Charged Up: GE Shows Investors Its Energy Playbook
By Tomas Kellner – The acquisition of Alstom’s energy assets delivered $1.5 billion in synergies in 2016, $300 million above GE’s original five-year target for Alstom synergies, GE’s Chief Financial Officer Jeff Bornstein told investors at a conference in New York held by GE’s Power and Renewable Energy businesses last week. “Alstom makes us more competitive,” Bornstein said. “It broadens the service base and creates long-term incremental value.”
Jobs, cash, costs and software were the key themes at the conference. Bornstein said GE Oil & Gas was now “applying the same methodology” to its planned merger with Baker Hughes. “The businesses are very complementary,” he said. “It’s going to be a merger of equals.” Bornstein said he was “highly confident” the deal would “deliver a lot more value than $1.6 billion” in synergies by 2020, the target the companies released when they announced the deal last October.
Bornstein also talked about the need to speed up the shrinking of GE’s $25 billion in “structural costs,” which are funding support functions, R&D, corporate operations and other expenses. more> https://goo.gl/z07MkD
Posted in Banking, Business, Economy, Energy & emissions, Science, Technology
Tagged Business improvement, Capital, Energy, GE, Industrial economy, Productivity, Technology
What happened to your goals?
By Alice G. Walton – The problem with big resolutions is that motivation tends to wane over time, says Chicago Booth’s Ayelet Fishbach, who studies motivation and decision making. People start out strong, but then reality sets in as they realize it’s easier to set goals than to carry them out.
Research by Fishbach and others can help people salvage failed goals, or achieve new ones.
Every endeavor has a starting point and an end point, which can be as specific as meeting a work deadline in one week or as general as losing weight. One reason many people fail to reach their objectives, says Fishbach, is that they tend to set goals that are difficult or even impossible to achieve, or too general. Making them more concrete and achievable—goals you can envision yourself completing—may yield better results.
Yet effective targets should be ambitious. As long as the goal is within reach, the more you expect from yourself, the more you’ll achieve, as people often respond to a challenge by working harder. more> https://goo.gl/drSWPY
By George L. Perry – The stock market should like these economic proposals for several reasons.
Lower tax rates directly raise after-tax profits. Faster expansion from the fiscal push means higher profits. And reducing regulations cuts costs and raises profits. Banks, which are a clear target for deregulation, also benefit from higher interest rates that raise lending profits. No surprise their stocks have been the best performers in the market rally.
he impact of these budgetary policies in the longer run are more murky.
Today’s Congress is likely to give the Administration most of what it asks for. And one big risk in this is that budgetary projections will be made based on dynamic scoring that assumes the programs produce large increases in productivity growth, and so project unrealistically fast growth in the economy’s potential output and revenues.
The CBO and Finance Committee make professional assessments of these supply-side effects in estimating future budgetary impacts of tax changes. But the Administration will push for more generous estimates of future revenues that will make the tax and budget proposals more palatable at present.
This will only put off dealing with long-run budget deficits and a rising ratio of debt-to-GDP that is projected as the population ages. The adverse effects of swelling debt will be someone else’s problem at some future time. more> https://goo.gl/th1nzJ
Posted in CONGRESS WATCH, Economic development, Economy, Energy & emissions, Healthcare, History, Leadership, Media, Regulations
Tagged Capital, Climate change, Congress Watch, Donald Trump, First Amendment, Government, Leadership, United States