Jumat, 31 Mei 2019

Are You Ready for Amazon or Comcast to Be the Next Big Wireless Carrier? - Gizmodo

Photo: Getty

While the T-Mobile–Sprint merger still hasn’t gotten the green light from the Justice Department, the FCC has already approved the deal and as part of the FCC’s stipulations, T-Mobile/Sprint would be forced to sell off Boost Mobile. However, the more important question is trying to figure out which company would be interested in buying Boost and making a bigger push into the wireless market.

According to a recent report from Reuters, it seems one potential candidate is online retailer megacorp Amazon, which, according to sources familiar with the matter, is not only interested in buying Boost Mobile, but possibly acquiring wireless spectrum that the new T-Mobile/Sprint would need to also divest as part of the merger.

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Currently, it’s not entirely clear why Amazon is suddenly interested in operating its own MVNO (mobile virtual network operator). However, it seems one of the big lures of the deal would be the ability to use T-Mobile’s wireless network to enhance its service for at least six years. And with Google already operating its own MVNO in Fi, it probably shouldn’t be a surprise that Amazon is entertaining the idea of doing the same.

That said, Amazon may not be the only company eye the potential future sale of Boost Mobile; based on a report from Bloomberg, it seems Comcast is also interested in acquiring Boost Mobile if and when a T-Mobile/Sprint merger gets approved.

For Comcast, the deal makes a lot more sense, as it’s already a player in the wireless space thanks to Xfinity Mobile. Currently, Xfinity Mobile’s service relies on a network of wifi hotspots and cell coverage that runs off Verizon’s 4G network, so the addition of Boost Mobile, its estimated 7 million subscribers, and added wireless spectrum would give Comcast and Xfinity Mobile a lot more resources to work with.

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But where things get really interesting is, according to another Bloomberg report, in order for the Justice Department to approve the merger, T-Mobile/Sprint may have to help create a whole new national wireless carrier to ensure that even after the companies merge, there will be four major wireless providers instead of just three.

This would mean simply renting bandwidth from one of the other carriers wouldn’t be enough, as the new entity would need to operate its own network, including all the equipment, wireless spectrum, and cell towers necessary to make that happen. That would be a huge endeavor, even for companies with deep pockets like Amazon or Comcast.

If that did happen, it would mean living in a world where the U.S.’s four big wireless carriers are AT&T, Verizon, new T-Mobile, and either Comcast or Amazon. For a lot of people, that’s a chilling thought. Sure, right now it’s just speculation. But what if? Which company do you think would make a better—or worse—nationwide wireless carrier: Comcast or Amazon?

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https://gizmodo.com/are-you-ready-for-amazon-or-comcast-to-be-the-next-big-1835147723

2019-05-31 14:49:00Z
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Uber Lost $1 Billion In 1st Quarter, Hopes Profit-Slashing Price Cuts Ease Up Soon - NPR

Uber CEO Dara Khosrowshahi says he expects Uber and Lyft will be easing off their price-slashing battle soon. Richard Drew/AP hide caption

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Richard Drew/AP

For most companies, losing $1 billion in a quarter would be a big disappointment. But Uber's first report as a publicly traded company was actually better than it had warned investors to expect.

The ride-hailing and food-delivery giant brought in more than $3 billion in revenue in the first three months of 2019 — a 20% jump from the same quarter a year earlier.

Before going public earlier this month, Uber had told investors to be prepared for an even larger loss in the first quarter. Now, it's telling them it expects the price-cutting competition that has hurt its profits to ease up soon.

Uber has burned through money for years by spending heavily on growth — offering financial incentives to attract new riders and drivers, and taking on the costs of expanding into new markets around the world. So far, that growth has never translated into profits.

Uber's IPO did not go well. Despite pricing its shares relatively conservatively, at least compared with early expectations, the company saw its stock drop immediately, and it finished day one lower than it started. Since then, Uber shares have never sold at the value set for the initial offering.

Wall Street liked what it saw in Uber's first earnings report. Its stock was up more than 1% in early trading Friday.

Uber's earnings report shows the company continues to expand rapidly, especially in Uber Eats, its food delivery branch. In South America, however, the company saw revenue shrink as it faces intense competition from rival Didi.

In the U.S., meanwhile, Uber is facing off with its smaller competitor Lyft.

Around the world, competition in ride-hailing is driving down prices and contributing to Uber's losses. In the earnings call on Thursday, Uber CEO Dara Khosrowshahi said he expects Uber and Lyft, at least, will be easing off their price-slashing battle soon.

"The competition is going to be more healthy," he said. "It's going to be based on brand and product and technology, which we think is the right way to compete, versus throwing money at the problem."

He also acknowledged that Uber has faced headwinds in the U.S. due in part to the tremendous damage to the brand over the past few years — marked by sexual harassment allegations, reports of illegal business practices, data breaches and other scandals.

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https://www.npr.org/2019/05/31/728576269/uber-lost-1-billion-in-1st-quarter-hopes-profit-slashing-price-cuts-ease-up-soon

2019-05-31 13:54:00Z
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Uber's earnings print inspires new bull - Seeking Alpha

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  1. Uber's earnings print inspires new bull  Seeking Alpha
  2. Uber loses $1 billion in quarter as costs grow for drivers, food delivery  Yahoo Finance
  3. Uber lost more than $1 billion in the first quarter  CNN
  4. How Uber Hopes to Profit From Public Transit  The New York Times
  5. Uber: Competition with Lyft Will Get 'More Healthy' From Here  TheStreet.com
  6. View full coverage on Google News

https://seekingalpha.com/news/3468261-ubers-earnings-print-inspires-new-bull

2019-05-31 13:10:00Z
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Qualcomm has strong argument to win reversal of US antitrust ruling: legal experts - Yahoo Finance

FILE PHOTO: A sign on the Qualcomm campus is seen, as chip maker Broadcom Ltd announced an unsolicited bid to buy peer Qualcomm Inc for $103 billion, in San Diego, California, U.S. November 6, 2017. REUTERS/Mike Blake/File Photo

By Jan Wolfe

(Reuters) - A rare public call by a U.S. Federal Trade Commission (FTC) official for one of the agency's courtroom victories to be reversed, in a case of anticompetitive business practices by chipmaker Qualcomm Inc, charts a strong course for a judge's ruling to be overturned on appeal, some legal experts said.

FTC Commissioner Christine Wilson, an appointee of Republican President Donald Trump, wrote in the Wall Street Journal on Tuesday that the May 22 ruling against Qualcomm "radically expanded a company’s legal obligation to help its competitors" and was based on a strained interpretation of a 1985 decision by the U.S. Supreme Court.

U.S. District Judge Lucy Koh in San Jose, California said that Qualcomm's licensing practices had strangled competition in parts of the computer chip market, harming rivals, smartphone makers, and consumers. She ordered the San Diego-based company to renegotiate licensing agreements at reasonable prices, without threatening to cut off supplies, and ordered that it be monitored for seven years to ensure its compliance.

The Qualcomm case has been controversial since it began in the final days of Democratic President Barack Obama's administration, with the lone Republican FTC commissioner at the time saying it should not be brought.

The op-ed by Wilson, one of five FTC commissioners, will not have any legal weight as Qualcomm appeals Koh's decision but foreshadows strong arguments the company has to win on appeal, Geoffrey Manne, director of the International Center for Law and Economics, and several other antitrust lawyers said.

Other experts, however, said the decision was well reasoned and relied on detailed factual findings and determinations of witness credibility that appeals courts would be reluctant to second-guess.

FTC spokesman Peter Kaplan said the agency declined to comment.

The judge has not yet ruled on Qualcomm's request to put her decision on hold as it plans an appeal. The ruling sent Qualcomm shares tumbling and shaved $10 billion off the company's value.

Under U.S. antitrust law, companies generally can decide who they want to do business with. Even monopolists do not have a so-called "duty to deal" with competitors.


'ASPEN SKIING' U.S. SUPREME COURT CASE

    But the Supreme Court created an exception to this rule in the 1985 case, known as "Aspen Skiing," holding that exiting a profitable, time-tested business arrangement could be an violation of competition law.

    As Koh's ruling points out, Qualcomm once licensed its patents on industry-standard technology to rival chip makers, though the ruling does not make clear how extensive the practice was. Qualcomm abandoned the practice entirely in the early 2000s and began only licensing those patents to companies that make consumer devices such as smartphones, which contain chips.

    Koh said Qualcomm's about-face was "motivated by anticompetitive malice" and was the sort of conduct prohibited by Aspen Skiing.

In Aspen Skiing, a ski resort operator backed out of a profitable, long-standing agreement with a rival to jointly sell a combination lift ticket package.

The Supreme Court said the company appeared to be sacrificing immediate profits in hopes of stomping out a competitor in the long run.

Qualcomm argued at trial that it never granted so-called "exhaustive" full licenses to other chip suppliers. Requiring it to grant them now, as Koh has ordered, would force it into a new business arrangement, rather than require a return to a previous one, the company argued.

The FTC's Wilson wrote that Koh had misapplied the Supreme Court case. Under the judge's logic, "Aspen Skiing now means that if a company ever sells any product to any competitor, it then could have a perpetual antitrust obligation to sell every product to every competitor," Wilson said.

Jonathan Barnett, a law professor at the University of Southern California, agreed that Koh's decision was in danger of being overturned by an appeals court.

    The exception created by Aspen Skiing was supposed to be "very narrow," Barnett said. In a 2004 case involving Verizon Communications Inc, the high court cast doubt on Aspen Skiing, saying it was "at or near the outer boundary" of antitrust liability.

Manne said Koh erred in comparing Qualcomm's change in licensing practices to the conduct in Aspen Skiing.

    The shift to device-level licensing "hardly originated with Qualcomm" and made a great deal of business sense because it was much more lucrative, Manne said.

But some legal experts said that Koh's heavy reliance on factual determinations, particularly findings that Qualcomm executives lacked credibility on the witness stand, made her ruling harder to challenge.

Appeals courts will not set aside a trial judge's factual findings unless there is "clear error" - a high standard that is difficult to meet.

Koh, for example, said in her decision that "many Qualcomm executives’ trial testimony was contradicted by these witnesses’ own contemporaneous emails, handwritten notes, and recorded statements to the Internal Revenue Service."

One Qualcomm in-house lawyer "pretended not to recall" details of a 2012 meeting until the FTC's lawyers played a recording from it, Koh said. And Qualcomm executives often responded with "fast and practiced narratives" when questioned by their own lawyers, Koh said.

"It was embarrassing and probably really damaging on appeal that Koh carefully documented the Qualcomm executives pretty clear lies in testimony," said Christopher Sagers, a professor of antitrust law at Cleveland State University.

Qualcomm said in a statement that it believes "a thorough examination of the evidence and the proper interpretation of the law will result in a reversal by the 9th Circuit Court of Appeals."

Manne said that even under the deferential approach taken by appeals courts, Koh's decision was on thin ice.

"I definitely think she is incorrect on the law with respect to the duty to deal and Aspen Skiing, and she’s vulnerable to reversal on appeal," Manne said.


(Reporting by Jan Wolfe and Diane Bartz in Washington; additional reporting by Stephen Nellis in San Francisco Editing by Noeleen Walder and Grant McCool)

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https://finance.yahoo.com/news/qualcomm-strong-argument-win-reversal-110403435.html

2019-05-31 11:08:00Z
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Global stocks decline, bonds surge on Trump's Mexico threat - Investing.com

© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt © Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

By Karin Strohecker

LONDON (Reuters) - Safe-haven sovereign bonds surged and European stocks tumbled on Friday as investors feared President Donald Trump's shock threat of tariffs on Mexico risked tipping the United States into recession while disappointing China data added to the woes.

The yield on Germany's 10-year government bond - regarded as one of the safest assets in the world - fell to a record low while U.S. yields slipped to near multi-year troughs.

Markets also moved aggressively to price in deeper rate cuts by the Federal Reserve in 2019, parts of the curve inverted further, seen as a warning signal for recession in the world's largest economy.

Washington will impose a 5% tariff from June 10, which would then rise steadily to 25% until illegal immigration across the southern border was stopped. Trump tweeted the decision late Thursday, catching markets completely by surprise.

"Very clearly when we all thought that the main trade tensions in the world were between the U.S. and China or perhaps between the U.S. and Europe, we hadn't realised there will be another trade tension with Mexico...and it raises concerns about who the next country may be," said Andrew Milligan, head of global strategy at Aberdeen Standard Investments.

The investor mood darkened further when a key measure of Chinese manufacturing activity for May disappointed, raising questions about the effectiveness of Beijing's stimulus steps. This also sparked concerns over the health of the global economy more widely.

"It is a nasty slowdown, it looks likely to be taking longer than we thought. Many thought that the slow down would be in Q1 and the recovery in Q2, but clearly everything that we see in May is telling us this will be pushed back into Q3 or Q4," Milligan added.

Yields on the 10-year Treasury note quickly fell to a fresh 20-month low of 2.17%, while the dollar jumped more than 3% on the Mexican peso.

On stock markets, the pan-European dropped 1.6%, slumping to a more than three-month low with Germany's trade sensitive down 1.8%. All sectors were in the red, but falls were led by carmakers dropping nearly 3% while Volkswagen (DE:) and Fiat Chrysler - both significantly exposed to Mexico - tumbled 3.6% and 5%.

Spanish banks with exposure to Mexico - Santander (MC:), Sabadell and Bilbao - also suffered.

Wall Street - on track for the first monthly decline of 2019 - also looked in line for sizeable falls, with e-Mini futures for the pointing to a 1.3% drop on open.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%, but is still down a whopping 7.4% for the month. China's blue chip index closed a touch lower with hopes Beijing would now have to ramp up its stimulus containing losses. Japan's dropped 1.6% on the day and 7.1% on the month.

Looking at MSCI's All Country World Index , the toxic cocktail of trade war fears and economic worries has wiped nearly $3 trillion of global stocks in May.

Investors clearly reckoned that opening a new front in the trade wars would pressure central banks everywhere to consider new stimulus.

On Thursday, Federal Reserve Board of Governors Vice Chair Richard Clarida had said the central bank would act if inflation stays too low or global and financial risks endanger the economic outlook.

"What the Clarida comments have done is clarify in many people's minds the answer to the questions of whether low inflation proving more than transitory would itself be enough to get the Fed to ease – the answer appears to be 'yes'," said Ray Attrill, head of FX strategy at National Australia Bank.

"That served to reinforce prevailing market expectations that the Fed will be easing in the second half of this year."

Indeed, the case that the inflation slowdown was temporary took a blow when the core personal consumption expenditures index, the Fed's favoured measure of inflation, was revised down to 1% for the first quarter, from 1.3%.

Trump's tariff threat only added to the dangers and the market further narrowed the odds on Fed easing this year and next. Futures imply no less than 44 basis points of cuts by year end in the current effective funds rate of 2.38%.

BOND BID, YEN SURGE

Bonds extended their bull run with 10-year Treasury yields now down around a steep 35 basis points for the month and decisively below the overnight funds rate. U.S. 3-month yields were some 20 basis points above those on 10-year Treasury bonds, the biggest inversion since 2007.

Such an inversion of the yield curve has presaged enough recessions in the past that investors are wagering the Fed will be forced to ease policy just as "insurance".

Yet Treasuries are hardly alone in rallying. Germany's benchmark 10-year bond yield hit fresh record lows.

In currency markets, the dollar suffered the biggest one day fall against the safe haven Japanese yen since March at 0.8%. Against a basket of currencies, the dollar pulled 0.1% lower to trade at 98.013.

The euro also fell sharply against the Japanese yen and was down nearly 0.6% at 121.23 after touching the lowest since a Jan. 3 flash crash.

China's yuan is set for its worst month since July last year and was heading towards the crucial 7 per dollar figure. Sterling was plumbing its lowest level in nearly five month and poised for the biggest monthly drop in a year as the imminent departure of Theresa May as prime minister deepened fears about a chaotic divorce from the European Union.

In commodity markets, firmed 0.7% to $1,297.3 per ounce. Oil prices fell to a near-three month low on fears a global economic slowdown would crimp demand. was last down just over $1 at $55.57 a barrel, while futures lost nearly $2 to $65.09.

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https://www.investing.com/news/stock-market-news/global-stocks-decline-bonds-surge-on-trumps-mexico-threat-1883789

2019-05-31 09:07:00Z
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Hoping to make money in real estate? Here are 5 tips for a successful house flip - USA TODAY

TV shows can make flipping — when an investor buys houses and sells them quickly for a profit — look easy. 

Not so fast, say experts and flippers alike.

“There’s a lot of moving parts in house flipping with serious financial implications if you overlook something," says Audra Walters, a real estate agent at Front Porch Properties in Charleston, South Carolina. “Failing to get a good estimate for renovations or not securing proper permits could cause delays and lead to massive losses.”

For Jerryll Noorden, a former NASA robotics research scientist who now flips three to four houses at a time through his Connecticut real estate firm, the hardest part was finding the funding to buy properties.

“Asking other people, including lenders, for money was a horrifying thought,” says Noorden, who started flipping houses in 2016. “I found an investor forum online and asked, ‘If I find a deal below market value, would anyone be interested in paying for the house and repair costs and we split the profits?’”

Staying home: More baby boomers stay in their houses as they reach retirement, skipping downsizing

Where the affordable homes are: Homes for sale: Here are the most affordable ZIP codes in the US

While most laughed at the notion, one investor agreed. In the end, they made an $80,000 profit despite repair costs doubling and the project taking 11 months to complete.

 

House flipping can be lucrative when done correctly. Here are some steps to boost your chances for a successful flip.

Study the market

The best opportunities are found off-market and outside of sites known as Multiple Listing Services (MLSs), where brokers can list and see properties for sale, advises Nathaniel Butler, a marketing manager at Washington Capital Partners in Falls Church, Virginia.

“These properties can be found using off-market dealer platforms, wholesalers (people who find a property, get it under contract, and assign it to another buyer who closes on it), contractors who work on flips, and by 'driving for dollars' through neighbors with distressed properties.”

Don’t be afraid to enlist an agent, too.

“Find an agent who understands the local real estate market, takes the time to educate you, and can recognize a good opportunity,” says Robin Kencel, a real estate broker for Compass in Greenwich, Connecticut. “Understanding what the market will bear for the property in that location is the key to a successful flip.”

Ask fellow investors if they know of any agents who have experience working with house flippers. The upside for agents, Kencel says, is those who provide astute and savvy business advice are well positioned for a long-term relationship with the investor as they buy and sell properties. 

Find the right flip

Avery Carl, a real estate broker in Nashville, Tenn., flips houses and scours neighborhoods to find properties below market value.

“Look for houses that are not well maintained with cracked windows, peeling paint, and overgrown grass,” says Carl.

She eventually bought and flipped six properties over a few years, buying “lipstick flips” that only needed carpet and paint. Her strategy? Buy a $100,000 house, add $40,000-$50,000 in value, flip it, and net $15,000-$20,000 in profit. 

Timing is key says Kencel, the broker from Connecticut: “Look during the holidays, at the end of the year, and in the summer," periods when fewer people are hunting for houses. "Keep your eye on the ball when others are looking elsewhere.”

Set a budget and timeline

Noorden says first-time flippers must understand the costs associated with the entire transaction, plus the value of the house once the repairs are done.

“People lose money on closing costs, money-lending costs, seller’s agent commissions, holding costs, contingency costs, utilities, construction and rehab costs, and more,” he explains. “In order to account for these costs, you have to buy the house at the right price.”  

That means figuring out the after-repair value (ARV), which “is the projected value of the house after it is completely renovated,” Noorden says.

A lot of buyers use what’s called the 70% rule. 

Stefano Grottoli of Orange Sun Investments in New Jersey offers this example: “If the house you’re looking to buy will be worth $200,000 after it’s remodeled and you would have to spend $50,000 to rehab it, then you should pay no more than $90,000 to purchase the home.”

Let’s do the math:

$200,000 (ARV) X 70% = $140,000

$140,000 (70% of ARV) - $50,000 (Repairs) = $90,000 (Maximum purchase price).

“Of course, your first offer would be much less than $90,000, but even at that price, you’re on track to make a good profit if no other issues arise,” says Grottoli. “A good contractor can help you to determine repair costs, but make sure to hire an inspector before buying to see if there is any black mold, termite damage, an underground oil tank, or foundation damage.”

Either way, investors should always allow wiggle room in their repair budgets for unexpected or unforeseen expenses.

You also need to set a timeline.

Manage your team

Rehabbing a property is a complex undertaking. Hire a team of experts on each project including an architect, contractor, inspector, lender, CPA, real estate agent, and real estate attorney. Despite having these experts on your side, remember, you are in charge.

“Give contractors a detailed scope of work, with a budget per item, and deadlines for each phase for completion,” says Grottoli. “Never ever give more than 10% down before the actual work begins and don’t abandon the house to the contractors. Always supervise their work.”

Steer clear of over-improvements

It’s the No. 1 mistake many first-time flippers make, says Carl, the Nashville broker, who also buys and holds properties. “Does a 'B' neighborhood warrant the most expensive marble countertops? No, a nice-looking solid surface counter is fine,” she says. In addition, Carl says don’t become emotionally tied to a property.

“Do what needs to be done to get the value out of the property," she says. "But don’t make it a vanity project.” 

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https://www.usatoday.com/story/money/2019/05/31/real-estate-sale-house-flipping-tips/1268913001/

2019-05-31 09:01:00Z
CAIiEJp1J00Lpds7OaQQMKUh3JQqGQgEKhAIACoHCAowjsP7CjCSpPQCMM_b5QU

Kamis, 30 Mei 2019

Wall St steadies after trade tension-driven selloff - Investing.com

© Reuters. Traders work on the floor at the NYSE in New York © Reuters. Traders work on the floor at the NYSE in New York

By Amy Caren Daniel

(Reuters) - U.S. stocks inched higher for the first time this week on Thursday, as President Donald Trump said trade talks with China were going well, offering a glimmer of hope to markets roiled by worries that a protracted dispute would slow global growth.

A senior Chinese diplomat said provoking trade disputes is "naked economic terrorism", even as Trump said Beijing wanted to make a deal with Washington.

The escalating dispute has weighed heavily on Wall Street this month, putting its main indexes on track for losses of at least 5% in May. The benchmark is now 5.8% away from its all-time high of 2,954.13 hit on May 1.

"We're seeing just a little bit of a relief to markets after the selling over the past couple of days, whether it morphs into something more than that it's hard to say," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago

"Markets are focused on trade talks, or lack there of. We're starting to see more and more signs that the economy is looking more recessionary that expansionary."

U.S. treasury yields fell on Thursday and hovered near 20-month lows as investors sought safety in government bonds. [US/]

The yield curve between three-month bills and 10-year notes remained inverted, with money markets pricing in roughly two U.S. rate cuts by the start of next year.

Interest-rate sensitive bank stocks fell 0.55%, while the broader financial sector declined 0.10%.

Technology stocks, among the worst performing S&P sectors this month, rose 0.60% and boosted markets.

The sector was helped by a 11.7% jump in Keysight Technologies after the electronic measurement equipment maker reported better-than-expected quarterly results and announced a $500 million share buyback plan.

Apple Inc (NASDAQ:), Microsoft Corp (NASDAQ:) and Intel Corp (NASDAQ:) also rose and offered support.

Also helping sentiment was data that confirmed domestic economic growth accelerated in the first quarter, but there were signs that the temporary boost from exports and inventory accumulation was already fading.

At 12:52 p.m. ET the was up 81.69 points, or 0.33%, at 25,208.10. The S&P 500 was up 9.62 points, or 0.35%, at 2,792.64 and the was up 31.00 points, or 0.41%, at 7,578.31.

The energy sector fell 0.85%, the most among the four major S&P sectors trading lower.

Among other stocks, Dollar General Corp (NYSE:) jumped 7.9% after the discount retailer's same-store sales and profit topped expectations.

Viacom Inc climbed 6.1% after report that CBS Corp (NYSE:) is preparing for merger talks with the media company. CBS rose 3.6%.

PVH Corp (NYSE:) plunged 14.2%, the most among S&P companies, after the Calvin Klein owner cut its annual profit forecast as it grapples with tariffs and slowing retail growth.

Advancing issues outnumbered decliners by a 1.51-to-1 ratio on the NYSE and by a 1.35-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and 23 new lows, while the Nasdaq recorded 22 new highs and 96 new lows.

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https://www.investing.com/news/stock-market-news/futures-tick-higher-after-prior-sessions-selloff-1882964

2019-05-30 17:21:00Z
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Wall St. pauses after trade tension-driven selloff - Investing.com

© Reuters. Traders work on the floor at the NYSE in New York © Reuters. Traders work on the floor at the NYSE in New York

By Amy Caren Daniel

(Reuters) - U.S. stocks rose for the first time this week on Thursday, as President Donald Trump said trade talks with China were going well, offering a glimmer of hope to markets roiled by worries that a protracted dispute would slow economic growth.

A senior Chinese diplomat said provoking trade disputes is "naked economic terrorism", even as Trump said Beijing wanted to make a deal with Washington.

The escalating dispute has weighed heavily on Wall Street this month, putting its main indexes on track for losses of more than 5% in May. The benchmark is now 5.9% away from its all-time high of 2,954.13 hit on May 1.

"The positivity in markets is very muted today, there are fractional gains," said Peter Kenny, founder of Kenny's Commentary LLC in New York.

"Uncertainty is still the primary driver on the trade front. We have increasingly seen the fear of uncertainty being priced into the market, and that is all about trade and the prospect of a slowdown."

Despite a tick up in U.S. treasury yields on Thursday, they still hovered near 20-month lows as investors sought safety in government bonds. [US/]

The yield curve between three-month bills and 10-year notes remained inverted, with money markets pricing in roughly two U.S. rate cuts by the start of next year.

Interest-rate sensitive bank stocks fell 0.54%, while the broader financial sector declined 0.24%.

Technology stocks, among the worst performing S&P sectors this month, rose 0.38% and boosted markets.

The sector was helped by a 9.6% jump in Keysight Technologies after the electronic measurement equipment maker reported better-than-expected quarterly results and announced a $500 million share buyback plan.

Apple Inc (NASDAQ:), Microsoft Corp (NASDAQ:) and Intel Corp (NASDAQ:) also rose and offered support.

Also helping sentiment was data that confirmed domestic economic growth accelerated in the first quarter, but there were signs that the temporary boost from exports and inventory accumulation was already fading.

At 11:10 a.m. ET the was up 6.11 points, or 0.02%, at 25,132.52. The S&P 500 was up 5.54 points, or 0.20%, at 2,788.56 and the was up 19.47 points, or 0.26%, at 7,566.78.

The energy sector fell 1.1%, the most among the four major S&P sectors trading lower.

Among other stocks, Dollar General Corp (NYSE:) jumped 6.8% after the discount retailer's same-store sales and profit topped expectations.

Viacom Inc climbed 4.8% after report that CBS Corp (NYSE:) is preparing for merger talks with the media company. CBS rose 2.7%.

PVH Corp (NYSE:) tumbled 14.3%, the most among S&P companies, after the Calvin Klein owner cut its annual profit forecast as it grapples with tariffs and slowing retail growth.

Advancing issues outnumbered decliners by a 1.45-to-1 ratio on the NYSE and by a 1.28-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and 13 new lows, while the Nasdaq recorded 18 new highs and 69 new lows.

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https://www.investing.com/news/stock-market-news/futures-tick-higher-after-prior-sessions-selloff-1882964

2019-05-30 15:51:00Z
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Generate - May 30, 2019 - Axios

An electric ferry in France
An all-electric, zero-emission ferry in Lorient, France. Photo: Jean-Sebastien Evrard/AFP/Getty Images

Ships are the latest mode of transportation to see electric upgrades as the maritime industry faces increased pressure to reduce greenhouse gases, writes Axios Expert Voices contributor Maggie Teliska.

The big picture: Passenger ferries are ideal for electric propulsion using current battery technology, which can reduce water and air pollution while providing a quiet, vibration-free trip. Short routes with frequent stops along populated shorelines offer ample opportunities to charge the battery packs.

Where it stands: Globally, there were 185 battery-powered vessels operating or scheduled for delivery in 2018, 58 of which were passenger ferries. Norway introduced the first all-electric ferry, named the MF Ampere, in 2015 to shuttle passengers between villages in the fjords.

What's new: Maid of the Mist plans to launch 2 all-electric, zero-emission boats in September on the U.S. side of Niagara Falls — the first domestically built all-electric boats used for tourists in the U.S.

  • Washington State Ferries will introduce a 150-passenger hybrid ferry later this year in Puget Sound that runs on both diesel and battery power, using up to 60% less fuel than diesel counterparts. 
  • Also this year, New York City plans to introduce a 150-person ferry to shuttle commuters across the East River, from Brooklyn to Manhattan.

Read more

Teliska is a technical specialist at Caldwell Intellectual Property Law and CTO of Regent Power. She is also a member of GLG, a platform connecting businesses with industry experts.

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https://www.axios.com/newsletters/axios-generate-381c9392-75df-476d-834f-f01e216b3a55.html

2019-05-30 12:33:50Z
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Investors Brace for a New Cold War That Will 'Last Our Careers' - Bloomberg

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  1. Investors Brace for a New Cold War That Will 'Last Our Careers'  Bloomberg
  2. Ray Dalio warns China restricting rare earth metals would be 'major escalation' of trade war  CNBC
  3. Stocks Have Had Enough Of The Bond Rally  Seeking Alpha
  4. Dalio Sees a 'Risky Time' Ahead in U.S.-China Trade Conflict  Bloomberg
  5. Ray Dalio says brinksmanship is pushing U.S.-China conflict to a ‘risky’ level  MarketWatch
  6. View full coverage on Google News

https://www.bloomberg.com/news/articles/2019-05-30/investors-brace-for-a-new-cold-war-that-will-last-our-careers

2019-05-30 09:10:00Z
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Safe Or Scary? The Shifting Reputation Of Glyphosate, AKA Roundup - NPR

John Draper pours glyphosate into the tank of his sprayer at the University of Maryland's Wye Research and Education Center. Dan Charles/NPR hide caption

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Dan Charles/NPR

John Draper and I are sitting in the cab of a tractor on the research farm he manages for the University of Maryland, alongside the Chesapeake Bay. Behind us, there's a sprayer.

"So, away we go!" Draper says. He pushes a button, and we start to move. A fine mist emerges from nozzles on the arms of the sprayer.

We're spraying glyphosate, killing off this field's soil-building "cover crop" of rye before planting soybeans.

Farmers have been using this chemical, often under the trade name Roundup, for about four decades now.

But now it's under fierce attack, accused of causing cancer. In three civil cases so far, U.S. juries have ordered Roundup's inventor, Monsanto, now owned by Bayer, to pay enormous damages to cancer survivors. Thousands more lawsuits have been filed.

For this chemical, and for Monsanto, it's a stunning change in fortunes.

Farmers felt that they could spray glyphosate with a clear conscience. It doesn't persist in the environment as much as, say, DDT did. It doesn't build up in groundwater like another widely used herbicide, atrazine. And it's certainly less toxic than some alternatives.

"If we were spraying Gramoxone [the trade name for paraquat, another herbicide], even for you to be standing next to the sprayer, you'd have to have a respirator on. I'd have to wear a respirator even in the tractor, spraying," says Draper.

Monsanto started selling Roundup in 1974. For 20 years, it didn't attract much attention. That was Act 1 of the glyphosate drama: the quiet years.

Act 2 began in the late 1990s.

In 1996, Monsanto started selling genetically modified crops, or GMOs. They were modified so they could tolerate glyphosate. This meant that farmers could now spray this chemical right over their "Roundup Ready" soybeans, corn and cotton, and the crops would be fine but the weeds would all die.

It was a farming revolution built on glyphosate. Monsanto quickly became the world's biggest seed company. And farmers started spraying a lot more Roundup. Sales of the chemical increased more than ten-fold.

It all happened so fast that it scared a lot of people. There were anti-GMO protests around the world, and glyphosate came under increasing scrutiny.

A pedestrian walks past anti-glyphosate art in Popayán, Colombia. Glyphosate has been deployed in Colombia to wipe out coca and poppy crops. Dan Charles/NPR hide caption

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Dan Charles/NPR

The International Agency for Research on Cancer, part of the World Health Organization, decided to carry out a new assessment of glyphosate's risks.

On March 20, 2015, IARC announced its conclusion: Glyphosate is "probably carcinogenic to humans."

That conclusion rests on three kinds of studies. First, IARC found "strong evidence" that glyphosate can damage DNA in cells. This kind of damage, inducing mutations, is the first step in causing cancer. Second, there are studies showing that when mice ate glyphosate, they got more tumors. Kate Guyton, a senior toxicologist at IARC, told reporters at a news conference that "these two studies gave sufficient evidence of cancer in animals."

Finally, IARC says there's "limited evidence" that people exposed to glyphosate had higher rates of a particular kind of cancer — non-Hodgkin lymphoma.

Guyton has been studying the causes of cancer for decades. Nothing she has ever done, she says, provoked as much of a reaction as the glyphosate announcement. "The Internet kind of exploded," she says.

Anti-GMO groups felt vindicated. Monsanto's top executives were furious and launched a public relations campaign attacking IARC and its report.

And in the small town of Orange, Va., a personal injury lawyer named Michael Miller started lining up clients — people with non-Hodgkin lymphoma who'd used Roundup. "I decided that these people needed a voice in the courtroom," he says.

The scientific picture got more complicated, though. Other government agencies, including the U.S. Environmental Protection Agency and the European Food Safety Authority, took a fresh look at glyphosate. And they concluded that it probably is not giving people cancer.

David Eastmond, a toxicologist from the University of California, Riverside, helped conduct one of these glyphosate reviews for another part of the World Health Organization, the Joint FAO/WHO Meeting on Pesticide Residues.

"From my reading of things, if glyphosate causes cancer, it's a pretty weak carcinogen, which means that you're going to need pretty high doses in order to cause it," he says.

Eastmond says that there are several reasons for this apparent disagreement between IARC and the other agencies.

First, IARC just looks at whether glyphosate can cause cancer; regulators, on the other hand, have to decide whether it actually will, considering how much of it people are exposed to.

Second — and most important, according to Eastmond — different agencies considered different evidence. Eastmond's committee and regulatory agencies like the EPA considered a large number of studies that aren't publicly available because Monsanto paid for them and submitted them to the agencies. "I have never seen a chemical with as many animal cancer studies as glyphosate," Eastmond says.

IARC, however, didn't look at most of this research because it accepts only studies that are publicly available. This allows any other scientist to see exactly what IARC's conclusions are based on.

Eastmond, for his part, thinks company-financed studies are credible and valuable, despite the potential conflict of interest for companies carrying out those studies. The labs, he says, have to follow strict guidelines.

Finally, scientists sometimes look at the same data and disagree about what it means. Eastmond says that he and Guyton had "animated discussions" about some of the data. "We just evaluated the evidence differently, but, you know, these are honest disagreements [among] people who I think are well-meaning," Eastmond says.

Then Act 3 arrived. Glyphosate went to court. There were three civil trials in or near San Francisco.

Lawyers for Bayer, which now owns Monsanto, repeatedly reminded jurors that regulatory agencies had concluded that glyphosate is not a cancer risk.

Lawyers for the cancer victims, though, suggested that those same regulators couldn't be trusted because they'd been manipulated or fooled by Monsanto.

Miller and his legal team showed the juries a whole collection of internal Monsanto emails. In one, company executives described phone calls with an official at the EPA. As Miller describes it, the official said, "I don't need to see any more studies. I'm going to declare Roundup safe, and I'm going to stop another agency from looking at it."

Another Monsanto executive discussed ghostwriting papers on glyphosate's safety that scientists could publish under their own names.

"I think the jury was rightfully offended," Miller says.

All three trials ended with resounding verdicts in favor of the cancer victims. The juries ordered Bayer to pay huge punitive damages. In the most recent case, the damages totaled $2 billion.

Bayer is appealing these verdicts — and the damages probably will be reduced. But more lawsuits are waiting. The total value of Bayer's stock has fallen $40 billion since the first verdict was announced.

Alexandra Lahav, a professor at the University of Connecticut School of Law, says that one lesson of this case so far is that attempts to get favorable decisions from regulators can backfire in court.

"They then open themselves up for the jury to say, 'Wait a minute — you're trying to convince the regulator not to regulate you, and now you want me to believe that the regulator is completely objective,' " Lahav says.

When regulators are seen as weak or ineffectual watchdogs, she says, their seal of approval also carries less weight with the public — and with juries.

The next glyphosate trial is set for August in St. Louis.

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https://www.npr.org/sections/thesalt/2019/05/30/727914874/safe-or-scary-the-shifting-reputation-of-glyphosate-aka-roundup

2019-05-30 09:00:00Z
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'Molecules of freedom': US Energy Department tries rebranding natural gas - ABC News

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https://abcnews.go.com/Politics/molecules-freedom-us-energy-department-rebranding-natural-gas/story?id=63366255

2019-05-30 07:47:00Z
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Rabu, 29 Mei 2019

Apparel retailers Canada Goose, Abercrombie & Fitch and others are getting whacked - CNBC

Customers exit an Abercrombie & Fitch store in San Francisco, California.

David Paul Morris | Bloomberg | Getty Images

Retail stocks are taking a beating Wednesday, hurt by a handful of poor earnings reports and the looming threat of tariffs on clothing imported from China.

Canada Goose shares lost more than a quarter of their value after the company said sales growth in the coming three years wouldn't be as robust as in the past. Abercrombie & Fitch shares were down nearly 25% as momentum cooled off at its Hollister brand during the latest quarter. That news also sent shares of rival teen apparel retailer American Eagle down about 5%. And Michael Kors owner Capri Holdings' stock fell about 10% as it's suffering from poor demand for its handbags.

"This is not a space deemed to be very healthy in terms of long-term outlooks for investors," Wells Fargo retail analyst Ike Boruchow said. "You've got a group where the fundamentals are weakening."

Then you throw in the idea of 25% tariffs on apparel and footwear, as the White House has proposed in its ongoing trade war with China, "and that's a real earnings problem," he said.

Abercrombie CFO Scott Lipesky told analysts on a post-earnings conference call the retailer hasn't yet baked additional tariffs into its earnings outlook. Abercrombie imported about 25% of its merchandise receipts from China to the U.S. in fiscal 2018.

"We're still dealing in the world of hypothetical here," he said. "We remain very engaged with our sourcing partners. ... We have a playbook in place if the hypothetical becomes reality."

With all of the losses in the space, the S&P 500 Retail ETF (XRT) was down nearly 3% by Wednesday afternoon, on pace for its fifth consecutive day of declines for the first time since Nov. 20. This also makes an eight-day-long losing streak for the XRT and puts it on pace for its worst day since May 13, when it lost 3.76%.

Boruchow said there are less signs that consumers are pulling back but more that "parts of the industry" are weakening. High-end handbag makers are struggling as tourism drops off, for example, and some mall-based apparel retailers are seeing sales slow as more women opt to shop on platforms like Stitch Fix and Rent the Runway.

Department store chains Kohl's, J.C. Penney and Nordstrom recently showed they aren't immune to these trends, either, sparking a sell-off in the space just last week with their dismal quarterly earnings reports.

Dick's Sporting Goods was one bright spot of Wednesday morning, reporting fiscal first-quarter earnings that topped Wall Street estimates and raising its outlook for the full year. But its stock reversed course from earlier gains and was last down more than 5%, falling with the rest of the industry.

Looking at the 20 worst performing stock among the S&P 500 year to date, a whopping seven are retailers: Nordstrom shares are down 30%, Macy's stock has dropped 29.5%, Walgreens shares have lost 25.3%, Kohl's stock is down 23%, Foot Locker's stock has dropped 21.6%, CVS shares are down 20% and Gap shares have lost 19.3% so far this year.

— CNBC's Gina Francolla contributed to this reporting.

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https://www.cnbc.com/2019/05/29/apparel-retailers-are-getting-whacked.html

2019-05-29 17:48:33Z
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Stock market today: Latest news - CNN

The US stock market continues to get hit by trade war and economic jitters.

The Dow dropped 200 points, or 0.8% on Wednesday morning. The S&P 500 and Nasdaq declined about 0.7% apiece.

Investors remain worried about plunging Treasury bond yields and how the US-China trade war will slow the global economy and ding corporate profits. 

The recent trade escalation has also led to fears that China will retaliate against US tariffs by taking more extreme steps, including placing restrictions on rare-earth exports.

The market slide comes after the Dow dropped 238 points on Tuesday. The S&P 500 has declined more than 5% since closing at a record high on April 30. 

Abercrombie & Fitch (ANF) plunged 20% on disappointing earnings and outlook. Canada Goose (GOOS) tumbled 17% on a sales miss. Dick’s Sporting Goods (DKS), however, climbed 2% on strong guidance and upbeat results. 

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https://www.cnn.com/business/live-news/stock-market-news-today-052919/index.html

2019-05-29 16:12:00Z
CBMiUGh0dHBzOi8vd3d3LmNubi5jb20vYnVzaW5lc3MvbGl2ZS1uZXdzL3N0b2NrLW1hcmtldC1uZXdzLXRvZGF5LTA1MjkxOS9pbmRleC5odG1s0gEA

It's Going to Happen, Isn't It? - Jalopnik

When we first heard about The Who’s Left Merger, it was that Fiat Chrysler was pushing for it, and like all things FCA, we viewed it with as much skepticism as we would, say, our friend telling us they were getting a great deal on a Dodge Journey. But as the days roll on, things are looking increasingly serious. All that and more in The Morning Shift for May 29, 2019.

1st Gear: Renault: You Love It, Don’t You? Nissan: We Are Not Not Loving It.

Here are three pieces of news rolled into one. The first is that Renault has gone to the trouble of flying to Japan to chat with longtime alliance partner Nissan about the latter’s possible merger with Fiat Chrysler. This can only mean one thing, as Bloomberg reports: Renault is down to clown.

B’Berg’s story ran today under the headline “Renault’s message to Nissan: Fiat deal is good for all of us” and here’s a little bit:

Renault SA Chairman Jean-Dominique Senard arrived in Tokyo with a crucial mission: to sell the proposed merger between Fiat Chrysler Automobiles NV and Renault SA to longtime partner Nissan Motor Co.

[...]

While neither party has disclosed what will be discussed, there will be plenty to talk about. Under the terms of the Fiat proposal, Nissan will gain voting rights of 7.5% in the new entity, compared with no voting rights attached to its cross-held shares in Renault. A merger would also dilute the French state’s control over Renault, and indirectly over Nissan, easing a concern the Japanese company has had for years.

Senard’s goal is to ensure that they all work well together. Although Nissan and Renault have been partners for two decades, the Japanese automaker isn’t in a position to block the deal. Nissan doesn’t own a controlling stake in the French company, and a merger wouldn’t breach their operating agreement.

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Bloomberg couldn’t get comment from Nissan for the story, but the Nikkei got some goss, as reported by Reuters today:

“We are not opposed,” the Nikkei quoted an unnamed Nissan source who had attended the meeting as saying. The person also said “many details need to be worked out” before the Japanese automaker solidifies its position on the issue, the Nikkei reported.

In a statement, the alliance members confirmed that they had “an open and transparent discussion” on the proposal. The deal looks designed to tackle the costs of far-reaching technological and regulatory changes, including the drive toward electric vehicles.

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In any case, the two sides are meeting on Monday, as the Financial Times reports. I wish them all well in this definitely well-thought-out merger that makes sense to everyone and doesn’t seem like desperation.

2nd Gear: Of Course Wall Street Loves a FCA-Renault-Nissan Merger For Every Wrong Reason

Wall Street never met a budget it couldn’t slash, and unsurprisingly it is loving the prospect of trimming the fat on five carmakers at once, as The Detroit News reports today:

A potential merger between Fiat Chrysler Automobiles NV and Renault SA would create a massive global company, but it’s the cost cuts proposed by FCA that has investment analysts optimistic about the deal.

The proposed 50-50 merger between the Italian-American Fiat Chrysler and France’s Renault would create the third-largest automaker in terms of sales, behind Volkswagen AG and Toyota Motor Corp. It’s a move that would also save some $5.6 billion (5 billion euros) annually for the companies as they find ways to cut costs in manufacturing, purchasing and R&D.

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Hold on, wait, there’s a better quote in here, from Moody’s, which just upgraded FCA to its highest level of junk status, as the Detroit News notes. Take in this fantastic line, which says in as many words as possible that this is going to be a giant mess but they’ll slash costs and we’ll make out like bandits:

“Combining Fiat Chrysler and Renault would be credit-positive in general as it makes strategic sense and could create a substantial amount of synergies,” Falk Frey, senior vice president and auto analyst at Moody’s, said in a Tuesday note. “However, we’ll also consider significant execution risks of such a large scale transaction given the complexity of the two group’s businesses’ operations, particularly in view of Renault’s existing alliance with Nissan Motor Co. Ltd and Mitsubishi Motors Corporation.”

Now, there was some nice analysis from automotive journalist and friend of Jalopnik John Voelker, who noted that, yes, it sounds evil to salivate about “a substantial amount of synergies,” but there really is still a lot of pointless fat in the auto industry today:

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Personally I would love to see the auto industry as it stands today change entirely, moving from these giant silo’d giants into tons of tiny manufacturers, all putting together different combinations of licensed engines or electric modules on widely available skateboard chassis, like we had over a hundred years ago.

3rd Gear: Infiniti Returning To Japan After Ghosn Moved It To Hong Kong

I’m going to be completely honest, I totally forgot this happened.

For some reason Carlos Ghosn moved Infiniti’s headquarters to Hong Kong back in 2012 in an effort to make it more in his image, I mean, more international. Anyway, with Ghosn gone, Infinti is packing up its pencils once more, as Bloomberg elaborates in a wire report:

Ghosn in 2012 planned to more than triple Infiniti’s annual sales to 500,000 units within five years to raise its share of the global luxury car market to 10%. The brand sold less than half of the target last year.

Hurt by slumping U.S. sales, aging vehicle models and an out-of-sync product cycle, Nissan reported its lowest annual profit in a decade for the fiscal year through March. Chief Executive Officer Hiroto Saikawa is working on reviving profits, pledging to lift Nissan out of a “rock bottom” in two years. Infiniti currently has 180 employees based in Hong Kong, mostly in management, sales and marketing positions.

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The report further noted that Infinti is planning on dumping its diesels and focusing on EVs and China, which is what you could also call the “doing what Tesla has been trying to do for years now” plan of action.

4th Gear: China Considering Subsidizing EV Charging

China has been somewhat vocal in saying it’s rolling back on subsidizing its budding electric car hegemony, but apparently someone in power didn’t get the message, as noted in a Bloomberg wire report today:

China is scaling back subsidies on EV purchases and plans to phase them out completely after 2020 amid concerns that automakers have become overly reliant on them at the expense of developing new technologies. The funding offered on purchases will be diverted to develop charging infrastructure, industry minister Miao Wei said in March.

China, which has about 960,000 charging poles for its 2.31 million electric vehicles, is working to upgrade the network. The new standards will boost the capacities of facilities about sixfold to more than 350 kilowatts, making re-charging as efficient as a filling a regular fuel tank, Liu [Kai, a director with the Information and Certification Department of the China Electric Vehicle Charging Infrastructure Promotion Alliance] said.

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There’s a part of me that worries about this. I don’t love the idea that the fate of EVs may hinge upon a government program, one that could change at any time, but any little bit helps and it’s not like consumers are any less fickle, buying gas guzzlers the moment fuel prices drop.

5th Gear: In New Era Of Auto Layoffs, It’s Hard To Tell Who Looks Worse: Detroit or Washington

I love everything about this incredibly obvious analysis from The Washington Post, which seems to have just now woken up to realize Detroit has been slashing jobs while budgets have been fat, and Trump hasn’t been helping anything:

[T]here’s another pillar of Trump’s base — the auto industry, which he promised to transform into the engine of a manufacturing revival — that is stalling at an inopportune moment for the president.

Layoffs in the industry this year are at their highest since the economic crisis a decade ago[.]

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The piece focuses on Trump not fulfilling his promises of helping out the auto industry, which, ha, but I think you can’t look at this without putting a great deal of blame on companies like GM for shutting down whole factories when we’re not even in a recession.

Reverse: This Was More Recent Than You’d Wish

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Neutral: What Do You Call The Potential Fiat-Chrysler-Renault-Nissan-Mitsubishi Conglomerate?

Is it the Who’s Left Merger? Is it the Merger To Restore Balance, as with one new auto company entering the fray (Tesla) another must presumably be absorbed? Is It The Merger Of Equals But For Real This Time? Your thoughts are welcome.

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https://jalopnik.com/its-going-to-happen-isnt-it-1835089827

2019-05-29 14:04:00Z
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