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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Capitalism ‘will fundamentally be in jeopardy’ if business does not act on climate change, Microsoft CEO Satya Nadella says

The science is clear that environmental sustainability must factor in a corporation’s growth plans, or the capitalist and economic system the U.S. enjoys “will fundamentally be in jeopardy,” Microsoft CEO Satya Nadella told CNBC Thursday. Climate change has emerged as a top global concern and many executives are rolling out new models to become more eco-friendly. I think that’s one of the things that we’ve prided ourselves on, whether that’s investing in the region through the housing or whether


The science is clear that environmental sustainability must factor in a corporation’s growth plans, or the capitalist and economic system the U.S. enjoys “will fundamentally be in jeopardy,” Microsoft CEO Satya Nadella told CNBC Thursday.
Climate change has emerged as a top global concern and many executives are rolling out new models to become more eco-friendly.
I think that’s one of the things that we’ve prided ourselves on, whether that’s investing in the region through the housing or whether
Capitalism ‘will fundamentally be in jeopardy’ if business does not act on climate change, Microsoft CEO Satya Nadella says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: tyler clifford
Keywords: news, cnbc, companies, capitalism, microsoft, sustainability, planet, fundamentally, climate, ceo, think, executives, return, nadella, thats, change, does, carbon, satya, company, problems, jeopardy


Capitalism 'will fundamentally be in jeopardy' if business does not act on climate change, Microsoft CEO Satya Nadella says

The science is clear that environmental sustainability must factor in a corporation’s growth plans, or the capitalist and economic system the U.S. enjoys “will fundamentally be in jeopardy,” Microsoft CEO Satya Nadella told CNBC Thursday.

“The corporation’s purpose is to find profitable solutions to the problems of people and planet,” he said in a sit down with Jim Cramer on “Mad Money,” citing author and University of Oxford business professor Colin Mayer. “‘Profitable’ is the key word, but ‘problems’ is the other key word for people and planet.”

The comments came after Microsoft, the world’s largest software company, announced an ambitious green plan intended to eliminate its carbon footprint and remove the amount of carbon it has emitted over the decades.

Climate change has emerged as a top global concern and many executives are rolling out new models to become more eco-friendly. Microsoft wants to be carbon negative by 2030. By 2050, the company’s goal is to remove as much carbon from the atmosphere as it produced since it was founded in 1975.

“So I think what happens is if you’re creating a lot of profit and creating more problems for planet or people, I think it’ll catch up with you,” Nadella said. “I’m always saying our shareholders are the ones who are giving us permission to be able to think about [this] … and therefore we are accountable to them to execute on these commitments that we are making, and that’s good for business.”

Microsoft said the effort will demand development of new technologies by 2030 that do not exist today. The company is creating a “Climate Innovation Fund” of $1 billion to invest in carbon-removal technology over the coming years.

More and more companies are putting out sustainability goals at a time where President Donald Trump has tapped the brakes on a number of the country’s climate initiatives, such as pulling the U.S. out of the multilateral 2017 Paris Agreement. Last year, almost 200 chief executives who were part of the Business Roundtable, made a pact to change the “purpose of a corporation” to take social, economic and environmentally issues into account just as much as shareholders.

Investors historically have thumbed their noses when companies make moves that could impact their bottom line negatively, but sustainable-focused investing has been heating up on Wall Street in recent years as the public increasingly demand officials and executives reduce their impact on the planet. Earlier this week, BlackRock, the world’s largest money manager, made sustainability its “new standard for investing” in an annual letter to executives from CEO Larry Fink.

Microsoft’s CFO Amy Hood, appearing alongside Nadella later in the interview, said the eco-friendly program along with the company’s $750 million commitment to affordable housing in Seattle, Washington “are good return investments.”

She stopped short of projecting what the return on investment in these initiatives would be, but explained that it will be measured and the company will hold itself accountable.

“I take a very long-term view. I think that’s one of the things that we’ve prided ourselves on, whether that’s investing in the region through the housing or whether the announcement this morning on climate,” Hood said. “I mean, these are fundamentally issues of business return and I look at that … quite closely.”

Microsoft is the second largest company in the U.S. with a market value of $1.27 trillion, just behind Apple. Apple, Microsoft and Alphabet make up the three companies trading on Wall Street that are worth more than $1 trillion.

On Thursday, Microsoft shares advanced almost 2% to an all-time closing high of $166.17.


Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: tyler clifford
Keywords: news, cnbc, companies, capitalism, microsoft, sustainability, planet, fundamentally, climate, ceo, think, executives, return, nadella, thats, change, does, carbon, satya, company, problems, jeopardy


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The IRS delayed refunds for 275,000 taxpayers last year. Here’s why

MaskotIf you waited more than a month for the IRS to process your tax return and get a refund last year, you’re in good company. These taxpayers were flagged because they claimed the earned income tax credit, the additional child tax credit or they had incomplete wage and withholding data on their Form W-2. Approximately 275,000 of these tax returns were held for more than 40 days, resulting in financial hardship for people who relied on those refunds. While delayed refunds may be a nuisance for


MaskotIf you waited more than a month for the IRS to process your tax return and get a refund last year, you’re in good company.
These taxpayers were flagged because they claimed the earned income tax credit, the additional child tax credit or they had incomplete wage and withholding data on their Form W-2.
Approximately 275,000 of these tax returns were held for more than 40 days, resulting in financial hardship for people who relied on those refunds.
While delayed refunds may be a nuisance for
The IRS delayed refunds for 275,000 taxpayers last year. Here’s why Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: darla mercado
Keywords: news, cnbc, companies, irs, returns, refunds, return, taxpayers, tax, refund, 275000, heres, credit, 2019, process, delayed


The IRS delayed refunds for 275,000 taxpayers last year. Here's why

Maskot

If you waited more than a month for the IRS to process your tax return and get a refund last year, you’re in good company. While the IRS prevented $2.7 billion in refunds from being issued to fraudsters between Jan. 1 and Sept. 30, 2019, more than a few legitimate tax returns were held up in the process, according to a recent report from the Taxpayer Advocate Service, an internal watchdog for the IRS. The tax agency debuted a new fraud algorithm — Filter X — last year that suspended about 1.1 million returns through Sept. 26, 2019. These taxpayers were flagged because they claimed the earned income tax credit, the additional child tax credit or they had incomplete wage and withholding data on their Form W-2. Approximately 275,000 of these tax returns were held for more than 40 days, resulting in financial hardship for people who relied on those refunds. Even tax pros aren’t exempt from refund delays.

Dan Herron, CPA and principal of Elemental Wealth Advisors in San Luis Obispo, California, has been waiting close to a year for an $800 refund from the taxman after filing his 2018 return. Initially, the IRS sought more information on the accountant’s return, which he filed in March 2019. The agency said Herron’s return was flagged for potential identity theft, he said. The return included a Form W-2 that reports Herron’s wages, a Schedule K-1 from his backpack manufacturer side-business and a Form 1099-B, which spells out gains and losses from the sale of investments. The accountant has spent the last 10 months supplying the agency with hard copies of his return and supporting documents via certified mail, plus hours on the phone wading through call center menus and speaking with different staffers. “Welcome to my nightmare: I get paid to do this, and I’m going through it,” Herron said. “Nobody is immune.”

Fending off scams

Andrew Harrer | Bloomberg | Getty Images

Filter X isn’t the only program that has caught up legitimate returns during the 2019 tax year. Other refund fraud filters have had a false positive rate of 71%, the Taxpayer Advocate found. It took an average of 38 days to process those returns. While delayed refunds may be a nuisance for some, many taxpayers rely on those checks. Filers who received money back from Uncle Sam last year received an average of $2,860, the IRS found. People use the money to pay off surprise medical bills and lower credit card debt.

Welcome to my nightmare: I get paid to do this, and I’m going through it. Dan Herron CPA and principal of Elemental Wealth Advisors

“If refunds for lower-income people are being held up as an enforcement matter, that’s not even where the revenue savings are,” said Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Policy. Indeed, households that claim the earned income tax credit or the additional tax credit — and who are thus likely to be low-income — already have their refunds delayed until late February, due to additional screening by the IRS. “The tension between preventing fraud and expediting refunds has been a constant, especially in the earned income tax credit program, for many years,” said Pete Sepp, president of the National Taxpayers Union.

Improvements in 2020


Company: cnbc, Activity: cnbc, Date: 2020-01-15  Authors: darla mercado
Keywords: news, cnbc, companies, irs, returns, refunds, return, taxpayers, tax, refund, 275000, heres, credit, 2019, process, delayed


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American Airlines cuts Boeing 737 Max from schedules until June as more delays arise

American has taken the 737 Max off its schedules through June 3, more than a full year later than it expected. American Airlines on Tuesday said it is pulling the Boeing 737 Max from its schedules until early June as the date of the troubled plane’s return to service becomes more uncertain and the manufacturer calls for time-consuming simulator training for pilots before they can fly the plane again. Last week, Boeing about-faced on simulator training, saying pilots should undergo that time-cons


American has taken the 737 Max off its schedules through June 3, more than a full year later than it expected.
American Airlines on Tuesday said it is pulling the Boeing 737 Max from its schedules until early June as the date of the troubled plane’s return to service becomes more uncertain and the manufacturer calls for time-consuming simulator training for pilots before they can fly the plane again.
Last week, Boeing about-faced on simulator training, saying pilots should undergo that time-cons
American Airlines cuts Boeing 737 Max from schedules until June as more delays arise Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: leslie josephs
Keywords: news, cnbc, companies, airlines, return, delays, arise, american, training, grounding, planes, schedules, 737, later, max, simulator, boeing, pilots, cuts


American Airlines cuts Boeing 737 Max from schedules until June as more delays arise

United Airlines also doesn’t expect the Max to return until early June — a sign carriers, which have already lost more than $1 billion in revenue from the grounding, are expecting the problem to extend to the peak second- and third-quarter travel seasons.

American has taken the 737 Max off its schedules through June 3, more than a full year later than it expected. The planes have been grounded since mid-March after two fatal crashes over five months killed 346 people and sent Boeing into the biggest crisis in its more than 100-year history.

American Airlines on Tuesday said it is pulling the Boeing 737 Max from its schedules until early June as the date of the troubled plane’s return to service becomes more uncertain and the manufacturer calls for time-consuming simulator training for pilots before they can fly the plane again.

It has becoming increasingly less clear when the planes will be able to fly again. Boeing is planning to temporarily shut down production of the planes this month as it works to win over regulators on fixes prompted by the two crashes. Last week, Boeing about-faced on simulator training, saying pilots should undergo that time-consuming preparation before the planes return to commercial service.

A lack of simulator training was a key selling point to airlines and shocking emails recently revealed Boeing employees boasted about bullying regulators and airlines into accepting the jets without requiring pilots to undergo the additional training. That change promises to add to Boeing’s costs and possible revenue losses for airlines.

American estimates the grounding cost it $540 million in pretax income last year. Last week, the Fort Worth, Texas-based airline said it reached an initial compensation agreement with Boeing. It didn’t disclose the terms but said it would share $30 million with its employees. Pilots said they would seek additional compensation for lost income after the carrier had to slash its growth plans for the year. American had 24 of the planes in its fleet at the time of the grounding and expected to have 40 more by the end of 2019, and 10 additional in 2020.

The airline said that it will operate flights for American Airlines employees and “invited guests” before the planes return to commercial service. American reports earnings later this month.

Boeing took a $4.9 billion charge last July to compensate its 737 Max customers. As the grounding drags on, that amount may rise and the company is set to update investors on that cost later this month.


Company: cnbc, Activity: cnbc, Date: 2020-01-14  Authors: leslie josephs
Keywords: news, cnbc, companies, airlines, return, delays, arise, american, training, grounding, planes, schedules, 737, later, max, simulator, boeing, pilots, cuts


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Salvini’s return? A regional vote in Italy risks further chaos in Rome

The face of anti-immigration politics in Italy could be about to make a comeback amid an election in the northeast region of Emilia-Romagna. However, with regional elections due later this month, analysts are wondering whether Salvini could return to government soon. “The regional election in Emilia-Romagna on 26 January is by far the most important political event that could determine the shelf life of the government,” Wolfango Piccoli, co-president of the research firm Teneo, said in a note Fr


The face of anti-immigration politics in Italy could be about to make a comeback amid an election in the northeast region of Emilia-Romagna.
However, with regional elections due later this month, analysts are wondering whether Salvini could return to government soon.
“The regional election in Emilia-Romagna on 26 January is by far the most important political event that could determine the shelf life of the government,” Wolfango Piccoli, co-president of the research firm Teneo, said in a note Fr
Salvini’s return? A regional vote in Italy risks further chaos in Rome Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-13  Authors: silvia amaro
Keywords: news, cnbc, companies, election, risks, vote, region, rome, salvinis, salvini, regional, chaos, win, lega, italy, party, return, m5s


Salvini's return? A regional vote in Italy risks further chaos in Rome

The face of anti-immigration politics in Italy could be about to make a comeback amid an election in the northeast region of Emilia-Romagna.

Matteo Salvini, head of the right-leaning Lega party, left the Italian government abruptly in the summer of 2019 after clashing with his coalition partner – the Five Star Movement (M5S), a party supportive of more social benefits. Salvini decided to put forward a motion of no confidence on the then prime minister Giuseppe Conte. His move, dubbed by critics as an attempt to govern Italy alone, led M5S to join forces with Partito Democratico (PD) – a pro-European social democratic party, averting the need for a snap election and thus stopping Salvini from potentially forming a government.

However, with regional elections due later this month, analysts are wondering whether Salvini could return to government soon.

“The regional election in Emilia-Romagna on 26 January is by far the most important political event that could determine the shelf life of the government,” Wolfango Piccoli, co-president of the research firm Teneo, said in a note Friday.

The region of Emilia Romagna, which includes the emblematic city of Bologna, has traditionally supported left-leaning parties. However, polls suggest that the candidate for the anti-immigration Lega party could win the vote and give the party its ninth consecutive win in regional ballots since the last national election in 2018, according to Reuters.

“Salvini has been campaigning in the region since November, pledging to ‘liberate’ it from the left. A PD (Partito Democratico) defeat at the hands of Salvini’s Lega would strip the center-left party of its symbolic heartland, and likely trigger an internal confrontation,” Piccoli added.

If the upcoming regional vote ends up seeing a victory for the Lega party, both the PD and the M5S would be under pressure – potentially leading their current government to an end.

“The (election) risks are significant because a loss could not only encourage the PD to leave its coalition with the M5S as it looks for a new identity, but it could also trigger an implosion of the M5S,” Erik Jones, professor of European Studies at Johns Hopkins University in Italy, told CNBC Monday.

“The M5S does not typically do well in regional elections and is currently polling only at about 8% in the region. But this region is also where M5S started, and where it first entered into local government. So, a devastating loss here will fuel ammunition for those who don’t like (Luigi) Di Maio (M5S’ leader) and who worry that the Movement has lost its way.”


Company: cnbc, Activity: cnbc, Date: 2020-01-13  Authors: silvia amaro
Keywords: news, cnbc, companies, election, risks, vote, region, rome, salvinis, salvini, regional, chaos, win, lega, italy, party, return, m5s


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Electric buses return to Glasgow for first time in more than 50 years

Two fully-electric buses have been introduced to the streets of Glasgow, Scotland, representing the city’s first use of such transport on a commercial route in almost 53 years. It is the first time electric buses for commercial use have run in Scotland’s biggest city since electric trolley buses were taken offline in 1967. In an announcement at the end of last week, operator First Glasgow said funding for the buses came through a £20 million ($25.97 million) Green Economy Fund from SP Energy Net


Two fully-electric buses have been introduced to the streets of Glasgow, Scotland, representing the city’s first use of such transport on a commercial route in almost 53 years.
It is the first time electric buses for commercial use have run in Scotland’s biggest city since electric trolley buses were taken offline in 1967.
In an announcement at the end of last week, operator First Glasgow said funding for the buses came through a £20 million ($25.97 million) Green Economy Fund from SP Energy Net
Electric buses return to Glasgow for first time in more than 50 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-13  Authors: anmar frangoul
Keywords: news, cnbc, companies, glasgow, buses, carbon, city, electric, scotlands, scotland, million, climate, commercial, return


Electric buses return to Glasgow for first time in more than 50 years

Two fully-electric buses have been introduced to the streets of Glasgow, Scotland, representing the city’s first use of such transport on a commercial route in almost 53 years.

It is the first time electric buses for commercial use have run in Scotland’s biggest city since electric trolley buses were taken offline in 1967.

In an announcement at the end of last week, operator First Glasgow said funding for the buses came through a £20 million ($25.97 million) Green Economy Fund from SP Energy Networks.

First Glasgow will also use the money to install 22 charging points at its Glasgow Caledonia Depot, which the firm said would enable it to introduce more electric buses to its fleet.

The introduction of the buses comes at the start of a year which will see Glasgow host the COP26 climate summit in November. Glaswegian authorities want the city to be carbon neutral by the year 2030.

At the launch, Scotland’s First Minister, Nicola Sturgeon MSP, said: “Scotland was one of the first countries to acknowledge that we are facing a global climate emergency and we have legislated for the most ambitious carbon reduction target of any country in the world.”


Company: cnbc, Activity: cnbc, Date: 2020-01-13  Authors: anmar frangoul
Keywords: news, cnbc, companies, glasgow, buses, carbon, city, electric, scotlands, scotland, million, climate, commercial, return


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Citigroup reveals its top tech pick out of CES

Nvidia’s stock will rally with the return to growth in the chipmaker industry, according to Citigroup. The firm added Nvidia to its “catalyst watch list” following a bullish CES meeting, sending shares of the stock up more than 1.6% on Friday. Citi has a buy rating and a $245 per share price target on Nvidia, which closed at $243.02 per share on Thursday. Nvidia hosted an investor lunch at technology conference CES this week, and overall, the company continues to build on new data center and gam


Nvidia’s stock will rally with the return to growth in the chipmaker industry, according to Citigroup.
The firm added Nvidia to its “catalyst watch list” following a bullish CES meeting, sending shares of the stock up more than 1.6% on Friday.
Citi has a buy rating and a $245 per share price target on Nvidia, which closed at $243.02 per share on Thursday.
Nvidia hosted an investor lunch at technology conference CES this week, and overall, the company continues to build on new data center and gam
Citigroup reveals its top tech pick out of CES Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, data, nvidia, industry, tech, reveals, pick, citigroup, ces, stock, center, share, malik, months, return


Citigroup reveals its top tech pick out of CES

Jen-Hsun Huang, president and chief executive officer of Nvidia Corp., holds a Nvidia Volta 125 Teraflops per second (TFLOPS) Tensor Core as he speaks during an event at the 2018 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Sunday, Jan. 7, 2018.

Nvidia’s stock will rally with the return to growth in the chipmaker industry, according to Citigroup.

The firm added Nvidia to its “catalyst watch list” following a bullish CES meeting, sending shares of the stock up more than 1.6% on Friday. Citi has a buy rating and a $245 per share price target on Nvidia, which closed at $243.02 per share on Thursday.

We “expect stock to outperform the group on a relative basis in next three months,” said Citigroup research analyst Atif Malik in a note to clients on Friday. “Nvidia is excited about a return to growth as the industry is leaning into the next wave of AI over the next multiple years.”

Nvidia hosted an investor lunch at technology conference CES this week, and overall, the company continues to build on new data center and gaming products and partnerships, Malik said. Improvement in data center demand, a closure of the Mellanox acquisition, and a new data center platform announcement slated for March, will all drive the stock upward in the next few months, he added.


Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, data, nvidia, industry, tech, reveals, pick, citigroup, ces, stock, center, share, malik, months, return


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Goldman Sachs is telling wealthy clients stock returns will be much less this year

Brendan McDermid | ReutersGoldman Sachs is telling its wealthy clients not to expect 2019’s blowout returns again this year. “Strong erstwhile returns have borrowed from future gains,” Sharmin Mossavar-Rahmani, Goldman Sachs Investment Strategy Group CIO, said in the group’s 2020 outlook. Goldman’s base case estimates the S&P 500 will return 6% in 2020, with a 55% probability. The S&P 500 returned a whopping 30% in 2019, helped by the Federal Reserve’s three rate cuts to spur economic growth. Th


Brendan McDermid | ReutersGoldman Sachs is telling its wealthy clients not to expect 2019’s blowout returns again this year.
“Strong erstwhile returns have borrowed from future gains,” Sharmin Mossavar-Rahmani, Goldman Sachs Investment Strategy Group CIO, said in the group’s 2020 outlook.
Goldman’s base case estimates the S&P 500 will return 6% in 2020, with a 55% probability.
The S&P 500 returned a whopping 30% in 2019, helped by the Federal Reserve’s three rate cuts to spur economic growth.
Th
Goldman Sachs is telling wealthy clients stock returns will be much less this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, returns, sachs, telling, return, clients, wealthy, 500, returned, stock, average, goldman, 2020


Goldman Sachs is telling wealthy clients stock returns will be much less this year

Traders work on the floor at the New York Stock Exchange. Brendan McDermid | Reuters

Goldman Sachs is telling its wealthy clients not to expect 2019’s blowout returns again this year. The firm’s private bank, which manages about $1.5 trillion in assets, estimates U.S. equities will gain about 6% in 2020, a modest return after 2019’s near 30% rally. “Strong erstwhile returns have borrowed from future gains,” Sharmin Mossavar-Rahmani, Goldman Sachs Investment Strategy Group CIO, said in the group’s 2020 outlook. Goldman’s base case estimates the S&P 500 will return 6% in 2020, with a 55% probability. In its good case, the index will return 12%, with a 25% probability.

The S&P 500 returned a whopping 30% in 2019, helped by the Federal Reserve’s three rate cuts to spur economic growth. Plus, a “phase one” trade deal between the U.S. and China and lower risks of a disorderly Brexit boosted investor sentiment. Alongside equities, corporate bonds, government bonds and commodities such as gold and oil all advanced last year. “The magnitude of this gain was second only to its persistence,” Goldman’s note said, adding that the S&P 500 rose on nearly 60% of last year’s trading days.

Stay invested

While Goldman anticipates modest gains this year, it is still recommending clients keep their money in the market. “Given our view of a low probability of recession … the economic and policy backdrop favors staying invested,’ said Mossavar-Rahmani. Historically, when the S&P 500 has returned 30% on a rolling 12-month basis — as it did in 2019 — the next year’s returns average 10.4%, with a positive price return 85% of the time. This average is higher than the average yearly return of the market in the post-WWII period, Goldman notes.


Company: cnbc, Activity: cnbc, Date: 2020-01-10  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, returns, sachs, telling, return, clients, wealthy, 500, returned, stock, average, goldman, 2020


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Expect Samsung’s memory chip performance to rebound in 2020: Analyst

Expect Samsung’s memory chip performance to rebound in 2020: AnalystMark Newman of Bernstein is optimistic that Samsung’s performance in 2020 for memory chips will see a successful “return” to better days after a disappointing turnout the previous year.


Expect Samsung’s memory chip performance to rebound in 2020: AnalystMark Newman of Bernstein is optimistic that Samsung’s performance in 2020 for memory chips will see a successful “return” to better days after a disappointing turnout the previous year.
Expect Samsung’s memory chip performance to rebound in 2020: Analyst Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-08
Keywords: news, cnbc, companies, previous, performance, expect, analyst, successful, memory, 2020, rebound, optimistic, chip, return, samsungs, turnout


Expect Samsung's memory chip performance to rebound in 2020: Analyst

Expect Samsung’s memory chip performance to rebound in 2020: Analyst

Mark Newman of Bernstein is optimistic that Samsung’s performance in 2020 for memory chips will see a successful “return” to better days after a disappointing turnout the previous year.


Company: cnbc, Activity: cnbc, Date: 2020-01-08
Keywords: news, cnbc, companies, previous, performance, expect, analyst, successful, memory, 2020, rebound, optimistic, chip, return, samsungs, turnout


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Here’s how much money you’d have if you invested $500 a month since 2009

If you invested $500 a month for 10 years and earned a 4% rate of return , you’d have $73,625 today. If you invested $500 a month for 10 years and earned a 6% rate of return , you’d have $81,940 today. If you invested $500 a month for 10 years and earned an 8% rate of return, you’d have $91,473 today. If you’d invested in a company such as Amazon or Google, whose stocks saw impressive returns over the past decade, your investment would have grown much faster than 8%. If you started investing $50


If you invested $500 a month for 10 years and earned a 4% rate of return , you’d have $73,625 today.
If you invested $500 a month for 10 years and earned a 6% rate of return , you’d have $81,940 today.
If you invested $500 a month for 10 years and earned an 8% rate of return, you’d have $91,473 today.
If you’d invested in a company such as Amazon or Google, whose stocks saw impressive returns over the past decade, your investment would have grown much faster than 8%.
If you started investing $50
Here’s how much money you’d have if you invested $500 a month since 2009 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-07  Authors: emmie martin
Keywords: news, cnbc, companies, earned, month, 500, stock, rate, heres, past, return, invested, today, 2009, money, youd


Here's how much money you'd have if you invested $500 a month since 2009

Over the past 10 years, inflation has typically risen between 1% and 3% per year. In 2019, it was about 2.1% . That means you’d need around $72,000 in 2019 to command the same purchasing power $60,000 would have granted you in 2009.

That might seem like a lot, but that $60,000 wouldn’t stretch quite as far today as the same amount would have 10 years ago. And it will be worth even less in another decade. That’s because of inflation , which causes prices to rise over time, making money less powerful. While a $20 bill will always be worth $20, what you’re able to buy with that amount dwindles.

If you started saving $500 a month at the beginning of the decade and put it into a savings account that earned little to no interest, you’d have about $60,000 today.

In order to beat inflation and ensure that your savings will work for you long term, it’s crucial to invest in the stock market, whether through an employer-sponsored 401(k) plan, a traditional or Roth IRA, an individual brokerage account or somewhere else.

Where you choose to invest your money within those investment vehicles matters too, because the amount you earn from the market hinges on the rate of return your investment garners.

Here’s exactly how much you’d have now if your investments had grown at a 4%, 6%, or 8% rate of return over the past decade, according to CNBC calculations.

If you invested $500 a month for 10 years and earned a 4% rate of return , you’d have $73,625 today.

, you’d have today. If you invested $500 a month for 10 years and earned a 6% rate of return , you’d have $81,940 today.

, you’d have today. If you invested $500 a month for 10 years and earned an 8% rate of return, you’d have $91,473 today.

If you’d invested in a company such as Amazon or Google, whose stocks saw impressive returns over the past decade, your investment would have grown much faster than 8%. However, investing in individual companies is risky. Any individual stock can over- or underperform, and past returns do not predict future results.

Other investments, such as low-cost index funds, might not have been the absolute most lucrative over the last 10 years, but they’re far less risky, which makes them a good long-term choice. Because they’re made up of all of the companies in a certain index, such as the S&P 500, they tend to weather market volatility better.

With an ETF, if one company’s stock tanks while another’s stock surges, those actions balance each other out in the index. But if you’re solely invested in a company whose stock ends up falling, you’re guaranteed a loss.

In the past decade, the S&P 500 had a total return of 225%. If you started investing $500 a month in an S&P 500 index fund 10 years ago, you’d have roughly $120,000 today, according to CNBC calculations. That’s just about double what you earned if you just left your money in a savings account.


Company: cnbc, Activity: cnbc, Date: 2020-01-07  Authors: emmie martin
Keywords: news, cnbc, companies, earned, month, 500, stock, rate, heres, past, return, invested, today, 2009, money, youd


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