World News

Fitbit: From startup to tech powerhouse

European Economics Preview: UK Factory PMI Data Due

Purchasing Managers’ survey from the UK is due on Friday, headlining a light day for the European economic news.

At 3.30 am ET, the Federal Statistical Office is set to release Swiss inflation data. Economists forecast consumer prices to remain flat on year in October, following a 0.1 percent rise in September.

At 4.00 am ET, PMI survey results are due from Norway and Turkey.

Half an hour later, IHS Markit publishes the Czech manufacturing PMI data. Economists forecast the indicator to rise marginally to 45.0 in October from 44.9 in September.

At 5.30 am ET, IHS Markit is slated to publish UK factory PMI data for October. The manufacturing PMI is forecast to fall to 48.2 from 48.3 in September.

Seagate Technology Q1 Adj. Profit Declines; Stock Plunges

Seagate Technology plc (STX) reported first-quarter non-GAAP earnings per share was $1.03 compared to $1.76, previous year. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $1.01 for the quarter. Analysts’ estimates typically exclude special items. Non-GAAP net income declined year-on-year to $278 million from $514 million.

First-quarter non-GAAP revenue declined to $2.58 billion from $2.99 billion, last year. Analysts expected revenue of $2.57 billion, for the quarter.

For the second quarter 2020, the company projects: revenue of $2.72 billion, plus or minus 5 percent; and non-GAAP earnings per share of $1.32, plus or minus 5 percent. Analysts expect the company to report profit per share of $1.32 on revenue of $2.7 billion.

The Board of Directors declared a quarterly dividend of $0.65 per share, which will be payable on January 8, 2020 to shareholders of record as of the close of business on December 26, 2019.

Shares of Seagate Technology were down nearly 5 percent in pre-market trade on Friday.

Construction spending picks up in September

Outlays for U.S. construction projects rose 0.5% in September at a seasonally adjusted annual rate of $1.29 trillion, the Commerce Department reported Friday. Economists polled by MarketWatch had expected growth of 0.3%. Spending in August was revised down to a 0.3% fall from the prior estimate of a 0.1% gain. Housing has been picking up as interest rates fall and residential construction rose 0.6% in September. Spending on public construction projects rose 1.5% in the month.

Promises as the Brexit election battle begins

On today’s podcast we discuss how the political parties will fight it out over the next six weeks to take control of the country – and Brexit.

We also look at why Twitter is banning political advertising on its platform. Plus, we speak to the family of road crash victim Harry Dunn after British police interview American suspect Anne Sacoolas.

:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker

American Axle & Manufacturing Slips To Loss In Q3; Cuts FY Sales Outlook

American Axle & Manufacturing Holdings Inc. (AXL) reported that its net loss for the third quarter of 2019 was $124.2 million or $1.10 per share, compared to net income of $63.8 million or $0.55 per share in the third quarter of 2018. The latest-quarter result was unfavorably impacted by the GM work stoppage by about $14 million, or $0.12 per share.

Adjusted earnings per share were $0.58 compared to $0.63 in the third quarter of 2018. Analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share. Analysts’ estimates typically exclude special items.

Quarterly sales declined to $1.68 billion from last year’s $1.82 billion. Analysts expected revenue of $1.69 billion for the quarter.

AAM has revised its 2019 financial targets to reflect the expected impact of the GM work stoppage on our full year sales, which it estimates to be about $250 million.

The company cut its annual sales outlook to about $6.6 billion from the prior estimation of $6.9 billion to $7.0 billion.

Chevron Corp. Q3 Income Drops

Chevron Corp. (CVX) released earnings for third quarter that fell from the same period last year.

The company’s profit totaled $2.58 billion, or $1.36 per share. This compares with $4.05 billion, or $2.11 per share, in last year’s third quarter.

Analysts had expected the company to earn $1.45 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 17.9% to $36.12 billion from $43.99 billion last year.

Chevron Corp. earnings at a glance:

-Earnings (Q3): $2.58 Bln. vs. $4.05 Bln. last year.
-EPS (Q3): $1.36 vs. $2.11 last year.
-Analysts Estimate: $1.45
-Revenue (Q3): $36.12 Bln vs. $43.99 Bln last year.

New law in Greece against asylum-seeking criticised

New law will make it more difficult to claim asylum. Rights groups say law falls short of European standards.

    The Greek government is introducing a new law that will make it more difficult for refugees and migrants to claim asylum in the country.

    It seeks to weed out economic migrants but human rights groups say the law fails to comply with European standards.

    The government says it is inundated with asylum requests and its European partners have not stepped in to help in practical ways.

     

    Al Jazeera’s John Psaropoulos reports from Athens.

    Fitbit: From startup to tech powerhouse

    New York (CNN)Google announced plans on Friday to acquire Fitbit, the world’s leading maker of wearable fitness activity trackers.

    The deal, worth about $2.1 billion, is one of Google’s (GOOGL) largest acquisitions. The wearable market is growing quickly. Although Google makes some hardware, including Pixel phones and Nest devices, it hasn’t made much headway into smartwatches and other wearable devices.
    “With Google’s resources and global platform, Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone,” Fitbit co-founder and CEO James Park said.

      In a press release, Fitbit emphasized its commitment to data privacy, saying it will remain transparent about the data it collects and why.
      The wearable fitness tracker company also said it never sells personal information and that its health and wellness data will not be used for Google ads.

        The acquisition deal is expected to be finalized in 2020.
        Earlier this year, Fitbit (FIT) lowered the price on some of its devices and launched a new subscription offering called Fitbit Premium, which provides more in-depth insights about sleep, fitness and overall health. In July, Fitbit slashed its outlook for the full year following disappointing sales of its Versa Lite smartwatch.