Jumat, 21 Februari 2020

Deere's unexpected rise in quarterly profits sends shares soaring - Yahoo Finance

FILE PHOTO: The leaping deer trademark logo is seen on a sign outside a John Deere dealership in Taylor, Texas

CHICAGO (Reuters) - Deere & Co <DE.N> on Friday reported an unexpected increase in first-quarter profit and retained its full-year earnings forecast as signs of stabilization in the U.S. farm sector offset weak demand for construction machines, sending its shares soaring.

The farm equipment manufacturer reported net income of $517 million, or $1.63 per share, for the quarter ended Feb. 2, up from $498 million, or $1.54 per share, in the same period last year.

That compares with the average analyst estimate of $1.26 per share, according to Refinitiv Eikon data.

The Moline, Illinois-based company said it still expects net income in 2020 to be in the range of $2.7 billion to $3.1 billion.

The world's largest farm equipment maker's shares were last up 9% at $180.75 in pre-market trade.

Deere's earnings in the past quarters were buffeted by a nearly two-year-long U.S.-China trade war that hit U.S. agricultural exports, leaving farmers struggling to turn a profit.

But President Donald Trump's interim trade deal with China has raised hopes of a recovery in farm machinery demand.

"Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports," Chief Executive John May said in a statement.

Improved pricing power along with lower production costs and warranty expenses in the latest quarter drove up operating profits at its farm and turf business, which accounts for nearly 60% of Deere's revenue.

(Reporting by Rajesh Kumar Singh; Editing by Jane Merriman and Steve Orlofsky)

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2020-02-21 11:43:00Z
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T-Mobile, Sprint Revise Deal Terms After Regulatory Approval - Yahoo Finance

(Bloomberg) -- T-Mobile US Inc. and Sprint Corp. agreed to new terms for their pending merger that take account of the deterioration in Sprint shares since the transaction was first agreed, putting the industry-altering deal a step closer to completing.

T-Mobile owners will get roughly 11 shares of Sprint for each of their stock, the companies said Thursday. That’s an increase from a ratio of 9.75 previously -- a more favorable deal for T-Mobile’s German owner Deutsche Telekom AG.

Getting one of the biggest U.S. wireless mergers ever over the finish line would be a boon for Deutsche Telekom as it will reduce its reliance on Europe, where carriers are struggling to grow amid fierce competition. T-Mobile makes up more than half of Deutsche Telekom’s sales, up from about a third in 2014. A completed deal will also benefit Sprint owner SoftBank Group Corp. by allowing its chairman, Masayoshi Son, to better focus on his technology investments and the $100 billion Vision Fund.

The combined company, which will operate under the T-Mobile name, will have a regular monthly subscriber base of about 80 million -- in the same league as AT&T Inc., which has 75 million subscribers, and Verizon Communications Inc., which has 114 million.

When the transaction closes, which could happen as soon as April 1, Deutsche Telekom is expected to keep 43% of the merged entity, while SoftBank has 24%. The rest will be held by public shareholders.

Deutsche Telekom shares were little changed in early trading in Frankfurt.

The original accord, which united the third- and fourth-largest U.S. wireless carriers in a $26.5 billion deal, was forged in April 2018. That pact lapsed on Nov. 1, and the companies didn’t initially renew the terms while they fought for government approval. When a federal judge rejected a state lawsuit to block the transaction earlier this month, that put the talks on the front burner.

Along the way, Sprint’s condition has worsened. That added pressure to redraw the agreement so that it was more favorable to Deutsche Telecom.

SoftBank agreed to surrender 48.8 million T-Mobile shares that it will acquire in the merger to the combined company immediately after the transaction closes. But those shares could be reissued to SoftBank by 2025 if the new company’s stock stays above $150 for a period of time.

Sprint investors other than SoftBank will still get the original ratio of 0.10256 T-Mobile shares for each Sprint share -- the equivalent of about 9.75 Sprint shares for each T-Mobile share.

Sprint’s monthly churn -- a closely watched measure of how many customers leave -- has risen to nearly 2%. That means roughly a quarter of its subscriber base is quitting the carrier each year. And the company isn’t making up for the decline by charging more: Average revenue per customer has fallen 5% since the deal was announced.

Analysts such as LightShed Partners’ Walt Piecyk said the merger’s exchange ratio should be closer to 12, given Sprint’s deteriorated business.

(Updates with share price in sixth paragraph.)

--With assistance from Stefan Nicola.

To contact the reporter on this story: Scott Moritz in New York at smoritz6@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Jennifer Ryan

For more articles like this, please visit us at bloomberg.com

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©2020 Bloomberg L.P.

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2020-02-21 08:03:00Z
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Stress, rumors, even violence: Virus fear goes viral - Japan Today

You might have heard that the fear of a new virus from China is spreading faster than the actual virus.

From earnest officials trying to calm a building panic. From your spouse. From the know-it-all who rattles off the many much more likely ways you’re going to die: smoking, car accidents, the flu.

None of it seems to matter.

As the number of cases rise — more than 76,000 and counting — fear is advancing like a tsunami. And not just in the areas surrounding the Chinese city of Wuhan, the site of the vast majority of coronavirus infections.

Subway cars in Tokyo and Seoul look more like hospital wards, with armies of masked commuters shooting dirty looks at the slightest cough or sneeze. A restaurant owner in a South Korean Chinatown says visitors have dropped by 90%.

You've probably got a better chance of winning the lottery than buying face masks in parts of Asia. Conferences and events have been disrupted from Beijing to Barcelona to Boston. Quarrels in Japan; riots in Ukraine. Rumors that toilet paper and napkins could be used as masks emptied East Asian store shelves of paper goods.

"Fear is a very strong emotion, and the prevailing fear over the new coronavirus drives people to do things irrationally without thinking straight,” said Bernie Huang, 31, a high school teacher in Taipei, Taiwan, who resisted the city’s now-easing toilet paper buying spree.

If you take the long view, panic has marched in lockstep with pandemic for as long as history has been recorded. The plague that devastated Athens in the fifth century BC. The Black Death that eradicated much of Europe in the 14th century. And, more recently, AIDS, Ebola, SARS, MERS, swine and bird flu.

Scientists, statisticians and people well away from the line of fire may scoff, but the fear, which is spread by word of mouth and, more rapidly, through online posts, is real.

“Fear can do more harm than the virus,” Singapore Prime Minister Lee Hsien Loong said in response to panic buying of toilet paper, canned food and instant noodles after the government raised a risk alert over the new virus.

It's perhaps most keenly felt in the places where crowds gather: churches, shopping areas, schools.

In the Philippines, nearly half of the pews were empty for recent Sunday Masses in many churches. At a Protestant church in northern Seoul, officials switched entirely to online worship after it was found that a virus patient had attended services days before he tested positive.

The huge Lotte Department Store in Seoul closed for several days for disinfection after it was found that a Chinese tourist with the virus visited. It reportedly lost about 20 billion won ($16.9 million) in revenue, based on figures by security analysts.

A mobile trade fair in Barcelona was canceled. PlayStation maker Sony pulled out of a video game conference in Boston over "increasing concerns" related to the virus. Organizers said the event will go on next week but "with enhanced cleaning."

At Namdaemun, Seoul’s largest traditional market, businesses saw huge drops in sales after an infected person was found to have visited the area last month.

“Merchants say their businesses are now dying,” said Chun Yong-bum, head of an association of thousands of merchants at Namdaemun.

The South Korean Education Ministry recently issued an advisory to universities to postpone the March start of the upcoming semester because of worries that thousands of Chinese students will return to schools from abroad.

South Korean President Moon Jae-in expressed worries that “excessively bloated fear” was hurting South Korea’s economy by suppressing public consumption and leisure activities.

The most eagerly-awaited gathering in Asia — the upcoming Summer Olympics in Tokyo — has been beset by fear, too.

Although he later backtracked, Tokyo Olympic CEO Toshiro Muto said recently that he was “seriously worried” the virus could disrupt the Olympics and Paralympics.

“One thing I am noticing at the moment is fear is spreading quicker than the virus, and it is important that we quell that fear,” said Craig Spence, the spokesman for the International Paralympic Committee.

In Japan, fear and the virus have intersected most visibly on a huge cruise ship in the port of Yokohama, where thousands of passengers and crew were quarantined for two weeks as hundreds of people on board tested positive for the virus.

One quarantined passenger hung a banner that read: “No information ... Stressed. Many bad rumors.”

The internet foments many of those rumors.

In Malaysia, a social media rumor that mandarin oranges carry the virus caused some initial panic until health officials debunked it.

When news broke that a journalist who reports on Japan’s leader had contact with an infected driver and was in self-quarantine, a web edition of the Weekly Post tabloid magazine declared: “Coronavirus has sent shockwaves to the prime minister’s office.”

Fear, and possibly a dark sense of humor, may also help explain some odd behavior: images of people using orange peels as face masks; children in strollers wrapped in what looks like dry cleaning plastic.

In Taiwan, people began stocking up on toilet paper and napkins after a rumor on the internet said they could be used as masks to stop the spread of viruses, said Yang Bo-ken, deputy director of the government’s Industrial Development Bureau.

Taiwan’s Criminal Investigation Bureau recommended the prosecution of three women on allegations they used the popular LINE social media service to suggest using table napkins, sanitary napkins and toilet paper as a mask substitute, a bureau spokesperson said.

The fear has also led to lawlessness.

In Kobe, Japan, 6,000 surgical masks were reported stolen from a hospital.

Several hundred residents fearing infection in Ukraine clashed for hours with police as they blocked a road to a building where more than 70 people evacuated from China because of the virus were to be quarantined.

Two passengers on a subway in Fukuoka, Japan, quarreled after a man not wearing a mask started coughing, prompting the man next to him to press an emergency alarm, Kyodo News reported.

“Fear is spreading among passengers. We plan to promote cough etiquette, such as wearing facial masks,” a city transport official told the news agency.

In Hong Kong, where people queued up for essential goods outside shops, three people with knives allegedly robbed a deliveryman outside a supermarket of precious toilet rolls reportedly worth more than 1,000 Hong Kong dollars ($128).

Governments have not always known how to handle the situation.

Eight Samoan citizens were refused entry at the nation's airport and sent back to Fiji reportedly because they’d transited through Singapore, which the government labels a “high risk” country, according to the Samoa Observer.

And when a Canadian teen collapsed at a building in Kuala Lumpur, Malaysia, a medical team in hazmat suits arrived. The health ministry later said it was a precautionary measure and the teen was virus free.


AP journalists Kim Tong-hyung, Jung-yoon Kim and Hyung-jin Kim in Seoul, South Korea; Mari Yamaguchi in Tokyo; Ralph Jennings in Taipei, Taiwan; and Eileen Ng in Kuala Lumpur, Malaysia; contributed to this story.

Foster Klug is AP's News Director for the Koreas, Japan, Australia and the South Pacific. He has covered Asia since 2005. Follow at www.twitter.com/APKlug

© Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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2020-02-21 06:16:01Z
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Kamis, 20 Februari 2020

Goldman Sachs warns of stock market correction - CNN

The investment bank told clients this week that a near-term correction, in which the market slides at least 10% from a recent peak, "is looking much more probable."
The thinking: Equity markets look "increasingly exposed" to disappointing earnings growth due to the new coronavirus outbreak, Goldman warns.
The number of companies that have lowered their guidance on profits for the first quarter is still in line with past years. But Apple's surprise update this week that it wouldn't hit its revenue target has put investors on edge.
Goldman Sachs (GS) notes that the global economy is expected to keep growing, and the United States is, too, despite the country already having experienced its longest economic expansion in 150 years. That creates a supportive environment for stocks. But the bank is concerned that earnings expectations could still be too rosy, especially given the exposure of global companies to the Chinese economy.
Apple (AAPL), it observes, has been "an important driver" of better-than-expected earnings results. Big Tech companies — Facebook (FB), Amazon (AMZN), Apple, Microsoft (MSFT) and Google (GOOG) — beat earnings expectations by 20% on average last quarter, compared with 4% for the average S&P 500 company.
"Any weakness to these and other companies would likely push earnings estimates lower," wrote Peter Oppenheimer, the firm's chief global equity strategist.
Additionally, depressed bond yields have made stocks look more attractive by comparison. Oppenheimer points to Germany's DAX, which has also hit an all-time high as the yield on the country's benchmark 10-year bond remains in negative territory. That raises the stakes for corporate earnings as well, he argues.

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2020-02-20 15:20:00Z
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Victoria's Secret to be sold for $525 million, CEO Les Wexner will step down - Fox News

Following a dip in sales and criticism about its billionaire founder, Victoria's Secret will be sold and have its founder step down as it seeks to move forward and find profit.

The company's owner, L Brands, confirmed to Fox News that the private-equity firm Sycamore Brands will buy 55 percent of Victoria's Secret for about $525 million. According to a statement from L Brands, the Columbus, Ohio company will keep the remaining 45 percent stake in order to, "enable its shareholders to meaningfully participate in the upside potential of these businesses."

Shares of L Brands slid 12 percent in premarket trading Thursday.

The selling price signifies a marked decline for a brand with hundreds of stores that booked about $7 billion in revenue last year.

FORMER VICTORIA'S SECRET EXECUTIVE ACCUSED OF HARASSING BELLA HADID, OTHER MODELS IN SHOCKING EXPOSÉ

Sales at its stores are in decline due to increasing competition and changing tastes. Victoria's Secret suffered a 12 percent drop in same-store sales during the most recent holiday season. L Brands said Thursday that same-store sales declined 10 percent at Victoria's Secret during the fourth quarter.

The Victoria's Secret Fashion Show was called off in 2019 following a dip in ratings and controversy surrounding it.

The Victoria's Secret Fashion Show was called off in 2019 following a dip in ratings and controversy surrounding it. (REUTERS/Charles Platiau)

"We believe the separation of Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK into a privately held company provides the best path to restoring these businesses to their historic levels of profitability and growth," CEO Les Wexner said in the statement. "Sycamore, which has deep experience in the retail industry and a superior track record of success, will bring a fresh perspective and greater focus to the business. We believe that, as a private company, Victoria’s Secret will be better able to focus on longer-term results. We are pleased that, by retaining a significant ownership stake, our shareholders will have the ability to meaningfully participate in the upside potential of these iconic brands."

The company also confirmed that Wexner will step down after the transaction is completed and become chairman emeritus.

“Les Wexner is a retail legend who has built incredible brands that are household names around the globe. His leadership through this transition exemplifies his commitment to further growth of Bath & Body Works and Victoria’s Secret and driving overall shareholder value,” said Allan Tessler, lead independent Board director.

VICTORIA'S SECRET CEO RECEIVES OPEN LETTER FROM MODELS AFTER REPORTS OF 'MISOGYNY AND ABUSE' AT COMPANY

At its peak, the underwear and lingerie brand was known for its catalog filled with supermodels and a glitzy annual television special that mixed fashion, models and music. Amid its struggles, Victoria's Secret sales have continued to erode, its show was pulled from network television in Nov. 2019 due to controversy and low ratings and its stock - which traded at close to $100 in 2015 - now trades at around $24.

Victoria's Secret founder Les Wexner (left) will step down from his position after the company is sold.

Victoria's Secret founder Les Wexner (left) will step down from his position after the company is sold. (Astrid Stawiarz/Getty Images for Fragrance Foundation)

L Brands has also come under scrutiny because Wexner has ties to the late, disgraced financier Jeffrey Epstein, who was indicted on sex-trafficking charges.

Epstein started managing Wexner’s money in the late 1980s and helped straighten out the finances for a real estate development backed by Wexner in a wealthy suburb of Columbus. Wexner has said he completely severed ties with Epstein nearly 12 years ago and accused him of misappropriating “vast sums” of his fortune.

Wexner offered an apology at the opening address of L Brands' annual investor day in Columbus last fall, saying he was "embarrassed" by his former ties with Epstein.

Wexner is the longest-serving CEO of an S&P 500 company. He founded what would eventually become L Brands in 1963 with The Limited retail store, according to the company's website. Wexner owns approximately 16.71 percent of L Brands, according to FactSet.

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Sycamore has about $10 billion in assets under management. The firm's investment portfolio includes retailers such as Belk, Coldwater Creek, Hot Topic and Talbots.

The Associated Press contributed to this report.

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2020-02-20 14:30:38Z
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Morgan Stanley to Buy E-Trade for $13 Billion - The New York Times

Morgan Stanley announced on Thursday that it would buy E-Trade, the online discount brokerage, for about $13 billion, in the biggest takeover by a major American lender since the 2008 global financial crisis.

The deal would give Morgan Stanley — long known as one of Wall Street’s most blue-chip names, whose asset management business already caters to the wealthy — a big share of the market for online trading.

It continues Morgan Stanley’s strategy of increasingly focusing on asset management rather than investment banking and high-stakes trading, betting on steady fees over bigger paydays and bigger risks.

Thursday’s deal highlights the increasing convergence of Wall Street and Main Street. Elite bastions of corporate finance are increasingly seeking to cater to customers with smaller pocketbooks. And online brokerages that once hoped to overthrow traditional trading houses are instead suffering from a price war that has slashed their profits.

The deal evokes a similar move toward Main Street by Goldman Sachs, Morgan Stanley’s traditional Wall Street rival. Goldman created a retail-focused lending arm, named Marcus, in 2016 and partnered with Apple last year to offer a credit card.

Last month, Goldman said that it intended to grow its retail deposit base to $125 billion, and its consumer loan and card balance to $20 billion, over the next five years.

Meanwhile, E-Trade has struggled amid a price war among brokerages, begun in earnest last fall when Charles Schwab eliminated fees for the trading of stocks and exchange-trade funds. Schwab later agreed to buy TD Ameritrade for $26 billion.

Acquiring E-Trade will give Morgan Stanley an additional 5.2 million customer accounts and $360 billion in assets. Before the deal, Morgan Stanley oversaw $2.7 trillion in assets, largely tied to big companies and wealthy individuals.

Under the terms of the deal announced on Thursday, Morgan Stanley will buy E-Trade using its own stock. Its offer is worth about $58.74 a share as of Wednesday’s market close, a 30 percent premium on the value of the online brokerage’s shares.

This is a developing story. Check back for updates.

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2020-02-20 12:44:00Z
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Domino's stock soars 17% on earnings beat; pizza chain backs long-term outlook - CNBC

A Domino's Pizza food delivery courier drives a moped away from a Domino's Pizza store in Hanwell, London.

Jason Alden| Bloomberg | Getty Images

Domino's Pizza on Thursday reported quarterly earnings and revenue that topped analysts' expectations after strong U.S. sales, despite increased competition.

Shares of the company soared 17% in premarket trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $3.13, adjusted, vs. $2.98 expected
  • Revenue: $1.15 billion vs. $1.13 billion expected

The pizza chain reported fiscal fourth-quarter net income of $129.3 million, or $3.12 per share, up from $111.6 million, or $2.62 per share, a year earlier. Higher royalty revenue from franchisees and lower general and administrative expenses drove the increase in net income.

Excluding items, Domino's earned $3.13 per share, topping the $2.98 per share expected by analysts surveyed by Refinitiv.

Net sales rose 6.3% to $1.15 billion, beating expectations of $1.13 billion. 

Domino's reported U.S. same-store sales growth of 3.4%, topping Wall Street's estimates of 2.3%. The chain has been facing greater competition from the likes of UberEats and DoorDash, putting pressure on Domino's U.S. delivery sales.

In response to the trend, the pizza chain has been trying to grow its carryout sales and cut delivery times by strategically adding more U.S. locations. Domino's added 141 net new U.S. restaurants in the fourth quarter.

"Our relentless focus on our customers, our franchisees and the long-term growth and profitability of the Domino's business model helped us deliver a solid 2019 in the face of unique competitive headwinds," CEO Ritch Allison said in a statement.

International same-store sales increased by 1.7% in the quarter.

The pizza chain also reaffirmed its two-to-three year outlook. Domino's expects U.S. same-store sales growth in a range of 2% to 5% and global retail sales growth of 7% to 10%.

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2020-02-20 12:42:00Z
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