Brad Rogoff, Barclays; Michael Farr, Farr, Miller & Washington; and Steven Rattner, Willett Advisors, discuss the pros and cons of investing in bonds versus equities.
Republicans are touting lower premiums under their health care legislation, but that reflects insurance that would cover a smaller share of the cost of medical bills. Premiums under the Senate bill would average about 30 percent lower in a few years, the nonpartisan Congressional Budget Office said in its analysis this week. Overlooked is that the lower premiums envision a switch to "bronze" plans that now come with a $6,000 individual deductible, much higher than the current standard "silver" plan with a $3,600 deductible.
The richest people on the planet just added new members to their exclusive club. The world’s ultra-high net worth population — individuals with $30 million or more in assets — grew by 3.5% to 226,450 individuals in 2016 after a sharp fall a year earlier, according to new data by global wealth consultancy Wealth-X. Their combined wealth also increased in 2016 by 1.5% to $27 trillion. There were sharp regional fluctuations in dollar-denominated wealth creation last year, with North America (up 5.1%) recording the only significant rise in wealth, followed by Asia (up 3.5%). “The picture was subdued in Europe, with the ultra wealthy population and its total wealth edging slightly lower, while fortunes
Oil prices are rising after higher than expected oil inventory numbers. Data from the Energy Information Administration show a slight increase of 0.118 million barrels, compared to Wall Street's expected draw of 2.585 million barrels from the US commercial crude inventories. Click here to watch the price of oil live...
Walgreens also said on Thursday it ended a related deal to sell as many as 1,200 Rite Aid stores to Fred's Inc , sending Fred's shares down 20 percent in premarket trading. Rite Aid's shares plunged 22 percent to $3.07, while Walgreens shares were up 5 percent at $81.02. "Walgreens and Rite Aid have taken a pragmatic approach," said Neil Saunders, managing director of market research firm GlobalData Retail.
Senate Majority Leader Mitch McConnell explored options for salvaging the battered Republican health care bill Wednesday but confronted an expanding chorus of GOP detractors, deepening the uncertainty over whether the party can resuscitate its bedrock promise to repeal President Barack Obama's overhaul. A day after McConnell, short of votes, unexpectedly abandoned plans to whisk the measure through his chamber this week, fresh GOP critics popped forward. Some senators emerged from a party lunch saying potential amendments were beyond cosmetic, with changes to Medicaid and Obama's consumer-friendly insurance coverage requirements among the items in play.
Shares of Halliburton (HAL) are moving higher today. That likely reflects higher oil prices, but don't overlook a possible acquisition of pump-maker Summit ESP. Illustration: Agence France-Presse/Getty Images RBC's Kurt Hallead considers the implications of a potential deal: This possible transaction is in line with management comments that suggested their intention to acquire Artificial Lift and Production Chemicals businesses. In our view, Summit ESP would be a strong fit within HAL and would contribute an experienced operations team with mostly Baker Hughes ( BHI) backgrounds... According to Spears & Associates, Summit ESP generated revenue of $180mn in 2016. The total artificial lift market
Having a clean rap sheet isn’t what it used to be. These days, employment screenings are not a simple matter of checking for a criminal history or even with previous employers, as Reddit users discussed in this recent popular thread about background checks. “Employers want no surprises,” said Steve Langerud, workplace consultant and principal of Steve Langerud & Associates in Grinnell, Iowa. Don’t miss: What to do when, like James Comey, you suddenly get fired Nearly three-quarters of employers say they perform a background check on every new employee, according to a 2016 survey from career website CareerBuilder. But a criminal check is just one of the many things employers are looking for today.
Rolls-Royce may not strike you as a brand that’s ever more spry. After all, the 111-year-old institution takes its sweet time on its stately, half-million-dollar cars. Its three-ton Phantom sedan, for instance, undergoes more than 800 hours of work by the team in Goodwood, England, before being personally delivered to its intended dignitary in some exotic locale. But, according to Chief Executive Officer Torsten Müller-Ötvös, the bulk of the brand’s buyers are surprisingly young. “We are seeing, in that segment of ultrahigh-end-growth individuals, a fast decrease in average age,” Müller-Ötvös said. “It’s fantastic, it really is.” In practical terms, that means the global average age of a Rolls-Royce
If you’re like many adults, the thought of taking an early retirement (could you retire at 45?) has probably crossed your mind at least once or twice. The “four percent rule” – a widely accepted financial rule of thumb – states that your savings should last through 30 years of retirement if you withdraw 4% of your nest egg during the first year of retirement and then adjust each year thereafter for inflation. If you have $500,000, the math comes out to $20,000 a year, assuming a 4% withdrawal strategy.
Microsoft yesterday released a huge non-security update for Windows 10 systems and announced a new update framework it's testing out on Windows Insiders. According to Microsoft, the big KB4022716 update brings quality improvements in the form of bug fixes for issues ranging from printing to logins but no new operating system features. The new update framework for Windows Insiders is being trialed ahead of the forthcoming Windows 10 Fall Creators Update, which is expected to arrive for all users around September and will be coming to Windows Insiders in the "coming weeks". The new update process targets Insiders in the "slow ring" and means the updates become available to different groups in stages.
U.S. shale oil pioneer Harold Hamm on Wednesday warned that sub-$40 crude would cause many U.S. producers to stop drilling and warned fellow CEOs to exercise discipline. U.S. crude (New York Mercantile Exchange: @CL.1) prices have plunged nearly 18 percent this year, giving up the gains they accrued after OPEC and other exporters agreed to reduce output last winter. Asked about the prospect of oil prices dipping into the $30 to $40 a barrel range, Hamm said that would force drillers to reduce capital expenditures and stop drilling new wells, causing output to dry up and leaving the market undersupplied.
The biggest change: Kevin Plank, who founded the company, will retain his CEO role but pass off the title of president to Patrik Frisk, who recently served as an executive for VF Corp. Frisk will also be COO. The result is that six executives will be reporting to Plank instead of 10, which will "finally decentralize some decision making within the company," according to analysis by Susquehanna International Group's Sam Poser. According to Poser, this bodes well for Under Armour.
Bank of America on Wednesday boosted its annual dividend 60 percent to 48 cents per share from 30 cents, beginning in the third quarter. Buffett has said a boost of that size would likely prompt him to swap Berkshire's preferred shares in the second-largest bank into common shares now worth about $16.7 billion. Berkshire did not immediately respond to requests for comment.
Credit Suisse analyst Bhavesh Lodaya has resumed coverage of the energy infrastructure sector with an in-depth report, an overweight recommendtation, and six top picks. He sums up his view in the introduction: In our view, while negative macro data points will still likely impact the space, unless investors have a bearish view on crude prices going south of $40/bbl, the current risk reward looks attractive particularly for natural gas focused stories. Much of the report is devoted to discussion of the broader sector, but he does offer six top picks. Below are the six names, plus a line from his analysis on each: Antero Midstream Partners (AM): Aggressive production growth at sponsor Antero Resources
The federal judges who pulled Detroit from the bowels of the largest municipal bankruptcy in U.S. history learned some lessons that they believe could help Chicago and Illinois out of financial despair.
CNPC and the Ministry of Commerce did not respond to requests for comment. North Korea's embassy in Beijing declined to comment. Chinese foreign ministry spokesman Lu Kang, asked about the sale suspension and whether the Chinese government put pressure on CNPC to make this decision, said: "I do not understand this situation you are talking about" and declined to elaborate.
A federal control board overseeing Puerto Rico's finances rejected the U.S. territory's proposed budget on Tuesday because it said it lacks at least $200 million in specific cost-saving measures and contains nearly $120 million in overspending and ineligible expenditures. It is the first time the U.S. territory has to submit a budget approved by legislators to a federal control board as Puerto Rico struggles to emerge from a 10-year recession and restructure a portion of its $73 billion public debt load. The board warned that if the budget is not corrected, furloughs and the reduction or elimination of a Christmas bonus will be considered, measures that Gov. Ricardo Rossello has shunned.
Two groups of offshore funds that invested in Bernard Madoff’s fraudulent securities firm agreed to pay a combined $370 million to resolve lawsuits by the court-appointed trustee raising cash for victims. Lagoon Investment Ltd. and related funds will hand over about $240 million while Thema Fund Ltd. and its affiliates will pay about $130 million, trustee Irving Picard said in a statement Tuesday. Details of the settlements were filed in U.S. Bankruptcy Court in Manhattan, where the suits were filed in 2010. Stephen Harbeck, chief executive officer of the industry-financed Securities Investor Protection Corp., which hired Picard, called the settlements "significant accomplishments" given the difficulty of recovering funds from offshore accounts, according to the statement.
Altria Group (NYSE:MO) spun off Philip Morris International (NYSE:PM) nearly a decade ago, and over that span, the two companies have shared a lot of common ground even as they've also made independent strategic moves that have distinguished their different markets. Yet now, competitors Reynolds American (NYSE:RAI) and British American Tobacco (NYSEMKT:BTI) are looking to join forces through a merger that will combine Altria's No. 2 arch rival and one of Philip Morris International's largest industry peers worldwide. In that light, the biggest mistake that Altria and Philip Morris have made so far in 2017 is not to pursue a recombination of their own. What made Altria and Philip Morris break
Kroger (NYSE: KR) CEO Rodney McMullen acknowledged that the grocery industry is changing rapidly, and he's touting his company's ability to adapt. In the wake of Amazon's (NASDAQ: AMZN) plan to acquire Whole Foods (NASDAQ: WFM), some have speculated that the pace of change will only accelerate in the sector. Some have even suggested Kroger should make a counteroffer for the organic grocery chain to protect its interest from Amazon's push into the space and the disruption that will likely follow.
If you’re taking advantage of this time of year to get organized, don’t forget about your financial life. If you’re looking for a money overhaul, a financial planner can be your best resource. If you’re bogged down keeping up with daily tasks, you might not have the time to look at your big picture financial goals. If this sounds like you, a financial planner could be an incredibly valuable investment. Financial planners aren’t just for people who are clueless about money.
Goldman Sachs told its clients to ignore a widely-followed way to value the stock market used by Warren Buffett. "With interest rates near multi-century lows, the so-called 'Fed model,' which compares earnings yields to bond yields, retains a powerful grip on the 'valuation narrative' in the equity market," strategist Charles Himmelberg wrote in a note to clients Wednesday. Goldman adjusted for those two factors using its analysis and found the historical yield gap, which measures how cheap stocks are versus bonds since 1961, fell from 74th percentile to only 7th percentile after the changes.
Vice President Mike Pence on Wednesday reiterated a promise to repeal former President Barack Obama's health care reforms by the end of the summer despite uncertainty over whether a Republican bill has enough votes to pass the Senate. In a speech delivered at a Cleveland manufacturing facility, Pence defended the bill, saying its measures to expand health savings accounts and create tax credits would make insurance more affordable. "(President Donald Trump) believes in state-based solutions, not one-size-fits-all Washington answers," Pence said.
United Parcel Service (NYSE:UPS) is the latest company to freeze employee pension plans, according to a report published Tuesday. A growing list of American corporations are freezing pension benefits or transitioning to 401(k) retirement plans. By November 2016, 38 companies in the Fortune 100 rankings had frozen their defined benefit plans, according to Willis Towers Watson.