APPLE COULD BENEFIT FROM SAMSUNG’S ......news for the Cupertino, Calif., company as it gets set to...
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USA SNAPSHOTS © Changing passwords SOURCE Centrify Consumer Trust Survey of 2,400 consumers JAE YANG AND VERONICA BRAVO, USA TODAY 1 in 10 never change their online passwords for their emails, social networking or shopping online. INDEX CLOSE CHG Nasdaq composite 5,309.83 x 52.43 S&P 500 2,151.33 x 10.17 T-note, 10-year yield 1.77% x 0.03 Oil, light sweet crude $50.52 y 0.33 Euro (dollars per euro) $1.0879 x 0.0008 Yen per dollar 104.24 x 0.39 SOURCES USA TODAY RESEARCH, MARKETWATCH.COM uUSA MARKETS, 6B 18,050 18,100 18,150 18,200 18,250 18,300 DOW JONES INDUSTRIAL AVG. 77.32 9:30 a.m. 18,146 4:00 p.m. 18,223 MONDAY MARKETS BUICK ‘CR’ ranking heaps kudos on Buick, 5B In Full Bloom 888.821.0212 rauantiques.com Antiques • Fine Art • Jewelry Since 1912 Arbres en Fleur à Alet-les-Bains by Post-Impressionist Achille Laugé Signed & Dated 1924 • Oil on Canvas • 21 3 /8”h x 29”w AT&T’s $85.4 billion deal to ac- quire Time Warner is likely to face some of the toughest regula- tory scrutiny in recent U.S. histo- ry of mergers and acquisitions. Opposition and calls for Wash- ington regulatory review surfaced soon after the deal was an- nounced to combine AT&T’s broad communications reach with Time Warner’s array of pre- mium entertainment and media content. Time Warner’s shares fell 3.1% Monday to close at $86.74, below the $107.50 oered by AT&T, re- flecting Wall Street’s concern about a deal winning regulatory approval. It’s unusual for the shares of an acquisition target to fall after a deal is announced. AT&T shares slipped 1.7% to close at $36.86. AT&T and Time Warner say the deal represents the next step in a broad convergence of media and communications and would let consumers get premium con- tent, such as the popular HBO network, however they want it. However, Robert Weissman, president of non-partisan govern- ment watchdog Public Citizen, on Monday urged regulators to “slam down the phone in disgust” when they get AT&T’s phone call seeking approval of the merger. “It aims to concentrate far too much market, communications and political power in one corpo- ration, threatening to impede the free flow of information, under- mine the integrity of the Internet, raise consumer prices and fur- ther corrupt our politics,” Weiss- man said. “This is not a proposal that can be fixed with tweaks, di- vestitures or conduct agreements. Antitrust authorities should re- ject this merger proposal out of hand.” AT&T, Time Warner stocks fall as groups slam merger It’s unusual for shares of an acquisition target to decline Kevin McCoy @kmccoynyc USA TODAY RICHARD DREW, AP AT&T shares slipped 1.7% to close at $36.86 on Monday, while Time Warner’s shares fell 3.1% to close at $86.74. v STORY CONTINUES ON 2B Politics may play part in huge deal Approval may depend on who wins White House. Rieder, 2B SAN FRANCISCO Sam- sung Note 7’s losses might be Apple iPhone 7’s gain. That’s promising news for the Cupertino, Calif., company as it gets set to announce quarter- ly earnings Tuesday. Ap- ple repeatedly has been hit with year-over-year declines in smartphone sales, due to a mix of market saturation and the quality of its iPhone 6s. But analysts are expecting the travails of Samsung’s overheating phablet-sized smartphone, dropped unceremoniously after two recalls that could cost the company more than $5 billion, could inadvertently end a fallow stretch for iPhone. That would represent a major turnaround for Apple’s franchise product, whose sales have de- clined the past two quarters and are expected to drop again when the company announces its fourth-quarter results Tuesday. Analysts expect 44 million iPhone shipments in the fourth quarter, 4 million fewer than a year ago. More important, corrosive iPhone sales could end a streak of 14 consecutive years of revenue growth at Apple. The company — which has re- ported two consecutive quarters of revenue declines — is pro- jected to rack up $215.7 bil- lion in annual sales when it reports Tuesday, down 8% from $233.7 billion in fiscal year 2015, accord- ing to analysts’ estimates. “Samsung’s issues are a positive for Apple,” says Angelo Zino, an equi- ty analyst at CFRA Re- search (formerly S&P Global Market Intelligence). He’s confident Apple can cleave an additional 1% of the smartphone market worldwide — the equivalent of 14 million to 15 million iPhone sales — because of Samsung’s woes. Zino predicts iPhone will ac- count for 62% of the company’s revenue in the September quar- ter. Although unit shipments amounted to a 6% drop year over year — 45 million vs. 48 million — it’s up 11% from the previous quarter. “Put it this way: There’s very limited competition for Apple at the top end of the market,” BGC Partners analyst Colin Gillis says. “Samsung literally exploded.” Samsung’s troubles have bene- fited Apple shares significantly: Shares for the company rose nearly 1% Monday to $117.65, near a 52-week high. South Korean company’s problems could help iPhone maker reverse string of losing quarters Jon Swartz @jswartz USA TODAY AHN YOUNG-JOON, AP Samsung’s Galaxy S7 edge is the latest smart- phone to reportedly overheat, joining the now-discon- tinued Galaxy Note 7. “Put it this way: There’s very limited compe- tition for Apple at the top end of the market. Samsung literally exploded.” BGC Partners analyst Colin Gillis APPLE COULD BENEFIT FROM SAMSUNG’S SMARTPHONE WOES KARIM SAHIB, AFP/GETTY IMAGES Time for a Mac upgrade Personal com- puters in need of long-over- due refresh, 3B v STORY CONTINUES ON 2B ROCKWELL COLLINS BUYS B/E AEROSPACE FOR $6.4B Aviation tech company Rockwell Collins will acquire aircraft interi- or manufacturer B/E Aerospace for $6.4 billion. The deal is ex- pected to close in spring. TD AMERITRADE TO ACQUIRE SCOTTRADE FOR $4B TD Ameritrade reached a deal to acquire rival brokerage firm Scottrade for a mix of cash and stock the firms said was worth $4 billion. TD Ameritrade will first acquire Scottrade Bank for $1.3 billion, then acquire Scottrade Financial Services for $2.7 billion. GANNETT TO REDUCE STAFF ABOUT 2% TO CUT COSTS Gannett, which owns USA TODAY and more than 100 local news properties, said Monday it is reducing its workforce by “about 2%” to help manage costs in a difficult environment for print and digital advertising. The reductions will affect workers across the company, including at its headquarters in McLean, Va. MONEYLINE Move over, Fed. Wall Street says it’s Uncle Sam’s turn to get the U.S. economy humming again. With the days of low interest rates likely nearing an end and Federal Reserve monetary policy losing its power to stimulate growth, Wall Street pros say fiscal policy — government moves to boost economic growth through infrastructure spending, pro- growth tax policies and other means — is what’s needed to boost the economy and stocks. Wall Street says now’s the time for the passing of the baton from stimulus generated by low inter- est rates to government-driven moves that put more money in Americans’ pockets and spur spending by lowering taxes and creating more full-time and high- er-paying jobs. Indeed, even though the September unemploy- ment rate was 5% and near full employment, an estimated 5.9 million workers were working part-time because their hours were cut or they couldn’t land a full-time job, according to the U.S. Bureau of Labor Statistics. And it doesn’t matter who wins the White House. Investors are going to be calling for govern- ment to push a growth agenda whether it’s President Clinton or President Trump. “Regardless of who wins the U.S. presidential race, we see an inevitable shift away from mone- tary policy toward fiscal policy in the next several years,” said Don Rissmiller, economist at Strategas Research Partners. “The nature of any coming fiscal stimulus will likely determine whether the global economy can break its (long-term) stagnation.” Both presidential candidates are proposing healthy dollops of fiscal stimulus. Front-runner Hillary Clinton has promised the “biggest invest- ment in American infrastructure in decades,” backed up by her Here’s how to boost economy, experts say Wall Street wants more fiscal policy, less Fed monetary policy Adam Shell @adamshell USA TODAY v STORY CONTINUES ON 2B LINKSYS Protect your home from hackers, 3B TUESDAY, OCTOBER 25, 2016 SECTION B
Transcript of APPLE COULD BENEFIT FROM SAMSUNG’S ......news for the Cupertino, Calif., company as it gets set to...
USA SNAPSHOTS©
Changing passwords
SOURCE Centrify Consumer Trust Survey of 2,400 consumersJAE YANG AND VERONICA BRAVO, USA TODAY
1 in 10never change their online
passwords for their emails, social networking or
shopping online.
INDEX CLOSE CHGNasdaq composite 5,309.83 x 52.43S&P 500 2,151.33 x 10.17T-note, 10-year yield 1.77% x 0.03Oil, light sweet crude $50.52 y 0.33Euro (dollars per euro) $1.0879 x 0.0008Yen per dollar 104.24 x 0.39SOURCES USA TODAY RESEARCH, MARKETWATCH.COM
uUSA MARKETS, 6B
18,050
18,100
18,150
18,200
18,250
18,300
DOW JONES INDUSTRIAL AVG.
77.32
9:30 a.m.18,146
4:00 p.m.18,223
MONDAY MARKETS
BUICK
‘CR’ ranking heapskudos on Buick, 5B
In Full Bloom
888.821.0212rauantiques.comAntiques • Fine Art • Jewelry Since 1912
Arbres en Fleur à Alet-les-Bains by Post-Impressionist Achille LaugéSigned & Dated 1924 • Oil on Canvas • 213/8”h x 29”w
AT&T’s $85.4 billion deal to ac-quire Time Warner is likely toface some of the toughest regula-tory scrutiny in recent U.S. histo-ry of mergers and acquisitions.
Opposition and calls for Wash-ington regulatory review surfacedsoon after the deal was an-nounced to combine AT&T’sbroad communications reachwith Time Warner’s array of pre-mium entertainment and mediacontent.
Time Warner’s shares fell 3.1%Monday to close at $86.74, belowthe $107.50 o�ered by AT&T, re-flecting Wall Street’s concernabout a deal winning regulatoryapproval. It’s unusual for the
shares of an acquisition target tofall after a deal is announced.AT&T shares slipped 1.7% to closeat $36.86.
AT&T and Time Warner say
the deal represents the next stepin a broad convergence of mediaand communications and wouldlet consumers get premium con-tent, such as the popular HBOnetwork, however they want it.
However, Robert Weissman,president of non-partisan govern-ment watchdog Public Citizen, onMonday urged regulators to“slam down the phone in disgust”when they get AT&T’s phone callseeking approval of the merger.
“It aims to concentrate far toomuch market, communicationsand political power in one corpo-ration, threatening to impede thefree flow of information, under-mine the integrity of the Internet,raise consumer prices and fur-ther corrupt our politics,” Weiss-man said. “This is not a proposalthat can be fixed with tweaks, di-vestitures or conduct agreements.Antitrust authorities should re-ject this merger proposal out ofhand.”
AT&T, Time Warner stocksfall as groups slam mergerIt’s unusual for sharesof an acquisitiontarget to declineKevin McCoy@kmccoynycUSA TODAY
RICHARD DREW, AP
AT&T shares slipped 1.7% toclose at $36.86 on Monday,while Time Warner’s sharesfell 3.1% to close at $86.74.
v STORY CONTINUES ON 2B
Politics may playpart in huge deal Approval may depend on whowins White House. Rieder, 2B
SAN FRANCISCO Sam-sung Note 7’s lossesmight be Apple iPhone7’s gain.
That’s promisingnews for the Cupertino,Calif., company as it getsset to announce quarter-ly earnings Tuesday. Ap-ple repeatedly has been hitwith year-over-year declinesin smartphone sales, due to a mixof market saturation and thequality of its iPhone 6s.
But analysts are expecting thetravails of Samsung’s overheatingphablet-sized smartphone,dropped unceremoniously aftertwo recalls that could cost thecompany more than $5 billion,could inadvertently end a fallowstretch for iPhone.
That would represent a majorturnaround for Apple’s franchiseproduct, whose sales have de-clined the past two quarters andare expected to drop again whenthe company announces itsfourth-quarter results Tuesday.Analysts expect 44 millioniPhone shipments in the fourthquarter, 4 million fewer than ayear ago.
More important, corrosiveiPhone sales could end a streak of14 consecutive years of revenuegrowth at Apple.
The company — which has re-ported two consecutive quarters
of revenue declines — is pro-jected to rack up $215.7 bil-
lion in annual sales when itreports Tuesday, down8% from $233.7 billion infiscal year 2015, accord-ing to analysts’estimates.
“Samsung’s issues area positive for Apple,”
says Angelo Zino, an equi-ty analyst at CFRA Re-
search (formerly S&P GlobalMarket Intelligence). He’s confident Apple can
cleave an additional 1% of thesmartphone market worldwide —the equivalent of 14 million to 15million iPhone sales — because ofSamsung’s woes.
Zino predicts iPhone will ac-count for 62% of the company’srevenue in the September quar-ter. Although unit shipmentsamounted to a 6% drop year overyear — 45 million vs. 48 million —it’s up 11% from the previousquarter.
“Put it this way: There’s verylimited competition for Apple atthe top end of the market,” BGCPartners analyst Colin Gillis says.“Samsung literally exploded.”
Samsung’s troubles have bene-fited Apple shares significantly:Shares for the company rosenearly 1% Monday to $117.65,near a 52-week high.
SouthKoreancompany’sproblemscould helpiPhonemakerreversestringof losingquarters
Jon Swartz@jswartzUSA TODAY
AHN YOUNG-JOON, AP
Samsung’sGalaxy S7edge is thelatest smart-phone toreportedlyoverheat,joining thenow-discon-tinued GalaxyNote 7.
“Put it this way:There’svery limitedcompe-tition forApple atthe top end of themarket.Samsungliterallyexploded.”BGC Partnersanalyst ColinGillis
APPLE COULDBENEFIT FROMSAMSUNG’SSMARTPHONE WOES
KARIM SAHIB, AFP/GETTY IMAGES
Time fora MacupgradePersonal com-puters in needof long-over-due refresh,3B
v STORY CONTINUES ON 2B
ROCKWELL COLLINS BUYS B/E AEROSPACE FOR $6.4B Aviation tech company RockwellCollins will acquire aircraft interi-or manufacturer B/E Aerospacefor $6.4 billion. The deal is ex-pected to close in spring.
TD AMERITRADE TO ACQUIRESCOTTRADE FOR $4B TD Ameritrade reached a deal toacquire rival brokerage firmScottrade for a mix of cash andstock the firms said was worth $4billion. TD Ameritrade will firstacquire Scottrade Bank for $1.3billion, then acquire ScottradeFinancial Services for $2.7 billion.
GANNETT TO REDUCE STAFFABOUT 2% TO CUT COSTS Gannett, which owns USA TODAYand more than 100 local newsproperties, said Monday it isreducing its workforce by “about2%” to help manage costs in adifficult environment for printand digital advertising. Thereductions will affect workersacross the company, including atits headquarters in McLean, Va.
MONEYLINE
Move over, Fed. Wall Streetsays it’s Uncle Sam’s turn to getthe U.S. economy humming again.
With the days of low interestrates likely nearing an end andFederal Reserve monetary policylosing its power to stimulategrowth, Wall Street pros say fiscalpolicy — government moves toboost economic growth throughinfrastructure spending, pro-growth tax policies and othermeans — is what’s needed toboost the economy and stocks.
Wall Street says now’s the timefor the passing of the baton fromstimulus generated by low inter-est rates to government-drivenmoves that put more money inAmericans’ pockets and spurspending by lowering taxes andcreating more full-time and high-er-paying jobs. Indeed, eventhough the September unemploy-ment rate was 5% and near fullemployment, an estimated 5.9million workers were workingpart-time because their hourswere cut or they couldn’t land afull-time job, according to the U.S.Bureau of Labor Statistics.
And it doesn’t matter who winsthe White House. Investors aregoing to be calling for govern-ment to push a growth agendawhether it’s President Clinton orPresident Trump.
“Regardless of who wins theU.S. presidential race, we see aninevitable shift away from mone-tary policy toward fiscal policy inthe next several years,” said DonRissmiller, economist at StrategasResearch Partners. “The natureof any coming fiscal stimulus willlikely determine whether theglobal economy can break its(long-term) stagnation.”
Both presidential candidatesare proposing healthy dollops offiscal stimulus.
Front-runner Hillary Clintonhas promised the “biggest invest-ment in American infrastructurein decades,” backed up by her
Here’s howto boosteconomy,experts say Wall Street wants more fiscal policy, lessFed monetary policy Adam Shell@adamshellUSA TODAY
v STORY CONTINUES ON 2B
LINKSYS
Protect yourhome fromhackers, 3B
TUESDAY, OCTOBER 25, 2016 SECTION B
