Corporate takeovers are at historic highs so far this year. Pfizer, who is in the midst of a takeover attempt, posts mediocre results. China's HSBC Purchasing Manager's Index remains in shrinking mode, Target's CEO resigns. And two VEEPs ride together in yellow Corvette to the White House Correspondent's Dinner.
Data breach causes CEO of Target to lose his job
Target announced on Monday that Chairman, President and CEO, Gregg Steinhafel, is out nearly five months after the retailer disclosed the data breach that hurt the company’s reputation among customers and derailed its business. The Associated Press reports that the 35-year veteran of the company agreed to step down immediately. The company did not indicate when the decision was made. The company’s sales, profit and stock price have all slid since the data breach was disclosed.
Takeovers have fastest start on record
Corporate takeovers of US-based companies this year represent the fastest start on record and are worth more than $637.95 billion. This is the largest amount of deals since Dealogic started tracking the data in 1995. According to the Wall Street Journal, shares of the companies being acquired have jumped an average of 18 percent the day after the deal news. Shares of the buyer firms have also increased an average of 4.6 percent. This is in contrast from 1996 to 2011 when the shares of acquirer’s fell 1.4 percent on average. The deal activity has helped to increase the overall prices of the markets in general. Experts indicate that the pickup in deals is overdue and is based upon the huge amounts of cash that companies have been hoarding since the financial crisis.
Pfizer posts 1Q results
The biggest US drugmaker posted results well below Wall Street’s expectations due to falling sales of generic medicines. Fox Business reports that Pfizer, which is in the midst of trying to takeover AstraZeneca PLC, earned $2.33 billion, or 36 cents per share, in the first quarter. That compared to $2.75 billion, or 38 cents per share, a year ago. Total revenues fell 9 percent to $11.35 billion, about $730 million below Wall Street expectations.
China manufacturing shrinking for 4th month
The Associated Press is reporting that China’s manufacturing contracted in April for the fourth straight month, but the decline was less severe than in prior months. The HSBC Purchasing Manager Index ticked up to 48.1 from 48 in March. A reading above 50 indicates an economy is expanding while a reading below that level indicates contraction. This is the first time the Index has risen since in started falling in October.
Two Veeps ride in Corvette
Chevrolet received a great promotion on Saturday when it provided transportation for two Veeps to the White House Correspondent’s dinner. According to USA Today, Vice President Joe Biden and star of TV’s Veep, Julia Louis-Dreyfus, rode together in a yellow Corvette to the dinner. In the parody video, Biden and Louis-Dreyfus sneak into the White House kitchen for ice cream and then go get tattoos. At the end, Biden drops Louis-Dreyfus off at the White House gate. Coming soon to a TV screen near you…..
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.