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Liberty Broadband Corporation
Cheniere Energy, Inc.
Jazz Pharmaceuticals plc
Armstrong World Industries, Inc.
Extended Stay America, Inc. Paired Shares
(Bloomberg) -- A buyer of liquefied natural gas has canceled two cargoes from Cheniere Energy Inc., the biggest U.S. exporter, as a global glut pummels prices for the fuel and threatens to shut a key outlet for shale production.Spanish utility owner Naturgy Energy Group SA has decided not to take delivery of two shipments from Cheniere, according to people with direct knowledge of the matter. The cargoes, one of which was scheduled for April delivery, were rejected by Naturgy’s clients Repsol SA and Endesa SA, who had originally purchased the volumes from Naturgy and will now pay a contractual fixed fee, the people said.Cancellations of U.S. cargoes were closely watched and highly anticipated amid a grim outlook on global prices. It could be an early sign that global oversupply is poised to hammer the U.S. gas market, which is already straining under the weight of a domestic glut. Prices in Europe and Asia collapsed as storage levels rose during a mild winter, making it tougher for LNG buyers to make a profit reselling U.S. cargoes abroad.The coronavirus outbreak in China is stifling LNG demand from the world’s fastest-growing importer. While the Asian nation hasn’t directly imported any U.S. cargoes in more than a year amid trade tensions, the virus has contributed to the global price rout.The virus has wreaked havoc on commodity markets from LNG to copper while disrupting global industrial production, travel and supply chains. As Chinese demand for the fuel declined, PetroChina Co. is said to have delayed discharge of multiple cargoes. Qatar and the world’s biggest LNG trader, Royal Dutch Shell Plc, said they’re working with customers to reschedule or reroute deliveries. While lower prices are opening up demand in places such as India and Turkey, they’re also testing Europe’s ability to absorb extra supply in a weak market.“We are seeing supply reduction before demand maximization in Northwest Europe,” said Verena Viskovic, an analyst at BloombergNEF. Even with European benchmark Title Transfer Facility prices crashing more than a fifth since the start of the year, those TTF levels still “are not low enough to fully maximize lignite-to-gas switching,” she said.At current forward prices of U.S. and European gas, the profit margins of delivering U.S. LNG to Europe and to Asia are thin, according to a BloombergNEF note this week. Exporters of U.S. LNG may be forced to keep gas at home during the next seven months despite the potential demand in the German power sector.At least two Japanese buyers are also considering canceling cargoes from the U.S. that they had expected to load before summer, according to traders with knowledge of the matter, adding that no final decisions have been made.LNG exports have been a relief valve for U.S. gas producers as output from shale basins soars to record highs. In the Permian Basin of West Texas and New Mexico, where gas is extracted as a byproduct of oil drilling, prices have slid below zero amid pipeline bottlenecks; that means producers are paying others to take their supply.More gas-fired power plants would have to be built in the U.S. and abroad to ease the current supply glut, said Campbell Faulkner, chief data analyst for commodities broker OTC Global Holdings.“Prices globally are converging and until there is a boatload of new generation built domestically and abroad, there is just simply not much room in the market” for more gas, he said. LNG, once vaunted as a savior for the U.S. gas market, “looks to be a damp squib,” he said.Cheniere, while declining to comment on specific commercial arrangements, said the flexibility its contracts provide is appreciated by customers and that the fixed-fee portion of the agreements ensures cash flow to the company even when a delivery is suspended. Naturgy and Repsol declined to comment.Endesa confirmed the cancellation of the cargo, which was scheduled for delivery in May. The measure is part of normal trading business and no fine would be required as the decision complied with the cancellation period in the contract, a spokesman said.Customers of the American exporter have to pay a fixed so-called tolling fee to reserve capacity, whether or not they take the LNG. Contracts give buyers an option not to lift cargoes, but they need to notify the exporter 45 to 60 days before the delivery date and pay their fee.The canceled cargoes were to be loaded from Cheniere’s Corpus Christi facility in Texas, the people said. Naturgy has 20-year contracts with both of the exporter’s plants, Corpus Christi and Sabine Pass in Louisiana. According to an earlier presentation by Cheniere, the fixed fee was set at $3.50 per MMBtu for the Corpus Christi contract and $2.49/MMBtu for the Sabine Pass deal.Naturgy has sold volumes from Cheniere to its own clients in advance, the people said.“The market seems to be overreacting to the perceived contract risk to established LNG companies like Cheniere, who signed very favorable contracts when the market was short gas in the early 2010s,” Katie Bays, co-founder of Washington-based Sandhill Strategy LLC, said in a message.(Updates with Endesa comment in 13th paragraph, Naturgy contract details in the 14th)\--With assistance from Stephen Stapczynski and Rodrigo Orihuela.To contact the reporters on this story: Anna Shiryaevskaya in London at firstname.lastname@example.org;Naureen S. Malik in New York at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Jonathan Tirone, Andrew ReiersonFor 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.
Progress of its pipeline candidates and launch of Sunosi is likely to have increased Jazz Pharmaceuticals (JAZZ) operating expenses in the fourth quarter. Xyrem likely to have continued strong demand trend.
Sabre (SABR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Extended Stay America (STAY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Armstrong World Industries (AWI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Yelp (YELP) delivered earnings and revenue surprises of -7.69% and -1.46%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Is Extended Stay America, Inc. (NASDAQ:STAY) a good dividend stock? How can we tell? Dividend paying companies with...
(Bloomberg Opinion) -- Even on a gloomy Sunday, with skies threatening rain, the U.S. Courthouse on First Street in downtown Los Angeles is strikingly beautiful. The clouds and surrounding buildings reflect in its pleated glass sides, which look far airier in person than in photographs. By breaking up its plane, the pleats call attention to the Great Seal etched in the glass. The American flag reflects in their panes.Opened in 2016, it’s a civic building that makes you happy to see it. Reviewers on Google and Yelp, including a grumpy juror, give it good marks.Catesby Leigh, by contrast, calls it a “Borg Cube.” I can only assume he has never actually watched “Star Trek: The Next Generation.” Or maybe he’s too blinded by architectural theory to enjoy beauty that doesn’t conform.You probably haven't heard of Leigh. He’s a critic associated with the National Civic Art Society, a think tank that “endeavors to help architecture return to its pre-Modernist roots.” The society wants government buildings to re-adopt classical architectural styles: more domes and columns, less glass and steel. Its formerly obscure views are now enjoying the world’s largest megaphone.Last week, a draft executive order titled “Making Federal Buildings Beautiful Again” leaked to Architectural Record. (The Chicago Sun-Times obtained a copy and put it online.) The draft denounces modern architecture. It requires classical styles as the default architecture for all new federal buildings in the Washington D.C. area, including surrounding counties; for all federal buildings costing more than $50 million; and for all federal courthouses. It specifically forbids Brutalist and Deconstructionist styles. It establishes a President’s Committee for the Re-Beautification of Federal Architecture to revise the principles that guide federal architecture commissions.It calls for the General Services Administration to solicit public comment on new building designs while specifically excluding “artists, architects, engineers, art or architecture critics, members of the building industry or any other members of the public that are affiliated with any interest group or organization involved with the design, construction or otherwise directly affected by the construction or remodeling of the building.”You could see that requirement as avoiding conflicts of interest — or as excluding anyone who knows what they’re talking about.Architects and critics were apoplectic.Classical styles are fascistic, suggested Artnet News. The Guardian warned of “dictator chic.” The order would constitute “a complete constraint on freedom of expression,” an architect told the New York Times. Even a nuanced historical article in Archinect News concluded with a reference to Nazi architect Albert Speer. New York Times critic Michael Kimmelman rightly identified the draft as Twitter bait.The response demonstrates how, even when he’s barely involved, President Donald Trump manages to effectively troll snooty elites by giving voice to widely held popular grievances. A lot of government buildings are indeed ugly. No matter how hated, they rarely get torn down. But the draft order also demonstrates Trump’s propensity for ham-handed remedies that would do more harm than good.As creators, architects face an inherent problem. They can’t do their work without clients. Writers, painters, sculptors — these days even filmmakers — can find ways to follow their muse even if their creations have little or no market. Beyond building homes for themselves (or their mothers), architects have few options.Construction is expensive, it requires land, and it needs people who’ll use it. That’s the real-world conflict at the heart of Ayn Rand’s novel “The Fountainhead,” which lampooned the throwback styles and populist attitudes the draft order promotes.Federal commissions offer relative freedom for architectural ambitions. “Design must flow from the architectural profession to the Government and not vice versa,” declare the guidelines in place since 1962. Written by a young Daniel Patrick Moynihan, these design principles reflect the technocratic modernism of the Kennedy era — the deference to experts and belief in the new that landed a man on the moon but also razed urban neighborhoods to make way for Brutalist government centers.Under those guidelines, the architecture profession itself acts as the client. The result can be a masterpiece like L.A.’s new courthouse — or a monstrosity like the headquarters of the F.B.I., the J. Edgar Hoover Building, one of Trump’s pet peeves.By contrast, the advocates of classical architecture position themselves as the voice of the people. “For too long architectural elites and bureaucrats have derided the idea of beauty, blatantly ignored public opinions on style, and have quietly spent taxpayer money constructing ugly, expensive and inefficient buildings,” the National Civic Art Society’s chairman told the Times.But if architects can’t represent the public, who can? That’s the problem at the heart of any government building project. Whose taste should rule? What should the balance be between saving money and creating meaningful, attractive buildings? What role should the people who’ll work in the building have? What is the right form for the building’s specific use? For federal buildings outside the capital, what voice should locals have? Who speaks for the client when the client is everyone?These are political, not technical, questions. You can’t reason your way to the single right answer. You can only try to strike a sensible balance — which isn’t exactly the Trump way.In an editorial attacking the executive order, the Chicago Sun-Times evoked the city’s federal plaza designed by Ludwig Mies van der Rohe. Ordinary locals find it striking, part of Chicago’s heritage of beautiful architecture, including many modern buildings.Leigh, by contrast, says the plaza “raises serious issues of appropriateness” and is “far better suited to the high-end corporate world and its promotion of itself as culturally au courant.” (The building was au courant a half century ago.) Dictating that your idea of civic appropriateness is right for all buildings in all times and places shouldn’t be confused with speaking for the public.What looks “civic” depends on experience, not architectural theory. In Los Angeles, where I live, traditional civic buildings are not classical. They’re not even the Mission style popular elsewhere in the state. They’re Moderne ziggurats with Art Deco features, like the L.A. city hall, or midcentury modern structures like the Wilshire Federal Building in West L.A. They reflect the eras in which the city was rapidly expanding.Some, like these examples, are attractive and popular, others less so. But all of them represent the actual city and its history, not an outsider’s idea of civic ideals. The eco-conscious 21st-century beauty of the new federal courthouse fits appropriately in its dense urban setting. Columns and domes would not. Neither would the red tile roofs of Santa Barbara.However great it may be for the Lincoln Memorial, classicism itself is no guarantee of good civic architecture. Packing columns onto a hulking monstrosity like the Eisenhower (formerly Old) Executive Office Building does not make it beautiful. Historical, yes. Meaningful because of that history, sure. But not attractive or inspiring or representative of American ideals.The sweeping language of the draft order simply replaces one group of architectural theories with another, one set of insiders with an even smaller one. Preserving the high-handed attitudes it claims to oppose, it avoids the hard questions. Even on its own grounds, its judgments and prescriptions are suspect.This architectural tiff is an argument among intellectuals with ideas about the ought of the built environment, not citizens with experience of the is. It might make government buildings more uniform, but it wouldn’t make them better.To contact the author of this story: Virginia Postrel at email@example.comTo contact the editor responsible for this story: Katy Roberts at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Virginia Postrel is a Bloomberg Opinion columnist. She was the editor of Reason magazine and a columnist for the Wall Street Journal, the Atlantic, the New York Times and Forbes. Her next book, "The Fabric of Civilization: How Textiles Made the World," will be published in 2020.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.
(Bloomberg Opinion) -- It's hard to miss how many technology companies engage in increasingly questionable -- and occasionally reprehensible -- conduct. This is something beyond the unsavory frat bro behavior of people like Uber Technologies Inc. founder and former Chief Executive Officer Travis Kalanick. No, I mean companies whose very business models seem to be built around elements of fraud, deception and abuse of employees, partners and clients.Maybe it is a sign of what happens when too much capital sloshes through too few startups.(1) Whatever the underlying cause, one cannot help but notice some of the awful behavior in the venture-funded tech world. Consider these recent headlines:\-- "Court Rules It's Totally Cool for Yelp to Extort Businesses"\-- "Grubhub’s new growth hack is listing restaurants that didn’t agree to be listed"\-- "Delivery apps like DoorDash are using your tips to pay workers’ wages" There may be any number of reasons these companies might engage in such shoddy behavior, but the most obvious one seems to be that their business models are so lame that they must do shady stuff simply to keep the lights on.Disruption is a consequence of true innovation; that isn't the issue here. No, this points to something deeper and more troubling about the startup landscape.Let’s consider a few of these companies:Grubhub: The food-delivery company is in hot competition with other startup delivery companies. One of the things it's done: buy up domain names of its restaurant partners without their permission or even knowledge, thus making it hard or impossible for a restaurant to establish its own website without Grubhub's blessings. (Grubhub’s defense: It’s in our contract’s fine print.) The company also published shadow websites and misleading phone numbers of its restaurant partners to pull web traffic and phone orders away from them.I imagine Grubhub being pitched as the Uber of food delivery (though Uber also is in the food-delivery business). One key difference: There was no entrenched local monopoly similar to taxis. Instead, there are tens of thousands of local restaurants, many of which already deliver or offer takeout. Uber and Lyft used technology to break the monopoly: Grubhub and its related divisions -- Seamless, Eat24, MenuPages and AllMenus -- instead insert themselves as middlemen between restaurants and consumers. This seems to be true regardless of whether the restaurant is a willing participant or not.Maybe it's the big decline in Grubhub's share price that has led the company to stoop so low: the stock has fallen about 65% from its high in 2018.Yelp: The review site seems to have morphed into what its critics sometimes characterize as an extortion racket. The company has been accused by restaurant owners of hiding positive reviews unless those establishments advertise on Yelp.Business owners have challenged this model, with some even winning in small claims court.A broader class-action case was dismissed, with the Ninth Circuit Court of Appeals ruling that it was fine for Yelp to manipulate positive and negative reviews of its restaurant clients. As for the claims of the plaintiffs that Yelp functionally extorted them, the court said too bad; Yelp was under no obligation to be even-handed or fair.Lots of outrage over this eventually led to a Kickstarter campaign to fund a documentary, "Billion Dollar Bully." The problem has caused Yelp so much reputational harm that the company felt compelled to set up a page on its website with the headline, "Yelp Does Not Extort Local Businesses or Manipulate Ratings."Nevertheless, the market has mounting doubts about Yelp and its business: the shares have declined 65% from their peak in 2014.DoorDash: How well does the gig economy pay? That was what a New York Times reporter wanted to find out. So he started working as a food-delivery man for some of the more popular apps, including DoorDash. He discovered that the pay wasn't great -- as little as $5 an hour to as much as $20 for "Jedi Masters" \-- and it's falling as the apps attract more delivery people.It also turned out that DoorDash and others were keeping the tips -- all of which employees were supposed to get -- and using them to subsidize workers' base pay. The subsequent uproar over the Times article led DoorDash and others to change tipping policies.DoorDash also was sued for using a fake In-N-Out Burger logo on its website and offering unauthorized deliveries for the fast-food chain.One thing becomes obvious when looking at these companies: they are all in hyper-competitive, low-margin businesses where economies of scale are either minimal or don't exist.But more to the point, it makes you wonder if these companies actually solve a consumer problem. There are reasonably credible review sites online such as Zagat, so why does anyone need to turn to suspect reviews on Yelp. As for restaurants that already offer meal delivery -- and there are many -- third-party delivery apps are superfluous.In other words, these are businesses that are responding to market signals the wrong way. Instead of bending the law and trampling all over ethical standards, they probably should rethink their business models -- or just close their doors.(1) Theself-dealing sweetheart arrangementsof Adam Neumann, WeWork’s founder and former CEO, was a special case, the result mainly of a weak and conflicted board of directors.To contact the author of this story: Barry Ritholtz at email@example.comTo contact the editor responsible for this story: James Greiff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”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.
Oil prices fell again on Friday as the OPEC+ plans to deepen production cuts in order to counter bearish sentiment driven by Coronavirus demand fears hit a rut
Yelp (YELP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Viasat (VSAT) fiscal third-quarter earnings gain from sustained momentum in Government Systems and Satellite Services segment, along with year-over-year rise in product and service revenues.
ViaSat (VSAT) delivered earnings and revenue surprises of 1100.00% and 0.34%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
A federal judge Thursday heard lively closing arguments in the U.S. government's antitrust challenge to the proposed merger of travel technology companies Sabre and Farelogix. U.S. District Chief Judge Leonard Stark listened as attorneys from both sides made their final pitches to a packed Wilmington, Delaware courtroom, which included Sabre President and CEO Sean Menke […]
Today we'll evaluate Sabre Corporation (NASDAQ:SABR) to determine whether it could have potential as an investment...
Alphabet Inc's Google Maps on Thursday launched a redesign that prominently solicits users' reviews and photos of places they visit, seeking to increase its data in a field led by local search apps such as Zomato, TripAdvisor and Yelp. The new look, which coincides with Google Maps' 15th birthday, introduces a "Contribute" tab to a menu at the bottom of the service's mobile app, Google said in a blog post. The move prompted concern from TripAdvisor Inc , which along with Yelp Inc and other companies that feature user reviews on businesses have encouraged antitrust investigations into whether Google has improperly used its dominance in search to popularize its newer tools, such as restaurant comparison.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. A grim situation for U.S. natural gas exporters has gotten even worse as the coronavirus outbreak sends global prices plunging on concern that China’s demand for the fuel will collapse.Suppliers of American liquefied natural gas were already under pressure from depressed prices arising from a global glut and an unusually mild domestic winter. Now, with the virus threatening to disrupt industrial production across China, Asian spot LNG prices have hit a record low.Faced with prospect of being unable to even cover their shipping costs, customers such as commodity trading houses may simply refuse to load U.S. cargoes. Those cancellations could force LNG export terminal operators to cap, or “shut in,” production of the fuel as their storage tanks fill up.“Forward prices for summer are now at levels where U.S. LNG shut-ins begin to seem viable,” said Edmund Siau, a Singapore-based analyst with energy consultant FGE. “There is usually a lead time before a cargo can be canceled, and we expect actual supply curtailments to start happening in summer.”Such an outcome would be a blow to the young and fast-expanding U.S. LNG industry. New export terminals from Maryland to Texas have sprung up to make the country one of the world’s top suppliers, while also providing a crucial outlet for soaring production from shale basins.China hasn’t directly imported LNG from the U.S. in a year amid trade tensions and tariffs on the fuel. But it’s the world’s fastest-growing buyer, and a slowdown or decline in demand there will have an effect that ripples right across the market. China’s big state-owned LNG importers are said to be considering force majeure declarations on contracted cargo deliveries, which would further burden an oversupplied market.Brimming global gas stockpiles are increasing the risk that cargoes will be curtailed, according to Nina Fahy, head of North American natural gas for Energy Aspects Ltd., and Madeline Jowdy, senior director of global gas and LNG for S&P Global Platts.“The full impact of the coronavirus on global gas markets is yet to be felt as lower LNG demand expectations for the Lunar New Year were already built into most forecasts,” Jowdy wrote in an email.“The global LNG outlook is going from bad to worse for suppliers.”For Cheniere Energy Inc., the biggest U.S. exporter of the fuel, “the summer doesn’t look good” for the economics of American cargoes at the moment, Eric Bensaude, managing director of the company’s marketing arm in London, said in an interview.Any decisions by Cheniere’s buyers, which include Royal Dutch Shell Plc and Korea Gas Corp., are likely in March or April. That’s a period of seasonally lower demand when the company anticipates “people will be assessing the situation,” Bensaude said.Customers of U.S. LNG terminals can typically opt out of taking contracted supplies with 30 to 60 days’ notice. Cheniere’s buyers have to pay a fee to cancel a cargo, Bensaude said.If a customer decides not to load a cargo, Cheniere’s marketing arm won’t take the LNG back and resell it unless market conditions have changed, Bensaude said. Instead, the company would typically reduce LNG production at its terminals, he said.But U.S. LNG companies continue to sound an upbeat note on the longer-term outlook for the market. Charif Souki, co-founder of terminal developer Tellurian Inc, said the global glut of the fuel could be erased as soon as a year from now. Cheniere’s Bensaude said he also expects the oversupply to ease.“We are going to weather the storm this year as the market should absorb production from the extra capacity that comes online,” Bensaude said.(Updates with Cheniere comments in 10th paragraph. An earlier corrected the attribution in the seventh paragraph.)To contact the reporters on this story: Anna Shiryaevskaya in London at email@example.com;Stephen Stapczynski in Singapore at firstname.lastname@example.org;Naureen S. Malik in New York at email@example.comTo contact the editors responsible for this story: Reed Landberg at firstname.lastname@example.org, ;Simon Casey at email@example.com, Christine Buurma, Joe CarrollFor 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.
China has restarted talks with U.S. liquefied natural gas marketers to buy more LNG, several industry executives told Reuters, but they are worried that any purchases may come too late to keep natural gas prices from falling further due to a glut of global supply. China pledged this month to buy an additional $18.5 billion in U.S. energy products this year, but the U.S.-China trade agreement left tariffs in place, including a 25% levy on LNG imports that puts U.S. LNG at a disadvantage, producers said. "The U.S. doesn't have a margin that would allow any country to charge 25%" above global prices, said Michael Smith, chief executive of Freeport LNG, referring to the tariff.
ViaSat (VSAT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.