Business News at a Glance
Posted January 17, 2018 9:55 p.m. EST
Apple, After Tax Cut Windfall, Will Bring Billions Back to U.S.
Apple, which had long deferred paying taxes on its foreign earnings and had become synonymous with hoarding money overseas, unveiled plans on Wednesday that would bring back the vast majority of the $252 billion in cash that it held abroad and said it would make a sizable investment in the United States. With the moves, Apple took advantage of the new tax code that President Donald Trump signed into law last month. A provision allows for a one-time repatriation of corporate cash held abroad at a lower tax rate than what would have been paid under the previous tax plan.
IBM May Finally Stop Shrinking. But Is It a Turnaround?
For 5 1/2 years, nearly the entire tenure of its chief executive, Virginia M. Rometty, IBM has reported a steady erosion of revenue. But IBM’s half-decade losing streak will most likely end Thursday, analysts predict, when the company reports its quarterly performance. The crossover to growth would be a long-awaited bright spot for Rometty and IBM, a challenged giant that has been overshadowed in recent years by the younger technology giants on the West Coast. Even if IBM delivers a revenue gain, however, the bigger question facing the company remains: Has Rometty turned it around?
Bitcoin Falls Below $10,000 as Virtual Currency Bubble Deflates
The air has been swiftly leaking out of the virtual currency bubble. A decline in virtual currency prices that began before Christmas has picked up pace in recent days as concern has grown that governments could crack down on the new industry. For a time on Wednesday, the price of bitcoin dipped below $10,000 — taking it down to about half what it was at its peak last month. Other virtual currencies have been falling even faster. Ripple, which was briefly second in value, has lost more than two-thirds of its value from the high it hit early this month.
Goldman Sachs Once Looked Invincible. Now It’s Losing Money.
Goldman Sachs used to seem invincible. The Wall Street firm Wednesday reported its first quarterly loss since 2011. It was the result of a one-time $4.4 billion charge stemming from the new tax law. But even ignoring that unusual event, Goldman’s weak core results showed how far the firm has fallen. The bank’s per-share earnings and revenue were both higher compared with a year earlier without the tax charge. But the results announced Wednesday also revealed a decline in Goldman’s trading might, which has been drained by a potent combination of placid markets and quiet clients.
Assistant to Goldman Sachs Executive Stole and Sold His Rare Wines, U.S. Says
David M. Solomon, a co-president at Goldman Sachs, tasked his personal assistant with helping manage a world-class collection of wine. But his assistant, Nicolas De-Meyer, was doing much more than simply stocking his boss’ wine cellar, federal authorities said. De-Meyer stole some of the most coveted French vintages — worth more than $1.2 million — and sold them, according to an indictment unsealed Wednesday in U.S. District Court. De-Meyer, 40, was arrested Tuesday night and was charged with one count of interstate transportation of stolen property, the authorities said. If convicted, he could face up to 10 years in prison.
Weeks After Lauer Is Ousted, ‘Today’ Changes Show’s Top Producer
Seven weeks after Matt Lauer was ousted from NBC’s “Today” amid allegations of sexual misconduct, there has been another shake-up at the morning show. NBC said on Wednesday that Don Nash, the show’s executive producer since 2012, would leave and would be succeeded by Libby Leist, a veteran “Today” producer with a strong working relationship with Savannah Guthrie, a co-anchor. The move makes Leist the first woman to hold the top producing job for the show’s first two hours. "Today” has surged in the ratings since Lauer’s firing, beating ABC’s “Good Morning America” for seven straight weeks.