Boeing Plans Over $15 Billion Capital Hike as Soon as Monday
(Bloomberg) — Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the beleaguered airplane maker boost its liquidity.
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The company is set to raise more than $15 billion from the fundraising, one of the people said, adding that the amount could still rise depending on demand. Boeing’s advisers have been lining up potential investors for the offering, according to people familiar with the matter, who asked not to be identified as the information isn’t public.
The transaction is likely to include shares as well as debt that can be converted into equity, the people said.
The company on Oct. 23 received clearance from the US Securities and Exchange Commission to sell as much as $25 billion of equity and debt, a move that could help Boeing avoid having its credit rating downgraded to junk.
Deliberations are ongoing and details of the offering, such as timing, could still change, the people said. A Boeing representative declined to comment.
A $15 billion share sale would be the largest equity offering since SoftBank Group Corp. sold part of its stake in T-Mobile US Inc. in 2020, data compiled by Bloomberg show.
Boeing needs the capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week. The company is on pace to use around $4 billion in cash during the fourth quarter, which would bring its free-cash outflow to around $14 billion for the year. The planemaker expects to continue burning cash through the first half of next year as it restarts its airplane factories, including the assembly lines for its cash-cow 737 Max jetliner.
Boeing factory workers voted last week to reject the company’s latest contract offer, which included a wage increase of 35% spread over four years. The company plans to cut its workforce by about 10%, with reductions potentially including executives, managers and employees, Chief Executive Officer Kelly Ortberg said in a memo to employees Oct. 11.
Boeing was weighing raising at least $10 billion by selling new stock and was working with advisers to explore its options, Bloomberg News reported earlier this month. Bank of America Corp. analyst Ronald Epstein on Oct. 23 estimated the company would raise between $18 billion and $20 billion.
Boeing plans to launch effort to raise over $15 billion in capital as early as Monday, source says
By David Shepardson
(Reuters) – Boeing is set to launch as early as Monday its plan to raise more than $15 billion in capital, a source briefed on the matter told Reuters.
Reuters first reported on Oct. 16 that the planemaker was closing in on a plan to raise around $15 billion with common shares and a mandatory convertible bond as it sought to bolster finances worsened by a crippling ongoing strike.
The new capital is set to come from a mix of the sale of stock and convertible preferred shares, the source added, saying the total amount raised could rise based on demand.
Boeing declined to comment on Sunday.
Bloomberg News reported the expected timing of Monday’s capital raise earlier.
Last week, machinists voted nearly two to one to reject Boeing’s latest offer seeking to end the strike that has halted 737 MAX production.
The company said earlier this month in regulatory filings that it could raise as much as $25 billion in stock and debt with its investment-grade credit rating at risk.
The aerospace giant has been dealing with increased regulatory scrutiny, production curbs and a loss of confidence from customers since a door panel blew off a 737 MAX plane in midair in early January.
Boeing has been burning through cash all year and last week announced a new $6 billion quarterly loss. Earlier this month, Boeing said it had secured a $10 billion credit agreement with major lenders: Bank of America, Citibank, Goldman Sachs and JPMorgan.
Boeing said earlier this month it would cut 17,000 jobs – 10% of its global workforce – and delay first deliveries of its 777X jet by a year.
The top three credit rating agencies – S&P, Moody’s and Fitch – have said they will cut Boeing’s ratings to junk if it raised new debt without retiring some $11 billion of debt maturing through Feb. 1, 2026.
(Reporting by David Shepardson; Editing by Christopher Cushing)
Stock market today: Asian shares rise and the yen dips after Japan's ruling party loses majority
TOKYO (AP) — Asian shares rose Monday, as the yen dipped in the midst of political uncertainty after Japan’s ruling party lost its majority in Parliament’s lower house in weekend elections.
In currency trading, the U.S. dollar rose to 153.76 Japanese yen from 152.24 yen. It was trading at 140-yen levels last month. The euro cost $1.0796, down form $1.0803.
The weak yen is a boon for Japan’s giant exporters like Toyota Motor Corp., whose stock gained 3.7% in Tokyo trading. Nintendo Co. gained 2.6%, while Sony Corp. rose nearly 2.0%.
Japan’s ruling Liberal Democratic Party is still the top party, but several members failed to win reelection in Sunday’s vote after a scandal involving unreported campaign funding.
All told, the ruling coalition with junior partner Komeito secured 215 seats, down sharply from the majority of 279 it previously held, according to Japanese media. A change of government is not expected but the LDP may need a third coalition partner.
Tokyo stocks rose. Analysts say the ruling party defeat had been greatly expected and factored into markets from before.
Japan’s benchmark Nikkei 225 surged 1.6% in morning trading to 38,527.52. Australia’s S&P/ASX 200 gained nearly 0.1% to 8,217.80. South Korea’s Kospi edged up 0.6% to 2,598.73. Hong Kong’s Hang Seng added 0.1% to 20,614.74, while the Shanghai Composite rose 0.3% to 3,310.63.
On Wall Street, U.S. stock indexes finished last week, drifting to a mixed finish, giving the market its first losing week since early September.
The S&P 500 closed little changed after having been up 0.9% earlier in the day. The Dow Jones Industrial Average fell 0.6% and also posted its first weekly loss after six straight gains. The Nasdaq composite rose 0.6%.
Company earnings reports, which have been mostly solid, continue to be a key focus for investors. More than a third of the companies in the S&P 500 index have reported their latest quarterly financial results. Most of the results have beat analysts’ forecasts. Companies from around the world are scheduled to report earnings in coming weeks.
Treasury yields ended last week broadly higher. The yield on the 10-year Treasury rose to 4.24% Friday from 4.21% late Thursday.
Yields have generally climbed following reports showing the U.S. economy remains stronger than expected. Wall Street will have more updates next week on consumer confidence, jobs and inflation.
The Fed raised its benchmark interest rate to its highest level in two decades in an effort to tame inflation back to 2%, without sinking the economy into a recession.
Yen Falls, Japan’s Stocks Rise as Traders Weigh Election Impact
(Bloomberg) — The yen extended losses to 1% while Japanese stocks climbed Monday as investors mulled the implications of the Liberal Democratic Party and its coalition partner losing their majority.
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The slide in the currency as far as 153.88 against the dollar came after four straight weekly declines. That’s again raised the risk that authorities may wade back into the market to protect the yen as traders factor in when the Bank of Japan is likely to raise interest rates again given the political uncertainty.
“This result is definitely a concern for many investors, because we have no clear picture about who’s going to be leading the country,” said Hebe Chen, a market analyst at IG Markets Ltd. “The LDP is in a very difficult position and there’s no one option that can be easily settled.”
The yen has depreciated 7% against the dollar this month, and is the worst performer among its Group-of-10 peers.
The tech-heavy Nikkei 225 Stock Average and the broader Topix index both opened slightly lower before quickly turning to gains of more than 1%.
While political instability is typically negative for equities, there is still a possibility that Prime Minister Shigeru Ishiba can secure enough support to stay on. Currency declines also tend to support the stock market.
“This is an unexpected reaction,” said Shuji Hosoi, senior strategist at Daiwa Securities Co. “While the political risk may be increasing, there may be expectation that the Ishiba administration won’t become a lame duck immediately.”
Support for the LDP and its partner Komeito fell short of the 233 seats needed for a majority in the lower house, according to a tally by public broadcaster NHK. Surveys by other media pointed to similar results.
In the fixed-income market, the yield on benchmark 10-year government bonds rose 1.5 basis points to 0.96%. The LDP may team up with a party that has pledged to cut consumption and income taxes and is likely to pursue expansionary fiscal policies, said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management Co.
Much of the currency’s weakness reflects the ultra-low level of interest rates in Japan relative to the US and other major economies. This wide gulf is unlikely to change significantly anytime soon, with the BOJ widely expected to keep its policy interest rate unchanged at a meeting that concludes Thursday.
Michael Saylor's Proposal To Microsoft CEO Satya Nadella: 'If You Want To Make The Next Trillion Dollars For Shareholders, Call Me'
MicroStrategy (NASDAQ:MSTR) executive chairman Michael Saylor humorously reached out to Microsoft (NASDAQ:MSFT) CEO Satya Nadella, suggesting he can help with the company’s Bitcoin (CRYPTO: BTC) strategy.
What Happened: In a post on X on Friday, Saylor advised Nadella that if he’s interested in creating the next trillion-dollar opportunity, he should reach out. This comes as Microsoft, per an SEC filing, prepares to discuss a possible Bitcoin investment at its December shareholder meeting.
MicroStrategy, despite being much smaller, has outperformed Microsoft by 313% largely due to its Bitcoin holdings. The company’s total bitcoin holdings as of Oct. 20 stand at 252,220, worth $9.91 billion.
Microsoft’s second-largest shareholder, BlackRock (NYSE:BLK), has already shown confidence in Bitcoin, offering its clients a Bitcoin ETF.
Why It Matters: Saylor’s message highlights MicroStrategy’s strong performance amid its heavy Bitcoin investments, with the company’s stock up 444% over the past year, including a 244% YTD increase.
Investor confidence in MicroStrategy recently grew as BlackRock raised its stake in the company to 5.2%, making MicroStrategy a key entry point for institutional Bitcoin exposure.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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Dividend Investor Earning $10,200 a Month With $977,000 Shares His Portfolio: Top 7 Stocks
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
There is more than one way to achieve financial success through investing. Some prefer riding the gains of tech growth stocks to build wealth, while others enjoy collecting dividend income alongside portfolio growth. Let’s see an interesting success story of an investor crushing it with the latter strategy.
In June last year, a dividend investor shared his detailed income report with portfolio screenshots on r/Dividends, a discussion board for income investors with more than 600,000 members. The investor said he earned about $10,200 per month in dividends or $122,930 per year. He said his total portfolio value was $977,000, excluding reinvested dividends, with a yield of 12.5%.
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However, the investor did not seem happy with his portfolio performance and repeatedly said his principal investment was in the “red.”
“I am selling everything and for a month I was working on a different approach and totally different set up with stocks. I will keep you all updated. Not posting actual brokerage as I did last time. In a span of a last month that I would consider a great months for stocks it did not worked. And I developed a new strategy. So I am done with this.”
Asked how much time it took to save money for his investment, the Redditor said:
“It took 13 years to save one Million as a disposable amount that I can use to try / test strategies. Moneys were made outside of stocks. So far stocks is in a red for me.”
Later in the discussion, it was revealed exactly how much his portfolio was in the red, when someone commented:
“I bet you he started with one million and he’s down 35k in red.”
To this, the investor replied:
“Your findings are correct.”
Trending: These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends
Nonetheless, raking in over $100,000 annually in dividends impressed many and the investor was flooded with questions and requests for advice. Let’s dig deeper and see some of the top holdings in this portfolio.
BlackRock Multi-Sector Income Trust
Is This Vanguard ETF a Millionaire Maker?
There are many possible ways to become a millionaire. One of the best is simply investing in stocks — for the long term.
However, you don’t want to choose just any stock or buy a stock when it’s overvalued. That can leave many of us scratching our heads as to what we should do.
Enter the Vanguard S&P 500 ETF (NYSEMKT: VOO) — a simple S&P 500 index fund that can make you a millionaire.
Here’s some information on what this ETF is and what it might do for you.
First, the Vanguard S&P 500 ETF is an exchange-traded fund (ETF) — a fund that trades like a stock. It’s also an index fund, aiming to deliver the same performance (less its puny fees) as the S&P 500 index of 500 of America’s biggest companies. Its “expense ratio,” or annual fee, is just 0.03% — costing you $3 per year for every $10,000 you have in the fund.
How has this ETF performed in the past? Check out the table below — but remember that past results don’t guarantee future results. (Also, any low-fee S&P 500 index fund, such as those from Fidelity, Schwab, or other good financial companies, will have similar results.)
|
Period |
Average Annual Gain |
|---|---|
|
Past 3 years |
11.02% |
|
Past 5 years |
16.26% |
|
Past 10 years |
14.04% |
|
Past 15 years |
13.95%* |
Source: Morningstar.com, as of October 21, 2024. Chart by author.
*Since the Vanguard ETF hasn’t been around for 15 years — its inception date was Sept.7, 2010 — this figure is from the SPDR S&P 500 ETF (NYSEMKT: SPY).
Here are the Vanguard S&P 500 ETF’s top holdings, as of the end of September — and they will be the same for just about any other S&P 500 index fund, as well:
|
Stock |
Percent of ETF |
|---|---|
|
Apple |
7.25% |
|
Microsoft |
6.55% |
|
Nvidia |
6.11% |
|
Amazon.com |
3.56% |
|
Meta Platforms |
2.56% |
|
Alphabet Class A |
1.99% |
|
Berkshire Hathaway Class B |
1.73% |
|
Alphabet Class C |
1.64% |
|
Broadcom |
1.64% |
|
Tesla |
1.49% |
Source: Vanguard.com. As of September 30, 2024. Chart by author.
If you’re an admirer of the “Magnificent Seven” stocks, due to their impressive performances over many years, you may be happy to know that all seven — Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Facebook parent Meta Platforms, and Tesla — are in the Vanguard S&P 500 ETF. If you buy shares of the index fund, you’ll have positions in all seven — plus 493 other big companies.
How, exactly, might the Vanguard S&P 500 ETF grow your wealth to $1 million (or beyond)? Let’s crunch some numbers. And despite those delightful average annual returns in the table above that range from about 11% to 16%, let’s be more conservative.
Could Trump Be First Republican To Win Popular Vote In 20 Years? Here's What This Analyst Predicts
Donald Trump could break a two-decade Republican curse by securing the popular vote in next week’s election, as per election analyst Harry Enten.
What Happened: Enten shared recent poll results that depict Trump and Kamala Harris in a neck-and-neck race for the popular vote nationwide.
Although the popular vote does not directly decide the election result due to the Electoral College system, it is still viewed as significant. For Trump, who was unsuccessful in securing the popular vote in the 2016 and 2020 elections, a victory would be momentous.
According to a report by Newsweek, Enten elaborated that the last time a Republican presidential candidate won the popular vote was George W. Bush in 2004 – and before that, no Republican had done so since Bush’s father George H.W. Bush in 1988.
Enten also pointed out that Trump is polling better than past GOP nominees in California and New York, even though he is unlikely to carry either state.
Also Read: Trump’s Escalating Threats To Rivals: 100 And Counting
Enten proposed a potential scenario where Harris could triumph in the Electoral College, even if Trump wins the popular vote. He emphasized that the Great Lakes battleground states are currently too unpredictable to forecast.
Several polls carried out in October depict a tight race between Trump and Harris, with both candidates garnering approximately equal voter support.
Why It Matters: This potential shift in voting patterns could have significant implications for the political landscape. A popular vote victory for Trump would break a 20-year record and could potentially reshape the narrative around his political influence.
It also highlights the unpredictable nature of the Electoral College system, where a candidate can win the popular vote but still lose the election.
This scenario could potentially play out for Harris, as suggested by Enten. The upcoming election results will undoubtedly be closely watched, as they could set new precedents and impact future electoral strategies.
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