Google’d: Big Search Engine News; How Crude: Dow Gets a Pick-me Up From Oil and Omaha; Postally Spent

If you google alphabet…

Image courtesy of  blackzheep/FreeDigitalPhotos.net

Image courtesy of blackzheep/FreeDigitalPhotos.net

In case you missed it, there’s a new head honcho at Google. Okay, maybe not as head honcho-y as Sergey Brin and Larry Page, but Sundar Pichai just became the new CEO of Google and now holds the keys to that very magical kingdom. There is also a little bit of restructuring going on at the almighty tech company. Okay. A lot. You see, Google has now become a subsidiary of a new publicly traded company called Alphabet Inc. – which will soon be trading under that name. Brin and Page are at the top of that executive food chain and, no doubt, always will be. Pichai is no rookie, though. He’s been at Google for well over a decade and his last role was as head of Android. So he’ll probably settle into his new digs quite comfortably. Apparently, Wall Street likes the new arrangements too. Google’s stock surged 6% on the news.

Take a dow…

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

A big shout out goes to Warren Buffet today, who together with rebounding oil prices, got the dow to shake off a fiscally ugly seven day slump. First, crude finally climbed 2% to a respectable $44.74 a barrel after falling below a very unflattering $44 a barrel on Friday. Then the Oracle of Omaha reminded the world why Berkshire Hathaway is, in fact, the happiest place on earth (sorry Mickey) when his company announced a $37 billion deal to buy Precision Castparts. The company was purchased at a 20% premium, but no doubt worth every…billion. Precision Castparts took in $10 billion in sales with a $1.5 billion profit in 2014.

Going postal…

Image courtesy of cooldesign/FreeDigitalPhotos.net

Image courtesy of cooldesign/FreeDigitalPhotos.net

It used to be that postal workers were unstoppable in their pursuit of mail delivery. As the saying goes: “Neither snow nor rain nor heat nor gloom of night…” Noticeably absent from this list is Congress, which just might be the one thing that could put a crimp in those mail deliveries. You see, the United States Postal Service just announced its quarterly earnings. It lost $586 million. But, that was still a major improvement over last year at this time when the agency took a $1.5 billion hit. Ouch. April-June, however, typically sees lower revenues, so that figure wasn’t totally alarming. Part of the reason why USPS didn’t lose as much is because of how the interest rates that are tied into worker compensation expenses. Go interest rates! Now let’s get back to Congress. Strangely enough, even though the USPS doesn’t receive any tax dollars, the agency is still under congressional control. Under that congressional control we find the Postal Accountability and Enhancement Act. Say that five times fast. The “Act” stipulates that USPS must pay between $5.4 billion and $5.7 billion toward future retiree health benefit costs. Until 2016. Unfortunately for the USPS, there have been a lot of changes in the mail and package delivery industry and the agency is facing stiff competition, including from many start-ups. Congress has yet to acknowledge these shifting postal tides and draft new legislation that would tweak that multi-billion requirement to a more attainable fiscal goal. Until that happens…well, it’s Congress so don’t hold your breath.

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