Posts by Rick Newman

  • General Motors gets on Trump's good side

    Rick Newman at Yahoo Finance 11 hr ago

    Never before have business decisions involving billions of dollars been made so fast.

    Last week at the annual Detroit auto show, General Motors (GM) executives indicated they weren’t planning anything new to respond to incoming president Donald Trump’s demand for US automakers to create more American jobs. Then, in a rollicking news conference, Trump called out GM by name, urging the automaker to amp up its investments in the United States, as Ford and Fiat Chrysler have recently said they’ll do.

    It must have been a wild weekend at GM, because now, just a few days after Trump’s exhortation, the nation’s biggest automaker says it will invest more in the United States after all, creating 5,000 new jobs during the “next few years.” As part of its plan to appease Trump, GM will also move production of some truck axles from Mexico to the United States, creating another 450 jobs. Another 1,500 jobs will be created or “retained” from other investments, for a full tally of 7,000 GM jobs Trump can claim credit for.

    The presidential tweet of approval promptly followed:

  • Everybody needs to get used to a businessman president

    Rick Newman at Yahoo Finance 4 days ago

    You know what the Beltway scolds think: Incoming president Donald Trump is flouting 60 years of tradition and sabotaging the sanctity of the White House.

    He’s cutting corners on ethics rules. Appointing people without government experience to his Cabinet. Intervening personally in matters like defense budgeting and antitrust reviews that are typically handled by lower-ranking functionaries—and doing it before he even takes office! The whole federal bureaucracy may seize up.

    Or, it may heave and quake and settle into some new and improved routines. Americans are disgusted with sclerotic and unresponsive government dominated by self-dealing crony capitalists. That includes many voters who can’t stand Trump. If the incoming president joins the swamp instead of draining it, he’ll flame out soon enough and earn a sharp rebuke from an electorate that is unsure of him to start with. But the moment may be right for a business leader to take the helm of government, and Trump could be just the beginning of a new wave of corporate poobahs who see fresh pathways to political power.

  • Obamacare accomplished something huge, even if it dies

    Rick Newman at Yahoo Finance 5 days ago

    If incoming president Donald Trump gets his way, Obamacare will be gone before long. But that doesn’t mean President Obama’s signature healthcare accomplishment will be vaporized. On the contrary: In at least one important way, Obama’s health reforms set a new–and high–threshold that Trump will be obligated to meet, no matter what he replaces Obamacare with.

    The Senate has already begun the process of repealing the Affordable Care Act, which could be complete within a few months. Trump has said he wants to replace the ACA with something “terrific,” and do it quickly. But he hasn’t spelled out what the replacement should be. Republicans in Congress have been drafting plans that include things like tax incentives to make health insurance more affordable, and more competition among insurers, to help lower costs.

    What Trump can learn from Obamacare

  • Trump's conflict-of-interest plan is good enough, for now

    Rick Newman at Yahoo Finance 6 days ago

    Donald Trump’s critics already hate his new plan to disengage from his real-estate company and prevent conflicts of interest while he’s president. But for most Americans, it will be good enough.

    The incoming president hired a prominent law firm to figure out how he can withdraw from his eponymous, privately owned company, the Trump Organization, without selling the whole thing or putting it in a blind trust, to be run by somebody else. The plan is substantive and clever, with Trump’s populist touch for good measure. The real question may not be whether the plan goes far enough, but whether Trump will abide by it religiously. If he does, it could put concerns about Trump using the presidency to benefit his business interests to rest.

    Unreasonable expectations?

    No new foreign deals

    Rick Newman is the author of four books, including  Rebounders: How Winners Pivot from Setback to Success . Follow him on Twitter:  @rickjnewman .

  • 5 hot cars for 2017 (and a couple disappointments)

    Rick Newman at Yahoo Finance 6 days ago

    The Detroit auto show usually features lots of flash and promise—with some hyped vehicles fizzling once they actually hit the market. Other fanciful “concept” cars never go on sale at all.

    At the end of our visit to this year’s Detroit extravaganza, we asked Karl Brauer, executive publisher at, to predict which new makes will shake things up this year, and which might disappoint. Watch the video above for the full details. Here’s the short list of this year’s winners:

    Kia Stinger. The Korean budget brand will introduce a luxury rear-wheel-drive sedan to compete with legendary German rides. “I think it’s going to make an Audi A4 or BMW 3 series look very expensive,” Brauer tells Yahoo Finance in the video.

    Chevrolet Bolt. The midpriced electric car that can go more than 200 miles on a charge might actually live up to superhyped expectations. “I think it will be the first electric vehicle able to break through all the resistance that’s been holding back electric vehicle sales up till now,” Brauer says.

    Honda CR-V. The newly redesigned 2017 version of this popular crossover is a bit more upscale, with new safety features and improved handling.

  • 2017 looks great for GM, Ford and Fiat-Chrysler—even with Trump on their case

    Rick Newman at Yahoo Finance 7 days ago

    At this year’s Detroit auto show, everybody wanted to know how incoming president Donald Trump was likely to disrupt the car business in 2017. Auto executives preferred to talk about profits—because there’s a lot to talk about.

    General Motors (GM) just boosted its guidance for profitability in 2017 to as high as $6.50 per share, a healthy 8% bump over the firm’s expected EPS for 2016. GM also said it will buy back an additional $5 billion in stock, for a total of $14 billion in buybacks since 2015. GM stock jumped on the news and is up 24% during the last year, more than the overall stock market.

    Fiat-Chrysler (FCAU), parent of the Fiat, Chrysler Dodge, Jeep an Ram brands, can’t build enough Jeeps to meet global demand. It just announced expanded production of existing Jeep models along with a forthcoming Jeep pickup and a new Wagoneer. The company will invest $1 billion in Ohio and Michigan to build the new vehicles, which earned a tweet plaudit from Trump. Fiat-Chrysler stock has soared of late, up 65% in the last three months.

  • Here's what you can do with $10,000

    Rick Newman at Yahoo Finance 7 days ago

    If you had $10,000 to invest, you could put it in stocks—but what if the nine-year rally is just about ready to end and you get in at the top of the market?

    You could put it in bonds—except that’s supposed to be risky now that interest rates seem to be headed up.

    You could invest it overseas, or help fund that can’t-miss startup your friend told you about. But you’re not supposed to invest in things you don’t understand.

    Or, you could buy a 12-month certificate of deposit and earn 1.5% return. Bleh.

    There’s actually another option that will completely free you of researching risky investments, as I explain in the video above: Spend that $10,000. You read that right. Buy something. Live large. Liquidate that cash.

    You’ve probably always heard that the wasteful spend and the thrifty save. True enough, usually. But there are some purchases that qualify as an investment, especially in unsettling times when every kind of traditional investment seems to be unusually risky—and incoming President Donald Trump seems bound to shake up markets.

  • 2 things Toyota wants you to know about the new Camry

    Rick Newman at Yahoo Finance 7 days ago

    Toyota (TM) will start selling a brand-new version of its best-selling Camry later this year, and the Japanese automaker wants to make sure you know where it is built.

    The first bullet point on the press release announcing the car says, “assembled in America, by Americans, for Americans.” The car’s American heritage will be a prominent feature of promotional campaigns coming this summer. If you’re wondering why Toyota is going gaga over America, you haven’t been paying attention to Donald Trump’s tweets.

    In early January, Trump tweet-slammed Toyota, criticizing its plan to move production of the Corolla compact car from Mississippi to a new plant in Mexico. “NO WAY!” Trump tweet-thundered. “Build plant in US or pay big border tax.”

  • Fiat-Chrysler CEO: Don’t crush Mexico

    Rick Newman at Yahoo Finance 8 days ago

    Fiat-Chrysler (FCAU) hasn’t been tweet-slammed by Donald Trump, like some of its automotive competitors. But the Italian-American carmaker would endure considerable damage if the incoming president tore up the North American Free Trade Agreement, as he has threatened to do.

    At the Detroit auto show, Fiat-Chrysler CEO Sergio Marchionne offered the most extensive comments yet by an auto executive on Trump’s hostility toward NAFTA and Mexico, which probably threatens the auto industry more than any other sector. Marchionne supports Trump’s intentions, in general. “I share his enthusiasm about the commitment that he’s making to this country,” Marchionne told a group of journalists in Detroit. But he’s worried that Trump could do more harm than good: “We are so used to living in a NAFTA environment that to live in a world without NAFTA is difficult.”

    Fiat-Chrysler operates three factories in Mexico where it builds engines and assembles vehicles including the Dodge Journey, the Fiat 500 and some Dodge Ram trucks. That’s hardly unusual; most carmakers selling in the United States have operations in Mexico.

  • How Ford got right with Trump

    Rick Newman at Yahoo Finance 8 days ago

    Dialogue trumps tweets.

    That’s the lesson Ford Motor Co. (F) seems to have learned as it negotiated with Donald Trump and turned a PR problem into a presidential endorsement. “I have a good relationship with him,” Ford executive chairman Bill Ford tells Yahoo Finance in the video above. “I had dialogue with him all throughout his candidacy. The most important thing is, the door is open and he understands our business now better than perhaps he did when he was first a candidate.”

    Trump repeatedly criticized Ford during last year’s presidential campaign, for its plan to move some small-car production from Michigan to Mexico. Ford answered that in early January by canceling plans to build a new factory in Mexico and announcing new investments in Michigan. Trump gave the move a thumbs-up on Twitter just as Ford was announcing some new products at this year’s Detroit auto show: