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☆ GM raised guidance, but its stock fell. Why Wall Street isn't buying in
▼ + stars: | 2023-04-27 | by ( Michael Wayland | ) www.cnbc.com time to read: +2 min

DETROIT – When a company beats Wall Street's earnings expectations and raises guidance amid recessionary fears and other economic concerns, you would expect the stock to rally. Wall Street analysts say eroding pricing power, labor concerns and challenges in producing electric vehicles, will make it harder for GM to perform at the profitability levels it has been. Record-high vehicle profits and prices, achieved during historically low vehicle inventory levels and resilient consumer demand, are starting to normalize. GM CFO Paul Jacobson said Tuesday that the company expects flat pricing compared to last year. He said consumers paid an average of $50,263 per vehicle in the U.S. during the quarter, off 1% from a year earlier.

☆ General Motors raises 2023 guidance as first-quarter earnings beat expectations
▼ + stars: | 2023-04-25 | by ( Michael Wayland | ) www.cnbc.com time to read: +4 min

The new range is between $8.4 billion and $9.9 billion, down from $8.7 billion to $10.1 billion. DETROIT — General Motors on Tuesday raised key guidance for 2023 after reporting first-quarter results that topped Wall Street's top- and bottom-line forecasts. Its net income during the first quarter, however, was down by roughly 18% to $2.3 billion compared to a year earlier. CFO Paul Jacobson said the company felt confident in raising its adjusted earnings guidance after first-quarter results came in above the company's internal expectations, including continued demand for high-end models. GM's first-quarter results included adjusted earnings of $3.8 billion, down 6% from a year earlier.

☆ GM earnings much better than expected as revenue climbs 11%
▼ + stars: | 2023-04-25 | by ( Chris Isidore | ) edition.cnn.com time to read: +3 min

New York CNN —General Motors reported a much better-than-expected first quarter, and said it will do even better than it expected for full-year earnings. But it also said it believes car prices could soon start to retreat from near-record highs. It also said it now expects to earnings between interest and taxes to be between $11 billion and $13 billion for the year. New car prices have started to decline slightly, but remain near-record levels. GM reported a 4% increase in the number of cars sold globally to 864,000, but a 7% increase in the revenue to per vehicle sold.

☆ Fed will probably go for another rate hike at start of May: Invesco
▼ + stars: | 2023-04-13 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Fed will probably go for another rate hike at the beginning of May: Investment management firmPaul Jackson, global head of asset allocation research at Invesco, says the U.S. Federal Reserve will still be concerned about core inflation.

☆ With layoffs looming, you could be offered a voluntary buyout—4 things to know before taking one
▼ + stars: | 2023-04-05 | by ( Rebecca Picciotto | ) www.cnbc.com time to read: +6 min

For example, after cutting 500 salaried positions in February, General Motors offered voluntary employee buyouts to the majority of its 58,000 U.S. white-collar workers. So far, about 5,000 have opted into the "Voluntary Separation Program", or VSP, the company's CFO Paul Jacobson announced on Tuesday. Buyouts can also be less voluntary and more "a precursor to layoffs," says Lindsay Witcher, a senior executive at recruiting firm Randstad RiseSmart. Regardless, these types of buyouts are less voluntary and usually mean that the employee's position is about to be eliminated. Whether the buyout is a warning sign of layoffs or purely a voluntary option, a second opinion can provide necessary clarity.

GM shares were trading down nearly 2% at midday, even though CFO Paul Jacobson said demand for GM's trucks and SUVs remains strong in the United States. GM has been able to raise prices in the United States over the past two years as supply chain bottlenecks kept production in check. GM will cut production to keep inventories in check, Jacobson said. GM has three battery factories in North America, and will announce the location of a fourth domestic battery plant soon, he said. Jacobson added that the company was going to have to "prioritize down" on growth businesses to focus on preserving cash.

☆ GM says 5,000 salaried workers will take buyouts, expects $1 billion charge in first quarter
▼ + stars: | 2023-04-04 | by ( Michael Wayland | ) www.cnbc.com time to read: +2 min

GM CFO Paul Jacobson said Tuesday the automaker expects to take a roughly $1 billion charge during the quarter as a result of the program. The headcount reduction was part of the company's plans to cut $2 billion in structural costs over the next two years. The voluntary buyouts were offered to a majority of the company's 58,000 U.S. white-collar employees. To qualify for the program, salaried employees needed to have worked at the company for five years as of June 30 this year. GM announced the $2 billion cost-cutting program in January, saying between 30% and 50% of the savings were expected during 2023.

JPMorgan refreshed its list of top stock picks heading into April, including a bank stock that's had a rocky start to the year. To kick off the month of April, JPMorgan added two new names to its focus list: VICI Properties and Regions Financial. The other new name on the list, Regions Financial , has declined 15% in 2023. GM shares are up 6.2% in 2023. JPMorgan removed two names from its list: Intellia Therapeutics and Jones Lang LaSalle .

☆ Stocks making the biggest moves midday: General Motors, AMC, Virgin Orbit, Kinross Gold and more
▼ + stars: | 2023-04-04 | by ( Pia Singh | ) www.cnbc.com time to read: +3 min

Virgin Orbit — Shares tanked more than 22% after the California-based satellite launch company filed for Chapter 11 bankruptcy protection. Virgin Orbit said it is looking to sell its assets and will lay off nearly all of its workforce. AMC's "APE" preferred shares gained 8.5% following the news. Etsy – Etsy shares gained 2.4% after Piper Sandler upgraded the e-commerce stock to overweight from neutral, saying that its marketplace strengths should help revamp active buyer growth. Gold miners — Shares of mining companies rallied as gold futures popped on Tuesday.

☆ 5,000 GM salaried staff took buyouts
▼ + stars: | 2023-04-04 | by ( Chris Isidore | ) edition.cnn.com time to read: +3 min

New York CNN —About 5,000 General Motors white collar employees have taken buyouts, according to GM CFO Paul Jacobson. The buyouts were offered to all US salaried staff with at least five years at the company and international executives who had worked at GM at least two years. While it was a voluntary program, GM told its staff that “employees are strongly encouraged to consider the program.”“The voluntary program came in in line with our expectations,” Jacobson said. But while GM may avoid a widespread layoff, it did confirm in March that it cut a “few hundred” salaried staff “following our most recent performance calibration.”GM has 81,000 salaried employees worldwide, with 58,000 of those in the United States. GM (GM) is not the only automaker lowering staff numbers in a cost-cutting effort.

☆ Don't but an EV — lease one instead. Here's why.
▼ + stars: | 2023-03-31 | by ( Alexa St. John | ) www.businessinsider.com time to read: +5 min

Why you might lease instead of ownMany buyers might opt to lease EVs as a way to drive electric but not fully commit to an expensive purchase — especially if they think battery technology will get better. While Teslas have always had a higher purchase rate, EV leasing overall took a tumble in 2022, according to Experian. Car buyers obviously wouldn't get the new EV purchase tax credit with a lease, but there is a sort of loophole. Lucid recently encouraged its customers to consider leasing in order to qualify for the commercial EV credit (for cars that are too expensive or don't otherwise qualify for the purchase credit). It's why companies like Tesla and Ford don't allow customers leasing their EVs to buy the vehicle once its lease contract is up.

But if you're still missing key forms or feeling overwhelmed, you can buy more time by filing a free tax extension. You can avoid a late-filing penalty with an extension by the federal deadline on April 18. You may also need a separate state income tax extension, depending on where you live. How to file a federal tax extensionIf you can't make the April 18 tax deadline, there are a few ways to file for a federal extension, with or without a tax professional. One option is to file Form 4868 online via IRS Free File, which offers free guided tax prep software.

☆ We're not in a 'great economic phase' for commodities, investment management firm says
▼ + stars: | 2023-03-28 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're not in a 'great economic phase' for commodities, investment management firm saysPaul Jackson, global head of asset allocation research at Invesco, says that's particularly the case for industrial commodities.

Bill Oxford | E+ | Getty ImagesWith the tax deadline approaching, the IRS has issued roughly 54 million refunds worth about $158 billion as of March 17, the agency reported Friday. Indeed, the average refund payment was $2,933 compared to $3,305 at the same point last year. For example, many families got relief in 2021 from the enhanced child tax credit, worth up to $3,600 per child, and the child and dependent care tax credit of up to $4,000 per dependent. For 2022, the child tax credit returned to a maximum of $2,000 per child, and the child and dependent care tax credit was $1,050 per dependent. As of March 19, 2021, the average refund was $2,929, only $4 less from the numbers reported Friday.

These days, it is very common for wealthy families to own residences in more than one state, making relocation even easier. In practical terms, having domicile in a state means that state can impose its respective income tax on all the income reflected on the individual's federal income tax return, regardless of the source of that income. But before you call the moving van, understand that state taxation, including state income tax as well as state estate and inheritance taxes and potential wealth taxes, is only one factor to consider as you assess changing your domicile. Some who redomicile to a state with no income tax may find that they are paying the state in other ways, such as higher inheritance, property and/or fuel taxes. That decision is even more challenging considering that states often have different rules defining what they consider domicile.

☆ Trump's plan to build 10 new American cites is a right-wing dream of 'trad havens for beautiful families,' the internet's favorite architecture critic says
▼ + stars: | 2023-03-23 | by ( Eliza Relman | ) www.businessinsider.com time to read: +8 min

Architecture critic Kate Wagner says Trump's plan to build "freedom cities" is nothing new. There's a whole eco-system of classical architecture proponents on Twitter with Roman statues as their avatars who decry modernism. The order made classical architecture — think columns, marble, symmetry — the preferred style for federal buildings. Wagner says Trump's embrace of classical architecture echoes the right-wing war on modernism that began in the 1980s. "For some reason, there also emerged alongside of those advocates a group of people who started to make statements that people neurologically prefer classical architecture."

☆ General Motors' China business is hurting, and it's not just because of Covid
▼ + stars: | 2023-03-17 | by ( Michael Wayland | ) www.cnbc.com time to read: +11 min

He purchased his Nio over models from rival Chinese automakers Xpeng , Li Auto and IM Motors. GM's operations in the country are much larger than those of its crosstown rival Ford Motor, for example. Equity income from GM's Chinese operations and joint ventures has fallen 67% since its peak of more than $2 billion in 2014 and 2015. And the rising quality of domestic-made electric vehicles helped support — and tap — growing nationalistic pride among China's consumers. In February, Ford named Sam Wu, a former Whirlpool executive who joined the automaker in October, as president and chief executive of its China operations, starting March 1.

"Since mid-October, 10-year gilt rates have fallen, debt servicing costs are down, mortgage rates are lower and inflation has peaked. The International Monetary Fund says our approach means the UK economy is on the right track." [1/6] Britain's Chancellor of the Exchequer Jeremy Hunt holds the budget box on Downing Street in London, Britain March 15, 2023. The OBR forecast economic output would grow by 1.8% in 2024 and by 2.5% in 2025, Hunt said, compared with its previous forecasts for growth of 1.3% and 2.6% respectively. Many economists have said Hunt probably wants to hold back some fiscal firepower for closer to the next national election.

☆ Why the UK spring budget won't fix the economy's problems
▼ + stars: | 2023-03-15 | by ( Hanna Ziady | ) edition.cnn.com time to read: +7 min

London CNN —The last time a British finance minister unveiled a “budget for growth,” UK financial markets crashed and mortgage rates shot up, threatening to tip an already weak economy into a deep recession. But he will deliver his budget against essentially the same gloomy backdrop: the UK economy is stuck in the doldrums. John Springford, deputy director at the Centre for European Reform, estimates that Brexit had cost the UK economy 5.5% of GDP by June 2022. SVB could depress UK bank lendingAnother factor that could weigh on the UK economy in the near term: Silicon Valley Bank. “It is likely that UK financial conditions will remain tighter (or potentially significantly tighter) over coming months than they would have been without the US banking troubles,” Pickering said in a research note Monday.

☆ Trump and DeSantis are the only 'big fish' CPAC attendees expect in the 2024 presidential race. But several say there's nothing wrong with others auditioning for supporting roles.
▼ + stars: | 2023-03-04 | by ( Warren Rojas | ) www.businessinsider.com time to read: +7 min

Donald Trump and Ron DeSantis are top of mind at the 2023 Conservative Political Action Conference. CPAC participants suspect 2024 will come down to those two, while others vie for the VP slot. 'An interesting race'Rory McSchane, a GOP political strategist from Austin, Texas is in the more the merrier camp. "My sincere hope is that she would be the vice president," Yadeta said of having Haley round out the 2024 ticket. Should Scott wind up taking the plunge, Bencosme said she could see herself supporting him in the GOP primary — and possibly beyond.

☆ General Motors cuts 500 salaried employees
▼ + stars: | 2023-02-28 | by ( Michael Wayland | ) www.cnbc.com time to read: +2 min

DETROIT – General Motors is cutting hundreds of salaried positions as it follows other major companies, including competitors, in downsizing headcounts to preserve cash and boost profits. The cuts affect about 500 positions, according to a person familiar with the plans, which were announced internally Tuesday. The letter characterized the cuts, which follow performance evaluations, would impact a "small number of global executives and classified employees following our most recent performance calibration." The 500 job cuts make up less than 1% of GM's salaried workforce. Others such as Rivian Automotive also made salaried cuts, while Stellantis said it would idle a plant in Illinois.

☆ Thinking about an electric car? Leasing might actually be a good idea
▼ + stars: | 2023-02-24 | by ( Alexa St. John | ) www.businessinsider.com time to read: +5 min

Automakers might want to lean on leasing EVs. A car owner might also get the commercial tax credit through leasing. While Teslas have always had a higher purchase rate, EV leasing overall took a tumble in 2022, according to Experian. Car buyers obviously wouldn't get the new EV purchase tax credit with a lease, but there is a sort of loophole. Lucid recently encouraged its customers to consider leasing in order to qualify for the commercial EV credit (for cars that are too expensive or don't otherwise qualify for the purchase credit).

☆ Finance Chiefs, Facing Another Year of Persistent Inflation, Prioritize Cost Savings
▼ + stars: | 2023-02-10 | by ( Kristin Broughton | ) www.wsj.com time to read: +6 min

Finance chiefs are pushing their companies to do more with less as they face another year of rising costs. Obviously, we’re dealing with a very unique environment right now with the unprecedented level of cost inflation. But we’re not in that environment right now. Ideally, we can grow as the demand environment hopefully normalizes. And that’s going to give us more optionality as we better understand our demand for AI over time.

Suppliers familiar with GM's production plans through 2025 support the notion the automaker continues to slow-walk electric vehicle investment and output while it continues to bank money from its big combustion-engine pickups and SUVs. GM on Tuesday stuck to its plan to produce a total of 400,000 electric vehicles for North America from 2022 through the first half of 2024. GM said it has secured all the battery materials it will need to build 1 million EVs a year in North America by 2025. In the short run, GM's go-slow approach could allow it to side-step the price war that Tesla launched earlier this month. The division has 90,000 reservations for the high-performance Hummer EVs and is sold out into next year, he said.

REUTERS/Charles PlatiauCHICAGO/DETROIT, Jan 31 (Reuters) - The companies that produce goods at the heart of the U.S. consumer economy - SUVs, washing machines, heavy equipment and hamburgers - kept rolling along at the end of 2022. Bellwethers including McDonald's (MCD.N), General Motors, Exxon Mobil (XOM.N), appliance maker Whirlpool (WHR.N) and delivery giant United Parcel Service (UPS.N), posted results that exceeded estimates. That's a good sign for the broader economy, according to Lori Calvasina, equity analyst at RBC Capital Markets. The economy's performance may depend on whether price pressures that have afflicted consumer and business spending start to wane. "As we go into 2023, there is going to continue to be inflation," said Christopher Kempczinski, McDonald's CEO, on the company's earnings call Tuesday.

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