Tim's Feed
Feb 14, 2015

Venezuela’s currency devaluation set to further hurt U.S. companies’ profits

BOSTON (Reuters) – A massive effective devaluation of Venezuela’s bolivar currency will likely badly dent 2015 earnings at a swath of major U.S. companies.

    The decision, announced late on Thursday, would almost wipe out the $7.1 billion of Venezuelan monetary assets currently held on the books of 10 large American companies. At the new exchange rate of about 170 bolivars to the dollar, the value of those assets would drop by 93 percent to just $421 million, according to a Reuters analysis of regulatory filings.

Feb 14, 2015

Analysis – Venezuela’s currency devaluation set to further hurt U.S. companies’ profits

BOSTON (Reuters) – A massive effective devaluation of Venezuela’s bolivar currency will likely badly dent 2015 earnings at a swath of major U.S. companies.

The decision, announced late on Thursday, would almost wipe out the $7.1 billion (5 billion pounds) of Venezuelan monetary assets currently held on the books of 10 large American companies. At the new exchange rate of about 170 bolivars to the dollar, the value of those assets would drop by 93 percent to just $421 million, according to a Reuters analysis of regulatory filings.

Feb 12, 2015

Fidelity 2014 profit surged, but equity outflows doubled

BOSTON, Feb 12 (Reuters) – Fidelity Investments said on
Thursday operating profit rose 29 percent to $3.4 billion in
2014 as growth in its financial services business and cost cuts
outweighed the effect of an exodus of funds from its equity
products.

The company said strong revenue growth and unit cost
reductions lifted profit over year-ago levels. Further details
about how it reined in expenses were not provided in the annual
report.

Feb 12, 2015

Insight – Hit hard in Venezuela, U.S. bond funds keep their nerve

BOSTON/CARACAS (Reuters) – Many U.S. bond funds hammered by an almost 30-percent decline in Venezuelan bond prices last year have kept big bets there, even as the South American country struggles with food shortages, runaway inflation and plunging oil revenue.

Though some portfolio managers including Pimco and Van Eck Global have pared their exposure in recent months, Venezuela remains among the largest positions for U.S. funds that focus on emerging market debt. Buttressing support for optimism is Venezuela’s reputation for paying its debts.

Feb 12, 2015

Hit hard in Venezuela, US bond funds keep their nerve

BOSTON/CARACAS, Feb 12 (Reuters) – Many U.S. bond funds
hammered by an almost 30-percent decline in Venezuelan bond
prices last year have kept big bets there, even as the South
American country struggles with food shortages, runaway
inflation and plunging oil revenue.

Though some portfolio managers including Pimco and Van Eck
Global have pared their exposure in recent months, Venezuela
remains among the largest positions for U.S. funds that focus on
emerging market debt. Buttressing support for optimism is
Venezuela’s reputation for paying its debts.

Feb 4, 2015

Templeton Global Bond Fund takes big hit from Ukraine holdings

Feb 4 (Reuters) – The Templeton Global Bond Fund,
one of the biggest investors in Ukraine bonds, weathered a 29
percent hit to the market value of its holdings in the worn-torn
country’s debt during the fourth quarter.

The market value of the fund’s Ukraine bonds fell to $1.8
billion at the end of December, down from $2.53 billion at the
end of the third quarter, according to the fund’s latest
holdings disclosure.

Feb 3, 2015

Snowstorm forces Boston to delay Super Bowl parade until Wednesday

BOSTON (Reuters) – Boston will delay until Wednesday its parade to celebrate the New England Patriots’ Super Bowl victory, after Mayor Marty Walsh decided on Monday to push the event back a day because of a snowstorm pounding the city.

The city had intended to host the parade on Tuesday. But heavy snowfall is expected to last until about midnight, dropping as much as 14 inches (36 cm), while temperatures on Tuesday are expected to drop as low as 15 F (-9 C).

Feb 2, 2015

US companies face billions in Venezuela currency losses, Reuters analysis shows

Feb 2 (Reuters) – At least 40 major U.S. companies have
substantial exposure to Venezuela’s deepening economic crisis,
and could collectively be forced to take billions of dollars of
write downs, a Reuters analysis shows.

The companies, all members of the S&P 500, and including
some of the biggest names in Corporate America such as autos
giant General Motors and drug maker Merck & Co Inc
, together carry at least $11 billion of monetary assets
in the Venezuelan currency, the bolivar, on their books.

Feb 2, 2015

Insight – U.S. companies face billions in Venezuela currency losses, Reuters analysis shows

By Tim McLaughlin

(Reuters) – At least 40 major U.S. companies have substantial exposure to Venezuela’s deepening economic crisis, and could collectively be forced to take billions of dollars of write downs, a Reuters analysis shows.

The companies, all members of the S&P 500, and including some of the biggest names in Corporate America such as autos giant General Motors (GM.N: Quote, Profile, Research) and drug maker Merck & Co Inc (MRK.N: Quote, Profile, Research), together carry at least $11 billion (7 billion pounds) of monetary assets in the Venezuelan currency, the bolivar, on their books.

Jan 24, 2015

Venezuela’s currency woes an increasing threat to U.S. corporate profits

By Tim McLaughlin and Svea Herbst-Bayliss

(Reuters) – Venezuela’s deepening economic troubles, and in particular the weakness of the bolivar and restrictive currency controls, have hurt U.S. corporate profits for the fourth quarter of 2014 and are set to inflict further pain this year.

In a likely sign of things to come from a number of companies this results reporting season, Ford Motor Co on Friday said it was taking a pre-tax charge of $800 million for its Venezuela business. It blamed Venezuelan exchange control regulations that have restricted the ability of its operations in the country to pay dividends and obligations in U.S. dollars. Ford also said that it was unable to maintain normal production in Venezuela with the availability of vehicle parts constrained.