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This basket consists of S&P 500 companies with women at the helm.
Lockheed Martin Corporation
International Business Machines Corporation
Mondelez International, Inc.
Duke Energy Corporation
The TJX Companies, Inc.
Advanced Micro Devices, Inc.
The Progressive Corporation
General Dynamics Corporation
Ross Stores, Inc.
General Motors Company
CMS Energy Corporation
Campbell Soup Company
Occidental Petroleum Corporation
The new vehicles will use GM batteries and be assembled in GM plants in North America, the companies said. Honda plans to begin selling the vehicles in the United States and Canada in 2024. "We are in discussions with one another regarding the possibility of further extending our partnership," Rick Schostek, executive vice president of American Honda said in a statement.
(Bloomberg) -- Investors are finally warming up to the high-yield market, piling into a handful of new deals and propelling inflows to a record high.Junk bond funds took in $7.09 billion for the week ended April 1, according to Refinitiv Lipper, setting a new weekly record. The cash influx comes on top of three new high-yield offerings Thursday, opened up by the success of deals from Carnival Corp. and YUM! Brands Inc. earlier this week.Issuers are seeing a resurgence in risk appetite, as massive demand for new bond sales has allowed companies to go bigger and bolder with their debt offerings. T-Mobile US Inc. is issuing $19 billion of secured investment-grade bonds in the year’s second-largest sale, while Tenet Healthcare Corp. and TransDigm Group Inc. were able to boost the size of their high-yield offerings.Investment-grade issuance in the U.S. set a new weekly record, with T-Mobile and Oracle Corp. pushing supply to $110.9 billion through Thursday, edging past last week’s total. Issuers came forward with strong reception despite a record high number of U.S. jobless claims, on top of 17 new deals in Europe.Credit investors’ desire for European corporate debt showed no sign of easing as they threw more than 70 billion euros ($76.5 billion) toward new European bond offerings in just one day. Among the big ones today were oil majors BP Plc and Royal Dutch Shell Plc, taking advantage of rising oil prices after China said it would boost its reserves.“Primary market activity has resumed with a vengeance,” said Wolfgang Bauer, a fund manager at M&G Plc. “It’s fair to say that market functionality in the European investment-grade market, particularly on the primary market side, has noticeably improved over the past week.”U.S.T-Mobile was by far the largest deal on the docket today, and the second-largest this year coming behind Oracle. Investment-grade issuance reached $32.1 billion Thursday.Tenet, TransDigm and Restaurant Brands are bringing high-yield offerings, following YUM! Brands which reopened that market MondayCarnival, though technically investment-grade rated, was run off the high-yield syndicate desks and was able to boost the size and cut the coupon WednesdayFor deal updates, click here for the New Issue MonitorFunds that invest in high-yield corporate debt saw investors add $7.09 billion for the week ended Wednesday, according to Refinitiv Lipper data. Investment-grade funds saw continued outflows as $8.47 billion was withdrawn Boeing is offering buyouts to its entire staff of 161,000 people and weighing new output reductionsPimco sees opportunities in bonds issued by high-quality companies in the utility, power, health care, cable and telecom sectors, according to Mark Kiesel, the firm’s chief investment officer for global creditBankrupt shale driller Alta Mesa Resources has a tentative deal to sell itself for $220 million, down from $320 million before the buyer demanded a discount because of the coronavirus pandemicBanks that agreed to help finance leveraged buyouts are starting to feel the pain from a freeze in the market for risky corporate debtEuropeOil giants BP Plc, Royal Dutch Shell Plc and OMV AG all offered euro notes Thursday, capitalizing on a boost in oil prices after China moved forward with plans to bolster its reserves.Lloyds Bank Corporate Markets Plc and British American Tobacco Plc rounded out a total of 17 issuers that sold EU25.46bRampant demand has allowed companies to chop pricing on their bonds, with Schneider Electric SE pulling in a staggering 8.8 billion euros of orders for a 500 million-euro seven-year noteMore triple-B rated companies dove into the market, including LafargeHolcim“While last week the focus had still been firmly on issuers at the higher end of the investment-grade quality spectrum, this week BBB-rated issuers have joined the new issue pipeline,” said M&G’s BauerCorporate bond spreads continue to ease from the highest levels since 2012, falling 3 basis points to 239 basis points on WednesdayDefault-swaps insuring the highest-rated corporate debt remain elevated at about 105 basis points. Nonetheless, this compares to a peak of about 138 basis points reached last month, according to a Bloomberg Barclays indexBanks may ask authorities to advise against calls on some instruments if the economy deteriorates further, Jakub Lichwa, a strategist at Royal Bank of Canada, wrote in a noteAsiaThursday was a down day for credit in Asia. Yield premiums on Asian dollar bonds and the cost of insuring debt against default in the region both increased, as more dour news on the coronavirus pandemic limited risk-taking. Read more about that here.Spreads on top-rated Asian dollar bonds were around 10 basis points wider Thursday, according to traders, after rising 3 basis points Wednesday. They are headed for a seventh straight week of increases, the longest such streak in more than a year, according to a Bloomberg Barclays indexThe Markit iTraxx Asia ex-Japan index of credit-default swaps rose about 5-8 basis points on Thursday, according traders. The gauge widened 13 on Wednesday, according to CMA dataChinese investment-grade dollar bonds may continue to outperform other emerging-market peers, says Todd Schubert, head of fixed-income research at Bank of Singapore Ltd. Better-rated Chinese notes are often government related and seem to be considered a safe haven in emerging economies, he saysSouth Korea’s 20 trillion won ($16 billion) bond stabilization fund started buying corporate notes and commercial paper from today, the Financial Services Commission said. The regulator believes the fund will act as a safety net for the marketA sale of asset-backed securities by Korean Air Lines Co. showed carriers pummeled by the coronavirus outbreak can still issue debt, though at a steep cost. Here’s a chart showing the tumble in the airline’s dollar notes:For 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.
Canadian dollar loses ground following weak U.S. Initial Jobless Claims data but rebounds after the surge in oil prices.
Progressive (PGR) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
As one of the major missile makers in the United States, Lockheed Martin (LMT) stands out among its peers by virtue of its broadly-diversified programs and strong order bookings
(Bloomberg Opinion) -- There are a couple of ways of summarizing what’s happened with Occidental Petroleum Corp. since CEO Vicki Hollub went all-in on buying Anadarko Petroleum Corp. last year. One would be that the deal trashed Oxy’s relationship with shareholders and saddled it with too much debt, leading to chronic underperformance and, when disaster struck, a massive dividend cut. An alternative take might be:Ms. Hollub enhanced the value of Occidental’s portfolio of assets through the Anadarko acquisition, which strengthened Occidental’s long-term value proposition.That second one comes from Oxy’s preliminary proxy statement, filed this week.Here’s a quick sanity check by way of a chart. See which of the two assessments most closely aligns with this set of squiggles:One detects some uneasiness on Oxy’s part. It took the trouble to lay out “realizable” pay for executives in its proxy; the idea being that the actual value of stock-based awards plummeted with Oxy’s price. Hence, while Hollub’s headline total compensation for 2019 clocks in at almost $16 million, the company calculates its value as of March 24 was a mere $4.4 million. Salaries for 2020 have been slashed (although these typically account for only 10-15% of total compensation). Plus, the proxy discloses that Oscar Brown, the head of strategy who played a leading role in the Anadarko deal, is no longer with the company.Clearly, Hollub’s pay package isn’t worth what it was a couple of months ago. On the other hand, compared with a shareholder who just had most of their dividend taken away, the CEO is still being paid to wait. After all, the board presumably expects Hollub to preside over some sort of recovery in the share price (and, thereby, connected stock-based awards).Moreover, while realizable pay may now be worth a fraction of what it was when the board met in February, the more pertinent question is why was it worth so much in February? It was clear by then, even before the corona-crash, that Oxy’s gamble had inflicted big losses on shareholders and forced it to cut spending and growth targets. Total shareholder return in 2019 was negative 28% — worse than the sector, the market and the year before. Yet Hollub’s headline compensation rose by 13%.Then there are bonuses, typically adjusted to some percentage of a target level based on company performance. Oxy’s percentage for 2019: 175%. As is usual with these things, that number derives from a Rube Goldberg-esque set of performance metrics and weightings. In this case, it was complicated further by being split between pre- and post-acquisition objectives.Astoundingly, the executives were deemed to have exceeded expectations even more on the latter bit. Defined in exceedingly narrow terms, I suppose one could have argued back in February that, judged on things like realizing synergies or whatnot, the executives were hitting their marks. But context is everything, and the context here is a debacle. So perhaps stuff like realizing synergies should have been redefined as the bare minimum rather than bonus-worthy. Again, one detects a certain uneasy recognition of the dissonance here with the majority of Hollub’s bonus being paid in restricted stock units rather than cash.Oxy isn’t alone in setting executive compensation at odds with investors’ experience (see this). The same day it filed its proxy, Whiting Petroleum Corp. filed for chapter 11. While this Bakken-basin fracker cited Covid-19 and the Saudi-Russian oil price war, it already had an underlying (and familiar) condition of rising leverage and weak or negative free cash flow. Announcing its bankruptcy, the company also disclosed bonuses for its top executives, approved just days before, worth $14.6 million. That is actually two-thirds higher than Whiting’s cash balance at the end of December.Doug Terreson, an analyst at Evercore ISI who has been beating the drum on this misalignment for years, calculates that 15 CEOs of the integrated oil and exploration and production companies he covers were paid more than $2 billion in aggregate over the past decade. In exchange, shareholders netted a total return of zero, while the S&P 500 generated a positive total return of more than 250%. “This pay for performance disconnect has not gone unnoticed by the buy-side and is part of the reason why investors avoid energy stocks. The deck is stacked against them,” he writes.Still, the sheer drama of Oxy’s past year marks it out. Consider that the same filing lauding Oxy’s “enhanced” value after swallowing Anadarko also details the company’s recent agreement with one Carl Icahn under the award-worthy euphemism of “Board Refreshment.” The dissonance is deafening.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.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.
(Bloomberg) -- Intel Corp. is trying to sell its new laptop chips in an old way -- by emphasizing their speed.The world’s biggest chipmaker is touting the clock speed of its new H line of processors, citing their ability to process data at more than 5 gigahertz, or 5 billion cycles a second.“Frequency is the thing we’ve optimized for,” said Fredrik Hamberger, an Intel general manager. “These are the first mobile processors to break 5 gigahertz.”Laptops based on these new 10th-generation Core design chips will start to appear in April. The top-of-the-range part can count as fast as 5.3 gigahertz when operating in “Turbo Boost” mode, Intel said. That targets video gamers and professional content creators who often influence what is considered the best PC hardware.The new products are being rolled out as Intel faces rising threats to its industry leadership. Smaller rival Advanced Micro Devices Inc. started fielding more competitive chips about two years ago.Intel pioneered the sale of processors based on clock speed. In 2001, then company President Paul Otellini promised Intel’s Pentium design would scale all the way to 20 gigahertz. But the company’s engineers underestimated how much power was needed, and how much heat would be generated by such chips.As the new century progressed, laptops became more popular, and those slim designs couldn’t handle power-hungry, hot processors as well as desktop machines. So Intel and the industry started making multi-core semiconductors that combined several processors into one. Performance was now measured by the ability to run different workloads at the same time, rather than pure speed.AMD sells new processors that have more cores than Intel chips, garnering praise from gamers and PC reviewers. That’s helped the smaller company take market share from Intel.Intel has also struggled to maintain its lead in manufacturing technology. AMD outsources manufacturing to specialists such as TSMC, which has production technology that is well ahead of Intel’s.Intel’s Chipmaking Throne Is Challenged by Taiwanese UpstartThe new H range of Intel chips are made with 14-nanometer production technology. The company originally planned to upgrade to 10-nanometer in 2017, but that is only beginning to happen in mass volume this year. AMD’s latest processors use TSMC’s 7-nanometer capabilities.Intel says most video games don’t take advantage of multi-core chips and are best served by higher clock speeds. Some 60% of the new models in the H range will be capable of hitting that 5-gigahertz mark or higher, it said. That speed is only achieved in short bursts on limited numbers of cores, or just single cores in a “turbo” mode that shuts down other cores.The base rate, the normal operating speed of the chips, is between 2 and 3 gigahertz, where most of the industry’s products have been for more than a decade.For 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.
(Bloomberg) -- China, the biggest market for electric cars, is considering a reduction in rebates given to buyers and limits on the models that qualify even as it commits to extending the costly subsidy program for another two years.The country’s state council said Tuesday it would extend rebates on electric vehicles until 2022 to support the industry as the coronavirus pandemic hobbles demand. But various government bodies are in discussions over reducing the incentives by 10% later in 2020, according to people familiar with the matter. They’re also in talks to narrow the universe of cars that qualify for the discounts, the people said, asking not to be identified because the deliberations are private.A reduction in subsidies could temper benefits for the likes of Tesla Inc. and Volkswagen AG, which are counting on the world’s biggest auto market to buoy sales. Electric-car manufacturers are already facing a host of challenges, from the global pandemic to the plunge in oil prices, which makes internal-combustion vehicles cheaper to drive.The subsidy plans show the balancing act China’s government is facing as it works to bring the economy back from the debilitating blow the coronavirus delivered early this year. With manufacturing sliding the most on record in February, industries are clamoring for state support.In its bid to become a leader in new-energy vehicles, China has maintained a significant subsidy program for over a decade and was in the process of rolling some of the support back to allow the industry to become more independent when the virus hit.NIO shares fell 4.7% in New York Wednesday.China’s auto industry has been hit particularly hard in the wake of the coronavirus, with weekly car sales at one point plummeting 96%. Now it’s Europe and the U.S.’s turn. Manufacturers across both regions have shuttered factories after governments imposed restrictions to stem the spread of the virus.New-vehicle registrations in France and Spain plunged by more than two-thirds in March from a year earlier, figures released Wednesday show. Several brands in the U.S. reported more than 40% declines for the month.Industry SlumpChina began subsidizing EV purchases in 2009 to promote the industry but has been gradually reducing handouts in the past few years to encourage automakers to compete on their own. The government had planned to phase them out completely at end of this year.But cutbacks that took effect last summer triggered the first downturn in the country’s EV industry, and the pandemic has only worsened the slump.The government bodies involved in the talks -- the Ministry of Finance, Ministry of Industry and Information Technology and the National Development and Reform Commission -- didn’t immediately respond to requests for comment or referred queries elsewhere.China PlantChina is a centerpiece of Tesla Chief Executive Officer Elon Musk’s automotive ambitions. The company began delivering China-built Model 3s to local consumers in January. Constructing the plant near Shanghai was key to unlocking a greater share of the market by qualifying its cars for subsidies and more favorable tax treatment.While Tesla’s registrations have been slow out of the gate, much of the weakness can probably by chalked up to seasonality and the impact the virus has had on the whole industry.General Motors Co. also has high hopes -- and a lot of cash -- riding on China’s EV market. The automaker announced early last month that it’s investing $20 billion into electric and self-driving vehicles by 2025. Some of its battery-powered models already are hitting showrooms in China ahead of the U.S., where federal incentives for its plug-in cars are shrinking.President Donald Trump also just completed a three-year effort to ease fuel-efficiency rules, which will make it easier for companies like GM to meet environmental standards that the Obama administration envisioned giving EVs a boost.VW Electric PushChina is a critical market for German auto giants VW, Daimler AG and BMW AG in terms of profits and sales. VW, the world’s top-selling automaker, is gearing its global electric-car push this year by starting production of purely battery-powered cars at two new factories in China.Daimler, the maker of Mercedes-Benz luxury cars, has introduced the EQC electric SUV and plans to expand its lineup of purely battery-powered vehicles to at least 10 in coming years with China being one of the key markets.The company has also folded its Smart city-car brand into a joint venture with its largest shareholder Geely, which will be based in China and make zero-emission subcompact cars for global markets.(Updates with NIO shares in the sixth paragraph)For 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.
Fiat Chrysler Automobiles NV's new "Drive Forward" marketing program includes online shopping tools that will for the first time allow U.S. customers to complete the purchase of a vehicle through an FCA dealer without setting foot in a dealership, a company spokesman said. GM and Fiat Chrysler's promotions of extended, no-interest loans - made less costly by the Federal Reserve's recent interest rate cuts - echo the "Keep America Rolling" sales push GM launched to jump start a paralyzed consumer market after the Sept. 11, 2001 attacks.
Lockheed (LMT) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.