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Updated: 3 hours 11 min ago

Bitcoin flips bearish with battle over $8,450 level of support

Thu, 01/23/2020 - 07:05

A tremendous tussle between Bitcoin bulls and bears is underway this morning with a major sell-off causing price to slump towards the $8,450 level of support. This particular level provided a bounce for Bitcoin's price on two occasions over the weekend, while it was also a point of resistance on January 8. A daily candle close below this level would see the world's largest cryptocurrency flip into a bearish posture with downside price targets emerging at $8,150 and $7,850. A corrective move to the downside would also see a rejection of a potential golden cross, which would have seen the daily 50 EMA cross the 200 EMA to the upside for the first time since April 2019. However, the bearishThe post Bitcoin flips bearish with battle over $8,450 level of support appeared first on Coin Rivet.


Federal Reserve’s Repo Market Fix Is No Fix at All

Thu, 01/23/2020 - 07:00

(Bloomberg Opinion) -- With their best intentions in mind, central banks and governments have instituted rules to ensure that financial institutions have enough liquidity to withstand another crisis. But liquidity coverage ratios, high quality liquid assets rules, Basel 3 compliance, global systemically important bank charges, and the soon-to-be-implemented net stable funding ratios have made supplying the all-important repo market’s needs so byzantine that no one really knows what exactly is required, least of all the Federal Reserve.The Fed understood these new rules posed an uncertainty risk, which is why they regularly surveyed and consulted primary dealers for feedback. And yet, with no real experience with these new rules, everyone was essentially guessing. Add massive issuance of U.S. Treasury securities to meet trillion-dollar budget deficits and by mid-September the all-important repo market broke, unable to handle ever-increasing demand.The simple fix is to roll back the regulations. Treasury Secretary Steven Mnuchin proposed just this in late October. That was quickly followed by a letter from presidential candidate Elizabeth Warren, who warned him that “These rules were designed to ensure that banks have enough cash on hand to meet their obligations in the event of another market crash,” and that “Banks are reporting profits at record levels, and it would be painfully ironic if unexplained chaos in a small corner of the banking market became an excuse to further loosen rules that protect the economy from these types of risks.”Warren was not alone. Former Fed Vice Chairman Alan Blinder and former Federal Deposit Insurance Corp. head Shelia Bair also warned that the rules should remain in place.Instead, the Fed intervened in the repo market by doing what it does best, burying a problem with more money until it goes away. It did this by supplying repo to the primary dealers directly and reserves to the banking system via Treasury bill purchases.Unfortunately, the Fed made a critical design error in its daily interventions. They are offering to supply repo to the dealers at prevailing market rates. In other words, they are giving the dealers every incentive to take repo from the Fed as opposed to the market. In essence, the Fed has become the lender of first resort when it should be the lender of last resort and offer repo at a penalty rate. The Fed should be willing to help a dealer in need, but it should come at a price.So, after four months of these Fed repo operations, new problems are emerging. More specifically, the Fed might be going too far and oversupplying this market. The effective federal funds rate is signaling there are enough reserves in the banking system. This month it traded at 1.54%, breaking below the interest on excess reserves (IOER) floor of 1.55% for the first time in 14 months. This is happening as the Fed announces it will continue to plow ahead with Treasury bill purchases and supplying hundreds of billions of dollars of repo supply until April, if not later.What should the Fed do? It has already telegraphed it will raise the IOER rate by five basis points to 1.60% at the Federal Open Market Committee meeting next week. Presumably, it will also raise the repo offered rate by five basis points to 1.60%. Policy makers should raise the repo rate even higher. Stand ready to offer liquidity, but at a penalty rate.This won’t fix the problems in the repo market; only rule changes can do that. But at least this will allow the Fed to identify how much supply is needed to get the market back in balance rather than risking a loss of control of the federal funds rate altogether.The Fed should not be looking to permanently insert itself into the repo market via a standing repo facility. Repo is still a credit market, and, in times of stress, it requires a credit decision when deciding who gets a collateralized loan and at what terms. Central banks are not equipped to make these decisions, and their involvement could create a moral hazard, making things worse.The repo market’s problems are far from over.To contact the author of this story: Jim Bianco at jimb@bloomberg.netTo contact the editor responsible for this story: Robert Burgess at bburgess@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Jim Bianco is the President and founder of Bianco Research, a provider of data-driven insights into the global economy and financial markets. He may have a stake in the areas he writes about.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.


Is Ceragon Networks Ltd.’s (NASDAQ:CRNT) 8.1% Return On Capital Employed Good News?

Thu, 01/23/2020 - 06:41

Today we'll evaluate Ceragon Networks Ltd. (NASDAQ:CRNT) to determine whether it could have potential as an investment...


Here's What The Boeing Company's (NYSE:BA) P/E Is Telling Us

Thu, 01/23/2020 - 06:19

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll show how you can use...


Finnish state investor raps Nokia for poor communication on profit dive

Thu, 01/23/2020 - 06:19

The head of Finland's state investment firm Solidium criticised Nokia for poor communication on Thursday and said he had sent management some "feisty feedback" after its sudden profit warning in October. "We were very disappointed by the radical change in (Nokia's) guidance and above all in their communications about it," Solidium's Chief Executive Antti Makinen told Reuters in a sharp rebuke to the company from its biggest shareholder. On Oct. 24 Nokia slashed its 2019 and 2020 profit outlook and halted dividend payouts, saying the company would need to spend more to fend off rivals in the fast-growing 5G networks business.


Gas Exports Have a Dirty Secret: A Carbon Footprint Rivaling Coal’s

Thu, 01/23/2020 - 06:00

(Bloomberg) -- In May, while President Donald Trump toured a new $10 billion plant designed to prepare natural gas for export, he made a vow. Such facilities would be good for the environment, he said, or they won’t get approved.The president has greenlit 11 projects so far, bringing the U.S. total to 18. Environmentalists once touted the fuel, nicknamed “freedom gas” by the Trump administration, as a better energy alternative, but an analysis shows the plants’ potential carbon dioxide emissions rival those of coal.Not all the export terminals are completed and in use, but if they were, simply operating them could spew 78 million tons of CO₂ into the air every year, according to data compiled by Bloomberg from environmental filings. That’s comparable to the emissions of 24 coal plants(3), or 18 gigawatts of coal-fired power—more than Kentucky’s entire coal fleet. And those numbers don’t account for the harm caused by transporting the gas from wellheads to processing facilities and then overseas, which can be significant. “The emissions from these projects can’t be squared with the sorts of drastic, drastic reductions we need in order to avoid catastrophic climate change,” says Nathan Matthews, a senior Sierra Club attorney.As long as natural gas stays in the pipeline, emissions remain relatively low. But the sprawling terminals that export the fuel use ozone-depleting refrigerants to supercool it into liquid form, called LNG. They also belch toxic gases such as sulfur dioxide and burn off excess methane, a greenhouse gas more immediately destructive to the atmosphere than CO₂.Proponents of exporting natural gas, including government officials, argue that it will help wean other countries off coal, and that additional emissions here are offset by lower emissions abroad. But natural gas’s role in global warming is complicated. While the fuel has been key to reducing U.S. emissions as it displaces coal-fired power, the electricity industry’s growing dependence on it has nevertheless “offset some of the climate gains from this coal decline,” according to the Rhodium Group. With the effects of climate change already supercharging wildfires and flooding some coastal communities, the surprise that emissions from LNG terminals rival those of coal plants is not a pleasant one.The surge in U.S. gas production has incentivized the buildout of other fossil-fuel infrastructure, such as petrochemical plants and pipelines. If all of them are built, they could add more than 500 million tons of carbon emissions annually by 2030, according to a study published in Environmental Research Letters.“Industrial emissions such as these, that increase, can move us further away from climate goals,” says Avi Zevin, senior attorney at the New York University School of Law’s Institute for Policy Integrity, which did its own study of LNG. “Operation of LNG terminals produces billions of dollars of climate damages every year, which have to be added to the damages from emissions of the transported gas that will ultimately be combusted.”The six export terminals currently in operation aren’t yet running at full capacity. At current operating levels, their maximum potential CO₂ emissions are equivalent to those of 5.2 coal-fired plants, according to Bloomberg calculations.The plant in Hackberry, Louisiana, that Trump celebrated last spring, Sempra Energy’s Cameron LNG terminal, has one of the largest potential carbon footprints in the analysis—37% higher than the average of 18 facilities Bloomberg(2)reviewed. The biggest potential polluter is Venture Global’s Plaquemines facility, also in Louisiana, whose emissions could be 58% higher than the average of all facilities. Sempra declined to comment, and Venture Global did not respond to emails or calls requesting comment.A 2016 federal assessment of the Cameron plant said it would spew a maximum of 9 million tons of CO₂ a year once it’s fully operational. That’s 328,000 tons of the pollutant for every 1 million tons of gas exported, according to Bloomberg calculations.Other plants have significantly smaller footprints. Annova LNG’s Brownsville terminal in Texas would emit just 59,000 tons of carbon dioxide for every 1 million tons of gas it exports, largely because it plans to use renewable energy rather than gas turbines to power the plant and has designed the facility to capture and recycle excess gas instead of releasing it into the atmosphere. “Annova LNG plans to be the lowest-carbon-emitting LNG export facility in the U.S. as part of its sustainability commitment,” the company said in a statement. Freeport LNG, which began exporting gas from its Texas facility last fall, plans to reduce its emissions “by over 90% relative to other plants,” by using electric-drive motors instead of combustion turbines, CEO Michael Smith said in a Jan. 17 statement.  The reasons for the wide differences among plants are unclear, but some facilities generate their own electricity from natural gas rather than pulling it from a regional grid. That’s why, ultimately, Cheniere Energy Inc. sees a greater emissions intensity from its Louisiana terminal vs. the grid-reliant Texas facility, the company says. As of 2018, actual emissions from Cheniere’s two plants in Louisiana and Texas were lower than estimated in their environmental filings, according to EPA records. Both facilities are in the process of being expanded.“We’ve produced our LNG efficiently, lowering our emissions intensity,” said Fiji George, Cheniere’s director of climate and sustainability.The biggest customers for U.S. LNG are South Korea, Japan and—until recently—China. But global demand is softening. Some of the planned export terminals may never be built. Six of the 18 approved plants are already operating, and four are under construction. “China and India would have to grow much faster than they are currently to justify all of this LNG that is being sanctioned,” says Akos Losz, a nonresident fellow at Columbia University’s Center on Global Energy Policy. The U.S. build-out will require “lots of additional demand, and we’re not seeing that materializing.”Trade tensions have dimmed prospects for U.S. exports. China, one of the world’s biggest LNG importers, has cut purchases of American LNG by more than 80% since 2017. It’s unclear what effect the recent “phase one” trade deal between the U.S. and China will have on shipments.The federal agency charged with approving the projects, the Federal Energy Regulatory Commission, argues that higher carbon emissions in the U.S. must be weighed against the potential for lower emissions abroad. “The impacts from greenhouse gas emissions are the same no matter where the facility is located,” FERC Chairman Neil Chatterjee said in a statement. “LNG exports shouldn’t be compared to domestic emissions but looked at in the context of how they help address greenhouse gas emissions globally.”Emissions from the 18 planned natural gas export terminals would negate the carbon savings of all U.S. coal plants retired in 2018To be sure, LNG offers many environmental benefits compared with coal, which emits more particulate matter, leaves behind toxic waste, and contributes to acid rain. LNG’s lifecycle emissions—the amount of pollution generated from the moment the gas is pumped to the time it’s consumed—are also generally lower. A 2019 U.S. Energy Department report found that LNG exports to Europe and Asia generated lower lifecycle emissions than locally mined coal used for power generation.There is an exception. If the amount of methane leaked during gas production and transportation exceeds 3.1% over a 20-year period, LNG’s lifecycle emissions become comparable to those of locally mined coal, according to the agency. A 2018 report published in the journal Nature found that leaks across the U.S. now total 2.3% of oil and natural gas production. In the Permian basin, the world’s highest-producing oil field, the largest producers are burning off methane at a rate of 5.1%, according to Rystad Energy.FERC’s environmental reviews rely heavily on data and estimates supplied by developers. The agency almost never rejects applications due to environmental concerns. Last year, the commission announced plans to open an office in Houston dedicated to expediting approvals of LNG infrastructure, doubling down on the Trump administration’s commitment to gas exports.(Michael Bloomberg, founder and majority owner of Bloomberg LP, the parent company of Bloomberg News, has committed $500 million to launch Beyond Carbon, a campaign aimed at closing the remaining coal-powered plants in the U.S. by 2030 and slowing the construction of gas plants.)(1) Bloomberg's analysis of the impact of new export facilities doesn’t include emissions from burning gas for energy, transporting it by pipeline or shipping it by sea. Carbon dioxide emissions per coal-fired power plant were calculated by dividing the CO2-equivalent output of all U.S. coal-fired power (1.19 billion tons) by the number of operating plants in 2018 (367). That equates to 3.25 million tons of CO2-equivalent emissions per coal facility. This is the same methodology used by the Environmental Protection Agency in its Greenhouse Gas Equivalencies Calculator.(2) Emissions intensity was calculated by dividing the CO2 equivalent emissions for fully operational terminals by 1.10231131 to convert short tons to metric tons, then dividing that by each facility’s liquefaction nameplate capacity. Emissions and capacity were taken from federal environmental filings.\--With assistance from Anastacia Dialynas and Brian Bartholomew.To contact the authors of this story: Catherine Traywick in Denver at ctraywick@bloomberg.netStephen Cunningham in Washington at scunningha10@bloomberg.netNaureen Malik in New York at nmalik28@bloomberg.netDave Merrill in Washington at dmerrill6@bloomberg.netTo contact the editor responsible for this story: Bob Ivry at bivry@bloomberg.net, David MarinoFor 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.


Top Picks 2020- Vanguard Balanced Index Admiral Shares VBIAX

Thu, 01/23/2020 - 06:00

Generally, balanced funds stick to a relatively fixed proportion of stocks and bonds but may also have a money fund component. Their objective is typically a mix of income and capital appreciation, explains Cynthia Andrade, contributing editor to MoneyLetter.


China's mask makers cancel holidays, jack up wages as new virus spurs frenzied demand

Thu, 01/23/2020 - 05:43

BEIJING/SHANGHAI, Jan 23 (Reuters) - Chinese face mask manufacturers are reopening factories shut for a national holiday, promising workers up to four times their normal wages as consumers emptied out stock in stores in a race to protect themselves from the new coronavirus infection. The flu-like virus, which has killed 17 and infected nearly 600, is expected to spread further as hundreds of millions of Chinese travel domestically and abroad during the week-long Lunar New Year holiday, a time when factories across China usually close. Worried about the potential for a global pandemic, China is putting Wuhan, the epicentre of the outbreak and a city of 11 million, on lockdown.


Landmark San Francisco Project Sold at Loss By China Builder

Thu, 01/23/2020 - 05:31

(Bloomberg) -- China’s Oceanwide Holdings Co. has sold its San Francisco property project for about $1 billion, taking a loss on an ambitious development that was expected to include the city’s second-tallest office tower but has lain idle for months.The Oceanwide Center site, which includes offices, upscale condos and a Waldorf Astoria hotel, faced “huge challenges” on construction and cost controls, the company said in a filing to the Shenzhen stock exchange late Wednesday.It expects to take a loss of about $276 million on the project, it said. The buyer was named as a unit of SPF Capital International Ltd., but no further details were given.Work on one of the San Francisco towers was halted in October. Oceanwide is also struggling to complete a project in Los Angeles that has been plagued by lawsuits from subcontractors and as the Chinese government cracks down on capital leaving the country.The disposal of the troubled project is Oceanwide’s first retreat from the U.S. since it hit financial challenges in mid-2018, caused in part by $1.1 billion of acquisitions during an overseas buying spree by Chinese firms.Still, the sale will “substantially improve” cashflow and alleviate overseas’ business risks, Oceanwide said in the filing. The developer is set to receive 4.4 billion yuan ($635 million) in the short term and more in future installments based on actual returns of the project in three years, it said.S&P Global Ratings said in a note Thursday that it expects Oceanwide to sell more assets as the company strives to manage maturities, particularly onshore. Oceanwide’s debt maturing this year totals more than $5.8 billion, S&P estimates.Overseas, Oceanwide also has projects in New York and Hawaii. The developer bought 80 South Street in lower Manhattan in 2015 for $390 million and planned to build a mixed-use high-end condominium and hotel. Progress stalled after there were problems with plans to demolish some existing buildings.Outside real estate, Oceanwide is still in a prolonged process of buying U.S. insurer Genworth Financial Inc.(Updates with rating company comment in seventh paragraph.)To contact Bloomberg News staff for this story: Noah Buhayar in Seattle at nbuhayar@bloomberg.net;Emma Dong in Shanghai at edong10@bloomberg.netTo contact the editors responsible for this story: Craig Giammona at cgiammona@bloomberg.net, ;Katrina Nicholas at knicholas2@bloomberg.net, Peter VercoeFor 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.


Boeing's new CEO orders rethink on key jetliner project

Thu, 01/23/2020 - 04:33

LONDON/CHICAGO (Reuters) - Boeing Co's new chief executive has sent the aerospace giant back to the drawing board on proposals for a new mid-market aircraft, effectively shelving in their current form plans worth $15 billion-$20 billion that had been overtaken by the 737 MAX crisis. A decision on whether to launch a New Midsize Airplane (NMA) seating 220-270 passengers, which seemed imminent barely a year ago, had already been postponed as Boeing gave all its attention to the grounding of the smaller 737 MAX after two fatal crashes. A Boeing spokesman said Calhoun had ordered up a new study on what kind of aircraft was needed.


Chinese Stocks Plunge in Worst End to Lunar Year on Record

Thu, 01/23/2020 - 04:17

(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.Panic coursed through the world’s second-largest equity market as investors sold stocks on concern a deadly virus will worsen over China’s week-long trading break.The Shanghai Composite Index settled 2.8% lower after the close of trading, the worst end to a Lunar Year in its three-decade history. More than 90% of the mainland’s 4,000 stocks fell on volumes that were 20% above average, with foreign traders selling a record $1.7 billion worth of the shares via links with Hong Kong. The yuan weakened as much as 0.4% and government bond futures rose to the highest since 2016.Pressure is building on Beijing to contain a new SARS-like virus that’s killed at least 17 people and infected hundreds. The coronavirus first appeared last month in the city of Wuhan in central China, a city with 11 million residents -- more than in London or New York -- that’s now essentially in lockdown after officials halted public travel.Inside China’s Virus Zone, Unease Grips a City in Lockdown“Fear and panic are rampant,” said Wang Daixin, a fund manager at Bristlecon Pine Asset Management Ltd. “It’s hard to tell how bad things will get before a turn for the better. I didn’t get out when I had the chance to, so now I might as well sit it out rather than lose money. Others are offloading at whatever cost.”The virus and its potential impact on the economy and financial system pose a growing challenge for President Xi Jinping. It comes at a time when the Communist Party is seeking to maintain stability in the face of a trade war with the U.S., the spread of swine fever, a debt mountain, rising corporate defaults and protests in Hong Kong.China was criticized during the SARS epidemic 17 years ago for initially providing limited information and denying the scope of the problem.A gauge of consumer-staples stocks -- some of last year’s top performers -- extended this week’s loss to 6.4%, the worst since October 2018. The Lunar New Year is a typically strong season for traveling and spending as families gather for the celebrations. Macau casino stocks also tumbled as the city reported its second case of the novel coronavirus and announced it would cancel all Lunar New Year festivities.In Hong Kong, where two cases have also been confirmed, the Hang Seng China Enterprises Index dropped 2%. China Life Insurance Co. slumped to its lowest level in a month.The final day before the Lunar New Year break is historically a good one for stock investors: since its launch in 1991, the Shanghai Composite Index had ended the session lower on only six occasions.Shutting down Chinese markets has trained attention on the offshore yuan, as well as markets in Hong Kong and exchange-traded funds tracking Chinese stocks in New York or Europe. It will add an element of speculation to their prices before mainland bourses reopen on Jan. 31. Hong Kong traders, who still have Friday’s morning session before the break, will then return to their desks on Wednesday.In the U.S., owners of the more than $19 billion that track Chinese stock ETFs will have less information in deciding how much the securities are worth. The reaction from foreign investors can often be more severe: the Xtrackers Harvest CSI 300 China A-Shares fund, which holds mainland listed-shares only, fell twice as much as the underlying gauge earlier this week.Without being able to trade for a week, investors are heading into the holiday blind. After an extended break last May, the Shanghai Composite fell 5.6% as investors reacted to escalating trade tensions with the U.S. The sell-off wiped out almost half a trillion dollars from Chinese equity values.Bullishness Fades“There’s going to be no way for investors to make a decision or change positions until post-Chinese New Year,” said Gavin Parry, chief executive at Parry Global Group in Hong Kong. “Either you’re going to have last minute moves today and tomorrow to get positions in place and take them off, or when we come back -- we’re going to get some decent volatility then.”The virus has dented what had been growing enthusiasm toward equities. Confidence was riding high as Beijing signed a phase one trade deal with the U.S. and data signaled China’s economy was stabilizing. Margin debt had topped 1 trillion yuan as investors took on leverage to chase the rally, while privately-offered funds boosted their stock positions to the highest since early 2015.“Markets were too heated up and there is room for profit taking,” said Nader Naeimi, head of dynamic markets at AMP Capital Investors Ltd. “We have sold Hong Kong shares, China A futures against the long broad EM basket this week. We’re just waiting for some heat and froth to come out before closing the shorts.”\--With assistance from Livia Yap, Kevin Kingsbury, Gregor Stuart Hunter and Matt Turner.To contact Bloomberg News staff for this story: Sofia Horta e Costa in Hong Kong at shortaecosta@bloomberg.net;April Ma in Beijing at ama112@bloomberg.netTo contact the editor responsible for this story: Richard Frost at rfrost4@bloomberg.netFor 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.


Virus fears keep stocks red; ECB gets ready to rethink

Wed, 01/22/2020 - 22:32

World shares fell on Thursday, led by the biggest decline in Chinese stocks in more than eight months, as concern mounted about the spread of a deadly virus in China. Safe options like Japan's yen and government bonds rose, while European stocks followed Asia lower. "Ultimately, the coronavirus is a slow-burning but important story for markets that is likely to last for months rather than just a few days," said TD Securities' European head of currency strategy, Ned Rumpeltin.


4 Promising Oil Trends To Watch In 2020

Wed, 01/22/2020 - 20:00

It’s no secret that energy stocks have struggled this year, but there are some companies that could still have great success


California governor aims to block PG&E's bankruptcy plan

Wed, 01/22/2020 - 19:27

California Gov. Gavin Newsom is urging a federal judge to reject Pacific Gas and Electric's blueprint for getting out of bankruptcy and renewing his threat to lead a bid to turn the beleaguered utility into a government-run operation. In a court filing Wednesday, Newsom's lawyers gave a sternly worded rebuke of PG&E's plan, escalating the intrigue in the year-old case that will determine the fate of the nation's largest utility. PG&E is trying to dig out of a financial hole created by more than $50 billion in claims stemming from a series of catastrophic wildfires that have been blamed on the San Francisco company.


Texas Instruments Points to Signs of Chip Industry Revival

Wed, 01/22/2020 - 19:14

(Bloomberg) -- Texas Instruments Inc. gave a quarterly sales and profit forecast that was in line with estimates, indicating that demand from electronics makers is poised to improve amid progress resolving the China-U.S. trade dispute.First-quarter earnings will be 96 cents a share to $1.14 a share, on revenue of $3.12 billion to $3.38 billion, the Dallas-based company said Wednesday in a statement. On average, analysts predicted profit of $1.04 a share and sales of $3.2 billion, according to data compiled by Bloomberg.Texas Instruments has the biggest customer list and widest product range in the semiconductor industry, making its earnings an indicator of demand across the economy. The company has told investors the electronics business is in the middle of a typical cyclical decline after companies ordered too many parts last year. Such gluts typically last five quarters. In Wednesday’s report, which also included fourth-quarter results, Texas Instruments posted its fifth consecutive period of year-over-year revenue declines.“Most markets showed signs of stabilizing,” the company said in the statement.The company’s forecast for the first quarter was held back by the outlook for the communications equipment industry, which is “going down hard,” Chief Financial Officer Rafael Lizardi said during a conference call. Texas Instruments’ key industrial and automotive markets are close to returning to growth, he said.Shares fell about 1% in extended trading after closing at $133.34 in New York. Despite the revenue declines, the stock has posted a 38% gain in the past 12 months.Three months ago, Texas Instruments said that the U.S. trade dispute with China, the world’s largest market for semiconductors, was adding to customer caution. Since then the countries have signed the first part of what’s promised to be a comprehensive set of trade agreements.Like other chipmakers, the company has raised to the U.S. government the risks to the industry from the trade fight with China and the action taken against Huawei Technologies Co., the Chinese telecommunications equipment giant. The Trump administration has barred U.S. companies from doing business in many cases with Huawei, citing national security concerns.Texas Instruments generated 3% to 4% of its annual revenue in 2019 and 2018 from Huawei, one of the biggest buyers of semiconductors, the company said.On Wednesday, Texas Instruments reported fourth-quarter net income fell to $1.07 billion, or $1.12 per share, from $1.24 billion, or $1.27, in the same period a year earlier. Revenue dropped almost 10% to $3.35 billion. Analysts had estimated a profit of $1.01 a share on sales of $3.21 billion.The company’s chips perform basic functions in everything from factory machinery to mobile phones. Texas Instruments gets the biggest portion of its revenue from the industrial market and is also a major supplier to automakers and telecommunications equipment producers.(Updates with comment from CFO in the fifth paragraph.)To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew PollackFor 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.


Procter & Gamble, Intel earnings: What to know in markets Thursday

Wed, 01/22/2020 - 18:39

Earnings season is in full swing and several heavyweights are gearing up to report results Thursday including consumer staples giant Procter & Gamble and chipmaker Intel.


Ford expects $2.2 billion pre-tax hit related to pension plans in fourth quarter

Wed, 01/22/2020 - 18:27

The charge is largely related to a drop in discount rates, the company said, as that leads to an increase in the amount of money to be contributed for future pension benefits. On an after-tax basis, the loss is expected to reduce Ford's net income by about $1.7 billion in the fourth quarter.


Millennials should invest in bitcoin, billionaire investor says

Wed, 01/22/2020 - 18:05

Billionaire investor Tim Draper said bitcoin is the key for millennials who want to ensure they have enough money in retirement


Elon Musk chases record payday after Tesla hits $100 billion

Wed, 01/22/2020 - 17:47

Tesla's market cap topped $100 billion for the first time ever on Wednesday, and CEO Elon Musk is just in reach of a big payday. Yahoo Finance's Jennifer Rogers and Myles Udland discuss.


New, low-cost iPhone could arrive as soon as February: Bloomberg

Wed, 01/22/2020 - 17:36

Bloomberg reports that Apple could begin assembling a new, low-cost iPhone as soon as February. Yahoo Finance Tech Editor Dan Howley joins The Final Round to discuss the details.


 
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