Hours after President Trump said Sunday he had "second thoughts" about escalating the trade war with China, the White House sought to explain his remark because it was...Politicsread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
President Donald Trump said that he would have a major trade deal with U.K. after it leaves the European Union.Politicsread more
President Donald Trump said Sunday he was not happy after North Korea launched short-range ballistic missiles over the weekend.Politicsread more
The Goldman Sachs technology M&A team, led by Sam Britton, has cashed in on its software focus and decades of experience to dominate 2019's biggest deals.Technologyread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
Here are the biggest calls on Wall Street Tuesday:
"We are no longer willing to engage in a debate where the Bull case is that Power is "not that bad", the stock can be valued on $1+ in FCF, and GECS is merely a zero... We are willing to consider that zero industrial FCF is not a sustainable level but the stock is not reflecting that as a run rate with an $85 B market cap... The answer to us is somewhere in between where the stock is today and zero and that is where generally our PT sits... Much Buy-rated sell side analysis still seems to us to be built on a notion that things can V-shape hard in 2020/2021 off of a high base of FCF – contrary to what the CEO said... If it is indeed modest negative FCF, we estimate this would mean enterprise FCF of -$4.5 B, which would suggest that soon after the $1 anchor became +$0.50 as we had shown in prior research, the +$0.50 has now become close to NEGATIVE $0.50.....We disagree with the view that it's "not that bad", and while "cutting numbers, reiterating Buy" is fairly common for the sell side, we reject this approach of cut and push to the next year, which has been going on for almost two decades now for some... Unlike prior episodes that were based on next year, this seems to stretch into 2021, a whole new level... As long as this sentiment prevails, we don't think the stock can bottom......Our PT remains $6 and looks generous after today's news..."
"The only true incremental information that came out of today's presentation was GE setting a cautious expectation for negative Industrial FCF in '19 without committing to an exact range prior to March 14th (we think could be as low as negative $2-$4bn in GE's outlook next Thursday)... We cut our Industrial FCF forecast from +$2bn to -$2bn as we now assume cash headwind from Alstom legacy litigations, more restructuring in Power, larger drag from the exit of Working Capital Solutions business in GE Capital, and less reliance on $13bn of receivables factoring... Most of the negative revision is driven by Power... Based on lower FCF forecast, we trim our PO from $13 to $12..."
"Looking past strong 18A profit, underlying pressures make implied expectations difficult to meet, as highlighted by new 10-K warnings... Keys: (1) 19E off to weak start for TRIP & OTAs; (2) Visitors may start declining; (3) Younger age demos are using GOOG more... We expect profit to slow to single digits by 20E, and a multiple more in line with peers... Downgrade to underperform; PT $40 (from $50)..."
"While we see the company as benefitting from its partnership with AWS and a potential deeper relationship with Microsoft, as reported by the Information, we see these as having a limited impact on financials this coming FY... As such, based on our view of more normalized comps and limited upside to topline over the course of the year, we downgrade the shares to Sell from Neutral as we see better risk reward in other names... To be clear, our rating is not a view on the company's execution, which has been excellent, but rather one where we see multiple expansion from current levels as unlikely..."
"Teva should deliver financial upside in the coming qtrs due to cost cuts and conservative Copaxone guidance... But we believe the market has largely priced that into the stock's premium valuation... We think that TEVA requires more out-year growth visibility to drive outperformance... Downgrade to EW..."
"Following a substantial reset, we believe Mylan's equity can finally outperform over the course of 2019... MYL is trading close to historical valuation lows, and business prospects appear set to improve... Upgrade to OW with a PT of $35 (>25% upside)..."