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Senin, 05 Agustus 2019

Projo's Parent Co. GateHouse in Revenue Free Fall, Merges with Gannett, $200M+ in Cuts Planned - GoLocalProv

Monday, August 05, 2019

GoLocalProv Business Team

Merger of Projo's parent co. with Gannett will lead to more cuts

The announcement of the merger of the two largest newspaper groups in America creates a behemoth newspaper company owning nearly 300 daily newspapers of every size paper from the Newport Daily News to the Providence Journal to USA Today.

The combined GateHouse Media and Gannett company is the first coast-to-coast newspaper group.

The $1.4 billion deal crushes the last vestiges of memories of local ownership of newspapers — families like the Metcalfs, who controlled the Providence Journal for more than a century. Leon Black’s Apollo Global Management LLC is funding GateHouse's purchase of Gannett through a $1.79 billion term loan, the companies said Monday.

Black, has ties to now-indicted Jeffrey Epstein.

All of this is far from the local ownership that controlled the Providence Journal for more than a century.

Michael Metcalf ran the Providence Journal until his death in 1987. It was a family-led business for the preceding 100 years.

In 1890, his paternal grandfather, Stephen O. Metcalf, was elected to the board of directors of the Journal Co. He was elected president in 1904 and held that position until 1941, when he was succeeded by George Pierce Metcalf. George Metcalf, Metcalf’s father, died in 1957.

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Michael Metcalf died in 1987

More Cuts Coming

According to the nation’s top newspaper expert -- Ken Doctor, who writes for Harvard’s Neiman Lab -- the deal is likely to lead to the slashing of even more jobs in more newsrooms around the country.

“Uniting our talented employees and complementary portfolios will enable us to expand our comprehensive, hyperlocal coverage for consumers, deepen our product offering for local businesses, and accelerate our shift from print-centric to dynamic multimedia operations,” said Michael Reed, chairman and chief executive of GateHouse’s parent company, in a statement.

Both GateHouse and Gannett are reporting second-quarter earnings this week -- and both are expected to report poor-performance for "same store" newspaper revenues in 2019 versus 2018.

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Now, Projo circulation is 34,000

$200 to $300M in Cuts

“For the journalists inside what will become the new Gannett, and for their readers, the immediate future is hard to chart. Financial realities drive this deal — and that means cutting. We’ll hear the two companies talk about synergies in that $200 to 300 million range. How do those numbers work?” writes Doctor.

According to Doctor, the achieved “synergies” in the deal are expected to to be between $200 to $300 million.

“At the low end, ‘figure $200 million minus $100 million the first year,’ explains one savvy financial insider. ‘It will cost them about $100 million in severance-plus to get the savings they want. Then there’s a savings of $200 million net a year.’

But wait: That might sound good if newspaper revenues were stable. They’re not, expected to drop another 5-plus percent in 2020 and likely continued decline after that. That could add up to another $100 million vanished from top-line revenues in 2020,” writes Doctor.

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USA Today -- will be part of new mega-company.

Impact in Rhode Island

The latest merger is likely to further adversely impact the newsrooms of the Providence Journal and the Newport Daily News — already devastated by decades of layoffs and buyouts.

Today, the Providence Journal has approximately 15 news reporters — down from hundreds in the 1980s.

Rick Edmonds, a media business analyst at The Poynter Institute, tells the Wall Street Journal the merger could mount pressure on other media companies looking to cut costs and consolidate.

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2019-08-05 21:56:32Z
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Dow plunges 600 points after China devalues its currency - CNN

The Chinese government devalued the yuan to fall below its 7-to-1 ratio with the US dollar for the first time in a decade Monday. A weaker currency could soften the blow the United States has dealt China with its tariffs.

The cheaper yuan ignited fear on Wall Street that the United States would respond with even higher tariffs, prolonging the standoff with China and potentially weakening the global economy. Investors are particularly concerned that the Trump administration could try to devalue the dollar, sparking a currency war that could weaken Americans' purchasing power.

"Risks of Trump intervening in foreign exchange markets have increased with China letting the yuan go," wrote Viraj Patel, FX and global macro strategist at Arkera, on Twitter. "If this was an all out currency war - the US would hands down lose. Beijing [is] far more advanced in playing the currency game [and has] bigger firepower."

President Donald Trump once again called China a currency manipulator on Monday, saying the yuan devaluation was a "major violation." Trump has long attacked China for its currency policy, even though the Treasury has refrained from officially labeling the country a currency manipulator.

Stocks and bond yields are sharply lower

US stocks were sharply lower, with the Dow (INDU) falling more than 600 points, sinking below 26,000 points. The S&P 500 (SPX) traded 2.3% lower, while the Nasdaq Composite (COMP) fell 3%.

The last time the Nasdaq lost as much as 3% was May 13. If the Nasdaq closes lower Monday, it will have logged its longest losing streak since November 2016, when it fell for nine-consecutive days in the lead-up to the presidential election.

The S&P 500 is on track for six consecutive down days for the first time since October, while the Dow is on track for its longest losing streak since March. Last week, the S&P 500 and the Nasdaq Composite logged their worst week of the year last week.

Hit particularly hard were tech stocks. Apple (AAPL), Intel (INTC), Microsoft (MSFT), Nvidia (NVDA) and Advanced Micro Devices (AMD) were among the biggest losers on Monday.

The VIX (VIX) volatility index soared more than 25%. The CNN Business Fear & Greed Index is indicating "Extreme Fear."

Asian markets all fell more than 1.6% Monday, and Hong Kong's Hang Seng closed down 2.9% as protests continue in the region. In Europe, London's FTSE 100 declined more than 2%. Germany's DAX and France' Cac 40 are both down more than 1%.

US government bonds rose and yields fell as traders looked for safe investments. The 10-year Treasury yield declined to 1.7650%. The yield curve — the difference between shorter and longer-term bond yields — grew the widest since April 2007. That inversion of the yield curve has predated every past recession.

Escalating the trade war

The yuan weakened sharply after the People's Bank of China set its daily reference rate for the currency at 6.9225, the lowest rate since December. The central bank said in a statement that Monday's weakness was mostly because of "trade protectionism and new tariffs on China." President Donald Trump threatened a new round of tariffs on the country last week.

Devaluing the yuan is one way China has of retaliating against the tariffs. A weaker currency helps Chinese manufacturers offset the costs of higher tariffs.

Analysts at Capital Economics said the move showed that Beijing has "all but abandoned" hopes for a trade deal with the United States.

In US economic data, the non-manufacturing index for July from the Institute of Supply Management undercut consensus expectations, which didn't help matters.

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2019-08-05 15:02:00Z
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Dow tumbles 500 points after China devalues its currency - CNN

President Donald Trump once again called China a currency manipulator on Monday, calling it a "major violation." Trump has long been calling China out for its currency management, even though the Treasury has refrained from officially labeling the country as such.

US stocks opened sharply lower, with the Dow (INDU) shedding more than 500 points shortly after the opening bell, tumbling below 26,000 points. The S&P 500 (SPX) traded nearly 2% lower, while the Nasdaq Composite (COMP) fell 2.5%.

If the Nasdaq closes lower, it will have logged its longest losing streak since November 2016, when it fell for nine-consecutive days in the lead-up to the presidential election.

Hit particularly hard were tech stocks. Apple (AAPL), Intel (INTC), Microsoft (MSFT), Nvidia (NVDA) and Advanced Micro Devices (AMD) led decliners on Monday morning.

The VIX (VIX) volatility index soared more than 20%. The CNN Business Fear & Greed Index is indicating Fear.

Devaluing the yuan is one way China has of retaliating against the tariffs. A weaker currency helps Chinese manufacturers offset the costs of higher tariffs.

Analysts at Capital Economics said the move showed that Beijing has "all but abandoned" hopes for a trade deal with the United States.

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https://www.cnn.com/2019/08/05/investing/dow-stock-market-today/index.html

2019-08-05 14:00:00Z
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Stocks - Wall Street Tumbles on U.S., China Trade Spat - Investing.com

Investing.com – Wall Street tumbled on Monday, as China’s yuan hit a decade low and Beijing hit back at the U.S. for threatening yet more import tariffs.

The onshore rate, which is tightly managed by the Chinese central bank, briefly traded above 7 to the dollar level, triggering fears of a round of competitive devaluations by countries across the globe.

U.S. president Donald Trump tweeted his disapproval, calling the move currency manipulation and asking the Federal Reserve whether it was paying attention. He has often criticized China for manipulating its currency, which Beijing has denied doing.

China also on Chinese goods, announced last week by Trump, by asking state-owned enterprises to stop buying American agricultural goods, Bloomberg reported.

The slumped 479 points or 1.8% by 9:37 AM ET (13:37 GMT), while the was down 51 points or 1.8% and the lost 184 points or 2.3%.

Apple (NASDAQ:) slumped 3% on concerns that proposed tariffs could hurt its iPhone sales, while chipmakers were also down on trade concerns. Advanced Micro Devices (NASDAQ:) fell 3.9%, while NVIDIA (NASDAQ:) declined 4.9% and Intel (NASDAQ:) lost 3%.

Facebook (NASDAQ:) fell 2.5%, Amazon.com (NASDAQ:) dipped 3% and Tesla (NASDAQ:) slipped 2.1%.

Uber (NYSE:) was down 3.3% after Sky News reported at the weekend that London's transport regulator is unlikely to approve its application for a five-year operating license, and instead only issue a twelve-month one.

Tyson Foods (NYSE:) jumped 5.8% after it posted strong earnings and maintained its profit guidance for the full year.

In commodities, fell 2% to $54.56 a barrel on concerns about the demand outlook, while rose 1.2% to a new six-year high of $1,477.95 before retracing a little to $1,474.85 a troy ounce. The , which measures the greenback against a basket of six major currencies, slipped 0.4% to 97.468.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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2019-08-05 13:42:00Z
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Dow futures tumble more than 300 points after China devalues its currency - CNN

Stock futures are sharply in the red because of the trade escalation, adding onto losses after the S&P 500 and the Nasdaq Composite logged their worst week of the year last week.

Dow (INDU) futures are down 1.4%, or 354 points, while S&P 500 (SPX) futures are down 1.4%.

Hit particularly hard were tech stocks. Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOGL) were all down more than 2%. Nasdaq Composite (COMP) futures, which are a kind of proxy for the tech industry, fell 1.9%.

The VIX (VIX) volatility index soared 20%. The CNN Business Fear & Greed Index is indicating Fear.

Asian markets all fell more than 1.6% Monday, and Hong Kong's Hang Seng dropped 2.9% as protests continue in the region. In Europe, London's FTSE 100 declined more than 2%. Germany's DAX and France' Cac 40 are both down more than 1%.

Devaluing the yuan is one way China has of retaliating against the tariffs. A weaker currency helps Chinese manufacturers offset the costs of higher tariffs.

Analysts at Capital Economics said the move showed that Beijing has "all but abandoned" hopes for a trade deal with the United States.

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2019-08-05 12:27:00Z
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China Hints at Weaponizing Its Currency, Rattling Markets - The New York Times

BEIJING — The trade war between the United States and China may be about to enter a more dangerous phase, one that could saddle the global financial system with new risks at an already turbulent time.

That prospect, which would see Beijing using the value of its currency as a weapon to strike back at the Trump administration, shook world markets on Monday, as nervous investors in Asia and Europe looked for safe places to park their money. Futures markets suggested Wall Street could have a tough opening as well.

The question now is whether Beijing will fully weaponize its currency, allowing it to significantly weaken in value versus the American dollar. That could prompt a harsh response from Trump administration officials who have already warned China against that course.

It could also ripple across the globe, forcing countries that compete with China to consider devaluing their own currencies. That could lead to a zero-sum spiral of devaluations that would damage global growth and lead to even more trade protectionism, threatening the world’s economic integration.

“It’s hugely significant as they are making a clear choice to do this,” said Michael Every, head of financial markets research in Asia for Rabobank, referring to China’s central bank. “This is going to escalate rapidly and badly.”

China’s currency has a way to fall before it would be an effective weapon. But on Monday, Beijing hinted that it might be willing to go there.

The People’s Bank of China, the country’s central bank, allowed its tightly controlled currency, the renminbi, to weaken past a psychologically important point of 7 renminbi to the American dollar for the first time since 2008. The move was widely seen as a signal from Beijing that it would not back down from a fight with Mr. Trump. Just days before, Mr. Trump threatened to impose a new round of tariffs on Chinese imports to force it into striking a deal.

Yi Gang, the central bank’s governor, attributed the move in the renminbi, or RMB, to market forces, adding that many currencies had depreciated against the dollar recently.

“I am confident that the RMB will continue to be a strong currency,” Mr. Yi said in an article published to the social media account of the central bank.

Over all, the renminbi weakened by around 1 percent against the dollar, a move that is not necessarily significant on its own. But the fact that Beijing allowed it to breach a level that was long considered a line in the sand raised questions about whether the Chinese government was doubling down or abandoning any hope for a deal in the near term.

In an unusually blunt statement on Monday, the People’s Bank of China blamed the currency fall on Mr. Trump’s “unilateralism and trade protectionism measures and the imposition of increased tariffs on China.”

The central bank also said it would keep the renminbi “fundamentally stable at a reasonable and balanced level.” But it did not specify what that level would be.

Experts saw the move as a deliberate threat from China’s top leaders, who would most likely have to give permission to the central bank to let its currency fall past such a symbolically fraught level.

“The currency is largely controlled by the P.B.O.C., but the P.B.O.C. does not have the independence to decide on its own the level of the renminbi,” said Michael Pettis, a professor of finance at the Guanghua School of Management at Peking University, referring to the central bank. “This was clearly a decision made higher up.”

The Chinese currency’s fall on Monday reverberated through global markets, sending major indexes in Asia down by about 2 percent or more. European indexes were lower by 1.5 percent or more. Currencies, already trading weaker against the American dollar after the Federal Reserve cut rates for the first time in a decade, fell further.

The escalating trade war already threatens to end what had looked to be a modest global expansion. The American economy appears to be growing at a healthy clip and Europe is showing signs of renewal. But China’s growth has been hit by the trade war, which has compounded some of its homegrown problems. Other countries that depend on China’s voracious economic machine, such as Japan, have been hit as well.

A currency war could intensify that damage.

Countries with weaker currencies can enjoy big advantages when selling their goods somewhere else. It can help them cut prices or be more competitive than rivals in countries with strong currencies. Mr. Trump and a number of American lawmakers have long criticized China for taking that tack with its currency, something Beijing has consistently denied.

If China devalues its currency even more, countries that compete in similar industries, like South Korea or the nations of Southeast Asia, could face pressure to devalue their own currencies. Such devaluation spirals can lead to higher inflation, pinched household spending and disruptive shifts of money across borders. They can also lead to more tariffs or other restrictive trade measures.

A significant devaluation could also hurt China itself. Many of its biggest and most indebted companies in sectors ranging from property to heavy industry have borrowed huge amounts oversees in American dollars. A weaker renminbi makes paying that debt back more expensive. It could also hurt companies that depend on commodities, such as oil, that are priced in dollars, and could spur wealthy Chinese to take their money out of the country.

For those reasons, devaluations make investors nervous. Four years ago, when China devalued its currency by a more drastic amount, a global market rout followed.

This time, the immediate threat is how Mr. Trump may respond.

A devaluation helps to blunt the cost of his tariffs. Mr. Trump’s latest threat of an additional 10 percent on $300 billion of Chinese imports a year would broadly have the same effect as a 1 to 1.5 percent appreciation of the renminbi against the dollar, estimated Professor Pettis of Peking University. To offset those tariffs, the professor added, China could allow its currency to depreciate by a similar level.

That might only lead to Mr. Trump putting more or higher tariffs on Chinese-made goods, which could prompt even more retaliation from Beijing, said Ned Rumpeltin, head of European currency strategy with TD Securities.

“I think that we are in a very much tit-for-tat situation,” he said.

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2019-08-05 12:11:13Z
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Warren Buffett's Berkshire Hathaway has racked up a record $122 billion in cash - Business Insider

Warren BuffettKevin Lamarque/Reuters

Warren Buffett's Berkshire Hathaway racked up a record $122 billion in cash by the end of June as it sold more stock than it bought, cut back on share repurchases, and failed to find a fair-priced acquisition.
The conglomerate sold $1 billion more stock than it bought last quarter, marking its largest net sale since the end of 2017.
It bought back $400 million worth of shares, down from $1.7 billion in the first quarter.
Buffett is keen to make an "elephant-sized acquisition," but "prices are sky-high for businesses possessing decent long-term prospects," he told investors earlier this year.
Watch Berkshire Hathaway trade live.

Warren Buffett's Berkshire Hathaway racked up a record $122 billion in cash by the end of June as it bought more stock than it sold, cut back on share repurchases, and came up short in its search for worthwhile acquisitions.

Buffett, a billionaire investing guru nicknamed the Oracle of Omaha, wasn't tempted by US stocks that surged to all-time highs in late June. Instead, his conglomerate sold $1 billion more of stock than it bought last quarter, marking its largest net sale since the end of 2017, according to Bloomberg. It also bought back $400 million worth of shares, down from $1.7 billion in the first quarter.

Berkshire Hathaway's cash pile has also swelled in the absence of a major acquisition in years.

"We hope to move much of our excess liquidity into businesses that Berkshire will permanently own," Buffett wrote in his latest letter to shareholders. "The immediate prospects for that, however, are not good: Prices are sky-high for businesses possessing decent long-term prospects."

That "disappointing reality" means Berkshire Hathaway will likely spend this year buying shares, he wrote, adding that he remains keen to make an "elephant-sized acquisition."

The stock rally may be pricing Buffett out of some purchases, but it has been positive for Berkshire Hathaway. The value of its equity portfolio jumped 16% to over $200 billion in the first six months of the year. It also realized $1 billion in gains from put options tied to equity indexes in the half. Moreover, higher investment gains pushed its net income up 17% to $14.1 billion last quarter.

Berkshire Hathaway may have just taken a breather.

It build a stake in Apple last year that was worth more than $50 billion at the end of last quarter. It recently raised its holding in Bank of America by 6% to 950 million shares, which are currently worth about $28 billion. Moreover, it has agreed to inject $10 billion in preferred equity in Occidental Petroleum to help finance the oil group's takeover of Anadarko Petroleum.

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2019-08-05 10:00:44Z
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Senin, 05 Agustus 2019

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Stocks and bond yields are sharply lower

Escalating the trade war