White House has reportedly discussed a Fed governor rotation to curb Powell’s power

The White House is reportedly discussing a variety of options to try to juice U.S. economic growth ahead of the 2020 election, including a rotation of Federal Reserve governors that would make it easier to check the power of Chairman Jerome Powell . The White House did not immediately respond to CNBC’s request for comment. The Post said White House aides do not have a firm idea of which of these policies President Donald Trump would seriously consider. Central to the president’s criticism of the


The White House is reportedly discussing a variety of options to try to juice U.S. economic growth ahead of the 2020 election, including a rotation of Federal Reserve governors that would make it easier to check the power of Chairman Jerome Powell . The White House did not immediately respond to CNBC’s request for comment. The Post said White House aides do not have a firm idea of which of these policies President Donald Trump would seriously consider. Central to the president’s criticism of the
White House has reportedly discussed a Fed governor rotation to curb Powell’s power Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: thomas franck
Keywords: news, cnbc, companies, powells, fed, rates, powell, tax, trump, rate, reportedly, governor, discussed, report, presidents, house, white, curb, power, rotation


White House has reportedly discussed a Fed governor rotation to curb Powell's power

Other ideas pitched by top economic advisors range from a currency transaction tax that could devalue the dollar and make U.S. exports less expensive as well as reducing the corporate tax rate to 15%, according to interviews with more than 25 current and former administration officials conducted by The Washington Post .

The White House is reportedly discussing a variety of options to try to juice U.S. economic growth ahead of the 2020 election, including a rotation of Federal Reserve governors that would make it easier to check the power of Chairman Jerome Powell .

The proposals come as top administration officials grow nervous about a growing number of internal reports suggesting that the American economy could pull back over the next 12 months and hamper the president’s path to reelection, the report said.

The White House did not immediately respond to CNBC’s request for comment. The report came just before Powell was set to give a major policy speech on Friday from Jackson Hole, Wyoming, where investors are hoping the Fed chief will signal further rate cuts are ahead.

The Post said White House aides do not have a firm idea of which of these policies President Donald Trump would seriously consider.

The chance to check the Fed chair’s influence over the U.S. economy could be especially enticing to Trump, who appointed Powell and has used Twitter to lambaste him for almost his entire tenure.

Central to the president’s criticism of the Fed is the level of interest rates in the U.S., which remain high when compared with those of several European countries like Germany. Trump argues that lower interest rates abroad help weaken foreign currencies and make imports more attractive to American consumers, accentuating the current U.S. trade deficit.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: thomas franck
Keywords: news, cnbc, companies, powells, fed, rates, powell, tax, trump, rate, reportedly, governor, discussed, report, presidents, house, white, curb, power, rotation


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Apple reportedly plans to launch two ‘Pro’ iPhones within weeks

A customer looks at Apple’s new iPhone XS after it went on sale at the Apple Store in Tokyo, Japan, September 21, 2018. Apple plans to unveil three new iPhones next month, including two new “Pro” models and a successor to the iPhone XR, Bloomberg reported Thursday. The “Pro” models are meant to replace the iPhone XS and iPhone XS Max, according to the report. They’ll be packed with major upgrades to the rear-facing camera, including a sensor for capturing ultra-wide-angle photos and videos, whic


A customer looks at Apple’s new iPhone XS after it went on sale at the Apple Store in Tokyo, Japan, September 21, 2018. Apple plans to unveil three new iPhones next month, including two new “Pro” models and a successor to the iPhone XR, Bloomberg reported Thursday. The “Pro” models are meant to replace the iPhone XS and iPhone XS Max, according to the report. They’ll be packed with major upgrades to the rear-facing camera, including a sensor for capturing ultra-wide-angle photos and videos, whic
Apple reportedly plans to launch two ‘Pro’ iPhones within weeks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: annie palmer
Keywords: news, cnbc, companies, weeks, reportedly, iphone, enabling, iphones, plans, apple, bloomberg, models, according, pro, xs, report, camera, launch


Apple reportedly plans to launch two 'Pro' iPhones within weeks

A customer looks at Apple’s new iPhone XS after it went on sale at the Apple Store in Tokyo, Japan, September 21, 2018.

Apple plans to unveil three new iPhones next month, including two new “Pro” models and a successor to the iPhone XR, Bloomberg reported Thursday.

The “Pro” models are meant to replace the iPhone XS and iPhone XS Max, according to the report. They’ll be packed with major upgrades to the rear-facing camera, including a sensor for capturing ultra-wide-angle photos and videos, which is a first for Apple, according to Bloomberg. The new camera system will also allow for better photos in low-light environments, while enabling things like the ability to capture three images at once.

Apple plans to add a second rear camera to the iPhone XR successor, enabling features like enhanced portrait mode, as well as optical zoom, which allows users to zoom in further without impacting quality, Bloomberg reported.

All the new models are expected to include a new multi-angle Face ID sensor, enabling users to unlock their device even if it’s laying flat on a table, Bloomberg reported. Apple is said to be bringing faster A13 processors to each of the three iPhones, which is likely to power improved computer vision and augmented reality capabilities.

Aside from iPhones, the company is also likely to release refreshed iPads and MacBook Pros in the fall, according to the report. It’s also working on updated versions of AirPods and the HomePod smart speaker.

Representatives from Apple were not immediately available for comment.

Read the full Bloomberg report here.


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: annie palmer
Keywords: news, cnbc, companies, weeks, reportedly, iphone, enabling, iphones, plans, apple, bloomberg, models, according, pro, xs, report, camera, launch


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Tesla shares give up gains after Volkswagen denies report it’s interested in stake

Pompeo says the US message on Huawei is clear. Trump’s words say…U.S. Secretary of State Mike Pompeo says Huawei CFO Meng Wanzhou, who is under house arrest in Canada and facing extradition to America, is not a bargaining chip in the trade…Technologyread more


Pompeo says the US message on Huawei is clear. Trump’s words say…U.S. Secretary of State Mike Pompeo says Huawei CFO Meng Wanzhou, who is under house arrest in Canada and facing extradition to America, is not a bargaining chip in the trade…Technologyread more
Tesla shares give up gains after Volkswagen denies report it’s interested in stake Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: lauren feiner
Keywords: news, cnbc, companies, denies, words, trumps, pompeo, huawei, shares, volkswagen, tradetechnologyread, secretary, wanzhou, mike, interested, sayus, gains, state, tesla, stake, report


Tesla shares give up gains after Volkswagen denies report it's interested in stake

Pompeo says the US message on Huawei is clear. Trump’s words say…

U.S. Secretary of State Mike Pompeo says Huawei CFO Meng Wanzhou, who is under house arrest in Canada and facing extradition to America, is not a bargaining chip in the trade…

Technology

read more


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: lauren feiner
Keywords: news, cnbc, companies, denies, words, trumps, pompeo, huawei, shares, volkswagen, tradetechnologyread, secretary, wanzhou, mike, interested, sayus, gains, state, tesla, stake, report


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth

Federal deficits are expected to swell to higher levels over the next decade than previously expected, the nonpartisan Congressional Budget Office said in a new report Wednesday. The CBO also said that President Donald Trump’s tariffs are projected to shrink gross domestic product by 2020, and warned that further tariff hikes could stifle economic growth. The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. “The nation’s fiscal outlook is challenging,


Federal deficits are expected to swell to higher levels over the next decade than previously expected, the nonpartisan Congressional Budget Office said in a new report Wednesday. The CBO also said that President Donald Trump’s tariffs are projected to shrink gross domestic product by 2020, and warned that further tariff hikes could stifle economic growth. The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. “The nation’s fiscal outlook is challenging,
CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger ylan mui, kevin breuninger, ylan mui
Keywords: news, cnbc, companies, hikes, higher, growth, cbo, warns, federal, grow, report, deficit, expects, budget, outlook, expected, tariff, projected, economic, harm


CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth

Federal deficits are expected to swell to higher levels over the next decade than previously expected, the nonpartisan Congressional Budget Office said in a new report Wednesday.

The CBO also said that President Donald Trump’s tariffs are projected to shrink gross domestic product by 2020, and warned that further tariff hikes could stifle economic growth.

The U.S. budget deficit is expected to hit $960 billion in 2019, and average a whopping $1.2 trillion per year between 2020 and 2029, according to the CBO’s look-ahead at the U.S.’ budget and economic outlook over the next decade.

The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. The CBO says this is mainly because of the massive new budget deal, which passed both houses of Congress and was signed into law by Trump on Aug. 2.

“The nation’s fiscal outlook is challenging,” CBO director Phillip Swagel said in the report. “Federal debt, which is already high by historical standards, is on an unsustainable course.”

Swagel said that the debt is projected to rise even higher after 2029, due to the aging of the U.S. population, growth in health care spending and rising interest costs.

The White House did not immediately respond to CNBC’s request for comment on the new CBO report.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger ylan mui, kevin breuninger, ylan mui
Keywords: news, cnbc, companies, hikes, higher, growth, cbo, warns, federal, grow, report, deficit, expects, budget, outlook, expected, tariff, projected, economic, harm


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Apple is turning to a Chinese firm for premium iPhone screens, report says

A Chinese man holds his son as they look at iPhones on display at an Apple store on January 7, 2019 in Beijing, China. Apple is in the final stages of certifying premium smartphone displays from Chinese tech firm BOE Technology Group for the iPhone, according to a report from the Nikkei. The move is aimed at cutting costs and reducing Apple’s reliance on Samsung, the Nikkei reported. The U.S. tech giant is expected to unveil its new flagship phones in September, and speculation has grown over wh


A Chinese man holds his son as they look at iPhones on display at an Apple store on January 7, 2019 in Beijing, China. Apple is in the final stages of certifying premium smartphone displays from Chinese tech firm BOE Technology Group for the iPhone, according to a report from the Nikkei. The move is aimed at cutting costs and reducing Apple’s reliance on Samsung, the Nikkei reported. The U.S. tech giant is expected to unveil its new flagship phones in September, and speculation has grown over wh
Apple is turning to a Chinese firm for premium iPhone screens, report says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: ryan browne
Keywords: news, cnbc, companies, turning, iphone, apple, unveil, premium, company, xr, xs, firm, screens, chinese, models, displays, nikkei, tech, report


Apple is turning to a Chinese firm for premium iPhone screens, report says

A Chinese man holds his son as they look at iPhones on display at an Apple store on January 7, 2019 in Beijing, China.

Apple is in the final stages of certifying premium smartphone displays from Chinese tech firm BOE Technology Group for the iPhone, according to a report from the Nikkei.

The Nikkei, citing sources, said that Apple was “aggressively testing” BOE’s flexible organic light-emitting diode (OLED) displays, adding the company would decide by the end of the year whether to take the company on as a supplier of the panels.

The move is aimed at cutting costs and reducing Apple’s reliance on Samsung, the Nikkei reported.

The U.S. tech giant is expected to unveil its new flagship phones in September, and speculation has grown over what Apple will bring to the table with the latest models. Last year, the company brought out three new models, the XS, XS Max and XR.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: ryan browne
Keywords: news, cnbc, companies, turning, iphone, apple, unveil, premium, company, xr, xs, firm, screens, chinese, models, displays, nikkei, tech, report


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Republican-led report finds Facebook has ‘significant work’ to earn conservatives’ trust

Facebook has a lot of work to do to win the trust of conservative users, an interim report analyzing claims of liberal bias on the platform said Tuesday. But there is still significant work to be done to satisfy the concerns we heard from conservatives,” the report said. Kyl and the team interviewed more than 130 conservative groups, individuals and lawmakers who “use, study, or have the potential to regulate Facebook,” according to the report. Conservatives interviewed told the team they feared


Facebook has a lot of work to do to win the trust of conservative users, an interim report analyzing claims of liberal bias on the platform said Tuesday. But there is still significant work to be done to satisfy the concerns we heard from conservatives,” the report said. Kyl and the team interviewed more than 130 conservative groups, individuals and lawmakers who “use, study, or have the potential to regulate Facebook,” according to the report. Conservatives interviewed told the team they feared
Republican-led report finds Facebook has ‘significant work’ to earn conservatives’ trust Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: lauren feiner
Keywords: news, cnbc, companies, work, facebook, concerns, trust, interviewed, report, finds, facebooks, team, republicanled, conservatives, conservative, content, bias, earn, significant


Republican-led report finds Facebook has 'significant work' to earn conservatives' trust

Facebook founder and CEO Mark Zuckerberg arrives to testify following a break during a Senate Commerce, Science and Transportation Committee and Senate Judiciary Committee joint hearing about Facebook on Capitol Hill in Washington, DC.

Facebook has a lot of work to do to win the trust of conservative users, an interim report analyzing claims of liberal bias on the platform said Tuesday.

As a result of the review by Sen. Jon Kyl, R-Ariz., and a team at law firm Covington & Burling, Facebook said it would commit to taking steps to be more transparent about how it ranks News Feed content and enforces community standards.

The report said the company has adjusted its “sensational” advertising policy to pull back restrictions on anti-abortion ads showing medical tubes connected to human bodies.

“Facebook has recognized the importance of our assessment and has taken some steps to address the concerns we uncovered. But there is still significant work to be done to satisfy the concerns we heard from conservatives,” the report said.

Kyl and the team interviewed more than 130 conservative groups, individuals and lawmakers who “use, study, or have the potential to regulate Facebook,” according to the report. The review revealed several categories in which conservatives have expressed concerns about bias, including Facebook’s advertising policies and enforcement and its content distribution and algorithms.

Conservatives interviewed told the team they feared algorithms that prioritize user content do so “in ways that suppress their viewpoints.” Several pointed to Facebook’s algorithm change in 2018 that favored content from users’ friends and families, arguing it also disproportionately limited the reach of conservative news content. Interviewees from mid-size grassroots organizations told the team that Facebook’s appeals process for content moderation decisions were too opaque.

Interviewees also raised concerns about Facebook having a hate speech policy, saying the notion is highly subjective. Many also said Facebook relies too heavily on “left-leaning organizations to identify hate groups.”

Many conservatives interviewed ultimately said the problems they see on Facebook likely stem from employees biased against their viewpoints.

While Kyl’s team began interviewing conservatives in May 2018, the results come as allegations of conservative bias against the company have continued to bubble up. Executives from Facebook and other tech platforms including Google and Twitter have had to face lawmakers in recent months to defend their content moderation and distribution practices. Sen. Josh Hawley, R-Mo., has even introduced legislation tying legal protections for tech companies to voluntary audits that would assess whether their platforms’ algorithms and content removal practices are “politically neutral.”

Subscribe to CNBC on YouTube.

WATCH: Why Facebook’s business model is only now coming under fire


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: lauren feiner
Keywords: news, cnbc, companies, work, facebook, concerns, trust, interviewed, report, finds, facebooks, team, republicanled, conservatives, conservative, content, bias, earn, significant


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

White House official denies administration is looking at a payroll tax cut

President Donald Trump during a cabinet meeting at the White House July 16, 2019 in Washington, DC. Top White House officials have started to float a payroll tax cut as a potential means to stem an economic downturn, The Washington Post reported Monday. A White House official later pushed back on the report in a statement to CNBC. The Trump administration has not yet decided whether to push Congress to pass a temporary payroll tax cut, according to the newspaper. Rep. John Larson, D-Conn., has p


President Donald Trump during a cabinet meeting at the White House July 16, 2019 in Washington, DC. Top White House officials have started to float a payroll tax cut as a potential means to stem an economic downturn, The Washington Post reported Monday. A White House official later pushed back on the report in a statement to CNBC. The Trump administration has not yet decided whether to push Congress to pass a temporary payroll tax cut, according to the newspaper. Rep. John Larson, D-Conn., has p
White House official denies administration is looking at a payroll tax cut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: jacob pramuk
Keywords: news, cnbc, companies, tax, report, trump, house, official, administration, looking, president, post, democrats, white, recession, denies, payroll, cut


White House official denies administration is looking at a payroll tax cut

President Donald Trump during a cabinet meeting at the White House July 16, 2019 in Washington, DC.

Top White House officials have started to float a payroll tax cut as a potential means to stem an economic downturn, The Washington Post reported Monday.

A White House official later pushed back on the report in a statement to CNBC.

“As Larry Kudlow said yesterday, more tax cuts for the American people are certainly on the table, but cutting payroll taxes is not something under consideration at this time,” the official said.

The report comes as President Donald Trump in recent days has lashed out over media reports about growing recession fears. He has hammered into the Federal Reserve and claimed concerns about a slowdown are fueled by Democrats and a sympathetic media ahead of his 2020 reelection bid. (The bond market flashed a reliable signal of a potential recession last week).

“Our Economy is very strong, despite the horrendous lack of vision by [Chair] Jay Powell and the Fed, but the Democrats are trying to ‘will’ the Economy to be bad for purposes of the 2020 Election,” the president wrote in a tweet Monday.

The Trump administration has not yet decided whether to push Congress to pass a temporary payroll tax cut, according to the newspaper. Still, the talks show the officials around Trump have worried about the possibility of a slowdown.

It is doubtful the Democratic-controlled House would even pass a payroll tax. The 6.2% tax helps to fund Medicare and Social Security, two massive programs Democrats have repeatedly warned against altering.

Rep. John Larson, D-Conn., has proposed a plan to raise the payroll tax to keep Social Security solvent.

A survey cited by the Post found nearly 3 out of 4 economists predict a recession by 2021.

Read the full Post report here.

Subscribe to CNBC on YouTube.


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: jacob pramuk
Keywords: news, cnbc, companies, tax, report, trump, house, official, administration, looking, president, post, democrats, white, recession, denies, payroll, cut


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Apple is spending $6 billion on original shows and trying to beat Disney+ to market, reports FT

Apple has committed to spend more than $6 billion on original TV shows and movies for its forthcoming Apple TV+ service, according to a Financial Times report on Monday. The report emphasizes Apple’s willingness to spend deeply to create enough original content to break into a competitive over-the-top streaming service market that will eventually include Netflix, Disney, NBCUniversal, and Amazon as competitors. Apple also sells Apple TV Channels, a related but separate product that enables users


Apple has committed to spend more than $6 billion on original TV shows and movies for its forthcoming Apple TV+ service, according to a Financial Times report on Monday. The report emphasizes Apple’s willingness to spend deeply to create enough original content to break into a competitive over-the-top streaming service market that will eventually include Netflix, Disney, NBCUniversal, and Amazon as competitors. Apple also sells Apple TV Channels, a related but separate product that enables users
Apple is spending $6 billion on original shows and trying to beat Disney+ to market, reports FT Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: kif leswing
Keywords: news, cnbc, companies, thrones, billion, disney, streaming, apple, report, beat, reports, spending, according, spend, trying, tv, original, market, service, ft, shows


Apple is spending $6 billion on original shows and trying to beat Disney+ to market, reports FT

Apple has committed to spend more than $6 billion on original TV shows and movies for its forthcoming Apple TV+ service, according to a Financial Times report on Monday.

Apple previously said to expect its streaming service focusing on original content to launch in the fall, and the report says that Apple is looking to turn its service live in the next two months, before Disney+ launches on November 12.

The report emphasizes Apple’s willingness to spend deeply to create enough original content to break into a competitive over-the-top streaming service market that will eventually include Netflix, Disney, NBCUniversal, and Amazon as competitors.

Apple also sells Apple TV Channels, a related but separate product that enables users to individually subscribe to services like HBO and Showtime and bundles all of them together in its TV app.

Apple revealed TV+ during a star-studded event this March on its campus in Cupertino, California, confirming at least seven series for the service, including shows produced by Steven Spielberg and Oprah Winfrey. However, no release date or price for the service has been disclosed by Apple.

Apple is considering $9.99 a month for TV+, three dollars more than Disney+, according to a report from Bloomberg.

On Monday, Apple released a trailer for “The Morning Show,” a drama that will air on Apple’s streaming service. Apple paid more per episode for the Jennifer Aniston and Reese Witherspoon show than “Game of Thrones” cost in its final season, according to the report.

Variety previously reported that episodes in the last season Game of Thrones cost $15 million each.

Apple declined to comment.

Read the original FT article here.


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: kif leswing
Keywords: news, cnbc, companies, thrones, billion, disney, streaming, apple, report, beat, reports, spending, according, spend, trying, tv, original, market, service, ft, shows


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

GE rebounds after CEO share purchases, Wall Street analysts come to company’s defense

General Electric bounced back Friday after the CEO shored up confidence by purchasing a bulk of company shares, and analysts defended the industrial giant. The CEO has roughly doubled his holding of GE shares this week. In the 175-page report, Markopolos accused GE of $38 billion in accounting fraud — “bigger than Enron and WorldCom combined.” “It’s going to make this company probably file for bankruptcy,” Markopolos told CNBC’s “Squawk on the Street ” on Thursday. Markopolos told CNBC that he w


General Electric bounced back Friday after the CEO shored up confidence by purchasing a bulk of company shares, and analysts defended the industrial giant. The CEO has roughly doubled his holding of GE shares this week. In the 175-page report, Markopolos accused GE of $38 billion in accounting fraud — “bigger than Enron and WorldCom combined.” “It’s going to make this company probably file for bankruptcy,” Markopolos told CNBC’s “Squawk on the Street ” on Thursday. Markopolos told CNBC that he w
GE rebounds after CEO share purchases, Wall Street analysts come to company’s defense Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: kate rooney
Keywords: news, cnbc, companies, street, report, shares, told, rebounds, stock, purchases, wall, companys, ceo, morning, defense, worldcom, come, markopolos, share, accounting, ge


GE rebounds after CEO share purchases, Wall Street analysts come to company's defense

General Electric bounced back Friday after the CEO shored up confidence by purchasing a bulk of company shares, and analysts defended the industrial giant.

GE’s stock was up more than 6% on Friday morning following its biggest drop since April 2008 a day earlier. The shares had tanked 11% on Thursday.

The stock began its downward spiral Thursday morning after Harry Markopolos, best-known for pointing out irregularities with Bernie Madoff’s investment strategy years before the Ponzi scheme was exposed, published a report accusing GE of fraudulent financial statements.

Larry Culp, who took over the struggling industrial conglomerate last year, bought 252,200 shares for $7.93 each, according to a Thursday evening filing with the SEC. The CEO has roughly doubled his holding of GE shares this week.

In the 175-page report, Markopolos accused GE of $38 billion in accounting fraud — “bigger than Enron and WorldCom combined.” He outlined a “long history” of accounting fraud at GE, dating to as early as 1995, when it was run by Jack Welch.

“It’s going to make this company probably file for bankruptcy,” Markopolos told CNBC’s “Squawk on the Street ” on Thursday. “WorldCom and Enron lasted about four months. … We’ll see how GE does.”

A U.S. hedge fund, which Markopolos wouldn’t name, paid Markopolos to conduct the report. Markopolos told CNBC that he was getting a “decent percentage” of profits that the hedge fund would make from betting against GE.

Culp, who is a former CEO of Danaher, said the accusations were false, and driven by incentives to profit off of GE’s stock drop.

“GE will always take any allegation of financial misconduct seriously. But this is market manipulation – pure and simple,” he said in a statement. “Mr. Markopolos’s report contains false statements of fact and these claims could have been corrected if he had checked them with GE before publishing the report.”

Leslie Seidman, a GE board director and chair of its audit committee, also pushed back on the Markopolos report, which she said contained “numerous novel interpretations and downright mistakes about the actual accounting requirements.”

“In his own words, he stands to personally financially benefit from today’s significant market reaction to his report,” she said Thursday. “He is selectively front-running widely reported regulatory processes and rigorous investigations without the benefit of any access to GE’s books and records.”


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: kate rooney
Keywords: news, cnbc, companies, street, report, shares, told, rebounds, stock, purchases, wall, companys, ceo, morning, defense, worldcom, come, markopolos, share, accounting, ge


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Analyst says GE stock recovering because Madoff whistleblower fraud allegations are baseless

This is why all the insiders are buying,” Heymann told CNBC on Friday, one day after GE shares tanked 11% to $8.01 per share, in their worst trading session in more than a decade. Leslie Seidman, a GE board director and audit committee chair, also pushed back on the Markopolos report, telling CNBC on Thursday that it “does not reflect the GE that I know.” In a 175-page report, Markopolos accused GE of issuing fraudulent financial statements to hide the extent of its accounting problems. He told


This is why all the insiders are buying,” Heymann told CNBC on Friday, one day after GE shares tanked 11% to $8.01 per share, in their worst trading session in more than a decade. Leslie Seidman, a GE board director and audit committee chair, also pushed back on the Markopolos report, telling CNBC on Thursday that it “does not reflect the GE that I know.” In a 175-page report, Markopolos accused GE of issuing fraudulent financial statements to hide the extent of its accounting problems. He told
Analyst says GE stock recovering because Madoff whistleblower fraud allegations are baseless Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: matthew j belvedere
Keywords: news, cnbc, companies, told, report, whistleblower, madoff, ge, allegations, markopolos, financial, heymann, fraud, baseless, accounting, stock, recovering, billion, shares, analyst


Analyst says GE stock recovering because Madoff whistleblower fraud allegations are baseless

The allegations by Madoff whistleblower Harry Markopolos of a $38 billion fraud at General Electric are “at best disingenuous” and “at worst highly inaccurate,” according to Nick Heymann, co-group head of global industrial infrastructure at the William Blair financial services firm.

“You got the stock on sale yesterday for absolutely no basis. This is why all the insiders are buying,” Heymann told CNBC on Friday, one day after GE shares tanked 11% to $8.01 per share, in their worst trading session in more than a decade.

GE stock on Friday regained most of the losses after the troubled conglomerate late Thursday revealed that CEO Larry Culp purchased nearly $2 million worth of shares. The purchase was made after Markopolos called the company “a bigger fraud than Enron.”

Culp, who became chairman and CEO of GE last year, said the Markopolos accusations were false and driven by market manipulation. Leslie Seidman, a GE board director and audit committee chair, also pushed back on the Markopolos report, telling CNBC on Thursday that it “does not reflect the GE that I know.” She added that the report is “full of misleading, inaccurate and inflammatory statements.”

Earlier Thursday, billionaire investor Stanely Druckenmiller told CNBC that he added to his position in GE, which according to SEC filings already totaled 6.2 million shares. Druckenmiller said he believes in Culp’s turnaround plans.

In a 175-page report, Markopolos accused GE of issuing fraudulent financial statements to hide the extent of its accounting problems. He told CNBC on Thursday that GE is a bankruptcy waiting to happen. Markopolos, best-known for pointing out irregularities with Bernie Madoff’s investment strategy years before the Ponzi scheme was exposed, also said he conducted the research into GE at the behest of a hedge fund, which he refused to name.

“The two noncash charges that [Markopolos] alleges should be currently reflected on GE’s balance sheet, which collectively total $18.2 billion, those are not accurate under GAAP accounting,” Heymann said. The company is already cooperating with Justice Department and SEC inquiries into its accounting practices.

“If this was announced in 2016 or 2017, it would be a very different, real, substantive pulling back of the covers,” argued Heymann. In January 2018, he pointed out, GE’s long-term care insurance unit had to boost reserves by $15 billion. Markopolos claims another $18.5 billion of insurance loss reserves are needed.

Admitting he’s not knowledgeable enough to say either way whether Markopolos is correct about the $18.5 billion, Heymann said GE could easily afford that amount if it were required.

“The immediate liquidity of the company — unrestricted cash, revolving lines less commercial paper outstanding — is over $60 billion. That’s write a check,” Heymann said. He added that GE would be getting $21.4 billion in the fall from the BioPharma sale, and could sell its health-care unit for about $46 billion and the rest of Baker Hughes for $5.5 billion. “That gives you a $133 billion of intermediate-term cash liquidity to address an $18.5 billion alleged requirement,” Heymann calculated.

“This is the last Molotov cocktail that someone is throwing down the street,” Heymann said of the Markopolos report, suggesting it’s a desperate attempt to disparage GE for profit.

In a note to William Blair clients, Heymann wrote, “We do not believe GE’s financial statements purposely misrepresent the company’s current financial condition and future potential liabilities. We find it hard to believe that GE, which has been engaged with several regulatory reviews of its accounting and financial disclosures for over two years, has fraudulently misrepresented its financial reporting.”

Heymann was among a number of analysts on Friday who were defending GE following the Markopolos report.


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: matthew j belvedere
Keywords: news, cnbc, companies, told, report, whistleblower, madoff, ge, allegations, markopolos, financial, heymann, fraud, baseless, accounting, stock, recovering, billion, shares, analyst


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post