Kingdom Holding's plan to borrow money to fund new investments has stalled because owner Prince Alwaleed bin Talal has been detained in Saudi Arabia's anti-corruption crackdown, according to four banking sources familiar with the matter. Kingdom had approached banks to obtain the loan, but the financing plan has been held up because the lenders are worried about potential repercussions if they lend to the prince's company, the sources said. One of the sources, who was approached for the loan, said it would have been worth roughly 5 billion riyals ($1.3 billion).
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
The room for error in most money decisions can leave you feeling pressured to make all the right moves now. The good news is we can learn from other people’s experiences to help us make better choices today so we don’t end up saddled with regrets about
Electricity generator Luminant is cutting about 600 jobs as it closes three coal-fired power plants and a mine in Texas. The Texas Workforce Commission said Monday that Luminant plans to make the layoffs in January. Luminant previously announced that it would shutter the Monticello, Big Brown and Sandow power plants.
An options behemoth that’s been betting on a modest rise of the Cboe’s VIX index -- and traded 3.15 million contracts so far this year -- may roll over a huge position today or later this week based on trading patterns going back to July, Pravit Chintawongvanich, head of derivatives strategy at Macro Risk Advisors, wrote in a note. Rolling the trade over -- closing the old legs and refreshing the new ones -- would likely include more than 2 million contracts, around three times the average daily volume of VIX options, according to Cboe data of the past 20 sessions. The trader, who Chintawongvanich has dubbed the “VIX Elephant,” has bought 262,500 December VIX puts with a strike price of 12 and is long a VIX call spread that profits if December futures contracts expire between 15 and 25 -- selling 525,000 VIX calls with a strike price of 25 and purchasing 262,500 VIX calls with a strike price of 15.
Societe Generale says a 10-year Treasury yield above 2.5% could result in a US equity sell-off. If the yield for the 10-year benchmark note climbs above the crucial threshold of 2.5% that could start working against US stocks that are already close to the most expensive since the dot-com bubble, according to strategists at Societe Generale. Treasurys reaching that level would imply 7% downside for US equities, while an increase to 2.75% could translate to a 15% drop, Societe Generale data shows.
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
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.
Some of the biggest landline phone providers in the U.S., from Connecticut to Arizona, are running headlong into a debt crisis after borrowing heavily to add more territory and then failing to escape the industry’s decline. CenturyLink Inc., Frontier Communications Corp. and Windstream Holdings Inc. -- the three largest rural phone carriers -- have lost 8 percent of their lines in the past year alone as people abandon home-phone service for more convenient wireless plans. CenturyLink is in better shape, but some of its notes now trade at about 95 cents, down from more than 106 cents in July.
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.
For all its technical complexity, Uber is a relatively easy-to-understand business. The company doesn't own physical assets or employ drivers. Instead, its software connects people who want rides with people willing to drive them, and Uber takes a cut of the fares. The mechanics and financials of this type of middleman business -- or a "two-sided marketplace," if you want to make small talk at Silicon Valley holiday parties -- is familiar thanks to eBay, Priceline, Apple's mobile app store and many other companies with similar foundations. But now Uber Technologies Inc. appears to be wading into owning physical assets, which calls into question what its ultimate business model will be. Yes, Uber
The PowerShares QQQ ETF (QQQ) has had a powerful 2017, rallying some 30% so far on the year. But one industry not enjoying such a great ride? Cyber security. That's an interesting note, TheStreet's Jim Cramer pointed out on CNBC's "Stop Trading" segment Monday. That's very surprising, given how important securing personal data has become. One only needs to look to the Equifax (EFX) hack to understand why companies are looking to increase their cyber security. Cramer also pointed out the 8% growth in security revenue for Cisco Systems (CSCO) in the company's recent earnings results. Palo Alto Networks (PANW) reports on Monday after the close, so it will be interesting to see what management has
Thousands of traditional retail stores are closing down as more people shop online. A chart from T. Rowe Price shows that investors who stuck with the sector are most likely badly burned. Amazon's stock performance has far outpaced a basket of traditional retailers and the broader stock market.
Bitcoin hit a fresh all-time high of $8,222 a coin Monday morning, according to data from Markets Insider. Bitcoin has been on a tear over the past week as more traditional financial services firms dive into the nascent market for digital coins. Bitcoin, the red-hot cryptocurrency, continued its upward tear Monday, hitting an all-time high above $8,200 a coin.
Value investing is easily one of the most popular ways to find great stocks in any market environment. One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short.
CNBC's Eamon Javers reports on Senate tax provisions that could impact stock investors.
Stocks recently featured in the blog include NVIDIA NVDA, Priceline PCLN, TripAdvisor TRIP, Intel INTC and Advanced Micro Devices AMD. Earnings season is drawing to a close with most of the S&P 500 having reported already, making NVIDIA easily the hottest earnings from last week. The online travel agents continued to disappoint, with both Priceline and TripAdvisor shares plummeting.
Warren Buffett and Bill Gates have both founded highly profitable companies, so it's safe to say that they've made quite a few smart business decisions. In a 1998 panel discussion with students at the University of Washington's business school, the two billionaires pinpointed the best business decisions they ever made. Buffett said his best business decision was simply starting a career in investing because he enjoys what he does. Luckily, said Buffett, this has worked out well for him. "You'll see plenty of times when you get chances to do things that just shout at you," he said. "When that happens, you have to take a big swing." Alluding to his own experiences as an investor, Buffett said that
North American pipeline operator, TransCanada Corp TRP is awaiting a federal ruling for its Keystone extension project. The project has been facing delays for the last nine years and now its future depends on the Nebraska Public Service Commission's verdict. TransCanada’s proposed route for the extension project would pass through most of Nebraska and some parts of Montana and South Dakota until it reaches the Steele City, NE. The commission will decide for the part of the pipeline which is in Nebraska.
Sovereign bonds rose the most in a year in India after the central bank scrapped a debt sale due later this week that was designed to reduce banking liquidity. The Reserve Bank of India won’t proceed with a 100-billion-rupee ($1.54 billion) auction under its open-market operations on Thursday after a review of liquidity conditions, it said after the market closed Friday. The central bank has auctioned 900 billion rupees of the securities since the start of July. India’s government bonds have slumped since August due to a potential end to monetary easing, concern about rising supply and possible fiscal slippage. They jumped at the start of trading on Friday when Moody’s Investors Services upgraded
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.
Closing Bell Here's what happened on Wall Street, November 20, 2017. It was a strong day across the board on Wall Street with all three major U.S. averages closing in the green. The Dow Jones Industrial Average closed higher 0.31%, the S&P 500 closed up 0.13%, and the Nasdaq ended the day higher 0.12%.
Verizon Communications Inc. (NYSE: VZ) stock appears set for big things in 2018, as Wells Fargo upgraded the stock from "market perform" to "outperform" and raised its price target from $48 to $50. The U.S. economy has been booming in 2017, but wireless giants Verizon and AT&T ( T) have struggled to grow in an increasingly saturated market. On top of slowing wireless service growth, Verizon has been investing heavily in its next-generation 5G network.
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.