Today - Monday, March 10, 2014
- French industrial output fell 0.2% on month in January vs -0.6% in December and missed consensus for a rise of 0.2%. (PR)
- Spanish production rose 1.1% on year, although that was down from 2.2% previously and below forecasts of 1.8%. (PR)
- The CAC 40 is +0.6% while the FTSE MIB is +0.45%.
- ETFs: EWI, ITLY, ITLT, EWQ.
- IBM (IBM) CEO Ginni Rometty tells it like it is, acknowledging in a letter to investors that the company "did not meet our expectations."
- IBM will continue to alter its focus to cloud services and data analytics while modifying its hardware products. "While we continue to remix to higher value, we must also address those parts of the business that are holding us back," said Rometty.
- Declining demand for hardware and soft sales in growth markets have hit revenue for almost two years, prompting IBM to offload assets and reduce staff.
- A Japan Airlines (JAPSY) Boeing (BA) 787 flying to San Francisco from Tokyo has made an emergency landing at Honolulu Airport following a fall in the oil pressure in the right engine.
- The glitch is the latest in a series of problems to affect the 787 and comes after Boeing said on Friday that it needs to inspect 42 yet-to-be-delivered aircraft for possible hairline cracks in the wings due to a manufacturing problem.
- Meanwhile, search crews have still failed to find any signs of the Malaysia Airlines 777 that disappeared over the weekend whilst flying over Vietnamese airspace.
- French conglomerate Bouygues (BOUYY) has agreed to sell part of its network and wireless spectrum to smaller French competitor Iliad for up to €1.8B ($2.5B) if Bouygues succeeds in its efforts to merge its mobile phone unit with Vivendi (VIVHY, VIVEF) subsidiary SFR.
- The asset sale would be part of Bouygues' attempts to assuage antitrust concerns in France about the cellular deal.
- Bouygues faces competition for SFR from Amsterdam-listed Altice, which doesn't face the same antitrust hurdles as Bouygues.
- Newspaper consortium Classified Ventures, which includes Gannett (GCI), McClatchy (MNI) and Tribune (TRBAA), is looking to sell Cars.com for $3B, the WSJ reports.
- Gannett, whose holding in Classified is 27%, could be interested in increasing its stake in the auto-sales Web site.
- Any deal would come amid rising valuations for e-commerce sites and after Classified Ventures last week said it was selling apartments.com for $585M.
- The sale of Cars.com would effectively mark the end of the consortium, whose other owners are A.H. Belo (AHC) and Graham Holdings (GHC).
- Grupo Corporativo ONO's owners are moving forward with plans for an IPO, the WSJ reports, and are due to meet with analysts and candidates for independent directors today and tomorrow.
- The WSJ's article contrasts with a Reuters report on Friday which said that Vodafone (VOD) has agreed to a deal to acquire the Spanish cable operator.
- ONO's shareholders are due to hold an annual meeting on Thursday, when they could approve the IPO, which would effectively end any takeover talks.
- There's no word on the value of the IPO, although ONO's investors would reportedly want above €7B in any M&A.
- Liberty Global (LBTYA) has also been eying ONO.
- An earthquake of magnitude 6.9 has struck off the northern coast of California, although there are no early indications of a Tsunami, nor have there been reports of any damage.
- Japan has revised down its Q4 GDP growth calculation to 0.2% from an initial 0.3%, with the economy held back by weaker-than-estimated capex and consumer spending.
- Annualized GDP was +0.7% vs +1%. (PR)
- The current-account deficit increased to a record ¥1.59T ($15.4B) in January from ¥638.6B in December. (PR)
- "Capital spending remains weak and exports are not coming back to strengthen the recovery, and without support in these areas, Japan's economy is going to contract significantly in the second quarter," says economist Yoshimasa Maruyama. "The negative effect from the (upcoming) sales tax rise could be worse than the BOJ and government expect."
- The Nikkei is -0.9%, while the USJ-JPY is -0.1% to ¥103.12.
- ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JPNL, ITF, JSC, JGBL, JPP, JGBT, JPNS, HEWJ, JGBB, FJP
2:20 AM| 1 Comment
Sunday, March 9, 2014
- Lyft, the developer of a ride-sharing mobile app, has raised $80M in a Series D fundraising round, with reports saying that the company was given a pre-money valuation of $700M.
- Andreessen Horowitz was one of the investors.
- The company is looking to bring in another $70M as part of the round.
- Lyft competes with Uber, which raised $250M at a $3.5B valuation last summer.
- The National Highway Traffic Safety Administration received over 260 complaints about GM's (GM) faulty ignition switches but declined to investigate, an NYT analysis shows. The agency has said that it didn't act because there wasn't enough evidence to show that the problem existed beyond isolated incidents.
- GM has said that the defect, which can shut down a car's engine and power system, and disable airbags, is linked to 13 deaths. The company has recalled over 1.6M vehicles because of the problem.
- Meanwhile, the WSJ looks at how GM's "bureaucratic complexity" hampered the firm's inability to address the fault much earlier.
- "Ross Perot once said that where he came from, if you see a snake, you kill it. But at General Motors, if you see a snake, you hire a consultant on snakes, then you form a committee on snakes, and then you discuss it for a couple of years," the WSJ writes. Perot made the comment over 25 years ago, "but he could have said it yesterday."
- Wayfair has raised $157M in a Series B round led by one-time Twitter investor T.Rowe Price, the online home-furnishings site has said. TripAdvisor CFO Julie Bradley also participated in the fundraising.
- Wayfair's valuation was $2B, Bloomberg reports. The company's sales jumped 55% last year to $915M.
- Wayfair has already reportedly started talks with banks about underwriting an IPO.
- Previously (PR)
- The sale of JP Morgan's (JPM) private-equity business has stalled, Reuters reports, adding that a possible reason is that the bank increased its asking price by too much.
- JPMorgan put One Equity Partners on the market in November; it's portfolio is valued at over $4B.
- Meanwhile, whistleblower Keith Edwards will receive $63.9M for information he provided that led to the bank paying a fine of $614M to settle charges that it defrauded the government into insuring flawed home loans.
- Boeing (BA) has put together a technical assistance team to help in any investigation of what happened to the the Malaysia Airlines 777 that has gone missing over Vietnam airspace.
- With the search continuing, officials and aviation experts have declined to speculate on what happened to the jet, although it seems that the identities of four passengers are under investigation, two of whom were traveling on stolen passports. That has sparked suggestions that terrorism might have been involved.
- A major problem is the lack of a signal from the plane's Emergency Location Transmitter.
- Freescale Semiconductor (FSL) said 20 employees from its operations in Asia, including senior managers, were on the flight.
- In total, the plane was carrying 227 passengers and 12 crew members as it flew from Kuala Lumpur to Beijing.