The world’s 2,153 billionaires have more wealth than 4.6 billion people combined, Oxfam says

The world’s 2,153 billionaires have more wealth between them than a combined 4.6 billion people, new research has claimed. In a study published Monday, international charity Oxfam called on governments to implement policies that may help to reduce wealth inequality. Amazon founder Jeff Bezos is currently the richest person in the world, according to Forbes, with a net worth of around $116.4 billion. The second wealthiest person on the planet is Bernard Arnault, a French billionaire who owns luxu


The world’s 2,153 billionaires have more wealth between them than a combined 4.6 billion people, new research has claimed.
In a study published Monday, international charity Oxfam called on governments to implement policies that may help to reduce wealth inequality.
Amazon founder Jeff Bezos is currently the richest person in the world, according to Forbes, with a net worth of around $116.4 billion.
The second wealthiest person on the planet is Bernard Arnault, a French billionaire who owns luxu
The world’s 2,153 billionaires have more wealth than 4.6 billion people combined, Oxfam says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: chloe taylor
Keywords: news, cnbc, companies, worlds, world, report, net, worth, richest, wealth, billion, combined, oxfam, sitting, person, billionaires, 2153


The world's 2,153 billionaires have more wealth than 4.6 billion people combined, Oxfam says

The world’s 2,153 billionaires have more wealth between them than a combined 4.6 billion people, new research has claimed.

In a study published Monday, international charity Oxfam called on governments to implement policies that may help to reduce wealth inequality.

The report comes as delegates gather in Davos, Switzerland, for the annual World Economic Forum conference.

“If everyone were to sit on their wealth piled up in $100 bills, most of humanity would be sitting on the floor,” its authors said.

“A middle-class person in a rich country would be sitting at the height of a chair. The world’s two richest men would be sitting in outer space.”

Amazon founder Jeff Bezos is currently the richest person in the world, according to Forbes, with a net worth of around $116.4 billion. The second wealthiest person on the planet is Bernard Arnault, a French billionaire who owns luxury goods group LVMH and has a net worth of $116 billion.

Oxfam’s report noted that someone who saved $10,000 a day since the construction of the Egyptian pyramids would still be 80% less wealthy than the world’s five richest billionaires.


Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: chloe taylor
Keywords: news, cnbc, companies, worlds, world, report, net, worth, richest, wealth, billion, combined, oxfam, sitting, person, billionaires, 2153


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Boeing is in talks to borrow $10 billion or more as 737 Max crisis wears on

The tails of Boeing 737 MAX aircraft are seen parked at Boeing facilities at the Grant County International Airport in Moses Lake, Washington, September 16, 2019. Boeing is in talks with banks to secure a loan of $10 billion or more, according to people familiar with the matter, as the company faces rising costs stemming from two fatal 737 Max crashes. For example, Jefferies earlier this month forecast Boeing would issue $5 billion in debt this quarter. Spirit AeroSystems, which makes fuselages


The tails of Boeing 737 MAX aircraft are seen parked at Boeing facilities at the Grant County International Airport in Moses Lake, Washington, September 16, 2019.
Boeing is in talks with banks to secure a loan of $10 billion or more, according to people familiar with the matter, as the company faces rising costs stemming from two fatal 737 Max crashes.
For example, Jefferies earlier this month forecast Boeing would issue $5 billion in debt this quarter.
Spirit AeroSystems, which makes fuselages
Boeing is in talks to borrow $10 billion or more as 737 Max crisis wears on Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: leslie josephs
Keywords: news, cnbc, companies, borrow, aircraft, crisis, talks, loan, boeing, planes, familiar, max, 737, company, billion, wears, month


Boeing is in talks to borrow $10 billion or more as 737 Max crisis wears on

The tails of Boeing 737 MAX aircraft are seen parked at Boeing facilities at the Grant County International Airport in Moses Lake, Washington, September 16, 2019.

Boeing is in talks with banks to secure a loan of $10 billion or more, according to people familiar with the matter, as the company faces rising costs stemming from two fatal 737 Max crashes.

The company has secured at least $6 billion from banks so far, the people said, and is talking to other lenders for more contributions. The total amount could rise if there is additional demand from banks, one person familiar with the matter said.

Liquidity isn’t an immediate concern, analysts have said, but the new debt shows Boeing is shoring up its finances amid the cash-sapping fallout of the two crashes — one in Indonesia in October 2018 and another in Ethiopia in March last year — that killed all 346 people aboard the two flights.

The amount Boeing is seeking to borrow is more than what some analysts were expecting. For example, Jefferies earlier this month forecast Boeing would issue $5 billion in debt this quarter.

But the jets’ return has faced potential new delays that are threatening to drive up Boeing’s costs, including a new software issue disclosed by the company last week.

Boeing is suspending production of the troubled planes this month as the grounding stretches into its 11th month, a move that has rippled through the supply chain and already cost thousands of jobs.

The company also reversed its stance and will now recommend pilots undergo simulator training, a time-consuming and costly process, before the jets can fly again.

The company posted negative orders for aircraft last year, its weakest sales figures in decades, and handed the title of the world’s biggest aircraft manufacturer over to its European rival Airbus.

Boeing has developed a software fix for the planes after a flight-control system was implicated in the crashes but regulators have not yet signed of on that or completed other checks that would allow them to certify the planes as safe to resume operations.

Boeing declined to comment on the debt raise.

Moody’s Investors Service last week said it was putting Boeing’s credit rating, which is investment grade, on review due to the Max issues.

“Recent developments suggest a more costly and protracted recovery for Boeing to restore confidence with its various market constituents, and an ensuing period of heightened operational and financial risk, even if certification of the Max comes relatively near-term, as expected,” wrote Jonathan Root, Moody’s lead Boeing analyst.

The loan Boeing is negotiating will be a two-year, delayed-draw loan, meaning Boeing can tap into it later, a move that may not immediately affect its credit rating as another type of loan or a bond would, according to one of the people familiar with the matter.

Banks that have already committed to contribute to the loan include Citigroup, Bank of America Merrill Lynch, Wells Fargo and J.P. Morgan, people familiar with the matter said.

Boeing this month will pause production of the planes, which had been its best-selling aircraft. That decision is hurting its supply chain. Spirit AeroSystems, which makes fuselages and other parts for the 737 Max, said earlier this month it would lay off 2,800 workers.

Moody’s downgraded Spirit to junk territory last week, saying it “reflects our expectation that Spirit’s liquidity profile will quickly and materially erode in the absence of mitigating developments that remain largely out of the company’s control.”

General Electric, which makes engines for the planes through a joint venture with France’s Safran, has laid off 70 temporary workers in Quebec, but it could hire them back later.

Suppliers are in a tough position because they want to have skilled workers in place for a resumption in production.

GE, which reports earnings at the end of the month and also makes engines for Airbus planes, can move workers to other plants and programs. The company is also considering reducing worker overtime, according to a person familiar with the matter.

The 737 Max issues have cost airlines more than $1 billion in lost revenue, and Boeing took a $5.6 billion pre-tax charge last July to compensate its Max customers for the grounding.

While the company has reached compensation agreements with airlines including American and Southwest, those agreements apply only to revenue lost in 2019 and analysts expect Boeing will have to pay more without a firm date to get the planes back in the air.

Investors will hear more on the impact of the grounding from American and Southwest when they report earnings later this week and when Boeing reports on Jan. 29.

The new loan comes as Boeing is seeking to close its $4 billion acquisition of a majority stake in Embraer’s commercial plane business. The company has also continued to pay investors dividends during the crisis.


Company: cnbc, Activity: cnbc, Date: 2020-01-20  Authors: leslie josephs
Keywords: news, cnbc, companies, borrow, aircraft, crisis, talks, loan, boeing, planes, familiar, max, 737, company, billion, wears, month


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Stocks making the biggest moves midday: Alphabet, Boeing, Dave & Buster’s, Snap & more

Dave & Buster’s Entertainment — Shares of Dave & Buster’s Entertainment skyrocketed more than 10% after KKR disclosed a 10.7% position in the restaurant chain. Snap — Shares of Snap rose more than 4% after UBS upgraded the social media company to buy from neutral. The firm raised its 2020 full-year EPS and revenue estimates based on market share gains and the beginning of the 5G upgrade cycle. State Street – State Street stock surged 4.6% on better-than-expected quarterly results. Comcast — Shar


Dave & Buster’s Entertainment — Shares of Dave & Buster’s Entertainment skyrocketed more than 10% after KKR disclosed a 10.7% position in the restaurant chain.
Snap — Shares of Snap rose more than 4% after UBS upgraded the social media company to buy from neutral.
The firm raised its 2020 full-year EPS and revenue estimates based on market share gains and the beginning of the 5G upgrade cycle.
State Street – State Street stock surged 4.6% on better-than-expected quarterly results.
Comcast — Shar
Stocks making the biggest moves midday: Alphabet, Boeing, Dave & Buster’s, Snap & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: michael sheetz
Keywords: news, cnbc, companies, earnings, comcast, stocks, making, dave, alphabet, stock, company, shares, estimates, revenue, share, snap, midday, boeing, billion, busters, moves, biggest, street


Stocks making the biggest moves midday: Alphabet, Boeing, Dave & Buster's, Snap & more

Check out the companies making headlines in midday trading on Friday:

Alphabet – The Google-parent’s stock rose nearly 1% after UBS increased its price target, saying shares will climb more than 15% this year. The firm’s optimistic outlook came a day after a day after Alphabet became the latest U.S. company to reach a market capitalization of over $1 trillion.

Boeing — Shares of the aerospace giant fell almost 1% after Bank of America said it expects Boeing to absorb a $20 billion total cost for its 737 Max crisis. The company will report full-year and fourth-quarter earnings on Jan. 29, when analysts expect Boeing will announce additional charges related to the troubled aircraft.

Dave & Buster’s Entertainment — Shares of Dave & Buster’s Entertainment skyrocketed more than 10% after KKR disclosed a 10.7% position in the restaurant chain. Raymond James believes there is a leveraged buyout scenario for Dave & Buster’s, saying a takeout valuation in the mid-$50s could be supported. The stock trades around $46 Friday.

Snap — Shares of Snap rose more than 4% after UBS upgraded the social media company to buy from neutral. The bank said it expects positive momentum for ad revenue and user growth in 2020.

Qualcomm — Shares of the semiconductor company gained more than 3% after Citi upgraded the stock to a buy rating. The firm raised its 2020 full-year EPS and revenue estimates based on market share gains and the beginning of the 5G upgrade cycle. Citi also raised its target on the stock to $108, which is 13% higher than where it currently trades.

State Street – State Street stock surged 4.6% on better-than-expected quarterly results. The financial company reported earnings of $1.98 per share on revenue of $3.05 billion, while analysts expected earnings of $1.69 per share on revenue of $2.92 billion, according to Refinitiv. Expenses fell 9% to $2.27 billion, reflecting the impact of lower re-positioning charges.

United Natural Foods — Shares of the wholesale grocer plunged more than 10% following a downgrade to underweight by Wells Fargo. The firm said United Natural Foods operates within a “structurally challenged industry” as competition increases and the customer base shrinks.

J.B. Hunt Transport — Shares slid more than 4% after the company missed EPS estimates for the fourth quarter. The company reported earnings per share of $1.35, while Wall Street had been looking for $1.50, according to estimates from FactSet. Revenue came in at $2.45 billion, which was in line with estimates.

Comcast — Shares of Comcast jumped more than 1% after the company released details about its new streaming service Peacock. The service will launch on April 15 for Comcast subscribers and on July 15 nationally. There will be a free, ad-supported option as well two pricing options. The stock’s rise brought Comcast to an all-time high on Friday.

Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: michael sheetz
Keywords: news, cnbc, companies, earnings, comcast, stocks, making, dave, alphabet, stock, company, shares, estimates, revenue, share, snap, midday, boeing, billion, busters, moves, biggest, street


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Labor costs for Detroit automakers expected to increase upward of $1 billion by 2023

DETROIT – Labor costs for the Detroit automakers are expected to increase by up to roughly $1 billion in the coming years as a result of contracts ratified last year with the United Auto Workers union. Based on the number of workers in each company, the increased labor cost would add between $800 million and $1 billion to the automakers’ expenses by 2023. Labor costs for non-unionized foreign automakers in the U.S. are expected to increase by an average of just $2 an hour by 2023, according to C


DETROIT – Labor costs for the Detroit automakers are expected to increase by up to roughly $1 billion in the coming years as a result of contracts ratified last year with the United Auto Workers union.
Based on the number of workers in each company, the increased labor cost would add between $800 million and $1 billion to the automakers’ expenses by 2023.
Labor costs for non-unionized foreign automakers in the U.S. are expected to increase by an average of just $2 an hour by 2023, according to C
Labor costs for Detroit automakers expected to increase upward of $1 billion by 2023 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: michael wayland
Keywords: news, cnbc, companies, expected, detroit, workers, increase, average, costs, worker, foreign, billion, 2023, automakers, labor, upward


Labor costs for Detroit automakers expected to increase upward of $1 billion by 2023

DETROIT – Labor costs for the Detroit automakers are expected to increase by up to roughly $1 billion in the coming years as a result of contracts ratified last year with the United Auto Workers union.

The Center for Automotive Research on Wednesday forecast average hourly labor costs during the four-year deals will increase by $11 per worker for Fiat Chrysler and $8 per worker at General Motors and Ford Motor.

Based on the number of workers in each company, the increased labor cost would add between $800 million and $1 billion to the automakers’ expenses by 2023. Those are costs the companies will look to offset in other ways, however they are expected to widen labor cost gaps with foreign competitors that don’t have a unionized workforce in the U.S. like Toyota Motor.

“The gap with the non-union automakers has widened quite a bit,” Kristin Dziczek, vice president of industry, labor and economics at CAR, said during a presentation on the results.

Labor costs for non-unionized foreign automakers in the U.S. are expected to increase by an average of just $2 an hour by 2023, according to CAR, a nonprofit research group based in Ann Arbor, Mich.

CAR estimates Fiat Chrysler’s average hourly labor costs per worker will increase to $66 by 2023; GM will hit $71; and Ford will jump to $69. That compares to non-unionized foreign automakers at $52 an hour on average during that time period.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: michael wayland
Keywords: news, cnbc, companies, expected, detroit, workers, increase, average, costs, worker, foreign, billion, 2023, automakers, labor, upward


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Bill Gates on spending his $110 billion: ‘Where can you put your money?…How many hamburgers can you eat?’

The good thing about having a lot of money is that you can buy your own plane. The challenging thing about having a lot of money is that you have to figure out how you are going to spend it all. The 64-year-old co-founder of Microsoft has $110.5 billion, according to Forbes, making him one of the richest people in the world. (Hamburgers are Gates’ favorite food, he said in the Netflix docu-series “Inside’s Bill’s Brain: Decoding Bill Gates.”) Gates also ruled out leaving it all to his children:


The good thing about having a lot of money is that you can buy your own plane.
The challenging thing about having a lot of money is that you have to figure out how you are going to spend it all.
The 64-year-old co-founder of Microsoft has $110.5 billion, according to Forbes, making him one of the richest people in the world.
(Hamburgers are Gates’ favorite food, he said in the Netflix docu-series “Inside’s Bill’s Brain: Decoding Bill Gates.”)
Gates also ruled out leaving it all to his children:
Bill Gates on spending his $110 billion: ‘Where can you put your money?…How many hamburgers can you eat?’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: catherine clifford
Keywords: news, cnbc, companies, money, going, hamburgers, moneyhow, thing, children, bill, good, lot, billion, 110, eat, gates, having, spend, spending


Bill Gates on spending his $110 billion: 'Where can you put your money?…How many hamburgers can you eat?'

The good thing about having a lot of money is that you can buy your own plane.

The challenging thing about having a lot of money is that you have to figure out how you are going to spend it all.

So says Bill Gates.

The 64-year-old co-founder of Microsoft has $110.5 billion, according to Forbes, making him one of the richest people in the world. (As of Friday, he trailed behind LVMH’s Bernard Arnault and Amazon founder Jeff Bezos.)

“Where can you put your money?” Gates asked in October at a centennial celebration of the high school he attended, Lakeside School.

“You can try to spend it on yourself,” he said. “How many hamburgers can you eat?” (Hamburgers are Gates’ favorite food, he said in the Netflix docu-series “Inside’s Bill’s Brain: Decoding Bill Gates.”)

“How many suits are you really going to wear? It’s pretty finite,” Gates said.

Gates also ruled out leaving it all to his children: Phoebe, 17; Rory, 20; and Jennifer, 23.

“It’s not that good an idea for your kids to give them a whole ton of money,” Gates said, citing a 1986 Fortune Magazine story, written by famed Warren Buffett biographer Carol Loomis, that details “the history of why over-endowing children” can be unproductive.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: catherine clifford
Keywords: news, cnbc, companies, money, going, hamburgers, moneyhow, thing, children, bill, good, lot, billion, 110, eat, gates, having, spend, spending


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Temasek, Trustbridge target majority stake in WeWork China at $1 billion valuation, Reuters reports

The plan values WeWork China at around $1 billion, two of the people said. Singapore state investor Temasek and Shanghai-based private equity firm Trustbridge want to buy more shares to give them a combined majority stake in WeWork China, according to the people. SoftBank, Temasek and WeWork declined to comment. WeWork China has set out ambitious revenue goals for 2020, Reuters reported last month, even though it faces staff cutbacks and weak occupancy numbers at its properties across China. In


The plan values WeWork China at around $1 billion, two of the people said.
Singapore state investor Temasek and Shanghai-based private equity firm Trustbridge want to buy more shares to give them a combined majority stake in WeWork China, according to the people.
SoftBank, Temasek and WeWork declined to comment.
WeWork China has set out ambitious revenue goals for 2020, Reuters reported last month, even though it faces staff cutbacks and weak occupancy numbers at its properties across China.
In
Temasek, Trustbridge target majority stake in WeWork China at $1 billion valuation, Reuters reports Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17
Keywords: news, cnbc, companies, wework, stake, valuation, temasek, public, majority, million, reports, billion, trustbridge, softbank, target, china


Temasek, Trustbridge target majority stake in WeWork China at $1 billion valuation, Reuters reports

General view of WeWork Weihai Road flagship is seen on April 12, 2018 in Shanghai, China. World’s leading co-working space company WeWork will acquire China-based rival naked Hub for 400 million U.S. dollars. (Photo by Jackal Pan/Visual China Group via Getty Images)

Temasek Holdings and Trustbridge Partners have held talks with WeWork China over increasing their stake in the China branch of the troubled co-working startup to take majority ownership, three people familiar with the matter told Reuters.

The plan values WeWork China at around $1 billion, two of the people said.

The proposal was submitted to WeWork’s major stakeholder, Japanese technology conglomerate SoftBank Group, at the end of last year, said one of the people, who asked not to be identified as the discussions are private.

Singapore state investor Temasek and Shanghai-based private equity firm Trustbridge want to buy more shares to give them a combined majority stake in WeWork China, according to the people.

WeWork currently owns 59% of WeWork China, with the remainder held by other investors including SoftBank, Hony Capital and Trustbridge, according to the group’s prospectus for its initial public offering.

The Chinese unit had raised $500 million in July 2018 from investors including Temasek, Trustbridge, SoftBank and Chinese fund Hony Capital in a deal valuing the firm at about $5 billion. That was the second round, with the firm having previously raised $500 million in 2017.

A new deal giving Temasek and Trustbridge a majority stake would likely mean that WeWork China would go through a down round — a fall in valuation following a new investment if the proposal got passed — but could significantly ease the financial burden on WeWork and SoftBank.

They added that the discussions were at an early stage and a deal was not certain.

SoftBank, Temasek and WeWork declined to comment. Trustbridge did not immediately respond to a request for comment.

The larger WeWork group is undergoing a broad restructuring after it was thrown a $9.5 billion lifeline by SoftBank following a failed public offering and the ouster of founder Adam Neumann.

However, SoftBank’s plan to secure $3 billion from Japan’s three biggest banks have stalled, likely complicating its rescue package for WeWork, Reuters has reported.

WeWork China has set out ambitious revenue goals for 2020, Reuters reported last month, even though it faces staff cutbacks and weak occupancy numbers at its properties across China.

In 2018, WeWork China generated $99.5 million in revenue, according to WeWork’s IPO prospectus.

WeWork’s woes have had a ripple effect across the sector, impacting the likes of UCommune, WeWork China’s rival, which is trying to launch an initial public offering.

Citigroup and Credit Suisse walked away from underwriting UCommune’s IPO because they decided they could not deliver the offering at a previously discussed valuation.

UCommune has now tapped little-known U.S. investment bank Benchmark Company to launch its listing, Reuters reported earlier this month.


Company: cnbc, Activity: cnbc, Date: 2020-01-17
Keywords: news, cnbc, companies, wework, stake, valuation, temasek, public, majority, million, reports, billion, trustbridge, softbank, target, china


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Wall Street expects Boeing to take another big, ugly charge on 737 Max. BofA estimates total cost of crisis as high as $20 billion

He estimates the total cost of the grounding could reach $20 billion — excluding any settlements from lawsuits from crash victims’ families — if the planes return by June or July. Epstein estimates that about 40% of Boeing’s profits last year came from the Max. That’s assuming the planes return to service in April, she said. Even the planned pause in production won’t stop the cash drain and will cost Boeing $1 billion a month, estimates J.P. Morgan. Suppliers are walking a tightrope with the 737


He estimates the total cost of the grounding could reach $20 billion — excluding any settlements from lawsuits from crash victims’ families — if the planes return by June or July.
Epstein estimates that about 40% of Boeing’s profits last year came from the Max.
That’s assuming the planes return to service in April, she said.
Even the planned pause in production won’t stop the cash drain and will cost Boeing $1 billion a month, estimates J.P. Morgan.
Suppliers are walking a tightrope with the 737
Wall Street expects Boeing to take another big, ugly charge on 737 Max. BofA estimates total cost of crisis as high as $20 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: leslie josephs
Keywords: news, cnbc, companies, service, boeing, high, estimates, max, wall, cost, ugly, return, epstein, crisis, month, total, billion, job, street, expects, planes


Wall Street expects Boeing to take another big, ugly charge on 737 Max. BofA estimates total cost of crisis as high as $20 billion

A year ago, Boeing posted record revenues topping $100 billion with hopes of delivering a chart-topping number of airplanes in 2019, including hundreds of 737 Max jetliners.

The news isn’t going to be so rosy on its fourth-quarter earnings call this year. Those bestselling planes were grounded worldwide in March after the second of two fatal crashes that claimed 346 lives. The crisis cost former CEO Dennis Muilenburg his job, prompted Boeing to suspend production of the planes, drove down orders to the lowest level in decades, hurt its supply chain, and wracked up costs that are now around $10 billion. Wall Street is expecting more bad news.

The Jan. 29 earnings call will be the first for new CEO Dave Calhoun, who took the helm on Monday, days after the company released a trove of shocking internal messages that showed employees dissing regulators and airlines and boasting about getting them to approve less time-consuming training. One showed employees complaining that Lion Air, the operator of the first 737 Max that crashed, wanted simulator training for pilots before they flew the planes.

Calhoun is tasked with cleaning up Boeing’s culture, improving employee morale and repairing damaged relationships with regulators and airlines.

“Many of our stakeholders are rightly disappointed in us, and it’s our job to repair these vital relationships,” Calhoun told Boeing employees on his first day. “We’ll do so through a recommitment to transparency and by meeting and exceeding their expectations. We will listen, seek feedback, and respond — appropriately, urgently and respectfully.”

Jeff Windau, industrials analyst at Edward Jones, said he hopes the call will shed some light on the company.

“It would be nice to get some candid comments,” he said. “I’m not expecting a date [of the return to service] but it would be nice to get some indication where they’re at.”

Several Wall Street analysts now expect Boeing, which reports full-year and fourth-quarter earnings on Jan. 29, to take additional charges related to the troubled airplane. The company took a $5.6 billion pretax charge in July to compensate airlines and other customers for the grounding, which is now in its 11th month.

“They’re going to have to pay more,” said Ron Epstein, aerospace analyst at Bank of America Merrill Lynch. He estimates the total cost of the grounding could reach $20 billion — excluding any settlements from lawsuits from crash victims’ families — if the planes return by June or July. Epstein estimates that about 40% of Boeing’s profits last year came from the Max.

Moody’s Investors Service said it was putting Boeing’s debt on a review for a possible downgrade, less than a month after cutting its credit rating by one-notch, as the crisis wears on longer than expected. The lower the credit rating, the more expensive it is for Boeing to borrow. Boeing, which declined to comment on a potential charge, has previously said it would tap the debt markets if it needs more cash to cover the costs of the crisis.

Sheila Kahyaoglu, aerospace and defense analyst at Jefferies, estimated this week that the charges for aircraft customers’ compensation is likely to rise to $11 billion, and that some of that will be reported later this month. That’s assuming the planes return to service in April, she said.

The Wall Street estimates for its earnings vary widely — from a loss of 23 cents a share to a profit of as much as $2.52 a share, according to analysts polled by Refinitiv. On average, analysts expect the Chicago-based company to report a profit of $1.53 a share — a 72% decline from a year earlier. They estimated a more than 26% drop in revenue to $20.8 billion.

Earlier this month, Boeing threw airline customers another curve ball: It’s recommending additional simulator training for pilots on the Max, a reverse of its previous stance and a step that promises to further delay the planes return to service and drive up costs.

As of Thursday, all U.S. airlines with Maxes in their fleets — American, Southwest and United — have pulled the planes from their schedules until early June, a delay that’s threatening to last until the peak travel season of late spring and the summer.

Analysts are also looking for news on how Boeing will manage its supply chain. Spirit Aerosystems, which makes fuselages and other parts for the planes, announced initial job cuts of 2,800 people last week. Moody’s downgraded its debt to junk territory.

Even the planned pause in production won’t stop the cash drain and will cost Boeing $1 billion a month, estimates J.P. Morgan.

“It doesn’t give you the warm and fuzzies when Spirit lays off 2,800 people,” said BofA’s Epstein. Suppliers are walking a tightrope with the 737 Max, because they don’t want to lack workers when Boeing can resume production. “It’s a tight job market and I’m sure there are a lot to companies that would like to hire them,” Epstein added.

Investors are also closely watching Calhoun for cues about Boeing’s bigger picture. The company has faced problems with its KC-46 refueling tanker. Because it’s hobbled by the 737 Max issues, Boeing hasn’t been able to move forward with a new middle-market airplane, giving a bigger lead to rival Airbus, which recently won orders for its forthcoming long-range, single-aisle plane from airlines including American and United. And the scrutiny of the Max could become more time consuming when regulators review its wide-body Boeing 777X.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: leslie josephs
Keywords: news, cnbc, companies, service, boeing, high, estimates, max, wall, cost, ugly, return, epstein, crisis, month, total, billion, job, street, expects, planes


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Manufacturers to spend $26.2 billion on ‘upskilling’ in 2020 to attract and keep workers

Manufacturers are set to spend $26.2 billion on internal and external training initiatives for new and existing employees in 2020 to combat the shortage of available workers, according to the Manufacturing Institute. Nearly 70% of manufacturers said they are creating or expanding training programs for their workforce. Three-quarters of respondents said upskilling workers helped to improve productivity, promotion opportunities and morale. 1 challenge for manufacturers for the past nine quarters,


Manufacturers are set to spend $26.2 billion on internal and external training initiatives for new and existing employees in 2020 to combat the shortage of available workers, according to the Manufacturing Institute.
Nearly 70% of manufacturers said they are creating or expanding training programs for their workforce.
Three-quarters of respondents said upskilling workers helped to improve productivity, promotion opportunities and morale.
1 challenge for manufacturers for the past nine quarters,
Manufacturers to spend $26.2 billion on ‘upskilling’ in 2020 to attract and keep workers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: kate rogers
Keywords: news, cnbc, companies, employees, training, sector, manufacturing, skills, past, 262, workforce, workers, 2020, lee, billion, attract, spend, upskilling, manufacturers


Manufacturers to spend $26.2 billion on 'upskilling' in 2020 to attract and keep workers

A worker fits wheel hub badges on the Ford Focus automobile assembly line inside the Ford Motor Co. factory in Saarlouis, Germany, on Wednesday, Sept. 25, 2019. Ford expects hybrid electric vehicles and battery electric vehicles (BEVs) to make up over 50% of its European passenger vehicle sales by year-end 2022.

With a skills gap plaguing manufacturing in a historically tight labor market, companies are spending big to “upskill” their current workforce and ensure a pipeline of talent.

Manufacturers are set to spend $26.2 billion on internal and external training initiatives for new and existing employees in 2020 to combat the shortage of available workers, according to the Manufacturing Institute.

Nearly 70% of manufacturers said they are creating or expanding training programs for their workforce. Three-quarters of respondents said upskilling workers helped to improve productivity, promotion opportunities and morale.

“In manufacturing, you are constantly learning and growing, and the technological change is enormous,” said Carolyn Lee, the institute’s executive director. “What you are going to be able to continue to do as you layer new skills, on top of those fundamental skills, will make for a very interesting and dynamic career.”

The skills gap has been the No. 1 challenge for manufacturers for the past nine quarters, according to the National Association of Manufacturers’ Outlook Survey, which found the inability to attract and retain workers has been a top concern.

In the third quarter, nearly 80% of respondents said they are struggling to fill open positions. The lack of available workers has even forced one-third of companies to turn down business opportunities.

Protolabs, a rapid prototyping manufacturer based in Maple Plain, Minnesota, is looking to add about 70 workers to its workforce of 2,800.

“We are a growth company, and employees are critical to everything that we do. We want to be sure we can keep talent with us,” said Robert Bodor, vice president and general manager for the Americas.

While the company has been fortunate in retaining its workers, Bodor said the goal is to maintain a “good culture of continuous improvement.” So Protolabs is investing in training its existing workforce, as well as new hires. To attract workers in this job market, Protolabs is offering new and flexible models with part-time labor, in addition to offering training and benefits such as a 401(k) plan with an employer match, employee stock-participation plans, and more.

“We do both upskill and bring in new people all the time — we are continually hiring so we have to train and onboard new employees — but we are reinvesting in our employees to create career paths and opportunities for personal growth,” Bodor said. “Our employees are critical to our success, so we want to be creating longevity with them.”

Securing the pipeline of future talent is a key to success for manufacturers. Data from Deloitte and the Manufacturing Institute found that some 4.6 million workers will be needed in the sector by 2028, but that 2.4 million of those jobs could go unfilled if steps aren’t taken to ensure proper training. Lee calls recruitment a “full-court press.” The goal of the organization is to close the skills gap by 25% by 2025.

“We just need more people — period,” Lee said. “We have about 480,000 open jobs, and have been hovering around 500,000 openings in the past year after retirements and economic growth. We need to attract transitioning service members and veterans into the sector, and we need to bring the next generation of the workforce into the sector.”

Part of the recruitment efforts beyond training is showing potential hires the changes the sector has gone through — it’s not the manufacturing job of years past. Instead, its high-tech, clean, and can be lucrative for those who move up the ranks. Manufacturing Day, which was held in October, is part of that effort, where manufacturers across the country open their doors to students so they can see for themselves what a career in the sector is all about.

“You should know entering manufacturing that your employer is going invest in you, because you are their greatest resource,” Lee said.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: kate rogers
Keywords: news, cnbc, companies, employees, training, sector, manufacturing, skills, past, 262, workforce, workers, 2020, lee, billion, attract, spend, upskilling, manufacturers


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Stocks making the biggest moves premarket: Twitter, Pinterest, Alibaba, Gap, CSX & more

Regions Financial (RF) – The bank reported quarterly profit of 38 cents per share, a penny a share below estimates. Schlumberger (SLB) – The oilfield services company came in 2 cents a share above estimates, with quarterly earnings of 39 cents per share. CSX (CSX) – CSX reported quarterly earnings of 99 cents per share, 3 cents a share above estimates. Progress Software (PRGS) – The business software company reported quarterly earnings of 79 cents per share, beating forecasts by 4 cents a share.


Regions Financial (RF) – The bank reported quarterly profit of 38 cents per share, a penny a share below estimates.
Schlumberger (SLB) – The oilfield services company came in 2 cents a share above estimates, with quarterly earnings of 39 cents per share.
CSX (CSX) – CSX reported quarterly earnings of 99 cents per share, 3 cents a share above estimates.
Progress Software (PRGS) – The business software company reported quarterly earnings of 79 cents per share, beating forecasts by 4 cents a share.
Stocks making the biggest moves premarket: Twitter, Pinterest, Alibaba, Gap, CSX & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: peter schacknow
Keywords: news, cnbc, companies, revenue, making, share, estimates, quarterly, pinterest, biggest, alibaba, quarter, reported, twitter, company, earnings, moves, billion, stocks, gap, cents, csx, premarket


Stocks making the biggest moves premarket: Twitter, Pinterest, Alibaba, Gap, CSX & more

Check out the companies making headlines before the bell:

Twitter (TWTR) – Twitter was downgraded to “neutral” from “buy” at UBS, which said that Twitter’s ongoing investments into safety, security, and ad technology will act as an earnings headwind for 2020.

Pinterest (PINS) – Wells Fargo raised its rating on the stock to “overweight” from “equal weight,” noting material underperformance in the shares despite solid fundamentals and audience engagement.

Regions Financial (RF) – The bank reported quarterly profit of 38 cents per share, a penny a share below estimates. Revenue beat forecasts. Among the negative factors in the quarter: a 4.1% drop in net interest income, although total revenue was up 3%.

Alibaba (BABA) – Shares of Ant Financial – an affiliate of the China-based e-commerce giant – are being offered privately at levels that value Ant at $200 billion, according to a Reuters report. Ant was valued at $150 billion during a 2018 fundraising round.

Tailored Brands (TLRD) – The specialty retailer is selling its Joseph Abboud clothing brand trademarks to brand management firm WHP Global for $115 million. Tailored Brands – the parent of the Jos. A. Bank and Men’s Wearhouse clothing chains – entered into a licensing agreement with WHP to sell and rent Joseph Abboud branded apparel.

Schlumberger (SLB) – The oilfield services company came in 2 cents a share above estimates, with quarterly earnings of 39 cents per share. Revenue also topped estimates. The company noted challenging market conditions but was able to benefit from strength in international markets.

Gap (GPS) – The apparel retailer abandoned its plan to spin off its Old Navy unit into a separate publicly traded company. Sales for the Old Navy business have slowed in recent months, casting some doubts on its value as a separate entity.

CSX (CSX) – CSX reported quarterly earnings of 99 cents per share, 3 cents a share above estimates. The railroad operator’s revenue was very slightly below forecasts. CSX reported a larger-than-expected 7% drop in freight volume during the quarter and is expecting another challenging year in 2020, even as it implements significant improvements in efficiency.

Eli Lilly (LLY) – Lilly is aiming for $1 billion to $5 billion in acquisition deals during every quarter this year, according to Chief Financial Officer John Smiley. He told Reuters the drugmaker will focus on earlier stage opportunities in key areas like oncology, immunology, and neurology.

Alphabet (GOOGL) – Alphabet remains on watch after the Google parent’s market value topped $1 trillion for the first time Thursday.

Comcast (CMCSA) – The NBCUniversal and CNBC parent unveiled details of its Peacock streaming service, with plans to offer a free option as well as $5 per month and $10 per month plans. The service will debut in April for Comcast customers and in July for others.

Progress Software (PRGS) – The business software company reported quarterly earnings of 79 cents per share, beating forecasts by 4 cents a share. Revenue also beat estimates and the company gave a better-than-expected forecast for the current quarter and the full year.

Ventas (VTR) – Ventas was upgraded to “buy” from “hold” at Jefferies, which points to the health-care REIT’s valuation compared to competitors like Welltower (WELL) and Healthpeak (PEAK).


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: peter schacknow
Keywords: news, cnbc, companies, revenue, making, share, estimates, quarterly, pinterest, biggest, alibaba, quarter, reported, twitter, company, earnings, moves, billion, stocks, gap, cents, csx, premarket


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Eli Lilly targets quarterly deals of $1 billion to $5 billion in 2020, CFO says

Eli Lilly aims to announce roughly one $1 billion to $5 billion deal every quarter in 2020, its chief financial officer told Reuters, as the U.S. drugmaker looks to build up its pipeline of future products. A box of the drug trulicity, made by Eli Lilly Pharmaceutical, sits on a counter at a pharmacy in Provo, Utah, January 9, 2020. “We are looking at Dermira-like opportunities targeting assets in the $1 billion to $5 billion range,” Smiley said. In 2018 and 2019, it announced several deals for


Eli Lilly aims to announce roughly one $1 billion to $5 billion deal every quarter in 2020, its chief financial officer told Reuters, as the U.S. drugmaker looks to build up its pipeline of future products.
A box of the drug trulicity, made by Eli Lilly Pharmaceutical, sits on a counter at a pharmacy in Provo, Utah, January 9, 2020.
“We are looking at Dermira-like opportunities targeting assets in the $1 billion to $5 billion range,” Smiley said.
In 2018 and 2019, it announced several deals for
Eli Lilly targets quarterly deals of $1 billion to $5 billion in 2020, CFO says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17
Keywords: news, cnbc, companies, eli, trulicity, smiley, targets, quarterly, lilly, 2020, including, products, earlier, deals, billion, cfo, medicines, treatment, week


Eli Lilly targets quarterly deals of $1 billion to $5 billion in 2020, CFO says

It will focus largely on earlier stage opportunities across key therapeutic areas including oncology, pain, immunology, and neurology, CFO John Smiley told Reuters in an interview at the JP Morgan Healthcare conference in San Francisco earlier this week.

Eli Lilly aims to announce roughly one $1 billion to $5 billion deal every quarter in 2020, its chief financial officer told Reuters, as the U.S. drugmaker looks to build up its pipeline of future products.

A box of the drug trulicity, made by Eli Lilly Pharmaceutical, sits on a counter at a pharmacy in Provo, Utah, January 9, 2020.

Eli Lilly has been on a deal-making spree in recent years in a bid to increase products and sales in core franchises as older blockbuster medicines, such as diabetes treatment Humalog, face generic competition and pressure to lower prices.

Last week, it announced a $1.1 billion deal to buy dermatology products maker Dermira Inc (DERM.O). With the purchase, Lilly will acquire Dermira’s experimental treatment for atopic dermatitis, a serious form of eczema, which is in late-stage testing, as well as an approved medicated cloth to treat excessive armpit sweating.

“We are looking at Dermira-like opportunities targeting assets in the $1 billion to $5 billion range,” Smiley said. “We’d like to be doing something in the range of one per quarter or so.”

In 2018 and 2019, it announced several deals for cancer companies, including an $8 billion acquisition of Loxo Oncology. U.S. regulators in 2018 approved Vitrakvi, Loxo’s first commercial medicine, which treats a wide variety of cancers triggered by a rare genetic mutation.

In a presentation to investors this week, Lilly Chief Executive David Ricks said most of its deals will be in the cancer space, but that other therapeutic areas remain of strong interest as well.

While the company is still looking at late-stage assets, Smiley said the most opportunity for shareholders is in drugs in earlier stages of development.

Deals could include licensing agreements, outright acquisitions, or other structures, he added.

In its most recent earnings call, Lilly forecast a higher-than-expected profit for 2020, citing growing demand for its newer medicines including diabetes drug Trulicity and Taltz for psoriasis and other related autoimmune diseases.

However, sales of Trulicity and other newer medicines have been crimped by high rebates and discounts drugmakers pay to middlemen, such as pharmacy benefit managers, in order to make sure patients have access to their products.


Company: cnbc, Activity: cnbc, Date: 2020-01-17
Keywords: news, cnbc, companies, eli, trulicity, smiley, targets, quarterly, lilly, 2020, including, products, earlier, deals, billion, cfo, medicines, treatment, week


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