Broadcom’s (AVGO) group-high dividend yield is safe from coronavirus-related pressures, says Oppenheimer analyst Rick Schafer after speaking to Broadcom CFO Tom Krause.“Balance sheet remains robust ($6.4B cash) and dividend is safe (5.8% yield) . . . even under our “grey sky” scenario” commented the analyst. Right now, the company pays out a dividend of about $1.4 billion per quarter.He also points out that management noted a recovery in China demand. CFO Krause sees domestic demand in China recovering toward normal trends, with strong hyperscaler and telco spend. On the supply side, China manufacturing has rebounded to 80%-plus capacity.However, risks to consumer demand remain, with Schafer predicting “demand push outs coupled with likely demand destruction beginning in 2Q (June).” Schafer also sees a downward bias to handset units at Apple, Samsung, and with China OEMs.On the plus, AVGO strength is led by robust hyperscaler DC/ Cloud spend. And longer term, the analyst believes structural...
Stelios Haji-Ioannou, easyJet's founder and biggest shareholder, on Monday intensified his battle with the airline's management over a huge aircraft order with Airbus which he says it should cancel. Haji-Ioannou said in a statement that he had told the airline he would not provide it with any new equity until it terminates a 4.5 billion pound deal with Airbus. Stelios, as he is better known, says that the 107 planes on order are "useless", after the coronavirus pandemic brought air travel to an almost standstill....
Apr.06 -- Nestle SA is struggling to keep up with consumers’ appetite amid the coronavirus pandemic as obstacles slow down production at the world’s largest food and beverage company, Chief Executive Officer Mark Schneider said in an interview on "Bloomberg Markets: European Open."...
Apr.06 -- The euro is set to face more pressure, and will go down before it goes up, says David Bloom, global head of foreign exchange strategy at HSBC. "What are the common rules? Debt and fiscal policy were one of the anchors of the euro zone, and now that's just gone completely out of the window," Bloom said on "Bloomberg Markets: European Open."...
Apr.06 -- European Banking Authority Chairman Jose Manuel Campa discusses efforts by regulators and central banks to help lenders weather the fallout from the coronavirus so that they can issue loans to individuals and smaller businesses. "Now is the time to focus on providing lending to the economy," He said on "Bloomberg Markets: European Open."...
