Archives for November 16, 2017

Tesla’s electric big rig is already facing stiff competition

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Daimler, Bosch and Warren Buffett are all racing to electrify trucking

Tesla CEO Elon Musk announced earlier this year that an all-electric semi was already in development. He later teased its driving impressions during a Technology, Entertainment and Design conference. While the company plans to show off its electrified rig in coming days, Tesla is already facing competition from some of the industry’s heaviest hitters: Daimler, Cummins, Bosch and a Warren Buffett-backed Chinese venture called BYD.

Many know Daimler for either its role in the Daimler Chrysler years or as its role as a parent company for Mercedes-Benz. Some might not know that the company is deeply positioned in the big rig world — it owns or has a stake in Fuso Trucks, Freightliner, Western Star and BharatBenz. This year at the Tokyo Motor Show, Daimler showed off its concept e-Fuso Vision One concept — an electric Class 8 truck concept with 220 miles of range, which is right in line with Tesla’s efforts.

Cummins, known for its diesel engines, already showed off its Aeos concept with a range of around 100 miles. According to Automotive News, Cummins is reportedly starting production of the electric rig in 2019. Like Cummins’ efforts, Bosch, traditionally viewed as a parts supplier, is teaming up with heavy trucking upstart Nikola Motor Company to develop a long-range electrified hauler. Of course, this isn’t quite in line with the Tesla truck since the Nikola will be powered by a hydrogen-electric powertrain said to have over 1,000 miles of range.

BYD might not register any bells, but it’s backed by billionaire Warren Buffett. The China-based company builds just about everything with wheels and specializes as a battery maker. Also according to Automotive News, the company has already lined up contracts with the U.S. Postal Service and other agencies to deliver electric vehicles. BYD also electrifies buses — a market Tesla seems to have missed talking about.

Of course, with the early onset of electrification, it’ll be interesting to see how these big rigs stack up to the use and abuse thrown at heavy trucking equipment. More interesting, time will tell who rises to the top of the heap. Tesla plans on unveiling its electric semi Nov. 16 at 8 p.m. PST in a livestream

Viacom expects affiliate sales to drop in 2018; shares sink

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FILE PHOTO: A woman exits the Viacom Inc. headquarters in New York
FILE PHOTO: A woman exits the Viacom Inc. headquarters in New York, U.S. on April 30, 2013.

Viacom Inc, owner of MTV, Comedy Central and Paramount, said Thursday it expects high single-digit declines in revenue from U.S. cable TV operators and online distributors in the first half of 2018, sending its shares down 8 percent.

The company said pay-TV subscribers continued to decline.

The New York-based media company beat analyst estimates on revenue as U.S. advertising sales improved to their strongest since 2014.

However, Viacom expects mid-single-digit declines in U.S. affiliate sales for 2018, with positive sales returning in 2019.

“In the past year, deals representing nearly 50 percent of our subscriber base have been renewed or extended, and we now have no significant renewals until well into 2019,” Bob Bakish, chief executive, said on a call with analysts. “To be clear, this was a significant accomplishment at a critical time.”

Shares of the company were down 7.7 percent at $22.72 in morning trading.

Like other media companies, Viacom has struggled to boost ratings and advertising as viewers increasingly watch their favorite shows on electronic devices and phones.

Bakish, who took the helm late last year, has made improving relations with cable and satellite companies a priority.

Last month, Viacom reached a deal with Charter Communications to put eight of its most popular networks in Charter’s cheapest U.S. cable bundle.

Prior to that deal, Charter had put some of Viacom’s channels in its more expensive packages, part of the reason for the expected affiliate sales drop in 2018, Viacom said.

Revenue from Viacom’s film unit, which includes theater and licensing revenue, grew 2 percent to $789 million from a year earlier.

However, domestic affiliate revenue fell 3 percent to $948 million in the quarter. Analysts had expected a 1.8 percent drop, according to financial data and analytics firm FactSet.

Domestic ad sales were flat at $936 million, while analysts had expected a two percent increase. Still, U.S. domestic ad sales were Viacom’s strongest since 2014, according to a Jefferies report on Thursday.

Net profit attributable to Viacom rose to $674 million, or $1.67 per share, in its fiscal fourth quarter ended Sept.30, from $254 million, or 64 cents a share, a year earlier.

The quarter included a $127 million gain from an asset sale. Total revenue rose 2.9 percent to $3.32 billion.

Excluding items, the company earned 77 cents per share.

Analysts, on average, had expected earnings of 86 cents per share and revenue of $3.23 billion, according to Thomson Reuters I/B/E/S.

Gold steady as dollar gains amid U.S. rate hike expectations

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A 1000 gram gold bar is seen at the Kazakhstan's National Bank vault in Almaty
A 1000 gram gold bar is seen at the Kazakhstan’s National Bank vault in Almaty, Kazakhstan September 15, 2017. REUTERS/Mariya Gordeyeva

By Vijaykumar Vedala

(Reuters) – Gold prices were little changed on Thursday after upbeat U.S. economic data bolstered the prospects of interest rate increases next month and beyond by the Federal Reserve.

Spot gold was nearly unchanged at $1,278.55 per ounce at 0354 GMT. On Wednesday, gold touched a session high of $1,289.09, a peak since Oct. 20, before paring gains and ending the session about 0.2 percent lower due to a stronger dollar.

U.S. gold futures for December delivery gained 0.1 percent $1,277.80.

“It (gold’s range bound movement) is a combination of Fed rate hike (expectations) and equity market volatility. There are increasing risks in the market now,” said Argonaut Securities analyst Helen Lau.

“Views around these two countering forces could keep gold flat in the short-term,” she added.

Higher interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion.

Underlying U.S. consumer prices increased in October, strengthening the view that a recent disinflationary trend worrying the Fed probably had ended.

Falling unemployment and sustained growth mean the U.S. economy has accelerated beyond a sustainable level so the Fed should continue to raise interest rates, including next month, veteran Fed policymaker Eric Rosengren said on Wednesday.

Spot gold remains neutral in a range of $1,270-$1,286 per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.

“It is perhaps best to remain sidelined for now, as the gold complex seems to be trapped within a relatively tight trading range and has yet to assert a meaningful direction,” INTL FCStone analyst Edward Meir said in a note.

Asian shares got off to a cautious start on Thursday after Wall Street stumbled despite upbeat U.S. economic news and the Treasury yield curve hit its flattest in a decade.

The dollar index, which tracks the U.S. currency against a basket of six major rivals, edged up 0.1 percent.

In other precious metals, palladium was flat at $984.22 an ounce. On Wednesday, it touched a low of $973.40, a bottom since Oct. 31, and fell for the fifth straight session.

Silver was unchanged at $16.99 per ounce, while platinum was down 0.1 percent at $930.

(Reporting by Vijaykumar Vedala in Bengaluru; Editing by Amrutha Gayathri and Richard Pullin)

Brexit: Goldman Sachs chief Lloyd Blankfein suggests second vote

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Lloyd BlankfeinREUTERS

The chief executive of Goldman Sachs, Lloyd Blankfein, has suggested holding another referendum on Brexit.

Mr Blankfein tweeted: “Here in UK, lots of hand-wringing from CEOs over #Brexit… So much at stake, why not make sure consensus still there?”

The firm, which is known to have taken office space in Frankfurt, employs about 6,000 people in London.

Banks are particularly worried the UK will fail to strike an EU trade deal.

The banks fear that after Britain leaves the EU their businesses will lose “passporting rights”, which allows them to sell financial services across borders.

Mr Blankfein’s tweet went on to say: “Better sense of the tough and risky road ahead. Reluctant to say, but many wish for a confirming vote on a decision so monumental and irreversible.

Mr Blankfein’s twitter account was barely used until recently.

Despite him signing up to the microblogging service in 2011 he only sent his first tweet in June – and since then has shared his thoughts in that way just 26 times.

Nevertheless, he has attracted 69,000 followers.

His previously most noticeable tweet – sent last month – was also Brexit-related: “Just left Frankfurt. Great meetings, great weather, really enjoyed it. Good, because I’ll be spending a lot more time there. #Brexit”.

That was seen as a hint that Frankfurt would become a key European base for the Wall Street giant post-Brexit.

Last month, the Wall Street bank said it had agreed to lease office space at a new building in Frankfurt giving it space for up to 1,000 staff.

That would be five times the current staff of 200 and see the Wall Street giant bolstering activities including trading, investment banking and asset management.

The bank is also thought to be looking at expanding its operation in Paris.

Mr Blankfein was in London attending a client event.

A spokesman for Goldman Sachs said the bank had nothing further to add to Mr Blankfein’s comments.