Here are Doug Kass' top thoughts on some of the biggest stories of the week. Update on What's Up with P&G I placed Procter & Gamble ( PG) on my Best Ideas List as a short on Aug. 31 at $92.56. The shares closed Thursday at $88.23 and, as of this writing, are up $1.57 in premarket trading. Thursday, it was announced that activist investor Nelson Peltz may have won his board seat. Frankly, if the proxy results stand, and Peltz secures his seat on the P&G board, I suspect he will have little impact and that the relationship with Peltz will remain contentious. I am a short seller in PG today based on my negative consumer packaged goods thesis. Originally published Nov. 16 at 9:13 a.m. EST Doug Kass
An electronic payment app that allows people to pay for goods and services in gold has been launched by fintech firm Glint. Released Monday, the app — also called Glint — allows users to link a Mastercard credit card to their phone, which then lets them buy physical gold bullion that is stored in a Swiss vault. Jason Cozens, the company's chief executive and co–founder, said Monday that quantitative easing policy and the collapse of some banks have made many realize that traditional accounts are not a risk-free option. "Since the financial crisis people are starting to understand that purchasing power of their money isn't safe," he said. On its website, Glint says that once either a currency
Internet giant Alibaba Group Holding Ltd said on Monday it would invest HK$22.4 billion ($2.87 billion) for a major stake in China's top hypermart operator, Sun Art Retail Group Ltd, part of a wider push into offline retail. As part of an alliance with Auchan Retail S.A. and Ruentex Group, Alibaba would buy the stake from Ruentex while Auchan Retail would boost its stake, the three companies said in a joint statement. The alliance would target opportunities in China's $500 billion food retail sector, as Alibaba races to build big-data capabilities in the offline retail market where roughly 85 percent of sales are made.
Vandana Hari, founder at Vanda Insights, says Saudi Arabia will manage to convince allies at a Nov. 30 meeting to extend oil output curbs.
By Kevin O'Hanlon and Valerie Volcovici LINCOLN, Nebraska/WASHINGTON (Reuters) - Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp’s Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. President Donald Trump, a Republican, has made Keystone XL’s success a plank in his effort to boost the U.S. energy industry.
A shift in the bond market is giving investors and Federal Reserve officials pause about the economic outlook. Philadelphia Fed President Patrick Harker says the central bank must avoid inverting the yield curve, or allowing 10-year Treasury yields to slip beneath two-year rates. The Federal Reserve's plan to keep raising interest rates could soon run into a wall of its own making: low long-term borrowing costs that signal expectations for weak economic growth and anemic investment returns for the foreseeable future.
Amazon is steamrolling the retail industry, but old-line Wal-Mart is hitting back — and producing impressive numbersBloomberg, iStockphotoWal-Mart’s online sales in the third quarter jumped 50% from a year earlier. The Bentonville, Ark.-based company’s investments in its employees, its online offerings and delivery, and its stores are paying off in a major way. Investors in Seattle-based Amazon should pay attention.
U.S. smartphone chipmaker Qualcomm (QCOM.O) is set to win “imminent” Japanese antitrust clearance for its $38-billion bid for NXP Semiconductors (NXPI.O) and gain Europe’s approval by the end of the year with slight tweaks to its concessions, a person familiar with the matter said. Winning the green light from both competition authorities would take Qualcomm a major step forward to closing the deal and reinforce its fight against an unsolicited $103-billion takeover bid from Broadcom. The Japan Fair Trade Commission (JFTC) "is expected to clear Qualcomm’s acquisition of NXP imminently," the source said.
Apple Inc AAPL loyalists may have to wait a little longer to bring home Siri-integrated HomePod. Per a statement, an Apple spokesperson was quoted by TechCrunch saying, “We can't wait for people to experience HomePod, Apple's breakthrough wireless speaker for the home, but we need a little more time before it's ready for our customers. Apart from Home Pod, the report added, Apple has also delayed the launch of Apple Pay Cash.
A majority of Americans of all incomes will benefit from the Tax Cuts & Jobs Act that House Republicans have just passed. A distribution analysis from the Joint Committee on Taxation also found that at every income group, taxes would decline, with the biggest percentage-point decline for millionaires, who would see their average tax rate fall to 30.7% from 32.4%.
Tencent shares hit a record high Monday, bringing its valuation to over $500 billion. The technology firm is the first from China to reach the landmark valuation as it closes in on the likes of Facebook and Amazon. The Hong Kong-listed internet giant, known for its WeChat messaging app and online games, saw shares rally to 420 Hong Kong dollars ($53.76) on Monday. Its market capitalization, or total value of all the shares in circulation, stood at 3.99 trillion Hong Kong dollars ($510.7 billion) at the market close. Tencent's market cap is above Chinese e-commerce giant Alibaba, which stands at $474.15 billion, and Baidu at $82.97 billion. It is closing in on U.S. technology firms including Facebook,
CEO Flannery buys 60,000 shares after the stock suffers the biggest two-day plunge in 8 1/2 yearsBloombergGE CEO John FlanneryDMAMBMCMDMEMGPREVIEWZBZBRZDZDRZFZGZQZRZSZTZUGeneral Electric Co.’s new Chief Executive John Flannery bought over $1 million
Bond traders in India seem happier by the central bank’s decision to cancel its sale of bonds than with Friday’s upgrade of the nation’s credit rating by Moody’s Investors Services for the first time in 14 years. Sovereign bonds advanced the most in six months Monday after the Reserve Bank of India on Friday scraped its decision to sell up to 100 billion rupees ($1.5 billion) of bonds on Nov. 23. The yield on the benchmark 10-year bond fell as much as 14 basis points.
Experts say that workplace bullying is disturbingly common. A big part of the problem is that there are very few places bullied and harassed employees can turn to for help. Bullying bosses and toxic workplaces have dominated the headlines recently. Along with allegations of sexual assault and harassment perpetrated by movie mogul Harvey Weinstein, members of the entertainment industry have described how his brother Bob Weinstein would bully and verbally abuse staff. In a written statement to The Wall Street Journal, Weinstein said: “At times I have a temper, but I would not describe it as volatile, and I’m definitely not a bully.” The Weinstein company did not immediately return a request for
Worried about the gigantic bitcoin mania? You should be. As the speculative online “currency” surged again Thursday to a fresh record above $7,800, valuing all the bitcoins in the world at an eye-watering $130 billion, a new survey revealed that most of the ordinary Americans playing the high-risk game have absolutely no idea what they are doing. Three-quarters of bitcoin BTCUSD, +1.33% holders could not identify a sound financial reason for investing, two-thirds said they hadn’t locked in a nickel of profits even as the price of the token rocketed skyward, and more than half said they didn’t worry about the technology security of their bitcoins — even though hundreds of millions of dollars
Stocks in Europe and Japan, leaders all year, were in sharp pullbacks and Chinese growth numbers fell a bit short. Prices for high-yield corporate debt, a key support for equities, were sagging and their yields rising from historically low levels. It all came together in some concerted selling that in most times would be a routine retreat from near record highs but in this calm, relentless rally passed for real downside drama: The Dow Jones industrial average fell more than 150 points two mornings in a row, the S&P 500 Volatility Index spurted to a three-month high and cash fled from the junk-bond ETFs that many watch as gauges of risk appetite and market equanimity. Then, as quickly as the worry surged, it ebbed, with the bears managing no more than a morsel.
It has been more than a month since the last earnings report for Alcoa Corp. AA. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Alcoa saw higher profits on a reported basis in third-quarter 2016 on gains from its aggressive productivity actions, but its adjusted earnings and sales fell short of expectations.
After stocks lost ground for the second week in a row, investors in the U.S. will be facing a shortened holiday trading week and a light economic and earnings calendar. Economic highlights will come on Wednesday, with the final reading on consumer sentiment from the University of Michigan and the release of the minutes from the Federal Reserve’s latest meeting. Major earnings releases will all come before the Thanksgiving holiday, with salesforce.com (CRM), Dollar Tree (DLTR), Campbell’s Soup (CPB), and Lowe’s (LOW) reporting on Tuesday, while Deere (DE) will report earnings before the market open on Wednesday.
Tesla CEO Elon Musk frequently says grandiose things to investors that ultimately fall far short of his projections. Thus far, this tactic has helped to prop up Tesla’s share price. Tesla reported a record loss, but Tesla CEO Elon Musk has an uncanny way of reassuring investors that everything is just fine.
A Dubai property developer managed to pull off the Middle East’s largest initial share offering this year, but only after it was almost derailed by the sweeping arrests in neighboring Saudi Arabia, where authorities say they’re rooting out corruption. Advisers to Emaar Properties PJSC scrambled to complete a $1.3 billion share offering in its United Arab Emirates development business after local investors reneged on hundreds of millions of dollars in demand on the last day of the sale, according to people familiar with the matter. The retreat was triggered by Saudi Arabia’s unexpected crackdown, they said. In the end, Emaar Development PJSC was able to pull off the listing within the original price range, with backing from some prominent regional investors as well as global funds, which accounted for about 40 percent of the sale.
TOKYO/HONG KONG (Reuters) - Toshiba Corp's planned $5.4 billion new share issue to overseas investors is set to provide it with most of the funds it needs to avoid a delisting - a quickly arranged deal that underscores both the weakness of its finances and the allure of its chips unit. Burdened by billions of dollars in liabilities at its bankrupt U.S. nuclear reactor maker Westinghouse, Toshiba has been seeking to make up the difference by the end of the financial year in March or face a delisting. The share issue, decided at a board meeting on Sunday, is equivalent to a 35 percent stake in the embattled Japanese conglomerate and will see more than 30 overseas investors, including Third Point LLC, Oasis Management Company and Cerberus Capital Management, take part.
MarketWatch rounded up 10 of its most interesting topics over the past week. 1. Game-changer from Tesla Tesla Inc. CEO Elon Must previewed an electric semi truck that could haul up to 80,000 pounds, have a 500-mile range and could revolutionize the U.S. long-haul transportation industry. He also said a new version of the Tesla Roadster is on the way — one that can accelerate from 0 to 60 miles an hour in less than two seconds. Read on: 4 ways Tesla’s electric truck announcement could change our roads 2. Bad retail Target Corp.’s TGT, +5.52% third-quarter earnings were better than analysts had expected, but its shares still sank 10% on Wednesday and haven’t fully recovered. Tonya Garcia explains
Broadcom Limited AVGO recently announced the completion of long-delayed acquisition of Brocade Communications Systems. The Singapore-based company paid almost $5.5 million for Brocade that will now operate as an indirect subsidiary led by Jack Rondoni
As the FANG stocks and Microsoft Corp. (MSFT) bask in the glow of a big 2-year run-up during which they've frequently blown past analyst estimates and seen core businesses defy the law of large numbers, they share a common Achilles heel: In China, they've struggled to see a fraction of the success they've witnessed in most other big markets. Indeed, other than Apple Inc. (AAPL) and to a lesser degree Priceline Group Inc. (PCLN) , it's hard to think of a U.S. tech giant that has managed to profit from Chinese consumers on a large scale. And while big-name U.S. tech firms have been relatively more successful selling to enterprises in the world's #2 economy, those efforts have also faced plenty