DowDuPont is altering its plan to splinter into three companies, a step that appears set to end the threat of a fight with as many as four activist investors.
A Beijing court sentenced two men who led a massive Chinese online lending scam to life imprisonment.
Equifax lobbied for looser regulation of credit-reporting firms in the
months before its massive data breach.
States are moving to bolster investor protections out of concern the Trump
administration will weaken the “fiduciary rule.”
U.S. prosecutors accused an ex-Deutsche Bank executive of misleading investors about loans backing $1.4 billion in securities issued in 2007.
Fintech firm SoFi said Chairman and CEO Mike Cagney would step down
by the end of the year.
OPEC crude-oil production fell last month for the first time since April.
Blackstone is preparing for an IPO or sale of smarthome tech firm Vivint.
The FCC said there is“effective competition” in the wireless market, for the
first time since 2009.
AT&T said it would offer free HBO service to more of its wireless subscribers in the fight for cellular customers.
China’s endorsement of new international sanctions against North Korea came with a heavy dose of caution as Beijing tries to stall its neighbor’s pursuit of nuclear arms without causing its collapse.
Hurricane Irma destroyed a quarter of the homes in the Florida Keys and badly damaged many more.
Russia has begun military drills ahead of major war games that NATO allies say are helping them prepare for future provocations.
Trump’s lawyers concluded Kushner should step down as senior WhiteHouse adviser.
May won a key vote on Brexit legislation, but must get Parliament to support her vision for how the U.K. should exit the EU.
Britain pledged to contribute troops and to work with the EU to implementforeign sanctions after Brexit.
Service companies won’t get the benefit of the lower tax rates Republicans are planning for other businesses.
Bannon remains in frequent contact with Trump weeks after leaving his administration job.
China’s failure to bring air quality up to global standards is shaving years off the lives of its citizens.
How iPhone Will Affect Parts Makers
It’s the $1 trillion question in markets: Will Apple’s latest iPhone be another hit? No matter the answer, investors might be wise to cool their bets on some of the U.S. tech giant’s Asian suppliers: History suggests they don’t do so well once the razzmatazz has passed.
On average, iPhone suppliers have outperformed the market by 7.2% in the six months before a launch, only to underperform by 3.9% in
the three months after, according to brokerage firm Bernstein.
Prelaunch excitement has fueled the likes of AAC Technologies, an iPhone-speaker supplier whose share price is up 46% in the past three months—even though analysts over that period have raised their earnings estimates for next year by only 9%, according to S&P GlobalMarket Intelligence. Around half of AAC’s revenue is from Apple, according to Bernstein. The lens maker Largan and the microphone supplier Goertek, both with AAC-like levels of exposure to Apple,have also run significantly ahead of earnings expectations recently.
A better iPhone bet may be component makers that take a smaller bite from Apple, but are riding the latest trends in smartphones. Take Sony, a supplier of iPhone image sensors: It gets less than 5% of its revenue from
Apple, but should benefit from the shift toward dual lenses in phone cameras.
Samsung Electronics should benefit as smartphones add more memory and sharper screens.
As the hype around Apple’s latest iPhone builds, investors should keep one eye on the likely winners and losers.