Bloomberg, IBM, David Selectric discussed on Bloomberg Surveillance

Automatic TRANSCRIPT

Pimm that we know is that the company is what IBM's always been about from punch cards through the sales man, like, you know, the iconic IBM salesman. The I've been three sixty only one person at Bloomberg has experienced all of these transitions of IBM we bring in David selectric typewriter Wilson. Did you use a selectric typewriter when you were journalism absolutely early on? Remember, I couldn't even type is, you know, David. That's people laugh at me on the news for. You wanted to type an IBM typewriter just to be cool. Didn't matter if use it you just had it. Well, and the idea that all the characters in this one little ball around. This is like going to the moon. Yes. To another language as he actually changed the ball had in the typewriter return. It's right. The future of typewriting cloudy. It could security David update. It's all about cloud computing, these days time now internet based data storage and red hat's big in that business, providing the software to run cloud networks, and while the shares are up forty nine percent in early trading that actually backed off a little bit from their early gains nonetheless much higher after thirty three billion dollar takeover offer from IBM was accepted. The all cash. Purchase is IBM's. Biggest by far in the company expects the deal to accelerate revenue growth within twelve months after its completion noticed twelve months not necessarily right away. And IBM shares down four and a half percent in early trading in the wake of this deal. You've got all those stocks higher. We reported the China's considering a tax cut on most cars to start flagging sales. The country's top economic planning body submit a proposal to reduce the Levy by fifty percent in the wake of that. He got General Motors. Shares up four and a half percent. And you have Ford up four percent now Ford was raised to buy from neutral. Goldman Sachs the firm citing the stocks potential to deliver a return of about forty percent in the next twelve months and Taza which is trying to make inroads in China is higher as well. It's up. Three percent electric car makers third largest shareholder told the times of London that's willing to invest more money in the company now that comment was made by partner at the Scottish investment firm Baillie Gifford, which has a seven point seven percent stake in tesla. Apple's up one and a half percent. The iphone maker received a buy rating, a new coverage of Jeffries, the firm side, what called a significant opportunity for apple services business. Kroger though, down two percent the supermarket owners revenue trail the average analysts estimate in a Bloomberg survey for the first time in two years Kroger cut its sales forecast for stores open at least a year to reflect a remodeling program. That's going on first data second most active stock behind red hat down about six and a half percent. The payment processor posted third quarter earnings and revenue projections and lowered its full year profit forecasts Manar up two percent. The homebuilder was raised to buy from neutral jaffrey's the firm side possible spin off our sale of Lanark investment unit. Realto capital among other things, and we should note what's going on with the American depositary receipts Brazilian companies. You had the presidential election over the weekend conservative J or Boston narrow one. He's talking. About reducing the country's deficit cutting debt. Shrinking the size of government all things that are going over. Well. You got the state controlled oil company petro. Bob, six percents in US trading. The financial company ITO only bunko up five and a half percent. And the I shares MSCI Brazil exchange traded fund, ticker, e w z a four and a half percent in early trading. Thank you very much. Dave Wilson Bloomberg. Stocks comments. Remember to send Dave an Email at dwilson at Bloomberg dot net and sign up for his Email newsletter. You'll also get his chart of the day. Well, one thing that happens when a company approaches red hat to take it over is you've got to get approval of the boards. Now the boards. Various companies have been hit by a lot of issues whether that's corporate governance or indeed even investors calling for more information about climate change. And how companies are reacting to it here to tell us more about the securities and Exchange Commission and these kinds of demands from boards of companies is Andrea Vittorio Bloomberg law corporate governance reporter joining us. From our nation's capital. Andrea tell our listeners about the securities and Exchange Commission and the kind of information they're looking for from the boards of companies that are dealing with activist investors. The SEC sort of like a referee when he's activist investors come to companies with a proposal that they wanna up for a vote and companies can can turn to the FCC and say, we don't want to have a vote on this, and it's up to the SEC to decide, and they they said this year that having some more input from bores. It'd be really helpful to to make their decision. And they've gotten some responses in the past year there there's been some experimenting with this. And they gave some feedback recently on on. What was most helpful will this change what actually shows up at the annual meeting on the agenda for companies it could? And there was an example this past year of Dunkin the company from Leonis Dunkin donuts, they were able to dodge some investor advocacy on the environmental impact of selling single, use coffee cups, and they did it by demonstrating that those kickoffs account for a very small portion of its revenue so. If more companies could provide that sort of data showing that the issue raised by a proposal, isn't that relevant to its core business than they could end up avoiding more votes on these kinds of issues, but the securities and Exchange Commission doesn't necessarily have to weigh in on this. Or does it? They don't have to companies, you know, they could just let a proposal come onto their ballot. And and go to shareholder vote at their annual meeting. They sometimes challenge them, but not always. And usually about I think about half of all the proposals that get filed end up going to a vote. Institutions today. Do they still rely on the big firms you, own forwarded security, Georgia's? Folded securities in your portfolio. How do you keep track of all the governance? Well, the I think they are relying increasingly on having their own big firms like BlackRock, stay straight vanguard have their own in house teams of, you know, monitoring corporate governance, but what's a little guide. You. Will they they probably rely on proxy advisers who who through all these issues that are up for vote each year and give advice on how to vote. I mean, everybody Pimm criticizes all this stuff. But then there's the actual reality of owning x number of securities and trying to keep up with envelope number three hundred and twenty eight that came in. Yes. And even many people don't even open those proxy statements, which they should. But that's another story. I don't think mutual funds have that luxury of no not opening. We got to pay all of a sudden up. I mean is this a political deal where you care about the election? Andrew. In terms of investors carrying about. The politicians are going to get involved with this is just too narrow for that. Well, politics are showing up in investor advocacy in terms of shareholders asking companies where they're spending their money on politics are they lobbying or they contributing to trace associations that end up lobbying. Are they how are they influencing politics? And so we chose up that way. It also shows up just in terms of the the issues that get raised by proposal there tina's, increasingly sort of political as as political. All right. Well, thanks very much Victorio. That's an interesting topic. When you talk about what the SEC wants to hear from boards directly about these issues environmental, social and governance issues. We don't know those envelopes, that's the reality. People need to open those envelopes. They don't that's a fact, and so I spent like a fifty year effect. Yeah. That's like reading the footnotes in the proxy statement detail, you're the MD, and I had that argument the other management discussion and analysis right in an equity specialists asked me what that was. And I had a fulltime key tantrum. Really? Yeah. They should know DNA MDA folks is the essay written by the CEO in the annual report and you after the four hundred since you've read it's an acquired taste, no two sentences. If there's any value to it or was it written by committee of PR people. So they can be really informative that can be really really fun is well futures up twenty seven points. Dow futures up one forty nine this is Bloomberg. Let's go to Mr Michael Barr and find out what's going on in the world. Mr var. Thank you. Pam. Thanks vigils held across the country pay tribute.

Coming up next