Latest News
See the latest news and get GPT analysis of articles
U.S. companies announced over 90,000 job cuts in March — the highest number since January 2023 2024-04-04 16:01:00+00:00 - Employers in the U.S. announced 90,309 job cuts in March — a 7% increase from February, according to data released Thursday from executive coaching firm Challenger, Gray & Christmas. That amount of planned layoffs mark the highest monthly total since January 2023, when employers announced 102,943 cuts. Companies are cutting jobs as a result of store closures, bankruptcies, organizational restructuring or general cost-cutting, Challenger said. The cuts suggest that "many companies appear to be reverting to a 'do more with less' approach," Senior Vice President Andy Challenger said in a statement. "While technology continues to lead all industries so far this year, several industries, including energy and industrial manufacturing, are cutting more jobs this year than last," he said. Government jobs led the way in March with 36,044 planned cuts, followed by 14,224 from technology companies, according to Challenger's data. The media industry announced 2,246 cuts, partly because "news organizations are still grappling with business models based on ads and subscribers," Challenger said. Ben & Jerry's was among the businesses Challenger mentioned would be losing staff, with the ice cream maker's parent company Unilever announcing last month it will layoff 7,500 workers worldwide. Credit reporting agency Transunion announced 640 jobs cuts last month, the Chicago Tribune reported, and grocery store chain Lidl said it would lay off roughly 200 corporate level jobs, according to Grocery Dive. Despite those reductions in the nation's labor force, the number of recent layoffs hasn't been significant enough to make a dent in the overall job market. Historically speaking, layoffs are still relatively low, hiring remains solid and the unemployment rate is still consistent with a healthy economy. The number of March layoffs may seem baffling given that, by most traditional economic measures, the U.S. job market is strong. The nation's unemployment rate is near a 50-year low and wages are starting to pull ahead of inflation. In January, the U.S. economy added 353,000 jobs, which blew away most economists' expectations. "Job growth should continue throughout 2024, albeit at a somewhat slower pace than in 2023, as the U.S. economy continues to expand," Gus Faucher, chief economist at PNC said Thursday. "The unemployment rate should end the year above 4% as slower growth creates a bit more slack in the labor market." The Challenger figures land one day before the U.S. Department of Labor is scheduled to release the March jobs report. Economists surveyed by FactSet expect businesses to have added 200,000 in March.
Mango’s Victoria Beckham collection to launch this month 2024-04-04 15:49:00+00:00 - Victoria Beckham is pivoting from high-end fashion to the high street. On Thursday, the retail chain Mango said it was collaborating with the Spice Girl turned designer on a collection of slip dresses, knitwear and accessories. The Spanish retailer described the new line, due to launch on 23 April, as “a perfect blend of classic British luxury”. Preview images show a model lounging by a pool wearing a white oversized blazer and matching, loose-fitting trousers. In another, a model emerges from the pool in a white, ruched halterneck dress. Pricesare expected to be higher than Mango’s typical offering but still a snip compared with items from Beckham’s mainline brand, which range from £90 for a T-shirt to £2,650 for a shearling coat. Beckham, who launched her eponymous label in 2008, said in an interview with WWD that she had decided to work with Mango to “speak to a wider audience in a way that feels relevant to my brand and retains my aesthetic and DNA”. Mango turns 40 this year. Last month, it reported a record turnover of €3.1bn for 2023. The Victoria Beckham x Mango capsule follows collaborations with the LA-based lifestyle brand Simon Miller and the French-born, London-based influencer Camille Charrière. View image in fullscreen An image from the collaboration between Victoria Beckham and Mango. Photograph: Mango 2022 was a milestone year for Beckham, turning a profit for the first time after 14 years in business. In the financial report filing, particular credit was given to her beauty line. Bestsellers include a £40 highlighter stick and £30 eyeliner. The decision to re-stage her fashion show at Paris fashion week also paid off with an earned media value of more than £16m. Ahead of the show, she unveiled her debut fragrance collection, which, according to Launchmetrics, generated an extra £1m in media impact value in discussions both online and on social media. whichthat skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion With highstreet footfall continuing to lag behind pre-pandemic levels, for spring/summer 23 retailers are betting on collaborations with celebrities and luxury designers to woo back customers. The British heritage brand Barbour has teamed with the influencer Laura Jackson on an edit of summer dresses while the French brand Soeur, which recently opened its first UK store in London, has enlisted the US blogger Leandra Medine. On 18 April, & Other Stories will unveil a whimsical collection from the London-based designer Susan Fang and H&M will showcase a collection of deconstructed trenches and tailoring from the Korean-born, London-based designer Rokh.
Kiss gets in the groove by selling its music catalog and brand for over $300 million 2024-04-04 15:45:00+00:00 - Famed rock group Kiss has reached a deal to sell its catalog, brand name and other intellectual property to a Swedish entertainment group for more than $300 million. The buyer, Pophouse Entertainment Group, collaborated with Kiss last year create to create digital avatars of Kiss members Paul Stanley, Gene Simmons, Tommy Thayer and Eric Singer, shown on stage for the first time during the band's farewell tour at New York City's Madison Square Garden in December. Pophouse CEO Per Sundin said it also has plans for a Kiss biopic, documentary and experiences including an avatar show slated for 2027. He also said the company wants to expose Kiss to younger generations of fans. "We work together with Universal and Kiss, even though we will own the artists rights, and we're doing it in conjunction with Kiss," Sundin said. Gene Simmons, Paul Stanley and Tommy Thayer of KISS perform during the band's final show on its "End of the Road World Tour" at Madison Square Garden on December 2, 2023, in New York City. Kevin Mazur/Getty Images for Live Nation Bassist and lead singer Gene Simmons told the Associated Press that Kiss is indeed "in the trenches with them." "We talk all the time. We share ideas. It's a collaboration. Paul [Stanley] and I especially, with the band, we'll stay committed to this. It's our baby," he said. Simmons also said the band will not tour again. "We're not going to tour again as Kiss, period," he said. "We're not going to go put the makeup on and go out there." —With reporting from the Associated Press
Ford Slows Its Push Into Electric Vehicles 2024-04-04 15:34:10+00:00 - Ford Motor on Thursday delayed the production of at least two new electric cars and said it would pivot to making more hybrids. Its decision was the latest sign that large automakers have been forced to rethink their strategy for electric vehicles because sales for those models are slowing. The shift by Ford and automakers like General Motors and Mercedes-Benz, which have also pushed back their electric car plans, has been prompted largely by the companies’ difficulties in making and selling enough electric cars and doing so profitably. Sales of such vehicles are still growing, but the pace has slowed sharply in recent months as automakers have tapped out many of the early adopters who were willing to spend more than $50,000 on a new battery-powered car. Because they are still learning how to make the cars and their batteries at lower cost, the companies have not been able to bring out more affordable models. “Many companies rushed in too fast with E.V.s that were too expensive and there was not as much of a market for them as they thought,” Sam Abuelsamid, principal analyst for transportation and mobility at the research firm Guidehouse Insights, said. “That’s made it a lot tougher to sell those vehicles.”
Google considering charge for internet searches with AI, reports say 2024-04-04 15:33:00+00:00 - Google is reportedly drawing up plans to charge for AI-enhanced search features, in what would be the biggest shake-up to the company’s revenue model in its history. The radical shift is a natural consequence of the vast expense required to provide the service, experts say, and would leave every leading player in the sector offering some variety of subscription model to cover its costs. Google’s proposals, first reported by the Financial Times, would entail the company exclusively offering its new search feature to users of its premium subscription services, which customers already have to sign up to if they want to use artificial intelligence assistants in other Google tools such as Gmail and its office suite. With that search experience, being trialled in beta for selected users, Google’s generative AI is used to respond to queries directly with a single answer, in a similar style to the conversational approach of ChatGPT and competitors. “AI search is more expensive to compute than Google’s traditional search processes. So in charging for AI search Google will be seeking to at least recoup these costs,” said Heather Dawe, chief data scientist at the digital transformation consultancy UST. Much of the focus within AI is on the huge expense of the computing power used to train cutting-edge generative models. In the last year Amazon ran a single training run that cost $65m (£51m), according to James Hamilton, an engineer, who expects, in the near future, the company to break the $1bn mark. Last week, OpenAI and Microsoft announced plans to build a $100bn datacentre for AI training, while in January Mark Zuckerberg said his goal was to spend at least $9bn just on Nvidia GPUs alone. But the cost of training AI is just a tenth of the total cost of the sector, according to the analyst Brent Thill at the investment firm Jefferies. Thill wrote in a briefing note: “The majority of AI compute spend today is directed to the running, not training, of models, and 90%+ of AI compute spend today is being directed towards inferencing [the process by which an AI model is queried], as inferencing spend has been growing much faster than training as more models and tools get put into production.” He added: “Some have priced new Gen AI features at a monthly rate, betting that higher charges will cover usage expenses, while others have priced on a per-usage basis to protect themselves on the cost-side. Some have also incorporated into existing plans, hoping to drive [user] growth.” Competitors in AI search offer similar subscription plans. Perplexity, an AI-powered search engine, runs no adverts but offers a $20 monthly “pro” tier that provides access to more powerful AI models and unlimited use. Others, though, continue to offer their products at a loss. The AI features in Microsoft’s Bing are free to use but tied to the company’s Edge browser. The browsing and search startup Arc offers its products free to users and says it intends to raise revenue in future by charging companies for business features.
TikTok Turns to Nuns, Veterans and Ranchers in Marketing Blitz 2024-04-04 15:14:57+00:00 - In a TV commercial, Sister Monica Clare, a nun in northern New Jersey, walks through a church that’s bathed in sunlight and sits in a pew, crossing herself. Her message: TikTok is a force for good. “Because of TikTok, I’ve created a community where people can feel safe asking questions about spirituality,” she says in the advertisement. Sister Monica Clare is one of several fans of TikTok — along with drawling ranchers, a Navy veteran known as Patriotic Kenny and entrepreneurs — whom the company is highlighting in commercials as it faces intense scrutiny in Washington. “TikTok definitely has a branding issue in the United States,” Sister Monica Clare, 58, said in an interview. “Most people that you talk to, especially people above the age of 60, will say that TikTok is just a bunch of superficial garbage. They don’t use it. They don’t understand what the content is.
Is Estée Lauder on the Verge Of a Massive Comeback? 2024-04-04 15:10:00+00:00 - Key Points Estée Lauder's shares have been trading sideways since December. However, they have been accumulating several key analyst upgrades. The stock has barely eaten into the 70% selloff of recent years, but there are signs the recovery could soon begin in earnest. 5 stocks we like better than Estée Lauder Companies Estée Lauder Companies, Inc. NYSE: EL is among an increasingly smaller group of stocks that have yet to mount a serious comeback to recent selloffs. Having gained more than 200% from January 2019 through January 2022, investors in the cosmetics giant then gained a harsh lesson in gravity. Through November of last year, the company shed more than 70% of its value and was likely only saved from losing more by the broader market rally that started in response to likely interest rate cuts. But in recent months, something interesting has been happening, and it's not just the solid run of gains, 40% all told since November's low. There has actually been a seemingly endless run of analyst upgrades, and it's effectively been all one-way traffic. Get Estée Lauder Companies alerts: Sign Up Run of Upgrades For example, February saw less than five bullish updates, with Raymond James rating Estée Lauder a Strong Buy while Wells Fargo rated it Overweight. Then, in March, Bank of America upgraded Estée Lauder shares from a Neutral to a Buy rating, a move echoed by the Citigroup and DA Davidson teams this week. The refreshed price targets from these analysts have risen as high as $175, with at least three from the aforementioned list naming this as their expectation. Looking at the chart, however, you can't help but get the feeling that the stock hasn't reflected all this bullish optimism yet. While they've held onto much of their gains from November's run, Estée Lauder shares have effectively traded sideways since the end of December. It's funny, considering how many analysts have come out in the bull's corner in the meantime and made all the more strange by the broader market setting high after high. For context, just this week, the benchmark S&P 500 index was notching a fresh all-time high. Reaching an Inflection Point This week also saw Estée Lauder hit what Citigroup called an "inflection point" in its return to growth after last year's calamitous selloff. The company's sales got hit hard by the collapse in Chinese consumer spending, a key market, and its inventories swelled as a result. But it's looking like they've managed to adopt aggressive enough tactics to clear these hurdles, while there are signs of growth returning to its key markets. Bank of America is bullish enough on the turnaround to say the company is on the verge of getting back to profitability, even "if China only grows by single digits," while Canaccord summed it up nicely when they said Estée Lauder stands to gain the most as it's suffered the most. Considering Getting Involved? Given this, it's easy to feel like investors could be looking at a sleeping giant that is starting to reawaken. It will take a certain type of investor to get excited about the opportunity here, as Estée Lauder has significantly lagged behind its peers and the broader market. But perhaps that's where the real opportunity exists. It would be a different story if these analysts' upgrades hadn't materialized at the rate they have been, or if Estée Lauder shares had set even lower lows this year. But the fact is the stock has been gaining since last November, and signs continue to emerge indicating that the worst is over. With the 70% selloff of recent years barely starting to be eaten into, an exciting recovery play is gathering momentum. Investors should look for shares to trend up towards and close above their recent high of $160, as this would give technical confirmation that the recovery really is about to start in earnest. Before you consider Estée Lauder Companies, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Estée Lauder Companies wasn't on the list. While Estée Lauder Companies currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Bob Iger says Disney's mission is to entertain, not send messages 2024-04-04 14:44:00+00:00 - Disney CEO Bob Iger said his company is not interested in sending messages in its movies and TV shows. In an interview with CNBC on Thursday morning, Iger said Disney's No. 1 mission is to capture broad — if increasingly diverse — audiences. "Infusing messaging is not what we’re up to," he said. "We need to be entertaining." Iger was speaking one day after his leadership received a vote of confidence from stakeholders in the face of an aggressive activist shareholder campaign led by billionaire Nelson Peltz, who had taken the company to task for its lackluster stock performance in recent years. Peltz had also hit out at the company in an interview with the Financial Times for having dabbled in "woke" commentary. “Why do I have to have a Marvel that’s all women?" Peltz asked. "Not that I have anything against women, but why do I have to do that? Why can’t I have Marvels that are both?" In comments Peltz made about the blockbuster Marvel film, "Black Panther," he asked, "Why do I need an all-Black cast?” That sentiment has also been echoed by Elon Musk, who joked on April Fool's Day that he had been appointed head of diversity, equity and inclusion at the company. In the run-up to Wednesday's shareholder vote, Musk also endorsed Peltz. On Thursday, Iger told CNBC's David Faber that he "ignore[s]" Musk. Musk's comments "have no relevance to the Walt Disney Company," Iger said. The Disney chief executive viewed the episode as little more than a "distraction" given that the company was already focused on strategic priorities like making the Disney+ streaming platform profitable and nailing down the company's succession plan. Peltz, Iger said, "didn’t have any new ideas." The interview came a day after Iger won a key battle against a group of outside investors who'd sought to bring a slate of new board members tasked explicitly with increasing shareholder value. Even with that victory, Iger still faces the daunting task of returning Disney to sustained growth after a decade of lackluster performance, at least when measured by its share price, which at about $119, has not changed much from the levels seen 10 years ago. Among the company's other priorities: integrating Hulu into Disney+; breathing new life into flagship properties like Marvel and Star Wars; transitioning ESPN into the new, streaming-and-gambling focused sports consumption era after decades of cable TV dominance; and navigating the complex culture war politics that continue to wrack America. "This activist move could wake Disney up and force it to spread its wings," said Brian Stutland, chief investment officer at Equity Armor Investments. He said Disney has tended to focus on creating media properties with strong tie-ins to its parks, but said that could now change. "It could force them into becoming more 'Hollywood' than just Star Wars and superheroes," Stutland said. "If they can accomplish that, then the stock and the company are going to be in good shape." Disney has a host of other media and studio resources at its disposal through its acquisitions of ESPN and 21st Century Fox, Stutland said — properties that should make it one of the dominant streaming players going forward. "They can become a lower cost way for people to get entertainment," Stutland said. While some additional initial spending may be required, Disney+ is already near profitability, so it shouldn't be a problem, he said. In the CNBC interview, Iger said Disney’s streaming business needs to increase user engagement, reduce marketing costs, “program more smartly” outside the U.S. market and crack down on password-sharing, among other initiatives. Separately, the 73-year-old Iger has also faced questions about who will succeed him — especially in light of the failed tenure of Bob Chapek, who Disney named as its CEO in 2020 only to see Iger return two years later. CNBC's Alex Sherman reported that Dana Walden, co-chair of Disney Entertainment, the arm of the company in charge of movies and TV shows, is a strong contender for the top job. She would be the company's first female CEO and one of the few among America's 50 largest companies. "She comes from a Hollywood background," Stutland said. "That’s what they need to do, is to focus on that." Iger began his career running errands for productions at ABC. He moved to Disney in 1995 after its acquisition of ABC, and has served as an executive there ever since.
Tell Us Your Stories About Retirement 2024-04-04 14:36:31+00:00 - Have you retired? Or at least left your full-time, traditional job and embarked on a new chapter? For a special section on retirement and longevity to be published in June, The New York Times wants to hear from readers who have reinvented their lives after jobs or careers. Retirement can take on many different forms depending on a variety of factors. Maybe you moved. Maybe you started exercising. Maybe you started a new hobby or pursued a fresh passion for pay. We want to hear from people who used retirement as an opportunity to chart a new path. Here are some prompts to help you tell your story: What challenges did you have to overcome as you entered this phase — and how did you do it? What joys — or disappointments — have you derived from this chapter that surprised you? If you were making the move all over again, what would you change? And what advice do you have for others contemplating it: financial, emotional, social or lifestyle? We would love your thoughts (in, say, 200 words or less). We will not publish any part of your submission without contacting you first. We will not share your contact information outside the Times newsroom, and we will use it only to reach out to you.
Plan to Stash Pollution Beneath the Sea Could Save Money and Jobs 2024-04-04 14:24:08.855000+00:00 - Renowned for ancient churches and the tomb of Dante, the 14th-century poet, the city of Ravenna and its environs along Italy’s Adriatic coast are also home to old-line industries like steel and fertilizer. The manufacturing plants are of little interest to the many tourists who help sustain the area’s economy, but these sites employ tens of thousands of people. The question is: For how long? The factories, like others in Europe, face increasing pressure from regulators to reduce the climate-altering gases that their operations produce. The worry is that rising costs from regulation will force them to close. “We are very scared about the future of our industries,” said Michele De Pascale, the mayor of Ravenna. “We have to reach this goal to reduce CO2 emissions, but we want to do it without destroying our industries,” he said. Italy’s energy giant, Eni, which has a large presence in Ravenna, is pushing a plan that the mayor says could help preserve the region’s heavy industries: create an industrial pollution collector.
Chinese lenders key as Thames Water’s owner seeks time to pay debts 2024-04-04 13:34:00+00:00 - The Dutch bank ING and two Chinese state-owned lenders could play a crucial role in deciding the fate of beleaguered Thames Water, it has emerged. The banks are expected to agree an extension on a £190m loan to the parent company of Britain’s biggest water supplier, which is due to be repaid at the end of this month. The group of lenders to Kemble Water Finance include ING, Allied Irish Banks (AIB) and the Chinese state-owned Bank of China and Industrial and Commercial Bank of China (ICBC), the Financial Times and Sky News reported. Last week, Thames’s shareholders refused to stump up £500m that had been expected by the end of March, some of which was earmarked to pay the Kemble loan. The announcement raised the prospect of Thames, which has 16 million customers, being temporarily nationalised if it slips into a government-handled administration. Rishi Sunak appears reluctant to pursue this route, although a government project team is examining contingency plans for Thames’s collapse. Thames has said the industry regulator, Ofwat, is being too stringent, making the company “uninvestible”. It wants to secure significant bill increases, lower environmental fines and the ability to pay dividends up to Kemble to service its debts. Kemble said on Thursday it could not repay the loan. Sources said the parent company was likely to secure an “amend and extend” agreement, allowing it to repay the loan at a later date. If Kemble defaults, the lenders could become shareholders in Thames Water. Thames is ultimately owned by a group of shareholders led by Canadian pension fund Omers and including the UK university pension scheme USS, the investor Hermes, the China Investment Corporation and a subsidiary of the Abu Dhabi sovereign wealth fund. China’s role in UK infrastructure has been under the spotlight since telecoms groups were forced to strip out Huawei equipment from the UK network and Chinese backers of the Sizewell C nuclear power project were eased out amid security fears. Thames Water’s chief executive, Chris Weston, is due to meet union leaders on Thursday amid concerns over the future of Britain’s biggest water company. Representatives from the GMB, Unison and Unite unions will meet at the company’s headquarters, Clearwater Court in Reading, this afternoon. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Ahead of the meeting, the GMB national officer Gary Carter said he would “demand there are no cuts to work force numbers – or terms and conditions”. He said: “Any cost-cutting measures being considered by Thames will only be a sticking plaster and will not address the root cause of the company’s problems – a lack of investment by shareholders stretching back decades.” Fitch Ratings, an influential debt rating agency, said on Thursday it had downgraded Kemble’s debt. Fitch wrote that even if the lenders do agree to extend the parent company’s debts, it would probably still constitute a default. What happens after that would depend on the terms of the debt, and what security the lenders demanded in exchange for the money. The rating agency said: “We believe that a downgrade to [restricted default] has become highly likely. Even assuming that lenders will agree to amend and extend the £190m loan due on 30 April 2024, this agreement would probably constitute a distressed debt exchange under our criteria.” The Guardian revealed this week that anger over water companies repeatedly dumping sewage had led to widespread abuse of frontline workers in the industry, with the GMB reporting that one in three UK water employees it surveyed had been verbally abused. Thames Water, ING, AIB and Kemble declined to comment. Bank of China and ICBC were contacted for comment.
3 Most Active Penny Stocks: Buy, Sell, or Hold 2024-04-04 13:25:00+00:00 - Key Points Nikola volume is ramping higher as sales of the Tre FCEV gain traction. Plug Power volume is up, but short-sellers are still piling in. CXApp is rising on ramping volume and could double or triple in price soon. 5 stocks we like better than Nikola Trading activity is a sure sign that stock price will move; the question then becomes, which direction will it take? While trading volume is a sign of market interest, it never tells you if the bulls or the bears are active. That knowledge comes from other factors, including fundamentals, market outlook, profits, sentiment, and technical indicators, which must align for these stocks to advance and sustain their gains. Penny stocks are risky and volatile because thin markets lead to sharp moves; the more volume, the better. This is a look at three of the Most Active Penny Stocks ranked by Marketbeat.com and whether they are a Buy, Sell, or Hold. Get Nikola alerts: Sign Up Nikola Volume Is Ramping Higher: Company Turns a Corner: Hold Nikola NASDAQ: NKLA is still struggling with profits, cash, and the need for capital, but there are signs that it is turning a corner. The company recently began returning the recalled BEV trucks to customers and is ramping up production and sales of the FCEV. The FCEV is the real story as it provides greater range and flexibility with lower user costs and is the more likely avenue for company success. Recent news includes the production of forty-three Tre FCEVs, all sold. Forty were sold in Q1; the remainder will be delivered this month. The takeaway is that Nikola is in its revenue-generating phase and is expected to ramp EV sales over time. Regarding volume, Nikola has appeared at or near the top of the Most Active Penny Stock rankings for the last few months. The stock average daily volume quadrupled in 2023 and recently doubled again. The spike in volume is consistent with bottoming and a potential reversal that the indicators support. MACD and stochastic suggest upward movement for this market with plenty of room to run. Technically, the stock could advance to the $1.60 and $3.00 levels without hitting market-halting resistance. Analysts have steadily lowered their price targets but still see 1000 basis points of upside at the low end of their range and 50% at the consensus. Plug Power is Trending Lower: Sell Plug Power’s NASDAQ: PLUG volume started to ramp higher in late 2023 following its going concern notice and stock price implosion. However, as hopeful as the market is and as promising as recent developments, the company stock is still in a downtrend. While Plug has aided its cash position, it will lean into dilutive efforts and may still (probably) need to raise additional funding before it crosses the line to sustained profitability. Short interest is a risk for this stock and Nikola. Nikola short-sellers are selling into the rally and have lifted the interest to 20%. They may cap gains and cause a market downturn. Plug Power short-sellers have no rally to sell into but are still selling and lifted the interest in that stock to 25% on the last date of record. Analysts rate Plug as a Hold and see a nearly 100% upside at the consensus but have been downgrading and lowering the price target enough that this stock is also on the Most Downgraded and Lowest Rated Stocks pages, a tremendous headwind for price action. CXApp Inc. is Showing a Strong Buy Signal CXApp Inc. NASDAQ: CXAI is an enterprise app that recently announced an expanded partnership with Google. That announcement spurred a rally that began the month before to a new high, which was marked by record high volume. The technical picture alone makes this stock a speculative buy, and its position in the cloud aids the outlook. The risk for investors is that the platform has yet to be deployed, slated for sometime this summer. A single analyst rates this stock at Buy, but there is no price target. The technical outlook suggests this stock could double or triple if it can exceed the $7.50 level. A move to $7.50 is worth 50%, with shares near $5.00. Before you consider Nikola, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Nikola wasn't on the list. While Nikola currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Why These Nuclear Stocks Could Beat Solar and Wind Energy Stocks 2024-04-04 13:17:00+00:00 - Key Points Unlike some renewables, nuclear energy provides a consistent, reliable source of electricity that isn't dependent on weather conditions. Innovations in reactor design, such as small modular reactors (SMRs), promise improved safety, scalability, and potentially reduced costs, addressing some of the traditional concerns about nuclear power. Investors can choose from various ways to get involved, including uranium miners, cutting-edge reactor developers, established utilities with nuclear assets, or nuclear-focused ETFs for broad sector exposure. 5 stocks we like better than Cameco The global shift towards clean energy sources has intensified the search for reliable and scalable alternatives to fossil fuels. While the solar and wind power sectors have captured significant attention, a renewed interest in nuclear energy is emerging. Nuclear power, with its potential for consistent baseload generation, small footprint (particularly with newer technologies), and improving safety profile, holds the potential to outperform traditional renewables in specific contexts. Could nuclear energy stocks be the key to outperforming the broader renewable energy market in the long run? Get Cameco alerts: Sign Up Unleashing the Power of the Atom: Uranium Miners Uranium, the foundational element of nuclear power, will become an increasingly valuable commodity in the coming years. If the push for clean energy fuels a nuclear resurgence, uranium mining companies will be positioned at the forefront of this transition. Let’s look at some of the key players in this subsector of the mining sector: Cameco Corporation Cameco Corporation NYSE: CCJ, a global giant in uranium production, stands out for its extensive reserves and established track record in the industry. Ranked among the world's leading uranium producers, Cameco's expertise and substantial reserves in Canada make it a significant player in the global uranium market. Denison Mines Denison Mines NYSEAMERICAN: DNN is committed to environmentally conscious mining operations. The company is actively involved in exploration and development projects within the Athabasca Basin region of Canada, which is renowned for its abundance of uranium resources. Denison prioritizes environmentally responsible mining practices and holds a diverse portfolio of projects, including exploration and development assets in this uranium-rich region of Canada. Energy Fuels Energy Fuels NYSEAMERICAN: UUUU, a US-based mining company, has diversified operations that encompass uranium, vanadium, and rare earth element recovery. This multifaceted approach positions Energy Fuels to capitalize on various critical material needs. Notably, beyond uranium, Energy Fuels engages in the recovery of vanadium and rare earth elements. This unique combination makes them an intriguing player as demand for these materials evolves. NexGen Energy NexGen Energy's NYSE: NXE claim to fame is the high-grade Arrow Deposit, a substantial uranium resource located in Canada's Athabasca Basin. The quality of this deposit and its projected long mine life make NexGen a company to watch. Additionally, NexGen boasts a relatively low expected production cost, which could improve its profitability if uranium prices surge. The company is also exploring the possibility of using innovative in-situ recovery (ISR) mining techniques, further differentiating its approach. Uranium miners face unique risks, such as fluctuating commodity prices and the potential for regulatory changes that could impact their operations. However, if the anticipated surge in nuclear power demand materializes, these companies could potentially deliver substantial returns for investors. The Next Generation: Reactor Developers While traditional nuclear power plants have proven their capabilities, they often come with large capital costs, lengthy construction timelines, and a degree of public anxiety. A wave of innovative companies are tackling these challenges by developing new reactor technologies that promise greater safety, scalability, and potential cost advantages. Let's examine a few key players in this space: NuScale Power NuScale Power NYSE: SMR pioneered small modular reactor (SMR) technology. Unlike traditional plants, SMRs are designed to be smaller, factory-built units that can be deployed more quickly and potentially with lower upfront costs. NuScale aims to make nuclear power more accessible for a broader range of electricity needs, potentially opening new markets for nuclear energy. Centrus Energy Centrus Energy NYSE: LEU isn't solely focused on reactor design but plays a crucial role in the nuclear fuel cycle. The company is developing advanced nuclear fuels explicitly designed for next-generation reactors. They've also forged a significant partnership with TerraPower, a venture-backed by Bill Gates, to advance new reactor technologies. This partnership highlights Centrus' importance in the broader scheme of nuclear innovation. BWX Technologies BWX Technologies NYSE: BWXT has a strong legacy of providing components and services for the existing nuclear power industry. However, it is also looking ahead by actively developing microreactors. These ultra-small reactors hold the potential to provide energy in remote areas or to power specific applications like military bases. BWX's diversification across both current and future nuclear needs makes it a compelling company to add to your watchlist. With their advancements, reactor developers have the potential to transform the nuclear power technology landscape. As they strive to make nuclear energy safer, more adaptable to diverse energy demands and scalable, these companies spearhead innovation. Although technological challenges remain, the triumphs of these pioneers could significantly expand nuclear energy's role in a future powered by clean energy. Established Utilities with a Nuclear Advantage Traditional energy utilities already heavily invested in nuclear power offer investors a unique way to participate in the sector. While new technologies are exciting, established utility companies with operational nuclear fleets provide exposure to a more established segment of the industry. Let's take a closer look at two major players: Duke Energy Duke Energy NYSE: DUK is a leading US utility company that boasts a substantial nuclear power fleet. This nuclear component complements its diverse portfolio, which also includes renewable energy sources and natural gas generation. For investors, Duke Energy offers a balance between the potential upside of the nuclear sector and the stability of a large, diversified utility company. Exelon Corporation Exelon Corporation NASDAQ: EXC holds a dominant position as one of the largest operators of nuclear power plants in the United States. Unlike Duke, Exelon's power generation relies more heavily on nuclear facilities. This makes Exelon a more direct play on potential legislative or market changes that favor the nuclear energy industry and could lead to increased profitability for the company's nuclear segment. Established utilities with significant nuclear operations provide a different investment opportunity than pure-play uranium miners or cutting-edge reactor developers. These utilities offer a way to benefit from a potential nuclear resurgence while also often maintaining a broader portfolio of energy assets that can provide some measure of stability. Investors will need to assess their risk tolerance and the role they envision nuclear stocks playing within their overall portfolio when considering companies like Duke Energy and Exelon. Diversifying Nuclear Investment: The Role of ETFs Exchange-traded funds (ETFs) provide investors a streamlined way to gain exposure to the nuclear energy sector without directly investing in individual companies. This basket approach can mitigate some risks associated with single stocks while allowing investors to benefit from the sector's potential growth. Here's a breakdown of two prominent ETFs in the nuclear space: Global X Uranium ETF The Global X Uranium ETF NYSEARCA: URA is specifically designed to track companies involved in the mining and producing of uranium, along with businesses engaged in related stages of the nuclear fuel cycle. This ETF offers investors a more targeted way to bet on the rising demand for uranium if the resurgence of nuclear power comes to fruition. VanEck Uranium+Nuclear Energy ETF The VanEck Uranium+Nuclear Energy ETF NYSEARCA: NLR adopts a slightly broader approach than the Global X Uranium ETF. While still capturing exposure to uranium-related companies, this ETF also includes companies engaged in constructing and operating nuclear power plants. This expanded focus could benefit if both uranium demand and positive sentiment towards atomic power generation increase in tandem. Nuclear energy ETFs present an appealing option for investors seeking a convenient and diversified approach to the industry. These ETFs eliminate the need for extensive research into individual companies but still give investors access to the potential growth trajectory of the nuclear sector. Investors must carefully consider the specific holdings and management fees of any exchange-traded fund before investing. Policy and Regulation: The X-Factor Government policies and regulations are pivotal in shaping the nuclear energy landscape. Favorable policies, like tax incentives or streamlined development processes, could ignite the sector, while restrictive regulations could hamper its growth. Investors need to keep a close eye on the evolving regulatory environment, as policies can greatly influence the prospects for nuclear-related investments. Nuclear Power in A Global Context Developing economies with booming energy needs could turn to nuclear power as a solution to reduce reliance on fossil fuels and address growing energy security concerns. China and India, for instance, already have ambitious nuclear power expansion plans. This global trend underscores the long-term potential for the nuclear sector and its associated stocks. Challenges and Considerations: The Other Side of the Equation Acknowledging the challenges and potential risks associated with nuclear power before making any investment decisions is essential. These include: Waste Disposal: The safe and long-term storage of radioactive waste remains a contentious issue. While technological advancements offer potential solutions, this remains a concern for investors and the communities surrounding nuclear plants. The safe and long-term storage of radioactive waste remains a contentious issue. While technological advancements offer potential solutions, this remains a concern for investors and the communities surrounding nuclear plants. Risk of Accidents: Though safety standards have significantly improved, the potential for accidents, however rare, can generate public fear and negatively impact nuclear investments. Though safety standards have significantly improved, the potential for accidents, however rare, can generate public fear and negatively impact nuclear investments. Long Development Timelines: Constructing new nuclear power plants can be lengthy and capital-intensive, making investment returns less immediate than other energy sectors. Nuclear energy stocks have the potential to be lucrative investments in the long term, particularly if the growing need for reliable, low-carbon energy outweighs the industry's concerns and challenges. Nuclear technology isn't a silver bullet, but it can play a significant role in the diverse energy mix required for a sustainable future. While nuclear may not fully eclipse solar and wind power, the unique advantages of atomic energy may prove essential on the path toward a cleaner energy future. Before you consider Cameco, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cameco wasn't on the list. While Cameco currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Levi Strauss Stock: Trend-Following Signal, Reversal is On 2024-04-04 13:05:00+00:00 - Key Points Levi Strauss had a solid quarter and reaffirmed its outlook that business will return to growth this year. Margins widened and support a solid outlook for capital returns. Analysts are raising their targets and aided a double-digit surge in the price action. 5 stocks we like better than Levi Strauss & Co. Levi Strauss NYSE: LEVI exemplifies how iconic branding, sound management, and forward-looking strategy can drive shareholder value. The company struggled with shifting consumer demands, inventory issues, and structural challenges for the last several years but is coming out of the weeds in fantastic shape. The Q1 results and guidance affirm an outlook for accelerating improvement and profitability, and the market has noticed. The price action from early 2022 until recently coincided with range-bound trading and bottoming, which is confirmed as a complete reversal today. The market surged 10% on the news, breaking above critical resistance to open a door to a sustained rally that could last for years. Get Levi Strauss & Co. alerts: Sign Up “The structural economics of our business improved in Q1 driven by significant gross margin expansion, disciplined expense controls and efficient working capital management,” said Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co. “As a result, we are confident in our ability to return the topline to mid-single-digit growth in the second half of this year and are increasing our full-year EPS expectations.” Levi Strauss Will Pivot Back To Growth Soon Levi Strauss’ Q1 results are solid on several levels, including the top and bottom lines and guidance. The company reported a YOY decline of 7.7% but outpaced the consensus by 65 BPS and produced a better-than-expected margin. Weakness was in the Wholesale segment, which declined by 18%. The weakness in wholesales was offset by strength in the DTC segment, which showed strength in all regions. DTC is up 7%, led by 10% in the US. Ex-Russia DTC sales are up double-digits. DTC sales are essential because they are core to the company’s long-term plans. DTC sales amount to 48% of the business and will soon overtake wholesales. The margin is a mixed bag, but the implications for investors are bullish. The GAAP operating margin was negative because of non-cash impairments related to restructuring. The gross margin widened by 240 basis points to 58.2%, leaving the adjusted net income down but well ahead of the consensus forecast reported by Marketbeat.com. The adjusted EPS is reported as $0.26, a nickel ahead of expectations, and margin strength is expected to persist. Guidance is good. The company reaffirmed revenue, which expects a sharp pivot back to top-line growth in the back half. The full-year forecast is up 1% to 3%; the news that spurred the market to a 10% gain is the earnings outlook. Levi’s execs upped the target for adjusted earnings to $1.17 to $1.27, a wide range, but above the prior forecast at the low end and the mid-point aligns with consensus and may be cautious. Levi Strauss is Levered for Success To say that Levi Strauss is leveraged for success is to say that it carries very little debt, has ample liquidity, and has a fortress balance sheet. The company’s inventory management aided a 30% increase in cash, and leverage is low. Assets, liabilities, and equity are down slightly at the end of Q1 YOY. Still, leverage is low, setting it up to continue its turnaround, invest in growth, pay dividends, and repurchase shares. Long-term debt to equity is 0.5X, while total liabilities are 2X equity. Levi’s capital returns amounted to $73 million in Q1, or about 71% of adjusted net income. Returns included $48 million for the dividend and $25 for repurchases, with $656 million left under the repurchase authorization. The dividend is worth about 2.5% with shares at the new high, and there is an expectation for long-term growth, if not annually. Regarding repurchases, the share count fell 0.35% YOY at the end of Q1, enough to offset share-based compensation. Analysts support Levi Strauss Stock Levi Strauss shares are increasing following the release, aided by analysts' updates. The analysts are maintaining the Moderate Buy rating but raising the price targets. The first revisions exceeded the pre-release consensus of $17, and a new high was set. Telsey Advisory Group set the new high of $24, the second $2 increase they issued last month. Assuming the market follows through on the signals given, this stock should continue to trend higher this year and into the next. Before you consider Levi Strauss & Co., you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Levi Strauss & Co. wasn't on the list. While Levi Strauss & Co. currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Bargain Alert: AMD is on the Verge of a Massive Catchup Play 2024-04-04 12:56:00+00:00 - Key Points Shares of AMD have diverged from both their semiconductor peers and the broader market in recent weeks. However, it looks like they’re starting to consolidate and momentum has swung to the bulls. Investors should be watching for another run of green days into next week, which could single the comeback has started. 5 stocks we like better than Intel Having popped to a fresh all-time high at the start of last month, it looked like shares of Advanced Micro Devices Inc NASDAQ: AMD were going to keep rallying through the end of the quarter. However, having fallen as much as 23% since then, they’ve definitely started Q2 on the back foot, and investors are wondering if this is just a healthy, though slightly scary, pullback or if it could be the start of a broader downtrend. It’s worth noting that while AMD was trading down, the rest of the market, as seen through the benchmark S&P 500 index, was trading up. Considering how closely aligned it had been, this was an interesting divergence. For context, the S&P 500 notched a fresh all time high just last week. Get Intel alerts: Sign Up Divergence From Competitors Sure, AMD’s biggest semiconductor competitor, Nvidia Corporation NASDAQ: NVDA, has also yet to top the high it set at the start of March, but unlike AMD, it made another run at it just last week and came very close. Heading into the final two trading days of the week, Nvidia shares are hovering less than 10% below last month’s peak; nothing a stong up day wouldn’t take care of. So, what’s the deal with AMD? It’s undoubtedly benefited from the advent of artificial intelligence (AI) in the past year, with a March-to-March gain of 190%, but has struggled at times to match the sheer forward momentum of Nvidia. Troubles With China Its footprint into China is one such example. While Nvidia is about to begin mass production of its AI chip for the Chinese market, AMD is still struggling to get approval from the U.S. Bureau of Industry and Security. This news, which came out this time last month, was a key driver in the stock’s divergence throughout March. It didn’t help that the Chinese government then announced that they were considering blocking the use of AMD microprocessors in China altogether. Intel Corp NASDAQ: INTC also found themselves on this list, but Nvidia did not, and they’re on track to begin production for the Chinese market this quarter. While it’s not yet definitive, the possibility that AMD will be excluded from China, assuming it can even get the green light to sell there, has understandably spooked investors. But with shares having failed to set a new low in almost two weeks, there’s definitely a sense that the worst-case scenario has been baked in, and they’re not starting to consolidate. As of Wednesday’s close, they were up 5% of that low, with some clear momentum beginning to emerge on the bid. The stock's relative strength index (RSI), a measure of its overbought or oversold, has halted its downward spiral and is starting to trend north, as is the stock’s MACD. Both of these are considered reliable indicators of a stock’s recent trading momentum and can help support a thesis that momentum is swinging from the bears to the bulls. Bullish Factors to Consider There’s also the fact that AMD has avoided getting a single downgrade in the past month, despite this new development. In fact, it has to be said that only three weeks ago, the teams at Mizuho and DZ Bank were reiterating their Buy ratings, with Mizuho even boosting their price target from $200 to $235. With AMD shares finishing out Wednesday just shy of $181, this points to a targeted upside of some 30%. It is, for sure, an interesting time to be on the sidelines considering a position here. With the rest of the market continuing to trend north and the most recent analyst comments reiterating the strong upside potential, it has to be said that there’s a clear catchup play starting to emerge. Investors should watch for AMD shares to continue logging green days into next week, with a close above $188 suggesting the rebound has well and truly started. Before you consider Intel, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Intel wasn't on the list. While Intel currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Redstone Has Tentative Deal to Sell Paramount Stake to Skydance 2024-04-04 06:24:00+00:00 - (Bloomberg) — Shari Redstone, the controlling shareholder of film and TV giant Paramount Global, has reached a tentative agreement to sell her stake in the company to David Ellison’s Skydance Media, people with knowledge of the situation said. Most Read from Bloomberg Skydance is holding exclusive talks with a panel of independent directors at Paramount as part of a provisional accord to buy Redstone’s family holding company National Amusements, said the people, who asked not to be identified because the discussions are private. National Amusements holds a near 80% voting stake in Paramount, the owner of several major film and TV properties including CBS and MTV. Read More: Redstone’s Plan for Paramount Limps Toward an Ominous Ending Paramount and Skydance declined to comment. Redstone didn’t immediately respond to a request for comment. She and her representatives have been weighing a sale of National Amusements to Ellison — an independent producer and son of Larry Ellison, the billionaire co-founder of Oracle Corp. — for months. A deal to purchase Redstone’s National Amusements would represent a major step forward in Ellison’s plans to buy the storied Hollywood company and merge it with his own film and TV business. Read More: Apollo Is Said to Offer $11 Billion for Paramount’s Film Studio Ellison’s company, Skydance, has partnered with Paramount on films including Top Gun: Maverick. But an outright merger with Paramount would prove complex, and other Paramount investors might object to the terms. Paramount executives said during a March investor conference that their objective is to “create value for all of our shareholders.” The potential terms of a deal couldn’t be determined, and any agreement would be subject to approval by Paramount’s board. Story continues Paramount has attracted other suitors, including independent media mogul Byron Allen, Apollo Global Management Inc. and Warner Bros. Discovery Inc. Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
Ford sales surge 6.8% powered by hybrids and EVs 2024-04-04 04:55:00+00:00 - Like other legacy automakers this week, Ford (F) is the latest to report strong first quarter sales. Ford said Q1 US sales jumped 6.8% to 508,083 vehicles, powered by strong sales of electrified products such as hybrids and EVs. Ford’s Maverick hybrid pickup saw its best quarter ever, with sales jumping 77% in the first quarter. Maverick also powered overall hybrid sales to a 42% jump to 38,421, with Ford claiming this was also the best quarter for hybrids and that momentum will continue. Ford's EV offerings — the Mustang Mach-E, Ford Lightning EV, and its commercial E-Transit vans —bucked the recent trend of softening demand. Ford’s overall EV portfolio saw a massive 82% jump to 20,223 EVs sold in Q1, with Mustang Mach-E jumping 77.3% to 9,589 units sold and the Lightning pickup seeing sales surge 80.4% to 7,743 units. While the sales numbers here are strong, Ford relied on heavy discounting, cheap finance rates, and lease deals to move inventory. A Ford Mustang Mach-E Rally electric vehicle at the New York International Auto Show in New York on Saturday, March 30, 2024. (Ted Shaffrey/AP Photo) (ASSOCIATED PRESS) A down note for Ford, however, was its flagship F-150 sales. Though the F-Series (which includes the F-150 and heavy-duty F-250 and F-350 offerings) retained the crown of America’s top-selling truck, sales fell 10.2% in the quarter to 152,943 units. Ford has experienced a slow ramp-up of the all-new F-150, which started sales in March. Nonetheless, investors are cheering Ford’s sales results today, with the stock up nearly 2% in midday trade. “The new F-150 will be a big play for us across gas, hybrid, and electric vehicle segments of our business,” said Andrew Frick, president of Ford Blue, the unit covering Ford’s traditional gas and hybrid offerings. “With the new F-150 and all-new Ranger sales beginning in March along with the strong performance of our all-new Lincoln Nautilus and Nautilus Hybrid, we’re in a strong position to capitalize and grow as we move through 2024.” SUVs still did quite well with the Bronco Sport (up 5.7%), Escape (up 70.3%), Edge (up 73.3%), and Expedition (up 11.4%) among the gainers. Vehicles that didn’t perform in the quarter include Ford’s only “traditional” offering, the Mustang (down 6.8%) and the automaker’s popular full-size Bronco, which saw sales dip 25.8% in the quarter to 24,000 units sold. Story continues Ford’s overall strong performance in Q1 follows reports from traditional automakers like GM, Honda, Toyota, and Hyundai that are leveraging hybrid and gas-powered vehicles to offset any weakness in EVs, though, like Ford, Korean automakers like Hyundai and Kia are seeing gains in their EV businesses as well. Ford will report full Q1 financial results after the bell on Wednesday, April 24. In late March, Ford CFO John Lawler reiterated 2024 guidance that Ford provided in early February, projecting adjusted earnings before interest and taxes (EBIT) of $10 billion to $12 billion, adjusted free cash flow of $6 billion to $7 billion, and capital expenditures of $8 billion to $9.5 billion. Also of note, Q1 will be the first quarter in which Ford’s new bargaining agreement with the United Auto Workers union takes effect. Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance
UPDATE 2-Redstone, Skydance strike tentative deal for Paramount stake, Bloomberg News reports 2024-04-04 04:53:00+00:00 - (Adds background on Redstone, Paramount in paragraph 2, 3; details on company's value in paragraph 4, 5) April 3 (Reuters) - Shari Redstone, the controlling shareholder of TV giant Paramount Global, has reached a tentative agreement to sell her stake in the company to David Ellison's Skydance Media, Bloomberg News reported on Wednesday, citing people familiar with the matter. Media mogul Redstone has been reluctant to part with one of Hollywood's most prestigious studios. However, the deterioration of the global entertainment business has wiped out more than $16 billion in value from the media company formed through the hard-fought reunion of CBS and Viacom in 2019. The company’s market capitalization was below $10 billion in January. Paramount could be worth $38.8 billion and its equity could be worth about $38 per share if the firm's networks, production assets and DTC business were sold individually, Citi had estimated on Dec. 11 after news reports on sale interests. Paramount, Skydance and a spokesperson for Shari Redstone did not immediately respond to Reuters' requests for comment. Skydance is holding exclusive talks with a panel of independent directors at Paramount as part of a provisional accord to buy the Redstone family's holding company National Amusements, the report added. In January, a source told Reuters Skydance Media CEO David Ellison, son of Oracle co-founder Larry Ellison, was exploring an all-cash bid to acquire National Amusements. National Amusements directly or indirectly owns 77% of the voting shares of Paramount. It controls CBS, cable networks Nickelodeon and Comedy Central and also owns 800 film screens in the United States. (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Krishna Chandra Eluri and Maju Samuel)
Buffett Suggests Radical Approach To End U.S. Deficit In '5 Minutes' – But It Involves Disqualifying Members Of Congress Based On The Debt 2024-04-04 03:30:00+00:00 - Over a decade ago, Warren Buffett, the legendary investor and philanthropist, humorously suggested an unconventional plan that he believed could address the United States’ escalating deficit issue. During a live interview on CNBC with Becky Quick in 2011, Buffett proposed a legislative approach to incentivize Congress to manage the nation’s finances more responsibly. Don't Miss: Are you rich? Here’s what Americans think you need to be considered wealthy. Can you guess how many Americans successfully retire with $1 million saved? The percentage may shock you. “I could end the deficit in five minutes,” Buffett said. “You just pass a law that says that any time there’s a deficit of more than three percent of GDP, all sitting members of Congress are ineligible for re-election.” His proposal, though delivered with a chuckle, carried an undeniable logic – by directly tying lawmakers’ political futures to the nation’s fiscal health, they would have a powerful incentive to rein in spending and balance the budget. As the discussion continued, Buffett extended his critique and call for accountability to corporate America, urging the business community to advocate for fiscal responsibility on a national scale. He highlighted the paramount importance of maintaining the nation’s creditworthiness, drawing parallels between personal financial habits and national fiscal management. Just as individuals face consequences for poor financial practices, such as late payments adversely affecting credit ratings, Buffett argued that a country’s fiscal mismanagement could severely undermine its standing and credibility in the global credit market. Though Buffett delivered his statement with a blend of jest and seriousness, the underlying message struck a chord with many Americans: the urgent need for fiscal responsibility and the potential power of aligning lawmakers’ incentives with the country’s long-term financial health. However, Buffett acknowledged the inherent irony and challenge in his proposal – the individuals who would need to enact such a law are the same ones who would risk their careers by doing so, presenting a formidable conflict of interest. Story continues Trending: How to turn a $100,000 investment into $1 Million — and retire a millionaire. Now, more than a decade after Buffett’s comments, the U.S. deficit has grown even larger, transforming what was once a facetious remark into a prescient reflection on the structural challenges of managing national debt responsibly. As the deficit continues to be a pressing concern for policymakers and citizens alike, revisiting Buffett’s suggestion offers a moment to ponder the complexities of fiscal policy, the difficulties of political action in the face of personal interests and the ongoing search for effective, pragmatic solutions to ensure the nation’s economic sustainability. Buffett’s proposal, though not meant to be taken as a literal blueprint, emphasizes a key point about the nature of political decision-making and the potential impact of well-designed incentives. His specific idea may have been tongue-in-cheek, but the principle of accountability and consequence for fiscal mismanagement remains an argument for change. While individuals cannot directly influence national fiscal policy, they can exercise control over their personal finances. Consulting a financial adviser can provide valuable guidance on making informed decisions, managing debt responsibly and developing a long-term plan for financial well-being. Just as Buffett advocated for aligning incentives with desired outcomes on a national scale, individuals can align their spending and saving habits with their financial goals through disciplined planning and expert advice. By taking charge of the areas within their control, citizens can lead by example and contribute to an overall climate of fiscal responsibility. Read Next: For many first-time buyers, a house is about 3 to 5 times your household annual income. Are you making enough? Can living off interest from a $1 million investment support my retirement dreams? "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article Buffett Suggests Radical Approach To End U.S. Deficit In '5 Minutes' – But It Involves Disqualifying Members Of Congress Based On The Debt originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
US STOCKS-Wall Street edges up on soft services sector data, Powell speech 2024-04-04 03:10:00+00:00 - * Intel down after revealing deepening losses at chip-making unit * Ulta Beauty drops as CEO warns of sluggish Q1 demand * Indexes up: Dow 0.01%, S&P 500 0.28%, Nasdaq 0.48% (Updates to 1430 ET) By Chibuike Oguh NEW YORK, April 3 (Reuters) - U.S. stocks rose on Wednesday, buoyed by data showing U.S. services industry growth slowed further in March, even as Federal Reserve Chair Jerome Powell reiterated that the central bank has time to deliberate over its first interest rate cut this year. Nine out of the 11 major S&P 500 sectors were higher, led by energy, which was up 0.7%. Powell reaffirmed in a speech on Wednesday that the Fed will stick to its wait-and-see approach as it considers when to start cutting rates given the continued strength of the U.S. economy and recent higher-than-expected inflation data. Earlier on Wednesday, data from the Institute for Supply Management showed that non-manufacturing PMI declined for the second straight month to 51.4 in March, down from 52.6 in February, and weaker than analysts had expected, according to a Reuters poll. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy, and the data still indicates the U.S. economy continues to expand, though at a moderate pace. "Markets started the day on a positive note ahead of Powell, and with the market still pricing in three rate cuts for the year, he kind of confirmed that he still sees rates being cut this year," said Joshua Wein, portfolio manager at Hennessy Funds in North Carolina. At 02:28 p.m. the Dow Jones Industrial Average rose 4.81 points, or 0.01%, to 39,175.78, the S&P 500 gained 14.95 points, or 0.29%, to 5,220.76 and the Nasdaq Composite gained 77.88 points, or 0.48%, to 16,318.33. Traders are pricing in a 57% chance the Fed will cut interest rates by 25 basis points in June, according to CMEGroup's FedWatch tool, down from about 64% a week ago. In separate comments to CNBC on Wednesday, Atlanta Fed President Raphael Bostic said rates should likely not be reduced until the fourth quarter of this year. Story continues Among decliners, Ulta Beauty was down 14.8% after the beauty retailer gave downbeat forecast at an industry conference. Shares of e.l.f. Beauty fell 10.2%, while Coty dropped 6%. Also, Intel fell 7.5% after the chipmaker disclosed $7 billion in operating losses for its foundry business in 2023, steeper than the $5.2 billion reported the year before. Advancing issues outnumbered decliners by a 1.81-to-1 ratio on the NYSE. There were 264 new highs and 54 new lows on the NYSE. On the Nasdaq, 2,457 stocks rose and 1,716 fell as advancing issues outnumbered decliners by a 1.43-to-1 ratio. The S&P 500 posted 32 new 52-week highs and 4 new lows while the Nasdaq recorded 105 new highs and 115 new lows. (Reporting by Chibuike Oguh in New York; additional reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Aurora Ellis)