Posts by Pras Subramanian

  • Why visionary Ralph Lauren sought out a new leader

    Pras Subramanian at Yahoo Finance 5 days ago

    Another legend walks off the catwalk. Ralph Lauren, an icon in the fashion industry, is stepping aside as CEO at the company he founded nearly 50 years ago, naming Old Navy President (GPS) Stefan Larsson to take his place. For his part the 76-year old Lauren says he isn’t retiring, but will instead stay on as chief creative officer and remain executive chairman. Traders are liking the move at the eponymous brand, sending Ralph Lauren Corp. (RL) shares soaring. Yahoo Finance’s Mike Santoli says the move heralds the massive change coming to the industry.

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    Shell’s Alaska pullout a sign of the timesWhy an antitrust case against Google’s Android is not a slam dunkBill Gross down, but not out, after Pimco tops him

  • Shell’s Alaska pullout a sign of the times

    Pras Subramanian at Yahoo Finance 7 days ago

    It’s a surprise move that has environmentalists jumping for joy. Royal Dutch Shell (RDS-A) has abandoned its controversial offshore drilling operation in the Arctic Ocean near Alaska, only a month after it received approval from the Obama administration to do so. In a statement, Shell says the oilfield in the Chukchi Sea failed to yield a significant discovery, costs were high, and the “unpredictable” U.S. regulatory environment were all reasons for ending the drilling project. Shell has placed a balance sheet value of $3 billion on its Alaska position.

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  • Why an antitrust case against Google’s Android is not a slam dunk

    Pras Subramanian at Yahoo Finance 10 days ago

      The Volkswagen emissions scandal may have dominated the headlines this week, but there's another company in possible legal trouble as well. Bloomberg is reporting U.S. antitrust officials are planning to investigate Google’s (GOOGL) Android mobile operating system, looking into whether the company stifled competitors' access to Android. Both the FTC and Google have declined to comment.

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  • Bill Gross down, but not out, after Pimco tops him

    Pras Subramanian at Yahoo Finance 11 days ago

    For years he was called the Bond King, but is his reign effectively finished? One year after the legendary Bill Gross left Pimco, the FT reports his new fund at Janus Capital (JNS) had a 2.5% loss, while during the same period Gross’s old flagship fund, Pimco’s Total Return Fund, was up 1.7%. In the days that followed Bill Gross’s exit, many believed Pimco would not be able to sustain the loss of its founder. But the results show the system in place at Pimco, perhaps the one even built by Gross himself, is up to the challenge. “Well it sort of suggests that at least [Pimco’s system] was not broken, the system was not compromised, not just by the absence of Bill Gross but by the massive outflows of investor funds from their products,” Yahoo Finance’s Mike Santoli says in the attached video. “That was what was considered to be the big danger was that Pimco Total Return and other funds that Gross oversaw in a broader way would basically not be able to operate well if they were having to hemorrhage money and give investor cash back.” Get the Latest Market Data and News with the Yahoo Finance App

  • ‘A nickel ain’t worth a dime anymore’ - Yogi’s financial wisdom

    Pras Subramanian at Yahoo Finance 12 days ago

    New York Yankees legend and Hall of Famer Yogi Berra passed way yesterday at 90 years old. Berra was a part of many great Yankees teams, but he may have been even more famous off the field for his wit and wisdom, even on Wall Street, with his famous 'Yogisms.' Here are a few that are easily recognizable: "A nickel ain't worth a dime anymore." "When you come to a fork in the road, take it." "Ninety percent of this game is half mental." "You can observe a lot by watching." "It's deja vu all over again." And Wall Street, only a short subway ride away from Yankee Stadium, has co-opted some of the phrases coined by Yogi to explain market moves, and even to give out investment advice.

    Not to mention all of his endorsement deals, with companies like Miller Lite, AFLAC (AFL), Visa (V), and Yoo-Hoo.  “I think Yoo-hoo is the best one,” Santoli recalls wistfully. “He knew the founding family, and he actually stood on principle - he said when Yoo-hoo started to taste different, he stopped wanting to be the sponsor for it.”

  • Hillary’s tough talk threatens biotech’s lofty valuations

    Pras Subramanian at Yahoo Finance 13 days ago

    Biotech (IBB) has been one of the market’s bright spots this year, but now the sector is getting hit, hard. After a few media reports of companies jacking up prices for rare orphan drugs, the public outcry has been fierce, and now presidential candidate Hillary Clinton is weighing in.

    In a tweet posted yesterday, she railed that “price gouging like this in the specialty drug market is outrageous.” Biotech stocks summarily got slammed, and they are getting slammed again ahead of Clinton’s highly anticipated speech in Iowa, where she will lay out her plan to address rising drug prices.

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  • Renter Nation: Big landlords bet on rising rents

    Pras Subramanian at Yahoo Finance 14 days ago

    Welcome to the renter nation. With home loans still relatively difficult to obtain post financial crash regulations, and housing supply still tight, many are having to rent instead of buying a home. And this has created another type of opportunity – for landlords. Earlier today Starwood Waypoint (SWAY) and Colony American Homes, two big owners of single-family rental homes, announced they were merging. Together the two landlords own more than 31,000 homes valued at nearly $8 billion. As Yahoo Finance’s Mike Santoli explains, this deal was a culmination of a trend on Wall Street that began several years ago. “This was a really big bet among a lot of investment firms REITs (Real Estate Investment Trusts) as well as some private equity firms, after the housing bust, to go in and buy up a tremendous number of single family homes out of foreclosure or other distressed conditions, and it really was kind of untamed territory in a sense nobody had ever done this,” Santoli says. “People said ‘how could you have tens of thousands of single family homes, how are going to manage these as rental properties,’ well they're doing it and it seems like it's now become another industry, another arm of the housing market.” Wall Street getting into the home rental game is implicitly a bet that the home ownership rate -  which has been in steep decline since the financial crisis - will not rebound very quickly. Thus far, Wall Street has been right. “We are becoming a renter nation,” Santoli observes.

  • No more cable guy? What the Cablevision sale really means

    Pras Subramanian at Yahoo Finance 17 days ago

    It came as a shock to the broadcast world - east coast based Cablevision (CVC) systems, selling the for nearly $18 billion to France’s Altice. Many in the industry felt the Dolan family, who founded and controlled the company, would never sell their prized asset.

    The question for media analysts is whether the sale is signaling something bigger happening in the cable industry. The business model is under threat, and big media shareholders must be asking what’s next for the industry. Yahoo Finance’s Mike Santoli believes Cablevision’s sale was the right thing to do, and even the Dolans had to know that.”The Dolans know more intimately what basically everybody knows, which is that the cable business has probably seen its best days,” he says in the attached video. “It's obviously not a growth business anymore in the broad sense.”

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  • How a China slowdown could mess with the Fed’s plans

    Pras Subramanian at Yahoo Finance 18 days ago

    While the market’s focusing on the Federal Reserve’s rate decision, China is still looming. And with a big White House visit by President Xi planned for next week, Donald Trump, Scott Walker and others made sure to mention the China effect at Wednesday night's debate. While the rhetoric is rising in the U.S. concerning China, its economy’s slowing. And Kathy Boyle, President of Chapin Hill Advisors, tells Yahoo Finance that's a concern for more than just Beijing.

    “China is weighing on the market. They have 1.3 billion people - it's a very large economy, they are going to continue to grow; however, they have a very big split between very small number of people with money and a very large population with no money and no access,” notes Boyle. “[China’s] economy, even if it slows, is still going to grow at 5 - 6%,” she predicts, but despite that growth figure, “they are trying to keep their markets from falling apart.”

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  • Autoworkers strike new deal as industry shifts into high gear

    Pras Subramanian at Yahoo Finance 19 days ago

    As the auto sector sees a renaissance in the U.S with sales booming, it’s putting labor on better footing as well. Case in point: late last night the United Auto Workers reached a tentative four-year labor deal with Fiat Chrysler (FCAU). In addition to addressing rising health care costs, the deal ends a controversial two-tier wage system. Under that system, new auto workers were paid around $9 an hour less than more senior employees. The new agreed upon structure between the UAW and FCAU would phase out the two classes over time.

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