation and will announce its latest monetary policy decision on Thursday.
    Richard Carter, head of fixed interest research at Quilter Cheviot, said that the downward path for inflation will not be smooth, and suggested the Bank of England may be forced to continue increasing the bank rate beyond its current level of 4%.
    “The rhetoric from the BoE will continue to be that inflation is the primary concern, however, events in the banking sector have somewhat taken over and the Monetary Policy Committee has been seeing significant divisions on the best way forward,” he said.
    The fallout from the failure of Silicon Valley Bank and the emergency rescue of Credit Suisse has added a further layer of complexity to the task facing central bankers around the world.
    Last week, the independent Office for Budget Responsibility projected that U.K. inflation would plummet to 2.9% by the end of 2023 — a forecast Carter said was “increasingly ambitious” in light of the Wednesday print.
    “How much the banking crisis will have changed this prediction remains to be seen, but it does feel a very punchy estimate,” he said.
    Jake Finney, economist at PwC, said the reading was the first setback in the Bank of England’s mission since inflation began falling in November, and highlighted that inflationary pressures are starting to diverge.
    “Food price inflation continues to reach new heights and restaurants and cafes prices increased further, while on the other hand, transport price inflation continued its downward trajectory as petrol and diesel prices fell back further,” he said.

    Despite the bump in the road, PwC still sees inflation falling throughout most of 2023 to finish much closer to the Bank’s 2% target. Finney nevertheless noted that “the living standards squeeze is not over yet.”
    The OBR expects real household disposable income per person, a measure of living standards, to fall by a cumulative 5.7% in 2022/23 and 2023/24.
    “The Bank of England’s decision on Thursday remains on a knife-edge. The latest inflation data provides a setback but the Bank of England have made clear they will not be swayed by month-to-month changes in data points,” Finney said.
    “We are expecting to see one final 25bp hike from the Bank of England. However, further volatility in the financial markets could turn sentiment towards a no change decision.”

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    Stocks making the biggest moves premarket: GameStop, Luminar Technologies, Virgin Orbit & more

    People wearing protective face masks walk past the closed Nike store on 5th Avenue, during the outbreak of the coronavirus disease (COVID-19), in New York City, May 11, 2020.
    Mike Segar | Reuters

    Check out the companies making headlines before the bell.
    GameStop — The meme stock surged 44% after the company posted a quarterly profit for the first time in two years Tuesday. The video game retailer’s gross margin also rose from the year-earlier period.

    Luminar Technologies — Shares dropped nearly 9.2% after being downgraded by Goldman Sachs to sell from neutral. The Wall Street firm cited margin risk and a premium valuation for the call.
    Petco Health and Wellness — The stock fell by 7.8% in early morning trading after the company reported fourth-quarter earnings that missed Wall Street’s expectations. Petco posted a revenue of $1.58 billion, in line with expectations from analysts surveyed by StreetAccount. Petco also reported adjusted earnings per share of 23 cents, below a consensus estimate of 24 cents per share.
    Virgin Orbit Holdings — Shares of billionaire Richard Branson’s rocket builder soared by nearly 73.3% after Reuters reported it is aiming to close a deal for a $200 million investment from Texas-based venture capital investor Matthew Brown via a private share placement. Virgin Orbit and Brown are aiming to close the deal on Friday, the report said. The company was bracing for a potential bankruptcy filing as soon as this week, CNBC reported on Monday.
    Boeing — Shares of the airline declined by 1.3% on news that Boeing will take additional charges to its KC-46 tanker program due to a supplier quality issue with the center fuel tank, chief financial officer Brian West said Wednesday. Although the charges were not disclosed, West said Boeing’s margins at its defense business would be negative for the first quarter.
    First Republic — Shares of the regional bank fell by 4.2% in premarket trading after jumping nearly 30% in Tuesday’s session. The stock has been extremely volatile in recent weeks as investors have reacted to the closure of Silicon Valley Bank.

    Nike — Nike dipped about 1.1% before the bell even after it beat expectations for its fiscal third quarter on both the top and bottom lines. Sales in China fell short of analyst expectations, and the company continued working through its inventories, which weighed on margins.
    — CNBC’s Samantha Subin, Jesse Pound, Alex Harring and Michelle Fox Theobald contributed reporting.

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    Mortgage demand increases again, but interest rates are rising

    Mortgage demand rose last week, but rising interest rates may stand in the way of stronger volume.
    The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.48% from 6.71%.
    Mortgage applications to purchase a home increased 2% from the previous week and were 36% lower than the same week one year ago.

    A For Sale sign displayed in front of a home on February 22, 2023 in Miami, Florida.
    Joe Raedle | Getty Images

    Mortgage demand has increased for three straight weeks now, as interest rates dropped in response to the recent bank failures.
    But rates are rising again, and that could put a damper on application volume.

    Total mortgage application volume rose 3% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
    The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.48% from 6.71%, with points decreasing to 0.66 from 0.79 (including the origination fee) for loans with a 20% down payment. It was the lowest level in a month but still much higher than the same week one year ago, when the rate was about 4.5%.
    “Treasury yields declined last week, driven by uncertainty over the health of the banking sector and worries about the broader impact on the economy,” said Joel Kan, MBA’s deputy chief economist. “However, mortgage rates have not dropped as much as Treasury rates due to increased MBS market volatility.”
    Applications to refinance a home loan increased 5% for the week but were 68% lower than the same week one year ago. Refinance demand is highly sensitive to weekly rate moves, but there are precious few borrowers right now who can still benefit from a refinance at today’s higher interest rates.
    Mortgage applications to purchase a home increased 2% from the previous week and were 36% lower than the same week one year ago. Today’s homebuyers may be less influenced by weekly interest rate moves and more influenced by the state of the economy. The stress on the banking sector, high home prices and a tight supply of homes for sale have all been weighing heavily on consumer confidence.

    With fears over the banking sector subsiding somewhat, at least in financial markets, mortgage rates moved higher to start this week, according to a separate index from Mortgage News Daily. On Tuesday, it put the average rate at 6.75%.
    All ears are on the Federal Reserve, which is expected to raise the federal funds rate by a quarter point, due to the stress on the banking sector. Mortgage rates don’t follow the Fed exactly, but they do respond to its perception of the overall economy.
    “Either way, they will also be updating their rate outlook for the coming months/years and that’s arguably even more important than what they do with [the] rate hike,” wrote Matthew Graham, chief operating officer of Mortgage News Daily.  

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    Panera Bread tests Amazon’s palm-scanning technology in St. Louis

    Panera Bread is testing Amazon’s palm-scanning technology at two restaurants in St. Louis.
    Customers can use their palms to pay for their orders and connect to their loyalty program accounts.
    Panera’s loyalty program has more than 52 million members, representing a big expansion opportunity for Amazon One.

    A sign is posted on the exterior of a Panera Bread restaurant on November 09, 2021 in Novato, California.
    Justin Sullivan | Getty Images

    Panera Bread is piloting Amazon’s palm-scanning technology in St. Louis to offer customers a faster way to connect to their loyalty program and pay.
    The bakery-cafe chain, which has long been considered a leader in restaurant technology, is the latest restaurant to use what the tech giant has dubbed Amazon One. It’s already been implemented in dozens of Amazon-owned Whole Foods locations, Amazon Go stores and some stadiums and arenas.

    Panera has more than 2,000 locations and its loyalty program has more than 52 million members, representing a big expansion opportunity for Amazon One. A representative for Amazon declined to share data on existing signups for the palm-based payment system.
    For now, Panera’s starting small, with just two company-owned restaurants in its hometown of St. Louis.
    “We think the payment plus loyalty identification is the secret sauce that can unlock a really personalized, warm and efficient experience for our guests in our cafes,” Panera Chief Digital Officer George Hanson told CNBC.
    Panera is looking to expand the test to 10 to 20 more restaurants over the next few months, including some operated by franchisees, according to Hanson.
    The palm scanners are located near the restaurant’s registers. To use them, customers need to link their loyalty program accounts to Amazon One, which they can do at home or inside the restaurant. They’ll also need to enable loyalty identification and payment for their accounts.

    Privacy concerns

    Amazon has faced some backlash from consumers and privacy experts for its use of biometrics, which use biological measurements to identify someone. An Amazon Go customer filed a lawsuit Thursday in New York, alleging the retailer broke the city’s law that requires it to post signs informing customers that it’s using facial recognition.
    Security experts have warned that even palm scans can be a risk because that data is stored in the cloud. Last March, Red Rocks Amphitheater in Colorado dropped Amazon One from the venue after privacy groups pushed it to reconsider.
    But Hanson said Panera chose Amazon’s technology for three reasons: it’s contactless, customers have to opt in, and a person can’t be identified by their palm alone.
    “All of those things are the reasons why we think this particular technology solution is safe, secure and very guest centric,” he said.
    For its part, Amazon says that palm images are encrypted and sent to a secure, “custom-built area in the cloud” where the company creates a unique palm signature.
    This marks Amazon’s second tech collaboration with a large restaurant company. Starting in late 2021, it started opening pickup cafes with Starbucks using its Amazon Go cashierless technology. Like Panera, the coffee chain has been looking for new ways for customers to pick up their food and drinks quickly and conveniently.
    Panera’s tech investments and popular loyalty program may make it more attractive to investors. The restaurant company is currently privately owned by JAB Holding, the investment arm of the Reimann family.
    Last year, JAB attempted to take the chain public again through a deal with restaurateur Danny Meyer’s special purpose acquisition company and an initial public offering, but it fell through due to rocky market conditions.
    However, The Wall Street Journal reported earlier this year that Panera is once again eyeing an IPO, as long as investors have an appetite for one.

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    Goldman Sachs is using ChatGPT-style A.I. in house to assist developers with writing code

    Goldman Sachs developers are internally testing generative AI tools to assist their code writing, according to a top executive at the bank.
    This is currently in a “proof of concept” stage and not yet ready for production, he said.
    ChatGPT and similar products could potentially radically shake up the world of financial services.

    The Goldman Sachs logo displayed on a smartphone.
    Budrul Chukrut | Sopa Images | Lightrocket | Getty Images

    Goldman Sachs is experimenting with generative AI tools internally to help its developers automatically generate and test code, the company’s chief information officer told CNBC.
    Marco Argenti, who joined Goldman as a partner from Amazon in 2019, said Tuesday that the firm’s software engineers have been using the technology to automatically generate lines of code.

    It is currently in a “proof of concept” stage and not yet ready for production, he added.
    “Developers are already using some of the assisted coding technology,” Argenti told CNBC’s Arjun Kharpal at the Goldman Sachs technology symposium on Tuesday.
    Generative AI refers to a group of products that produce human-like text or images in response to written prompts from users.
    Among the most popular examples is ChatGPT, an AI chatbot developed by Sam Altman’s OpenAI. Other competing products include Google’s Bard and Stable Diffusion, an AI-based image generator created by startup Stability AI.
    Goldmans’ interest in generative AI products comes despite pushback from some banking giants on the use of ChatGPT internally. JPMorgan, Goldman Sachs, Citigroup and Bank of America have all reportedly restricted staff from using the software.

    Argenti declined to identify the generative AI products that the company has been using. He also did not specify which bank division the tech is being used in.
    ChatGPT and products like it could potentially radically shake up the world of financial services. AI could take the steering wheel on which investment decisions to make, for example, or automate many customer service functions.
    “It’s still very early,” Argenti conceded, although he compared the development of generative AI to “the beginning of the internet.”
    “You wouldn’t put immediately all your most important workloads there, but the imperative is to really to try to understand the potential,” he added.
    Goldman has invested heavily in turning the bank into a more technology-driven company in recent years. The firm launched Marcus, a standalone digital bank focused on consumers, in 2016 and rolled it out to the U.K. in 2018.
    “I’ve been in technology probably almost four decades or so, and this is one of the biggest disruptions I’ve ever seen,” Argenti said. “Probably comparable to the internet, apps, the cloud — it’s that order of magnitude.”
    Goldman’s innovation chief stressed that AI should not be considered a replacement for software developers, but more of a companion to help them be more productive.
    In some cases, developers have been able to write as much as 40% of their code automatically using generative AI, he said. They are using the software to both test code and generate new one, Argenti added.
    “If you actually have a GPT-like technology that tests the code, or you generate the tests for the GPT code, you’re creating this dualism where you test the machine and you get the machine to test your work,” he said. 
    WATCH: How Nvidia grew from gaming to A.I. giant now powering ChatGPT

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    DCG-owned crypto exchange Luno replaces CEO, seeks outside investment after layoffs

    The co-founder of crypto exchange Luno, Marcus Swanepoel, is stepping down as CEO and will become the firm’s executive chairman.
    Luno is also seeking investment from new investors for the first time since being acquired by DCG in 2020.
    James Lanigan, Luno’s chief operating officer, will take over the reins as its new CEO, the company said in a press release.

    DCG, Luno’s parent company, has been grappling with the ongoing fallout from last year’s plunge in token prices and the collapse of FTX.
    Rafael Henrique | Sopa Images | Lightrocket via Getty Images

    LONDON — The CEO of cryptocurrency exchange Luno is stepping aside and handing the reins to its head of operations, the company announced Wednesday.
    It comes as Luno’s parent company, crypto-focused venture capital firm Digital Currency Group, continues to reel from turmoil in the crypto market. Luno also recently laid off 35% of its global workforce.

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    Marcus Swanepoel, a South African former banker who founded Luno in 2013 with the aim of bringing crypto to the masses, will give up his CEO title after 10 years to become executive chairman, the company said in a press release Wednesday.
    James Lanigan, Luno’s chief operating officer, will take over the reins as Luno’s new CEO. Lanigan joined Luno in 2018 and previously served as chief marketing officer for the restaurant reservation platform TheFork, formerly Bookatable.
    As executive chairman, Swanepoel will spend less time in the day-to-day running of Luno, instead working with Lanigan and management to guide strategy and focus on broadening Luno’s investor base, the company said.
    In a statement, Swanepoel said he was “excited for our next chapter as we continue to put the power of crypto in everyone’s hands.”
    “The opportunity for crypto is bigger and brighter than ever, and James is a seasoned operator and an outstanding leader with a track record of success across all aspects of running a truly global fintech business.”

    Luno said it has also hired investment banking firm Canaccord Genuity Group to help it raise new investment from outside investors. It marks the first time the company is opening up to new investors since being acquired by DCG in 2020.
    Luno will aim to raise money from investors other than DCG to help it expand internationally, gain market share, and prepare for an eventual listing, Luno said in the press release.
    DCG, Luno’s parent company, has been grappling with the ongoing fallout from last year’s plunge in token prices and the collapse of FTX, the controversial exchange whose failure in November sparked a series of bankruptcies in the industry.
    Within DCG’s sprawling portfolio of crypto holdings, digital currency lender Genesis filed for bankruptcy protection owing creditors at least $3 billion, while Grayscale, the largest crypto asset management firm, faces questions over its exposure to FTX and the widening discount its bitcoin investment trust trades at relative to the underlying asset. 
    CoinDesk, the DCG-owned crypto news outlet, hired investment bank Lazard to explore a potential sale, CNBC previously reported.
    A DCG spokesperson insisted Swanepoel’s job move was unrelated to the difficulties faced by Luno’s parent company and had been in the works for 12 months. Transitioning from CEO to executive chairman is a “common path for founder CEOs,” the spokesperson added. 
    “Having first invested in Luno’s seed round in 2014 followed by an acquisition in 2020, we want to thank Marcus for his dynamic leadership and enduring enthusiasm for the global crypto landscape as he transformed Luno into a digital asset powerhouse,” Barry Silbert, DCG’s founder and CEO, said in a statement Wednesday.
    Swanepoel’s decision to step down as CEO caps off a litany of bad news surrounding Luno. The London-based firm, which has offices in Africa, Southeast Asia and Europe, laid off 35% of its workforce in January, citing market turbulence. The company also lost its co-founder and chief technology officer, Timothy Stranex, in December.
    Despite the pain the industry has endured, digital currencies have shown signs of a recovery this year. Bitcoin is up 70% since the start of the year and is currently trading above $28,000 for the first time in nine months. Ether, the second-biggest token, has risen 50% year-to-date and is now worth $1,800 apiece.
    WATCH: Bitcoin at $10,000 — or $250,000? Investors are sharply divided on 2023

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    Virgin Orbit returning ‘small’ team from unpaid pause on Thursday to prep for next rocket launch

    Virgin Orbit is returning a “small” team to work on Thursday, CNBC has learned, as the company aims to prepare for its next rocket launch even as its future remains in doubt.
    “Any viable path for our operations will require us to successfully launch,” Virgin Orbit CEO Dan Hart wrote in an email to employees on Tuesday.
    The company’s leadership is scrambling to secure a funding lifeline and avoid bankruptcy, CNBC previously reported.

    Virgin Orbit flew its modified Boeing 747 airplane “Cosmic Girl” with the company’s LauncherOne rocket under its wing for the first time on November 18, 2018.
    Virgin Orbit

    Virgin Orbit is returning a “small” team to work on Thursday, according to a company-wide email obtained by CNBC, as it aims to prepare for its next rocket launch even as its future remains in doubt.
    “Any viable path for our operations will require us to successfully launch,” Virgin Orbit CEO Dan Hart wrote in the email to employees.

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    Hart described this as a “first step” in an “incremental resumption of operations,” while Virgin Orbit is extending the unpaid furlough and pause in operations for the rest of than more than 750 person company “through at least Monday.”
    The company’s leadership is scrambling to secure a funding lifeline and avoid bankruptcy, CNBC previously reported. Hart noted the pause has been “to conserve cash while we work to assess options to secure Virgin Orbit’s future.”
    “We’ve made some important progress this week, but there is still work to be done,” Hart wrote.

    The modified 737 aircraft “Cosmic Girl” lifts off from Mojave Air and Space Port in California carrying a LauncherOne rocket on June 30, 2021.
    Virgin Orbit

    A Virgin Orbit spokesperson confirmed in a statement to CNBC that the company is returning a subset of its employees on Thursday, but declined to specify how many are resuming work. Hart’s email said the staff returning will “focus on critical areas for our next mission,” including work on testing and installing the rocket’s engines. Reuters first reported the partial work resumption.

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    Virgin Orbit developed a system that uses a modified 747 jet to send satellites into space by dropping a rocket from under the aircraft’s wing mid-flight. But the company’s last mission suffered a mid-flight failure, with an issue during the launch causing the rocket to not reach orbit and crash into the ocean.

    In an update last week, Virgin Orbit said its internal investigation is nearly complete, with the rocket for its next launch featuring modifications and “in final stages of integration and test.”
    Hart in his email wrote that Virgin Orbit is “facing uncertainty and I know that is very uncomfortable,” noting that employees not returning to work yet can continue to use vacation or sick days to help cover the unpaid time.
    The company has been looking for new funds for several months, with majority owner Sir Richard Branson unwilling to fund the company further.

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