Stock buybacks are among the reasons corporate earnings are so strong. According to The Wall Street Journal:
Last December’s tax overhaul is boosting corporate profits in more ways than one.
The legislation lowered companies’ tax bills, improving their earnings. But the change has also helped them fund record stock buybacks—a move that makes their results appear even better, by boosting the per-share earnings they highlight for investors.
Dell may have an initial public offering. According to The Wall Street Journal:
Dell Technologies Inc. is exploring the possibility of launching a traditional IPO instead of going public through a proposed acquisition that has met resistance from several investors.
The PC and storage giant plans to interview several banks for underwriting roles in an IPO this week, according to people familiar with the matter. As a result, it has postponed by about a week a roadshow to sell the takeover deal that was to begin this week, the people said.
Vox Media may underperform financially this year. According to The Wall Street Journal:
Digital publisher Vox Media is expected to miss its revenue goal for this year by more than 15%, according to people familiar with the matter, adding to the list of new-media companies struggling to live up to lofty growth expectations.
The company, which owns websites including Vox, The Verge and SB Nation, had been targeting revenue of about $200 million in 2018, which would have translated into about 25% growth over last year’s haul of roughly $160 million, the people said. Instead, the company will be struggling to achieve double-digit percentage revenue growth, the people said.
OPEC is unlikely to increase production soon. According to The New York Times:
Oil producers led by Saudi Arabia and Russia signaled on Sunday that they did not see any rush to increase output, despite pressure from President Trump to pump more oil and hold down prices.
Meeting in Algiers, officials from the Organization of the Petroleum Exporting Countries and allied governments, including Russia, said that after having increased production in recent months, customers now have adequate supplies. “Since June, Saudi Arabia has met the demand for every barrel that has been requested,” the Saudi oil minister, Khalid al-Falih, said at a news conference after the meeting.
Trade tariffs could badly hurt China’s economy. According to CNBC:
As the trade war between Washington and Beijing ramps up, analysts are divided over just how tariffs will impact China’s economy.
Some economists say the tariff battle between the world’s two largest economies — which advanced with a new round of tit-for-tat taxes on Monday — could land a significant hit on the East Asian giant, while others contend that China will manage around the White House’s offensive.
That argument may, however, miss the point about the future of the communist country.
American and Chinese officials have made headlines in recent months for their confident predictions of trade war victory, but many longtime China watchers say the most important drivers and trends affecting Asia’s largest economy go well beyond tariffs.
Porsche will no longer produce diesel-powered vehicles. According to CNNMoney:
Porsche is ditching diesel for good.
The automaker announced Sunday that it would focus on hybrid and electric technology and will no longer make diesel-powered vehicles.
The announcement comes five months after a senior manager at Porsche in Germany was arrested in connection with an investigation into diesel emissions rigging by Porsche’s parent company, Volkswagen.