Wall Street Roundup
Hotter-than-expected US inflation, Boeing’s problems, and General Motors’ management changes are among the latest business happenings worldwide.
Higher costs for used automobiles, air tickets, and clothes boost US inflation in February, supporting the Fed’s cautious approach. Boeing’s supply delays scare US airlines. Intel dominates Huawei chip sales. A former Tesla executive replaces GM’s production boss. Goldman Sachs wants fast portfolio growth. World Street has this and more.
Inflation
Used vehicle, air ticket, and apparel costs drove core US inflation beyond estimates again in February. This enhances the Fed’s sensible interest rate adjustment stance.
On March 12, the government reported that the core consumer price index, excluding food and energy, climbed 0.4 percent from January and 3.8 percent from the previous year.
Boeing
US airlines have warned that Boeing’s jet delivery delays might derail their growth plans, worsening the aircraft manufacturer’s safety concerns.
Boeing’s issues have caused the airline sector to lower its delivery expectations for the year, making it harder to meet rising travel demand.
The Silicon Alliance
Intel survived Huawei’s hundreds of millions of dollar chip sales ban. Reuters reports that it will allow the global chip producer to continue doing business with the Chinese telecom operator despite the harsh restrictions.
It added there have been calls for the Biden administration to cancel a prior administration license allowing Intel to sell Huawei cutting-edge laptop chips.
Drive Dynamics
According to Rho Motio, global sales of fully electric and plug-in hybrid vehicles (PHEVs) rose 3% in February compared to the year-ago month, mostly owing to Chinese Lunar New Year celebrations.
“The reason for the lower growth is because China is still the dominant market” for electric cars, Rho Motion statistics manager Charles Lester told Reuters.
Transferring Talent
GM’s longtime manufacturing boss is retiring, and a former Tesla and Google executive will replace him. After 44 years with the company, Global Manufacturing and Sustainability senior vice president Gerald Johnson is retiring.
Johnson will be replaced by Tesla, Lego, and Google veteran Jens Peter “JP” Clausen. GM reported the sudden resignation of software and services senior vice president Mike Abbott.
Portfolio Pursuit
Marc Nachmann, Goldman Sachs Asset Management’s global head of asset and wealth management, told Reuters that the company plans to grow its private credit portfolio to $300 billion in five years from $130 billion.
Morgan Stanley wants to expand its private credit portfolio to $50 billion in the medium term, while Goldman’s goals are higher.
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Petrobras (NYSE:PBR) shares fell 13% after the firm reported a smaller-than-expected net profit and fewer shareholder distributions, suggesting its dividends may stop. The board authorized Q4 dividends of 1.10 reais per share, totaling 14.2B reais ($2.9B), with no special payments for the year. Analysts predicted $3.7B dividends and $3B special dividends. Petrobras CEO Jean Paul Prates said rising investment on wind, solar, and biofuel programs made him more cautious about payouts.
Petrobras (NYSE:PBR) shares fell 13% after the firm reported a smaller-than-expected net profit and fewer shareholder distributions, suggesting its dividends may stop. The board authorized Q4 dividends of 1.10 reais per share, totaling 14.2B reais ($2.9B), with no special payments for the year. Analysts predicted $3.7B dividends and $3B special dividends. Petrobras CEO Jean Paul Prates said rising investment on wind, solar, and biofuel programs made him more cautious about payouts.
WGovernment aid and bailouts for the struggling Chinese real estate market are unlikely. Chinese officials have said individuals who damage the public would be punished. “Real estate companies that are seriously insolvent and have lost the ability to operate should go bankrupt or be restructured, per the law and market principles,” stated the Chinese housing and urban-rural development minister.all Street Roundup Wall Street Roundup
Estancia Capital Partners LP is buying a minority stake in UK Savings Fintech Flagstone, a cash deposit platform, to boost its savings services. Flagstone said the private equity firm’s £108 million ($139 million) investment will help it consolidate and expand domestically and internationally.
This investment will also reward Flagstone’s investors. The sale did not reveal Estancia’s interest in the Arizona firm.
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