PDF Dow Jones & Co. | Tomorrow's News Today

mobile | web | pdf

Monday February 05, 2018

Tomorrow's Headlines

In This Newsletter

Broadcom Raises Offer for Qualcomm To Over $121B

Broadcom Raises Offer for Qualcomm To Over $121B

Broadcom Ltd. sweetened its offer for Qualcomm Inc. to more than $121 billion and threatened to walk away if the parties don't come to an agreement by early March, dialing up the pressure in its bid to take over the chip maker in what would be the largest technology deal ever.

Jerome Powell Sworn In as Federal Reserve Chairman

Service-Sector Activity Hits DecadeHigh

Tech Giants In No Rush to Spend Overseas Cash

Banks Shutter 1,700 Branches in Fastest Decline on Record

Avon Names New CEO As Activist Investors Lose Patience

Saks Owner Taps CVS Veteran as Next CEO

Broadcom said Monday it would pay $82 a share in cash and stock, up from its initial offer of $105 billion, or $70 a share in cash and stock, in November.

The revised bid is its "best and final offer," Broadcom said, representing a 50% premium to Qualcomm's share price on Nov. 2, before news of an expected bid emerged. The cash portion of the offer remained at $60 a share.

In a letter to Qualcomm shareholders, Broadcom said it would stop pursuing a deal if the companies don't reach an agreement by the end of Qualcomm's March 6 shareholder meeting, or if Qualcomm shareholders don't elect a slate of directors nominated by Broadcom.

Arby's, Buffalo Wild Wings Merge To Compete In Changing Industry

Lenders To Ease Standards For Large Business Loans in 2018

Fed Rebuke Costs Wells Fargo About $27 B in Lost Market Value

Lawrence Lindsey Withdraws From Consideration For No. 2 Fed Post

Jerome Powell Sworn In as Federal Reserve Chairman

Jerome Powell took the oath of office as chairman of the Federal Reserve's board of governors on Monday, succeeding Janet Yellen, the central bank said.

The Senate last month confirmed Mr. Powell to become the central bank's 16th chairman, clearing the way for a new leader likely to continue raising interest rates to keep the nation's economic expansion on track.

Plus: Market Snapshot, Tomorrow's Calendar, Earnings Reports and Talking Points

The Fed said the oath was administered by Fed governor Randal Quarles, who joined the central bank in October as vice chairman for supervision.

Market Snapshot

Stocks

The Dow Jones Industrial Average plunged more than 1,100 points in a volatile session Monday, its largest one-day point decline on record. The global selloff in stocks rippled through Europe and Asia as well, as a longrunning market rally threatened to become a rout. Indexes in all three regions gave up their gains for 2018.

Service-Sector Activity Hits Decade-High

A measure of service-sector activity across the U.S. picked up in January to reach a 10-year high, suggesting strong momentum in the sector powering the bulk of the U.S. economy beginning 2018.

The Institute for Supply Management Monday said its index of nonmanufacturing activity -- tracking industries including health care, finance, agriculture and construction -- rose to 59.9 in January from 56 in December, the best index reading for records dating back to 2008.

Treasurys

This figure exceeded expectations of economists surveyed by The Wall

Treasurys

U.S. government bond prices edged higher as investors looked ahead to Treasury debt auctions this week and tried to assess whether the recent rise in yields will be enough to attract buyers. The yield on the benchmark 10-year Treasury note slid to 2.847%, according to Tradeweb, from 2.852% Friday. Bond yields fall as prices rise.

This figure exceeded expectations of economists surveyed by The Wall Street Journal, who had forecast a January reading of 56.5. A number above 50 indicates expansion.

The rise was driven by increases across a broad swath of components, including new orders and employment indexes. The new orders index rose to 62.7 in January from 54.5 in December. The employment index increased in January to 61.6, the highest level on record.

Forex

The dollar rose Monday, as investors sought shelter amid a selloff in stocks. The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, was recently up 0.2% at 83.74.

Commodities

U.S. crude prices had their worst day in two months Monday as a stock market selloff and increased U.S. drilling continue to knock months of bullish sentiment for crude. U.S. crude futures settled down $1.30, or 1.99%, at $64.15 a barrel on the New York Mercantile Exchangetheir biggest daily drop since Dec. 6. Brent, the global benchmark, fell 96 cents, or 1.4%, to $67.62 a barrel on ICE Futures Europe.

Tech Giants In No Rush to Spend Overseas Cash

With the passage of the new U.S. tax law, the nation's tech giants can now more freely dip into their stockpiles of overseas cash. They don't seem to be in any hurry.

The five largest U.S. technology companies by market value combined hold nearly $500 billion in cash outside their borders. In their first earnings calls since the tax overhaul, three -- Microsoft Corp., Alphabet Inc. and Inc.--suggested greater access to the cash didn't change their spending plans.

"When we have seen an opportunity to invest, we have not really waited for tax reform to do that," Microsoft Chief Financial Officer Amy Hood said on a call with analysts.

Alphabet finance chief Ruth Porat reported "no change in our approach to capital allocation." Amazon's CFO, Brian Olsavsky, said the company already spends a great deal on its workforce.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download