GE - General Electric Company

NYSE - NYSE Delayed price. Currency in USD
12.25
-0.28 (-2.23%)
At close: 4:00PM EST
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Previous close12.53
Open12.45
Bid12.21 x 28000
Ask12.25 x 36900
Day's range12.22 - 12.46
52-week range7.65 - 13.26
Volume41,984,163
Avg. volume56,421,362
Market cap106.986B
Beta (5Y monthly)1.12
PE ratio (TTM)N/A
EPS (TTM)-0.62
Earnings date28 Apr 2020
Forward dividend & yield0.04 (0.32%)
Ex-dividend date05 Mar 2020
1y target est12.89
  • Warren Buffett Flashes ‘Urgent’
    Bloomberg

    Warren Buffett Flashes ‘Urgent’

    (Bloomberg Opinion) -- Warren Buffett says he’s in the “urgent zone.” It’s the folksy billionaire’s way of calling himself old. But even as Buffett approaches 90, the spotlight-loving chairman and CEO of Berkshire Hathaway Inc. isn’t ready just yet to talk about who will run his giant company when he’s gone. He still has more to say, and more to do — and that could make for an interesting year ahead.Buffett’s annual letter of intrigue arrived Saturday morning, a roundup of thoughts that the Oracle of Omaha has been publishing for six decades. It’s evolved over time into what reads like a love letter to shareholders, to insurance float — the lucrative gift that keeps on giving at Berkshire — and to America as a whole, while taking the occasional jab at Wall Street’s fee-giddy bankers and anyone who thinks Ebitda is an honest profit gauge. Lately, he’s also lamented the lack of cheap takeover targets. The company’s last splashy acquisition was in 2015, when it struck a $37 billion deal for airplane-parts supplier Precision Castparts. Berkshire had $128 billion of cash as of December, about the same level as the previous quarter and many billions more than Buffett would like to see sitting in a bank. The letter, one of two major yearly events for Berkshire investors and Buffett groupies (the other is the shareholder meeting each May) has become more condensed in recent years. But more important to readers is what’s written between the lines — hints of a major deal and signs that the world’s most celebrated businessman is about to step aside. I suspect the former will come before the latter, though not even Buffett can truly know.As mentioned, Buffett will turn 90 this summer, and his right-hand man Charlie Munger is 96. His letter contained an anecdote about a friend from his past who, at the relatively ripe age of 80-something, kept receiving requests from a local newspaper for biographical data so that it could prep the man’s obituary. The request was marked “URGENT.” “Charlie and I long ago entered the urgent zone,” Buffett wrote, assuring shareholders that their company is “100% prepared” for the sad day of their departure and even sharing some details about his will. In my decade covering Berkshire, it’s the most I can remember Buffett discussing what will happen when he’s gone.Over 12 to 15 years after his death, Buffett’s class A shares will be converted into B shares and distributed to various charities; the executors and trustees are otherwise instructed not to sell any Berkshire stock, no matter what. That’s putting a lot of faith in the next CEO, whoever it is. Buffett’s still keeping hush about his succession plans. But in a first this year, he said that shareholders can direct questions directly to his lieutenants, Greg Abel and Ajit Jain, at the May investor meeting. It’s something I suggested Berkshire should start doing at last year’s meeting, and indeed Buffett did hand Abel the mic in a rather symbolic, if impromptu, moment during the Q&A session. Not long ago, Abel’s title was expanded from head of Berkshire Hathaway Energy to vice chairman of all the company’s various operations — except for insurance, which is overseen by Jain. Notably, this year’s letter signaled a desire to invest more of the energy division’s retained earnings to take on large utility projects. He said Berkshire’s operations in the Omaha-based company’s neighboring state of Iowa will be wind self-sufficient by next year thanks to investments in wind turbines, which have helped to keep rates lower than the competition as profits soar. Berkshire Hathaway Energy and BNSF — the railroad Berkshire bought in 2009 — together earned $8.3 billion last year, making them two of the biggest contributors to profit. Abel’s rising profile, along with the emphasis on energy, leads me to wonder whether he’s not only being groomed to take over for Buffett, but also whether Abel could soon make his own M&A splash. Separately, Todd Combs, who manages some of Berkshire's stock-market portfolio, was recently tapped to be CEO of its Geico insurance business. Despite his dual-function sparking succession curiosity, he didn't get a shout-out in the letter.Buffett’s letter always includes a rant on the topics du jour, and this year’s was corporate governance. He penned a section on the “vexing problem” of subservient corporate boards made up of overpaid aging directors, especially those who don’t tap into their own savings to buy shares in the companies they serve. Of course, Berkshire is guilty of some of that. The average age of its board is 74 (including three nonagenarians). Buffett’s celebrity and track record has also allowed him to skirt many of the corporate governance customs expected of other CEOs, such as quarterly earnings calls, more detailed filings and returning cash to shareholders. His successor may not be given so much leeway, especially not with $128 billion sitting around. Reading that finger-wagging section, it was hard not to think of Boeing Co. and General Electric Co. — one company that was once seen as Buffett-investment quality, and another that in many ways tried to be like Berkshire. The downfall of each has been a devastating display of what can happen when leadership isn’t held to account, and I imagine that’s the sort of thing Buffett had in mind when he was writing. Then again, his investment in Kraft Heinz Co. is almost the pot calling the kettle black. Kraft Heinz juiced Ebitda by irresponsibly under-investing in its business — which goes completely against the Buffett way — and all the while it happened under Buffett’s nose. Berkshire is the largest shareholder, and while the Kraft Heinz holding is carried at $13.8 billion on its balance sheet, it had a market value of only $10.5 billion as of Dec. 31 (and is worth even less than that now).Buffett only reveals what he wants to, and it’s clear that succession is on his mind, as is his unending hunger for deals. Is it urgent enough for him to strike soon? To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • GE CEO Stands by Cash Forecast Despite Pressure From 737 Max
    Bloomberg

    GE CEO Stands by Cash Forecast Despite Pressure From 737 Max

    (Bloomberg) -- General Electric Co. stood by its goal of boosting cash flow this year despite a near-term drag from the production halt of Boeing Co.’s 737 Max.While the company’s cash burn could worsen to as much as $2 billion in the first quarter because of “pressure” from the Max crisis, GE expects a rebound later in the year, Chief Executive Officer Larry Culp said Wednesday at a Barclays conference. GE’s manufacturing businesses will generate as much as $4 billion in free cash this year, he reiterated.“It’s a significant step up, but still a good bit away from where we should be longer term,” he said.Culp’s sanguine outlook for 2020 offered a measure of relief to investors concerned over the Max’s impact on GE, which makes engines for Boeing’s best-selling jet. The plane has been grounded for almost a year following a pair of deadly crashes.GE rose 1.1% to $12.89 at 11:55 a.m. in New York. The stock climbed 14% this year though Tuesday, compared with a 3.1% advance for a Standard & Poor’s index of U.S. industrial companies. GE jumped 53% last year, a partial recovery after a share collapse the previous two years.GE Aviation’s cash flow this year should be “flat to up” despite the Max situation, Culp said. The health-care and power units may also see improvement, though cash flow in the renewable-energy division will be challenged, he said.GE expects to set aside about $100 million in the first quarter related to its old long-term care insurance business, a smaller amount than expected, Culp said. The company recently completed its statutory cash flow testing for the portfolio, he said.The figure “is a surprisingly positive outcome,” Thomas Gallagher, an analyst with Evercore ISI, said in a note. The firm had previously anticipated GE would need to put $500 million to $1 billion into reserves.Separately, Culp cautioned that the virus outbreak in China is a “wild card” for the near-term performance of the Boston-based company, which also makes power equipment and medical scanners.(Updates with CEO comment in third paragraph)To contact the reporter on this story: Richard Clough in New York at rclough9@bloomberg.netTo contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Susan WarrenFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Trump Rebukes His Hardliners, Blocks Curbs on China Sales
    Bloomberg

    Trump Rebukes His Hardliners, Blocks Curbs on China Sales

    (Bloomberg) -- President Donald Trump has intervened to stop his own administration’s developing plans to block sales of General Electric-made jet engines to China and other proposed restrictions on American exports, declaring that national security is being used too often by his own officials to limit American companies’ ability to transact with China.“We don’t want to make it impossible to do business with us,” Trump said in a tweet on Tuesday. “That will only mean that orders will go to someplace else.”The presidential intervention represents a rare public rebuke of some of the administration’s hardliners on China, who have been pushing stricter rules to curtail sales of U.S. technology to Beijing -- from semiconductors to jet engines. It also comes as Trump is touting a “phase one” deal with China that is meant to spur a $200 billion Chinese buying spree of American exports including commercial jets and other manufactured products.Senior officials were expected to decide by the end of this month whether to block exports to China of jet engines made by a General Electric Co. joint venture with France’s Safran SA for use in the Commercial Aircraft Corporation of China’s C919 single-aisle passenger jet now undergoing flight tests, according to three people familiar with the issue. They also have been considering broadening restrictions on sales by U.S. and overseas suppliers to Huawei Technologies Co.The president indicated to reporters later on Tuesday that his concerns over the use of the “fake term of national security” extended to new proposed Huawei provisions, which are aimed at limiting its access to chips.“I mean, things are put on my desk that have nothing to do with national security, including with chipmakers and various others,” Trump said as he departed Washington. “I’ve been very tough on Huawei. But that doesn’t mean we have to be tough on everybody that does something. We want to be able to sell all of this incredible technology -- we’re number one in the world.”Hawks vs. DovesTrump’s tweets Tuesday brought into public light what in recent years has been a bitter battle between two factions in his administration. One group sees China’s economic rise as an existential challenge to the U.S. and advocates a “decoupling” of the two economies. The other views any such move as too extreme, arguing it would present its own risk to U.S. power and American innovation.The president’s comments also came as another crucial moment was approaching.Both the GE and Huawei potential restrictions and other China-related policies were due to be discussed by senior officials on Thursday ahead of a cabinet-level meeting scheduled for Feb. 28, according to people familiar with the proposals. The measures appeared to have some backing from several agencies including the Department of Commerce, the people said.“I have seen some of the regulations being circulated, including those being contemplated by Congress, and they are ridiculous,“ Trump tweeted.Trump also indicated in his posts that his concerns about the calls from China hardliners within his administration went beyond the issue of jet engines. That leaves him siding with those in his administration who have advocated for a more business-friendly approach to China.“We want to sell product and goods to China and other countries. That’s what trade is all about. We don’t want to make it impossible to do business with us. That will only mean that orders will go to someplace else,” he tweeted.The intervention is not the first Trump has made against his China hardliners. In May 2018, he overruled his own Commerce Department on behalf of blacklisted Chinese telecommunications company ZTE after a call with Xi Jinping, the Chinese leader.Derek Scissors, who tracks the U.S.-China economic relationship at the conservative American Enterprise Institute and has advised the Trump administration in the past, said Trump appeared in his tweets to be thumbing his nose at those in Congress and in his own administration who see limiting tech and other exports to China as a national security priority. “He cares about the trade balance right now,” Scissors said.The president didn’t address directly Tuesday proposed changes also under discussion related to Huawei. But he has in the past opposed restrictions on sales by American suppliers to the Chinese company of non-sensitive products. “I like our companies selling things to other people,” he told reporters in Japan last year after a meeting with Xi in which he agreed to allow sales to Huawei.Huawei, which has faced long-standing U.S. accusations of being a conduit for Chinese espionage efforts, was placed on a Commerce Department black list last year that effectively bans U.S. suppliers from doing business with it. Huawei has denied such claims.The new measures under consideration are aimed in large part at semiconductor exports and part of a broader administration campaign to convince allies not to use Huawei’s equipment in new fifth-generation communications networks, an effort that heated up again at a weekend security conference in Munich.The administration is now talking about closing a loophole that allows American companies to use overseas production facilities to sell materials with less than 25% U.S. content by lowering that limit to 10%. It’s also discussing changing something known as the “foreign direct product rule” to further restrict Huawei’s access to products based on U.S. technology manufactured overseas by non-U.S. companies.Semiconductor IndustryTrump’s tweets on Tuesday were welcomed by the Semiconductor Industry Association, which has been lobbying against the new Huawei restrictions and arguing they would “unduly curtail” the ability of U.S. companies to sell products to China.“As we have discussed with the Administration, sales of non-sensitive, commercial products to China drive semiconductor research and innovation, which is critical to America’s economic strength and national security,” said John Neuffer, the SIA’s president and CEO.China’s foreign ministry earlier on Tuesday accused those pushing a ban on the GE engine exports of seeking to “wantonly oppress China.”“What’s worse, it will severely disrupt bilateral and even global exchange and cooperation in science, technology and trade,” Foreign Ministry spokesperson Geng Shuang told reporters in Beijing.The discussions over banning the sale of the GE/Safran Leap 1C engine to China were first reported by the Wall Street Journal over the weekend. Some administration officials were considering whether sales could help Chinese companies reverse engineer the technology used and speed up the development of their own jet engine programs.GE shares fluctuated Tuesday, gaining after Trump’s remarks and later declining.GE, which has lobbied heavily against being blocked out of what it sees as a promising new market, said in a statement Monday that it had decades of experience selling products internationally. “We aggressively protect and defend our intellectual property and work closely with the U.S. government to fulfill our responsibilities and shared security and economic interests,” a spokesperson for the company said in an emailed statement.The engine has been approved for sale to China multiple times since 2014 and a dozen of the engines have already been shipped to Comac, Bloomberg reported Monday.(Updates in paragraphs five and six with Trump quotes)\--With assistance from Bill Faries and Richard Clough.To contact the reporter on this story: Shawn Donnan in Washington at sdonnan@bloomberg.netTo contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Sarah McGregorFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Germany's $93 Billion Train Project Looks Fantastic, for France
    Bloomberg

    Germany's $93 Billion Train Project Looks Fantastic, for France

    (Bloomberg Opinion) -- In 2014 the French manufacturer Alstom SA was burning cash, its debt was rising and it was under investigation in the U.S. for alleged bribery. By selling its sprawling energy division to its better capitalized rival General Electric Co. the following year, Alstom shed 70% of its revenue, paid down borrowings, and refocused on its remaining business: building trains. In hindsight, it played a blinder.Five years later Alstom is involved in another transformational deal, only this time it’s in the driving seat, while Canadian manufacturer Bombardier Inc. is the one in need of emergency balance sheet help, having burned through cash because of delayed aircraft projects and mismanaged rail contracts.On Monday the Canadian conglomerate completed a downsizing that’s every bit as drastic as Alstom’s was. The French manufacturer has agreed to pay about 6 billion euros ($6.5 billion) for Bombardier’s rail activities, which account for about half of the Canadian company’s sales. Alstom will own a globe-spanning rail business with 15.5 billion euros of combined sales and a 75 billion-euro order backlog. Having already announced an exit from commercial aviation, Bombardier will be left to focus on making private jets.The fossil-power assets that Alstom parted with in 2015 were hurt not long afterward by the rise of solar and wind power, forcing GE to book billions of dollars of impairments. GE is now mulling a sale of the steam turbine business. There’s reason to think Alstom’s trains acquisition will be a better deal than the one secured by the Americans.Unlike gas turbines, rail demand is booming because of urbanization and climate fears. Germany, where Bombardier’s train unit has its headquarters, plans to invest an astonishing 86 billion euros ($93 billion) in expanding and modernizing its railways by 2030. As long as Bombardier’s rail contracts aren’t in a worse state than is known publicly, and competition authorities agree to the takeover, Alstom should do fine.At first glance, it’s surprising that these two big train companies are stitching together a deal so soon after the European Commission blocked Alstom’s attempt to join with Siemens AG’s rail unit.  Alstom’s willingness to endure the approval process again attests to the new deal’s attractions and the more limited risk of it being blocked. While Alstom and Bombardier both have large European businesses, Bombardier isn’t a big player in European signalling or very high-speed trains, where the Commission’s antitrust worries are most acute. While getting bigger will help Alstom compete against Chinese rail colossus CRRC, that’s not the main appeal.Bombardier’s rail unit generated a derisory 0.8% operating return on sales in 2019 after it screwed up several large contracts. But Alstom is confident things will improve with better management; until recently Bombardier’s profit margins were superior to Alstom’s. Meanwhile, Bombardier’s installed fleet of about 100,000 vehicles will provide lucrative servicing work.Including assumed liabilities, Alstom is paying about 12 times Bombardier’s historic adjusted operating profit, in line with similar transactions. Alstom’s own shares trade on more than 17 times operating profit, according to Bloomberg data. It is acquiring a business with similar revenue, while paying a lot less than its own 11 billion-euro market capitalization.Alstom’s share price has more than doubled since 2016 thanks to strong orders and those better margins. That explains why it’s funding most of the transaction with equity, rather than debt. Alstom’s shareholders will be asked to contribute 2 billion euros via a rights issue, with a bigger chunk coming from Canadian pension fund Caisse de Depot et Placement du Quebec (CDPQ), which will have an 18% stake in the combined company.About 400 million euros in promised yearly cost savings — worth about 3 billion euros to Alstom shareholders — won’t depend much on plant closures, which can be politically difficult and expensive. That’s reassuring for investors and employees.For Bombardier, the benefits don’t look as impressive, reflecting the pressure to sell. The transaction lets it shift about $1 billion of pension liabilities to Alstom but Bombardier must pay to retire some convertible stock that it sold to CDPQ back in 2015. This means it will receive only about $4.5 billion of net proceeds to help pay down its $9 billion debt pile. Net indebtedness should decline to about $2.5 billion, or about 2.5 times the Ebitda it expects to generate from its remaining business aviation activities.Such leverage is still ample for an aerospace company, albeit one with a refreshed lineup of private jets and a $14 billion order backlog. Unlike trains, corporate aircraft have a more uncertain future in an era of climate-related flight shame. Still, the lesson of Alstom’s recent history is that it’s possible to shrink and thrive. On an investor call this week, Alstom’s senior managers sounded like they couldn’t believe their luck in getting hold of Bombardier trains given such a rosy demand outlook. They shouldn’t celebrate just yet. When GE announced its takeover of Alstom’s energy business in 2014, Siemens AG prepared a counterbid. Siemens also has history with Bombardier, having held talks about a possible combination of their rail businesses in 2017. For now, there’s no sign of a rerun — the antitrust hurdles are off-putting — but the Germans will be watching closely.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • U.S. Considering New Wave of China Tech Restrictions
    Bloomberg

    U.S. Considering New Wave of China Tech Restrictions

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world threatened by trade wars. Sign up here. The Trump administration is considering new restrictions on exports of cutting-edge technology to China in a push aimed at limiting Chinese progress in developing its own passenger jets and clamping down further on tech giant Huawei’s access to vital semiconductors, according to four people familiar with the discussions.Senior officials are expected to decide by the end of this month whether to block exports of jet engines made by a General Electric Co. joint venture with France’s Safran to China for use in the Commercial Aircraft Corporation of China’s C919 single-aisle passenger jet now undergoing flight tests, three of the people familiar with the discussions said.At the same time, the administration is also considering separate measures to broaden export controls related to the Trump administration’s restrictions on Huawei Technologies Co. by blocking foreign chipmakers, such as Taiwan’s TSMC and U.S. suppliers, from selling components made overseas to Huawei, according to some of the people.Both moves come as some within the Trump administration are pushing for more aggressive efforts to limit China’s technological rise and to contain what they see as a potential national security threats or rivals to U.S. innovative power in the 21st century. That effort so far has been focused largely on Huawei but has led to broader fears of a new technological Cold War splintering the global tech industry.The steps being considered face debate within the administration and would ultimately need the president’s approval. A representative for the White House declined to comment. But the discussions illustrate the sometimes dueling priorities inside the U.S. government on China.Phase OneEven as the moves are being contemplated, President Donald Trump is touting a Chinese commitment to buy an additional $200 billion over the next two years in American farm exports, manufactured products and energy as part of a “phase one” deal that went into effect on Friday.Some analysts and industry experts say that a short-term effort to clamp down on China’s access to technology could have long-term consequences for vital U.S. export industries like the aviation and semiconductor sectors.“What the administration seems to fail to understand is that U.S. advanced technology companies need global scale to succeed, whether in engines, chips or other advanced technologies,” said Rob Atkinson, president of the Information Technology and Innovation Foundation, a think-tank. “Cutting off exports works against that goal, and will limit U.S. innovation.”Both of the new measures, which were first reported by the Wall Street Journal, are expected to be decided on at a meeting of cabinet-level officials Feb. 28, according to the four people familiar with the discussions. A meeting of lower-level officials is planned for Thursday of this week, they said.GE EnginesThe discussions over banning the sale of the GE/Safran Leap 1C engine to China is based on fears that it could help Chinese companies reverse engineer the technology used and speed up the development of their own jet engine programs. But the engine has been approved for sale to China multiple times since 2014 and a dozen of the engines have already been shipped to Comac, according to some of the people familiar with the situation.In a statement, GE, which is lobbying heavily against being blocked out of what it sees as a promising new market, said that it had decades of experience selling products internationally. “We aggressively protect and defend our intellectual property and work closely with the U.S. government to fulfill our responsibilities and shared security and economic interests,” a spokesperson for the company said in an emailed statement.The Commerce Department, which is considering the new GE restrictions, declined to comment on the state of those discussions.The new measures aimed at Huawei are part of a broader administration campaign to both limit its rise and convince allies not to use its equipment in new fifth-generation communications networks, an effort that heated up again at a weekend security conference in Munich.Read more: Huawei Rift Between U.S. and Europe an Issue for NATOHuawei, which has faced long-standing U.S. accusations of being a conduit for Chinese espionage efforts, was placed on a Commerce Department black list last year that effectively bans U.S. suppliers from doing business with it. In a related development, the company was last week charged with racketeering by the Department of Justice in connection with its alleged theft of U.S. intellectual property. Huawei called the charges “unfounded and unfair.”The administration is now considering closing a loophole that allows U.S. companies to use overseas production facilities to sell materials with less than 25% U.S. content by lowering that limit to 10%. It is also discussing changing something known as the “foreign direct product rule” to further restrict Huawei’s access to products based on U.S. technology manufactured overseas by non-U.S. companies.Among the discussions related to the latter move has been extending a ban on doing business with Huawei to any semiconductor plant using U.S.-made chip-making equipment, according to some of the people familiar with the discussions. But one person close to the debate said the talks related to a ban on sales that in any way touched U.S.-made chip-making equipment were not as advanced as other steps.The Commerce Department, which is leading the discussions, declined to comment on any details. In an emailed statement, a spokesperson said it was continuing a review of individual applications to do business with Huawei and that staff-level discussions related to Huawei where there was any disagreement were being kicked up to the “Secretarial level” to balance national security considerations against corporate commercial interests.“The U.S. continues to have major concerns about Huawei,” the spokesperson said.Derek Scissors, an expert on U.S.-China economic ties who has advised the Trump administration in the past, said the discussions about broadening the crackdown on Huawei’s access to U.S. semiconductors made sense given the larger concerns about Chinese theft of U.S. technology and the broader economic rivalry.But he said he had doubts that either a ban on the GE engine sales or moves to extend the Huawei battle to chipmaking equipment would ever come into force.“Most of the administration does not want to take any action,” Scissors said. “They float these discussions all the time.”To contact the reporter on this story: Shawn Donnan in Washington at sdonnan@bloomberg.netTo contact the editors responsible for this story: Simon Kennedy at skennedy4@bloomberg.net, Vince Golle, Margaret CollinsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • U.S. weighs blocking GE engine sales for China's new airplane - sources
    Reuters

    U.S. weighs blocking GE engine sales for China's new airplane - sources

    The potential restriction on the engine sales - possibly along with limits on other components for Chinese commercial aircraft such as flight control systems made by Honeywell International Inc - is the latest move in the battle between the world's two largest economies over trade and technology. The issue is expected to come up at an interagency meeting about how strictly to limit exports of U.S. technology to China on Thursday and at another meeting with members of President Donald Trump's Cabinet set for Feb. 28, sources said. The White House and the U.S. Commerce Department, which issues licenses for such exports, declined to comment, as did a GE spokeswoman.

  • U.S. weighs blocking GE engine sales for China's new airplane: sources
    Reuters

    U.S. weighs blocking GE engine sales for China's new airplane: sources

    The potential restriction on the engine sales - possibly along with limits on other components for Chinese commercial aircraft such as flight control systems made by Honeywell International Inc - is the latest move in the battle between the world's two largest economies over trade and technology. The issue is expected to come up at an interagency meeting about how strictly to limit exports of U.S. technology to China on Thursday and at another meeting with members of President Donald Trump's Cabinet set for Feb. 28, sources said. The White House and the U.S. Commerce Department, which issues licenses for such exports, declined to comment, as did a GE spokeswoman.

  • Bloomberg

    U.S. May Stop Sale of Jet Engines by GE Venture to China: DJ

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world threatened by trade wars. Sign up here. The Trump administration is considering a proposal to stop the sale of jet engines made by a General Electric Co. joint venture to a new airliner in China, Dow Jones reported, citing a person familiar with the discussions.The administration may not issue a license that would allow the venture with France’s Safran SA to export more LEAP 1C jet engines to China, the news wire reported, citing the person who wasn’t identified. The engines would be used to build the Comac C919 jetliner, part of a series of new planes, it added, with some in the administration concerned they could be reverse-engineered.The new license is on the agenda for a meeting of administration officials Thursday, Dow Jones said. The White House and U.S. Trade Representative didn’t immediately respond to requests for comment on the report on Saturday.To view the source of this information click hereTo contact the reporter on this story: Sebastian Tong in San Francisco at stong41@bloomberg.netTo contact the editors responsible for this story: Angela Moon at hmoon43@bloomberg.net, Linus Chua, James LuddenFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    GE Board of Directors Authorizes Regular Quarterly Dividend

    The Board of Directors of GE (NYSE: GE) today declared a $0.01 per share dividend on the outstanding common stock of the Company. The dividend is payable April 27, 2020 to shareowners of record at the close of business on March 9, 2020. The ex-dividend date is March 6, 2020.

  • SEC Urged to Seek More Disclosure When Investors Tout Short Bets
    Bloomberg

    SEC Urged to Seek More Disclosure When Investors Tout Short Bets

    (Bloomberg) -- A group of law professors is asking the U.S. Securities and Exchange Commission to require that traders who publicize their intent to drive down a company’s share price be more transparent when backing off those bets to avoid market losses.The request that the SEC seek more disclosure by short sellers, sent to the agency on Wednesday, cited an increase in so-called negative activism, in which traders sometimes use fake names to disseminate adverse views of a company.“The commission should vigilantly ensure that short position disclosure, when voluntarily initiated by a short seller, remains truthful and accurate,” the professors said in a petition lead written by Columbia University professors John C. Coffee and Joshua Mitts. “When a short seller has chosen to disclose a short position, failure to disclose that the position has been closed is doubly misleading,” they wrote, noting that they’re not advocating mandatory reporting of all shorts.To illustrate the need for more disclosure, the professors highlighted whistle-blower Harry Markopolos’s report accusing General Electric Co. of accounting fraud, which drove down the company’s shares in August of last year. Markopolos, who rose to prominence by calling attention to Bernard Madoff’s Ponzi scheme before it became public, said that he was working with a midsize hedge fund that was shorting GE, but the firm’s identity was never disclosed.The report doesn’t accuse Markopolos of violating the law or intending to manipulate the market, but the professors argue that more information should have been shared about the hedge fund’s position in GE stock and derivatives.Markopolos didn’t immediately respond to a request for comment sent via LinkedIn.GE dismissed the claims at the time as “meritless,” and Chief Executive Officer Larry Culp called the report “market manipulation, pure and simple.” GE shares subsequently recovered.The SEC rarely passes rules based on outside petitions, but such letters can serve as the basis for policy discussions that lead to changes. The professors’ request is notable because it calls for action in the thorny area of regulating short-sellers, a frequent nemesis of corporate executives such as Tesla Inc.’s Elon Musk.“This petition raises critical issues for ordinary investors, and I urge the commission to help us find the best path forward,” said Robert Jackson Jr., who’s leaving his seat on the commission this week to return to New York University as a law professor.Judy Burns, an SEC spokeswoman, declined to comment.To contact the reporters on this story: Matt Robinson in New York at mrobinson55@bloomberg.net;Ben Bain in Washington at bbain2@bloomberg.netTo contact the editors responsible for this story: Gregory Mott at gmott1@bloomberg.net, Steve GeimannFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    EU Funding Accelerates GE’s Development of World’s First SF6-free 420 kV Circuit-Breaker

    EU Funding Accelerates GE’s Development of World’s First SF6-free 420 kV Circuit-Breaker

  • US Major Indexes Hit Record Highs; GE Hits 52-Week High; Casino Stocks Back in Play
    FX Empire

    US Major Indexes Hit Record Highs; GE Hits 52-Week High; Casino Stocks Back in Play

    Bank of America upgraded the casino stocks to buy from neutral. The firm said the casino companies, which have been hit from heightened fear about the Chinese coronavirus, will rebound as the number of virus cases meaningfully decline.

  • GE in Talks on $1.8 Billion of Congo Energy, Health Projects
    Bloomberg

    GE in Talks on $1.8 Billion of Congo Energy, Health Projects

    (Bloomberg) -- General Electric Co. signed a preliminary accord with the Democratic Republic of Congo to develop several energy and health projects in the central African country.The two parties signed a memorandum of understanding on the projects on Wednesday in the Congolese capital, Kinshasa. The deals could be worth about $1.8 billion, according to two people with direct knowledge of the talks.GE South Africa Ltd. and Congo are discussing about $1 billion worth of hydropower projects that would add some 1,000 megawatts of power to Congo’s grid over the next three years, the people said, asking not to be identified because the information isn’t public. Discussions are also being held on about $800 million of health-related infrastructure investments, they said.The deal may include the rehabilitation of turbines on the Inga I and II dams that would return about 650 megawatts of power to the grid, Eric Amoussouga, GE’s chief executive officer for francophone Africa, told reporters.GE is also looking at the possibility of producing energy through liquefied natural gas projects, he said.Congo’s rivers could produce more than 100,000 megawatts of energy but the country has only about 2,500 megawatts of installed hydropower, much of which isn’t functional, according to the national electricity company, SNEL. Only 9% of Congolese have access to electricity.The country is currently in talks with the African Development Bank to develop a third dam at the Inga site on the Congo River. It could provide as much as 11,000 megawatts but could cost more than $14 billion.“We currently have a power deficit of about 4,800 megawatts,” Serge Tshibangu, an energy adviser to President Felix Tshisekedi said Wednesday. “The GE deal would let the president lower that deficit quickly by more than 20%, instead of waiting around several years for Inga III.”U.S. Ambassador to Congo Mike Hammer said the GE preliminary accord means that “once again, Congo is open for business and open for American investments.”(Adds details of agreement, quotes from GE and Congo officials)To contact the reporter on this story: Michael J. Kavanagh in Kinshasa at mkavanagh9@bloomberg.netTo contact the editors responsible for this story: Benjamin Harvey at bharvey11@bloomberg.net, ;John McCorry at jmccorry@bloomberg.net, Paul Richardson, Liezel HillFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Six High Dividend Stocks You Can Count On
    Investor's Business Daily

    Six High Dividend Stocks You Can Count On

    High-dividend stocks can be misleading. Here's a smart way to find stable stocks with high dividends. Watch these six dividend payers on IBD's radar.

  • General Electric Stock Rises 3%
    Investing.com

    General Electric Stock Rises 3%

    Investing.com - General Electric (NYSE:GE) Stock rose by 3.12% to trade at $13.24 by 15:19 (20:19 GMT) on Wednesday on the NYSE exchange.

  • The Zacks Analyst Blog Highlights: Alphabet, Roche, Amgen, General Electric and Sony
    Zacks

    The Zacks Analyst Blog Highlights: Alphabet, Roche, Amgen, General Electric and Sony

    The Zacks Analyst Blog Highlights: Alphabet, Roche, Amgen, General Electric and Sony

  • Can Industrial ETFs Gain Post Mixed Q4 Earnings?
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    Can Industrial ETFs Gain Post Mixed Q4 Earnings?

    We discuss the impact of Q4 earnings releases of some major players on the industrial ETFs with heavy exposure to the same.

  • Top Stock Research Reports for Alphabet, Roche & Amgen
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    Top Stock Research Reports for Alphabet, Roche & Amgen

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  • GE’s ‘Beat-and-Raise Story’ Leads Longtime Skeptic to Upgrade
    Bloomberg

    GE’s ‘Beat-and-Raise Story’ Leads Longtime Skeptic to Upgrade

    (Bloomberg) -- General Electric Co. received faint praise from Wall Street on Friday as a long-time bearish analyst upgraded his rating on the stock, saying the company has successfully repositioned itself into a “high-level beat and raise story.”Gordon Haskett analyst John Inch, who has had a sell-equivalent rating on GE since October 2018, raised it to hold, and also lifted his price target to $11 from $7.“The financial targets that GE recently laid out for 2020 appear to be readily achievable,” Inch wrote in a note to clients. He added that GE’s businesses, while not particularly inspiring as a whole, appear to pose less of a risk today than before. The worst for the struggling power segment appears to be over, at least in the coming 1-2 years, while the healthcare unit’s performance could improve from current anemic levels, Inch added.GE Capital also seemed to pose less of a future risk as the asset portfolio has shrunk and time has passed, and even though aviation still has some challenges, possible cash tailwinds related to Boeing’s 737 Max should provide sufficient breathing room to hold reported free cash flow relatively intact over the next couple years, Inch wrote.After a tumultuous few years since late 2017 when GE’s financials started slowly unraveling, the company’s recent results have inspired hope that its turnaround was steadily progressing. In the latest fourth-quarter results reported last month, GE said its industrial free cash flow, a closely watched indicator of earnings potential, may climb to as much as $4 billion this year from $2.32 billion in 2019.Inch, however, does not believe all is rosy with GE yet, and still sees fundamentals that are fraught with risks, including outsized debt, aggressive accounting, weak earnings quality and a “significantly mediocre to moribund” portfolio mix outside of aviation. The analyst said there was no obvious reason why GE’s share price should continue to meaningfully outperform from current levels, and expects it to ultimately settle closer to $10 to $11.GE shares gained as much as 1.1% Friday, to touch the highest since October 2018. The stock has now risen 17% this year, whereas the S&P 500 Index has gained 3.1%.The company has 12 analysts recommending buying the stock, 10 advising to hold, while 3 say sell, according to Bloomberg data.(Updates share move in seventh paragraph.)To contact the reporter on this story: Esha Dey in New York at edey@bloomberg.netTo contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Steven Fromm, Scott SchnipperFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • The Truth About Market Timing - February 07, 2020
    Zacks

    The Truth About Market Timing - February 07, 2020

    In the long-run, does consistent market timing really matter to be a successful investor?

  • The Trouble With AirAsia's Charismatic Founder
    Bloomberg

    The Trouble With AirAsia's Charismatic Founder

    (Bloomberg Opinion) -- Asia’s largest budget carrier is in trouble, caught up in an anti-corruption investigation of Europe’s aerospace industry. Things could get worse.AirAsia Bhd. Chief Executive Officer Tony Fernandes stepped down for two months earlier this week along with Chairman Kamarudin Meranun, after the airline was named in a 3.6 billion euro ($4 billion) settlement of bribery allegations against Airbus SE. Shares have fallen about 16% since the agreement was announced. The carrier denies any wrongdoing.Like his mentor Richard Branson, Fernandes has made his identity synonymous with that of his company. The former music executive appeared at events in a branded baseball cap and vigorously defended the sprawling group on social media before he quit both Facebook and Twitter over the past year. It’s often been hard to tell where Fernandes ends and AirAsia begins.That issue is at the heart of the current allegations. European prosecutors and Airbus say the aircraft manufacturer agreed to pay $50 million to sponsor a sports team — the Caterham Formula One team, at the time owned jointly by Fernandes and Meranun — in return for AirAsia purchasing 180 aircraft. AirAsia, for its part, says that Airbus had its own branding reasons for sponsoring Caterham, while there was a sound commercial logic in purchasing A330s from Airbus.It’s not the first time AirAsia has been named in connection with such activities. In a 2017 case brought by the U.K.’s Serious Fraud Office, Rolls-Royce Holdings Plc admitted to providing $3.2 million worth of credits to an AirAsia executive in connection with an engine contract, with the expectation they would be used to pay for maintenance of a private jet owned with other executives. AirAsia has previously said there was nothing improper in the arrangement and that relevant information was disclosed in investor materials.As Branson and Fernandes himself have demonstrated, consumer businesses led by flamboyant executives with interests beyond spreadsheets and boardrooms can often receive valuable free publicity. The problem comes in knowing where to draw the line between personal interests and those of the company.There’s certainly been no shortage of related-party transactions between AirAsia and companies associated with Fernandes and Meranun. AirAsia’s annual reports disclose multiple examples: 20 million ringgit ($4.9 million) paid to Caterhamjet Global for the lease of a Bombardier Inc. private jet like the one mentioned in the Rolls-Royce case, and another 3 million ringgit to Tune Group to crew the plane in 2016. In multiple years, Tune Insurance Malaysia Bhd. has provided insurance for AirAsia passengers outbound from Malaysia, with commission fees returning to AirAsia itself.The question is whether this activity is improper or not. In its statements on the Airbus and Rolls-Royce cases, AirAsia makes the point that all such deals were agreed by the board and disclosed in financial statements. In that sense, it’s up to directors and shareholders to decide if anything was amiss, and to censure management if they don’t like it.Charismatic chief executives are famously hard to rein in. When they’re also major shareholders in the company — Fernandes and Meranun jointly control about a third of AirAsia shares via affiliated companies — it’s even harder.Of the four independent directors on AirAsia’s seven-person board, one of them, Stuart Dean, is a retired long-time executive for General Electric Co., a major provider of aircraft engines to the company through its joint venture with Safran SA. Given the issues that the Airbus and Rolls-Royce cases have raised around AirAsia’s relationships with its other suppliers, adding another independent director with less of an aerospace background might provide more reassurance to smaller shareholders.Another board member, Noor Neelofa binti Mohd Noor, popularly known as Lofa, is a model, fashion entrepreneur and Instagram influencer. Her presence brings some welcome gender balance to the otherwise all-male board, but the 30-year-old has a short resume for someone expected to bring the managers of this multi-country business empire into line.Even before the Airbus settlement, this wasn’t likely to be an easy year for AirAsia. Quite apart from the impact of coronavirus on airlines in Asia, it’s dealing with a switch in accounting rules that’s turning its long-standing practice of making money leasing aircraft to group affiliates from a profit center to a money loser. Of its six regional carriers, only the Indonesian one currently has ordinary revenues sufficient to cover its costs.For nearly two decades now, Fernandes and Meranun have been central to making sure that every instrument in this sprawling orchestra plays in tune. Shareholders may be about to find out how the music sounds when they’re no longer holding the baton.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    Danaher gets conditional South Korean regulatory nod for $21 billion GE biopharma unit deal

    South Korea's antitrust watchdog has approved Danaher Corp's proposed $21.4 billion (£16.5 billion)acquisition of General Electric's biopharma division on condition that they sell certain assets to address monopoly concerns. The U.S. medical equipment maker Danaher got conditional EU approval in December for the deal after agreeing to sell five businesses to address worries about competition. GE agreed a year ago to sell its biopharma business to Danaher in the biggest strategy reversal under its Chief Executive Lawrence Culp.

  • Yahoo U: Breaking down cash flow
    Yahoo Finance Video

    Yahoo U: Breaking down cash flow

    Yahoo Finance's Brian Cheung explains cash flow in the latest edition of Yahoo U.

  • 5 powerful tech companies now make up 18% of the stock market — here's why this could be a bad thing
    Yahoo Finance

    5 powerful tech companies now make up 18% of the stock market — here's why this could be a bad thing

    Investors clearly remain obsessed with big-cap tech companies.

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