Kate Spade Shares Stylin’ on Latest Reports; Sears Has a Fiscal Guardian Angel; Amazon Dismisses Gravity With Latest Patent

I’m so fancy…

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Kate Spade wants to put itself up for grabs and that news sent its shares up 23%, giving Wall Street plenty of cause to celebrate. And the Street will take whatever it can get, especially since Kate Spade was down 9% just in the last six months. In fact, similar companies including Michael Kors and Coach have also experienced declines during the same time period. But the kicker is that both of those companies, along with four others, are being bandied about as potential buyers of Kate Spade. Talk of a potential sale is just what hedge fund Caerus Investors wants to hear. While the firm, which entered the picture back in 2009, hasn’t disclosed its exact stake in the company, it did send a letter to Kate Spade’s board back in November urging it to put itself on the auction block. And that’s exactly what’s planned for next month. With a market cap of $2.3 billion, Caerus thinks Kate Spade could get picked up for a nifty premium – between $21 to $23 per share -and naturally, Caerus stands to profit from that. But that wasn’t the only story to come out of Kate Spade today. Apparently, an options trader purchased 2,000 calls for Kate Spade shares just minutes before it was reported that it’s exploring a sale. A call, by the way, allows a buyer to score shares at a pre-agreed upon price. Not only was one very lucky buyer involved, but it also netted a very shrewd trader a cool $320,000 within minutes. Insider info? Hmmm. I’m sure the SEC would like to know. Because that would be so bad. Just ask Martha Stewart. As for Kate Spade, she hasn’t been part of the company since 2006.

On a another note…

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Even though its stock just went up 9% – the most in two months – Wall Street definitely does not feel the same amount of love for Sears as it does for Kate Spade. The stock closed at a 52 week low just yesterday and its planning to close 30 more Sears and Kmart stores in early 2017. But there is someone who seems to love the embattled retailer unconditionally: CEO Eddie Lampert, who said he’s going to get a $200 million letter of credit for the troubled company. In fact, he has so much faith in the company  – and apparently he’s the only one who does – that he thinks that letter of credit could grow to $500 million. This is not Lampert’s first “loan” to Sears. In the last two years he’s shelled out over $800 million to the company.  Talk about faith.  At least this loan comes with guarantees that if Sears goes bust, its suppliers will still get paid. I wonder if the rest of his hedge fund buds over at ESL Investments feel the same, even as the firm continues to back Sears? For some inexplicable reason, Lampert is devoted to Sears, despite the fact that its sales are constantly going down and it has already lost billions. Most investors think the time has come to throw in the retail towel.  But not Lampert, who in addition to being Sears’s CEO and biggest cheerleader for the last four years, also happens to be its biggest investor.  However, others only see red flags and are wondering why Lampert is the only one eager to throw money at a company which has been losing so much of it in so little time.  Sears’s last quarter lost $750 million, so much worse than last year at this time when it only lost $454 million. Revenue fell a whopping 13% to $5 billion. In fact, in the last eight years, Sears has lost around $9 billion. Also, with the seeming exception of Lampert, everyone is wondering why Sears would need money right after the holiday season, which is supposed to be the most lucrative quarter out of the whole year.

Yeah, they thought of that too…

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Because fulfillment centers weren’t enough, now the e-commerce giant is looking to do away with gravity – besides logistics companies – with its latest patent for an airborne fulfillment center (AFC). It’s exactly what it sounds like – a warehouse in the sky. Flying at a lofty 45,000 feet, drones would basically zoom into the warehouse, pick up items that were ordered and then deliver them.  The company’s ramped up its drone tech efforts and this latest project fits in nicely with that initiative.  Right now Amazon drone delivery requires that Amazon build warehouses in specific areas, on land, where drones can happily roam free and deliver items to customers. Some of the uses mentioned in the filing include fulfilling orders during football games. The AFC would be stocked ahead of time with certain game “essentials” that could be easily delivered as you cheer for your favorite team. Another idea would be to allow customers to order right from a giant ad board and have their items delivered “within minutes.” But before you start having nightmares of flying robotic insects whizzing all around you, Amazon is going to need to get major regulatory approval from aviation authorities before launching any airships.

Cyber-Attack on U.S. Law Firms Nets Big Illicit Gains for Chinese Hackers; Alexa Gave Amazon a Very Fiscal-Merry Christmas; Fred’s Whips Out the Poison

All hacked up…

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Some of New York’s finest, most prestigious law firms fell victim to a few Chinese hackers when they hacked into the firms’ computer systems and stole valuable information regarding mergers and acquisitions. That information was then used for insider trading which netted the cyber-attackers over $4 million in illegal profits. The attacks happened between April of 2014 – 2015 when the hackers installed malware on the computer networks of the law firms and then downloaded the information from email accounts. U.S. Attorney for the Southern District of New York, Preet Bharara said, “This case of cyber meets securities fraud should serve as a wake-up call for law firms around the world: you are and will be targets of cyber hacking, because you have information valuable to would-be criminals.” The 13 count indictment details how the suspects purchased shares from certain companies involved in mergers and acquisitions and then sold those shares for a massive profit once those mergers and acquisitions were announced.  In the meantime, the SEC has filed its own parallel civil suit against the alleged perps and has asked to have their assets frozen lest they try and cash out on their ill-gotten gains.

It’s all about Alexa…

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The results are in. Well, some of them, anyway. In this case, Amazon is claiming to be the big merry winner (cue the surprised facial expressions) of the retail game we call Christmas – and Hanukah too, of course. Amazon said it shipped more than one billion items through Prime and fulfillment services and, apparently, four of Amazon’s very own devices were the biggest sellers on the e-commerce giant’s site. Go figure. Those top sellers include the Echo Dot Smart Speaker, Amazon’s Fire TV Stick Media Streamer, the Fire Tablet and the regular (plain-old?) standard Echo Speaker.  Just don’t bother asking Amazon for specific sales figures. The company has a nasty habit of not divulging such useful information. Incidentally, the Fire Tablet and Fire TV Stick were also hot sellers last year. With the exception of the Amazon Echo Smart Speakers, the other three cost $5o or less and at those prices it’s easy to see why consumers scooped them up. In fact, sales for Echo devices were nine times higher than they were last year. All the devices, by the way, come with the Alexa voice assistant and Amazon saw a record number of orders for devices that come with Alexa. Only problem was those Echo speakers went too fast. Amazon sold out of them by the middle of December.

Going for the poison…

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Last week Fred’s was on top of the world, after agreeing to buy 865 RiteAid stores for $1 billion. The deal was a win-win. RiteAid needed to dump those stores in order to get regulatory approval to merge with Walgreens Boots Alliance. By purchasing those 865 stores, Fred’s basically doubled its size overnight, going from a market cap $450 million to $1.3 billion. It also experienced a massive stock increase and effectively became the third largest drugstore chain in the U.S. as well as the new darling of the retail pharmacy industry.  But then came activist investor Alden Global, which apparently picked up a 25% stake in Fred’s when no one was paying attention. When the Fred’s board noticed the unusual activity going on with its shares, it unanimously approved a nifty little tactic affectionately dubbed a “poison pill.” A poison pill is simply a shareholder rights plan that kicks into place in the event of a hostile takeover. The targeted company tries to make shares look less valuable and attractive, i.e. “poisonous” to a potential acquirer.  If control is taken, at least shareholders will then be compensated accordingly with a “poison pill” in place.  Fred’s poison pill is meant to take effect when an individual or a group scoops up 10% or more of the company shares. Alden thinks Fred’s shares are undervalued and see their acquisition as a great investment opportunity. Although, Fred’s did deny they threw together the poison pill plan because of a potential takeover bid.

Nike’s Sales Bruised By Yeezy; McDonald’s Gets Busted for Over-Valuing Value-Meal; Lookout! There’s A Lot More Walgreens/RiteAid Coming Your Way

Yeezy breezy…

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Nike’s quarterly profit might be up 7% thanks to strong demand in China and the United States, but that doesn’t mean everything is coming up roses at the athletic apparel company. Fierce competition from Under Armour and Adidas have been hammering away at Nike’s sales, partly because Adidas knocked it out of the park this year, thanks to Kanye West (it’s okay, I cringed too) and his Yeezy line, which saw sales go up 62%. Under Armour’s Stephan Curry’s shoe and apparel line definitely stole plenty of Nike’s mojo too. So Nike has been in quest mode to find all sort of ways to boost sales from, improving online sales features to cutting prices on some of its more popular offerings. One of Nike’s divisions that took a beating this quarter and fell short of expectations was its ever-important basketball division.  Apparently, consumers weren’t feeling the love for LeBron James and Kevin Durant sneakers when they were sporting a $200 price tag. Nike is banking that a $150 price tag will have people biting a little more. The company is also working on a faster supply chain dubbed “express lane” to bring products to market within weeks instead of months. In an effort to set itself apart from the competition, Nike’s come out with self-tying lace-up shoes. If you’re that lazy, they might actually be worth the $720 price tag. Profit from Nike came in at $842 million, with revenue of $8.18 billion and 50 cents added per share. That’s especially good since Nike’s stock has fallen 17% in the last year and Wall Street only expected $8.1 billion and 43 cents per share. Last year at this time the company posted $785 million  in profit and added 45 cents per share.

Un-happy meal…

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McDonald’s is staring at the wrong end of a lawsuit for 41 cents. 41 cents. Turns out the value meal is anything but since it would be 41 cents cheaper to buy the items individually than to buy the bundled package for $5.90 in certain locations. Enter plaintiff James Gertie who discovered this mathematical irregularity at two McDonald’s restaurants in the Chicago area.  The restaurants in question are operated by Karis Management and Gertie wants the suit to get class-action status for consumer fraud and deceptive practices. He says the lawsuit is about principle and is seeking a refund for any customer who purchased the meal at a McDonald’s restaurant operated by Karis. Those 41 cent refunds could add up to a lot of cash as Karis operates ten restaurants in and around Chicago. In the meantime, Karis has yet to comment on the case or the price discrepancy.  As for other McDonald’s all over the world, well, you’re just going to have to do your due diligence to see if their numbers add up or not.

Urge to merge…

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Walgreens Boots Alliance and RiteAid will finally get their way now that they sold off some 865 RiteAid stores to retail chain Fred’s. That’s what the two companies had to in order to appease the Federal Trade Commission so that it could go ahead with its $9.4 billion merger. Together, the new entity will still have over 12,000 locations from which to choose and will effectively become the largest drug store chain in the United States, effectively taking up 46% of the market. Fred’s currently has almost 650 discounted general merchandise stores and is looking to become the third largest drug store chain in the United States.  It’s also trying to reinvent itself by ditching its former name of Fred’s Super Dollar.  Fred’s had to borrow a whopping $1.65 billion in order to get those 865 stores, but it also had to pledge, as collateral, just about everything it has in the form of assets, and maybe even throw in a few bodily organs as well, to secure that loan.  The stores actually cost $950 million but other expenses, operating and otherwise, necessitated the full $1.65 billion. It should prove to be well worth it, however, as the deal will more than double Fred’s size.  Plus, the deal sent shares of Fred’s surging a mind-blowing 85% to $20.75. And who doesn’t like an 85% surge in shares, right?

Apple Bites Back at EU; IMF Chief Found Guilty But She’s Still Allright; Lands’ End Going for New Beginning with Latest CEO

An inconvenient target…

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The EU might be demanding a whopping $14 billion from Apple, but it’s not going to happen so quickly. Or easily. Or at all, if Apple has its way. Back in 2014, the EU accused Ireland of skirting international tax laws when it let Apple park tens of billions of dollars there in order to keep it from getting into the grubby hands of pesky tax collectors. Apparently, Apple only paid a corporate tax rate of 3.8% on $200 billion of overseas profits. In exchange for keeping its profits there, Apple kept jobs there, all safe and secure. The EU said the tax deal amounted to illegal state aid and Apple needs to cough up the record setting fine. Both Apple and Ireland deny that they did anything wrong and think the EU needs to get its stories straight.  Apple says it was singled out by the EU because of its massive success – “a convenient target” as its lawyer so eloquently put it, and that the EU commission conveniently blew off tax experts that were brought in special by authorities in Ireland.  In the meantime, Ireland says that other countries should close their own loopholes and is accusing the EU of overstepping its boundaries as it interferes in member states’ sovereign affairs.

Guilty but not…

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She may have been found guilty of negligence over a payout that happened back in 2008, but it’s not entirely clear if IMF Chief Christine Lagarde is actually guilty of anything.  The trouble started when Lagarde was France’s Finance Minister. Her boss was none other than President Nicholas Sarkozy (half-brother-in-law to Mary-Kate Olsen, fyi). President Sarkozy’s good buddy was this tycoon named Bernard Tapie who got really angry with the French government and then sued it. You see, Tapie sold his stake in athletic company, Adidas, to French bank Credit Lyonnais, which as luck would have it, was state owned. The bank then went ahead and sold that very same stake for a whole lot more money than what Tapie was paid. Tapie cried fraud on the government and became embroiled in a fifteen year legal battle. Enter Lagarde, who against official advice, recommended private arbitration in lieu of continuing to pursue the expensive legal battle. Tapie was awarded an outrageously high 400 million euros (roughly $417 million), and for this Lagarde was found guilty because she didn’t contest the award (which came from public funds, mind you). Incidentally, investigators suspected that the arbitration process was not kosher and was actually rigged in Tapie’s favor. He has since been ordered to pay the award back. In the meantime, Lagarde isn’t even facing any jail time, much less a fine. That’s because the state, according to its own opinion, had a weak case, while Lagarde has an excellent reputation and is in good international standing. Boom.

Canvas is so last year…

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Lands’ End is going luxe again. After dumping its posh CEO, Federica Marchionni – after less than two years –  the company just announced it hired Jerome Griffith, formerly of Tumi, who just this year wrapped up selling the company to Samsonite Luggage to the tune of $1.8 billion. Griffith also held posts at Gap Inc. and Tommy Hilfiger and has a solid reputation for turning companies around. It was only three months ago that the company booted Marchionni, who previously held posts at Dolce & Gabbana and Ferrari. But alas, she couldn’t make it past the two year mark, as her vision for making Lands’ End an upscale brand, via the Canvas line, did not resonate with a customer bas that wasn’t even looking for upscale. Hence, she went the way of acid wash and parachute pants. Her vision was, in fact, so at odds with the Lands’ End customer base that the company had to eat a $4.4 million loss from the line.  The company also didn’t care for the fact that she stayed put in New York while Lands’ End offices were already comfortably situated in Wisconsin. Geography won’t be an issue for Griffith who is gearing up to set up house and home in the in the state. Lands’s End is counting on Griffith’s business acumen. During his run at Tumi, he saw revenues increase from $196 million in 2009 to $547 million in 2015.  And Lands’ End needs all the help it can get after watching its sales take in a loss last year of close to $20 million.

Yahoo’s Got Major Un-security Issues; Big Pharma Slapped With Big Lawsuit; Super Bowl “Ads” Up to Big Bucks

Some heads are gonna roll…

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Today’s massive data breach is brought to us by Yahoo. Again. It’s estimated that a billion users had their personal data breached back in 2013, which is nearly twice as big as the last data breach Yahoo reported just a few months ago that happened in 2014. Now Yahoo has the dubious distinction of being the target of arguably the largest data breach. Ever. Incidentally, it wasn’t even Yahoo that discovered the breach but rather law enforcement officials. Law enforcement handed over files to the internet company that they received from a third party who said the info was stolen. Way to stay on top of things, Yahoo! Virginia Senator Mark Warner is now on a mission to investigate why Yahoo can’t seem to get its cyber-defense act together, while Yahoo is on its own mission to investigate who was responsible for the breach.  The Senator went to the SEC  back in September to ask them to investigate if Yahoo did what it was required to do by informing the public about the breach that occurred in 2014.  Warner would have preferred that Yahoo informed the public about the breach when it first happened – and NOT three years later. Sounds fair. In the meantime, there’s talk about whether Verizon still plans to acquire Yahoo’s core internet business for $4.83 billion. With Yahoo’s stock experiencing its biggest intraday drop in almost a year, that deal might go buh-bye as Verizon reviews “the impact of this new development.”  Or Verizon will just offer Yahoo a lower price to acquire it. Because, apparently it still makes strategic sense to purchase Yahoo even with two massive data breaches under its belt.

Suited up…

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Twenty states are going after big pharma via a massive lawsuit that probably wont be going away anytime soon. Mylan NV,Teva Pharmaceuticals and four other companies that manufacture generic medicines are now staring at the wrong end of a very big lawsuit. This lawsuit, by the way, is completely separate from the investigations being led by the Justice Department and other agencies. The companies are being sued for conspiring to fix drug pricing on two generic drugs: an antibiotic called doxycycline and a drug used to treat diabetes called glyburide. The suit charges that brass at the pharmaceutical companies jacked up the drug prices by setting them and also allocated markets, which they all knew was illegal. They made sure any incriminating correspondence was deleted or simply avoided written communication. When asked for a comment, one of the companies named in the suit, Heritage Pharmaceuticals Inc., conveniently blamed former executives who had since been fired.  Jeffrey Glazer, former CEO of Heritage Pharmaceuticals is actually expected to plead guilty next month. Mylan predictably denied the charges while Teva said it’s still reviewing the complaint. The others remained mum.

Ad-citing news…

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The Super Bowl is still a couple of months away but the advertisers are gearing up for their multi-million dollar thirty second spots come February 5. Rumor has it Fox is charging between $5 million – $5.5 million. GoDaddy, which skipped last year’s Super Bowl ad festivities, is coming back this year, along with Snickers, Skittles and – get this – Avocados from Mexico. Can’t wait to see how Donald Trump tweets about that one.  GoDaddy skipped last year’s festivities, apparently to focus on breaking into more international markets. That mission has presumably been accomplished as the domain services company is now available in 56 markets. Of course, it wouldn’t be the Super Bowl without beer ads and Anheuser Busch has got a whole bunch of spots lined up touting its refreshing assortment. In the meantime, regular advertisers, PepsiCo and FritoLay are sitting out this year. It’ll be the first time in ten years that viewers will not see a Doritos ad during the big game. But don’t get too choked up about Pepsico’s absence. The company will still figure prominently since its Pepsi Zero Sugar is the official sponsor of the half-time show starring Lady Gaga.

Trump Must Say Buh-bye to DC Namesake Hotel; Amazon’s Latest Tricks Up its Sleeve; The Urge to Merge: Alaska Airlines and Virgin America

Give it up…

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The official word out of Washington DC and, more importantly, the General Services Administration (GSA), is that Donald Trump has to give up his beloved hotel that is housed in the Old Post Office, just a few blocks from the White House. It’s the one that he opened back in September and has been the site for so very many Trump protests. That particular building is especially off limits to the President-elect because it is leased from the Federal government. The GSA, in case you were wondering, manages property owned by the Federal government. So it stands to reason that it has a say in what Donald Trump can and can’t do in this particular situation. Incidentally, Federal law does not exactly prohibit a president’s involvement in private business. However, members of Congress and lower ranked executive branch officials cannot. So weird, huh? As for a president’s assets, those have been typically put into blind trusts in an effort to avoid any appearance of impropriety – which seems logical. The owners of these blind trusts have no knowledge of how the assets are being managed and are typically managed by independent third parties. Donald Trump’s daughter, Ivanka, has apparently been dealing with the GSA to resolve this particular issue. However, her involvement is sort of iffy, according to some, since she is an official member of Trump’s transition team.

Droning on and on…

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Amazon’s unleashing plenty of big news today while Jeff Bezos is kicking up his heels at Trump Tower, trying to make nice with the President-elect. First, the online retailer giant announced its first drone delivery, called Prime Air, which took place December 7 in the U.K. A Fire TV device, along with a bag of popcorn found its way to its buyer just thirteen minutes after the order was made. The drop was made in an area in Cambridge that has been authorized for drone testing. So far, two customers have access to this new delivery method. But in the coming months that number is expected to grow by leaps and bounds. The drones fly no higher than 400 feet, are guided by GPS and can carry up to five pounds of merchandise. But best of all, for Amazon anyway, is that drone delivery of small packages are an excellent way to keep delivery costs really low. How does a dollar a drop sound?  Then, Amazon also announced the launch of its very own live streaming video service available just about everywhere. Except China. That must warm Donald Trump’s heart a little.  In any case, the new service is giving Netflix   – which also has yet to conquer China – some very unwanted competition. By the way, Amazon’s launch was eerily reminiscent of Netflix’s global launch almost a year ago. Just saying. The new service, aptly called Prime Video, would get bundled with your average Amazon Prime subscription. The idea is to get people to sign up for Amazon Prime service and from watching all of Amazon’s amazing (it really is) programming, viewers will then have an insatiable urge to buy even more stuff on Amazon. It’s meant to be a win-win. Just not necessarily for your bank account. In Amazon’s defense, however, the company wants to make sure that you’re getting a lot of value from your annual Prime subscription. I can live with that.

Take wing…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

The Alaska Airlines/Virgin America merger is in effect with the official blessing from the U.S. Justice Department. But to be clear, Alaska Airlines is actually buying Virgin America – which has only been around since 2007 –  for about $2.6 billion. The total cost, after all is said and done, is expected to hit closer to $4 billion.  Alaska Airlines is currently the sixth biggest airline operator in the United States, while Virgin America holds steady at number eight. But once these two babies unite, they’ll become the fifth largest airline in the industry. The top four airlines, however, still control 80% of the country’s domestic market. At least the merger will allow for the new entity to become a major player in the highly competitive West Coast region. Combined, the two airlines have around 40 million customers and have so far this year generated $2.4 billion in revenue.

Oil-vey! Trump’s Secretary of State Pick Putin Us On; Trump vs. Silicon Valley; Rate Hike Sends Joy Throughout Wall Street

Energized…

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Trump’s latest pick, this time for Secretary of State, has naturally already ruffled more than a few political feathers. Enter Exxon Mobil Corp. CEO Rex Tillerson, a man who happens to be very very cushy with Russia and its fearless leader, Vladimir Putin. If you recall, Russia is very brazenly messing with Ukraine, to the point where the U.S. felt compelled to impose sanctions. Now, the CIA said the country also launched cyber attacks against the U.S. in an effort to influence the election results. But that very same country awarded Tillerson the Friendship Medal in 2013.  Tillerson, who has never held a public office, has been at Exxon, the world’s largest energy firm, for 40 years and during that time spent many many hours cultivating relationships and establishing major business deals with countless foreign countries and companies. But he’ll still need to be confirmed by the Senate. However, considering that former Secretaries of State Condoleeza Rice and James Baker are big fans, not to mention Defense Secretary Robert Gates, he shouldn’t have too much of an uphill battle. By the way, Condoleeza Rice also happens to be a consultant at Exxon Mobil, and Robert Gates was a consultant at one point too. Rumor has it that they all plan to vouch for the CEO.  Lindsay Graham and John McCain, however, are just not that into him, presumably because of his chummy relationship with Putin, of whom they are not particularly fond. Also not in Tillerson’s favor is the fact that Exxon currently has billions of dollars in deals with Russia, not to mention one valued at $500 billion that involves exploring and pumping for oil in Siberia. Those deals can only go forward if the U.S. decides to lift its sanctions against Russia and, fyi,  Tillerson was never much of a fan of the sanctions. And just so you know, according to a filing from a year ago, Tillerson owns $218 million in Exxon stock along with a $70 million pension plan. Shares of Exxon Mobil went up 2.2% on the news of Tillerson’s nomination.

 

Speaking of Trump…

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Tomorrow is a big day at Trump Towers as some of Silicon Valley’s top execs head over to the President-elect’s digs for a little quality time with Donald Trump. Expected to attend the power meeting are: Apple’s Tim Cook, Facebook’s Sheryl Sandberg, Microsoft’s Satya Nadella, Amazon’s Jeff Bezos, Tesla’s Elon Musk and Google’s Sergey Brin and Eric Schmidt…to name but a few. While the agenda’s not public, there are some predictions about what might be discussed tomorrow. There’s the not-so-minor issue of antitrust enforcement and those pesky government demands for user data. But much higher on that list is Trump’s immigration policies and how they have the potential to put a very major damper on the inner workings at many of these Silicon Valley companies. The fact that these companies bring in a lot of employees on special visas, not to mention that they also send plenty of jobs overseas, doesn’t exactly jibe well with Trump’s vision of “Making America Great Again.”  To be fair, Apple did say it has 80,000 employees in the United States and is also responsible for creating another 2 million jobs from all the business opportunities Apple creates. However, Trump did say, in his very eloquent way, that he wants to “get Apple to build their damn computers and things” right here.  Donald Trump is all for establishing major tax reforms and is acutely aware that all these tech companies have a lot of cash offshore. Major reform will help bring that cash back to the States. So its in everyone’s best interests to work together towards that goal, whether they supported Trump’s presidential aspirations or not. And for the record, they did not.

Stocks, and bonds and hikes…Oh my!

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Stocks all over the world rejoiced today by going up while the Dow Jones Industrial Average came thisclose to hitting the 20,000 mark following its 9% surge since Election Day. Actually, the index came within 50 points of the 20,000 mark which sent Wall Street into fits of fiscal joy. The S&P got in on the action by going up .8% to its very own all-time high. The reason for all this excitement is because the Federal Reserve is expected to officially and finally finally announce a rate hike tomorrow, marking the second time in ten years that we get to witness and take part in that elusive increase. Rate hikes are welcome since they signal that the economy is strong and steady in all the right ways. Low interest rates have this nifty little effect on stocks that makes them cost higher. Problem is low interest rates are just no good  for the savers among us who like high interest rates because of the income they get from bonds and bank accounts.  Even though borrowing costs are about to get that much higher, investors are still positively giddy at the prospect that the President-elect intends to usher in an era of potentially lower corporate tax rates, less regulation and lots more infrastructure spending.