05.10.2022

General Electric was excluded from the Dow Jones

Shares of General Electric in the near future will be officially removed from the Dow Jones Industrial Average due to excessive reduction of their cost and drop their weight in the index below the permissible values.

Provider of stock indices S&P Dow Jones Indices LLC announced the inclusion in the DJIA (pdf) of shares of the largest drugstore chain in the US Walgreens Boots Alliance is General Electric since June 26.

General Electric was included in the Dow Jones in 1896, initially consisting of 12 companies. Once re-enabled in 1907 and at the moment the company the longest was present in the index.

Quotes GE has reached its historical maximum in 2000, and then began the long decline of quotations, which continues to the present.

Graphics: Reuters data: Thomson Reuters

In 2017 General Electric shares have fallen by 55%, showing the worst dynamics among the companies in the DJIA. From the beginning of 2018 on 20 June, the rates decreased 26%. The share of General Electric for Dow Jones declined to 0.5%, the company ceased to be a significant component of the index is not exerting its dynamics noticeable effect.

FT apologized to RDIF for misinformation

The British newspaper Financial Times apologized to the Russian direct investment Fund and its Director General Kirill Dmitriev for publishing false information.

As noted in the statement on the website FT, false information was published in the article “Trump’s Russian contact adviser’closely linked to Putin family” from 1 April 2018.

In the Financial Times acknowledged that the statement that the CEO of RDIF Kirill Dmitriev was appointed head of the Fund for any other reasons not related to professional qualities was based on false and unverified speculation from anonymous sources.

In the FT also said that removed these statements from their materials, undertook not to repeat them. June 20 an official apology to Kirill Dmitriev, and RDIF for mistakes from the Financial Times was brought in the High court of London.

Earlier in the publication of false information about the Russian direct investment Fund has been convicted, the American channel CNN. In June 2017. CNN had published statements alleging allegedly began the investigation of the relations of the American financier Anthony scaramucci the head of the Russian direct investment Fund Kirill Dmitriev.

As noted portal “News.Economics”, after the protest of the RDIF, the American edition was forced to delete the article. CNN also reported the layoffs of employees responsible for misinformation. One of the authors about the material CNN Thomas Frank was the winner of the Pulitzer prize, the most prestigious awards of the USA in the field of literature and journalism.

Moody’s: duties trump will hit around the avtosektor

The use of the administration trump’s fees in the amount of 25% for cars and components of foreign production will lead to significant negative consequences for automotive companies worldwide, including in the United States.

About it in the press release for the report assessing the potential impacts of the introduction of fees stated in the Agency Moody’s Investors Service.

As noted, the implementation of threats trump will have a negative impact on the credit rating of most automakers. In particular, the American Corporation GM and Ford suffer because of duties because of its dependency on import of cars in Mexico and Canada. According to Moody’s, the share of foreign production accounted for 30% of total car sales GM, for Ford, the share of foreign assemblies in sales is 20%.

Senior Vice President of Moody’s Bruce Clark noted that in the case of import duties would have an impact on different links in the automotive segment, in the end, automakers are likely to raise the price of machines:

“Import duties on vehicles and spare parts will lead to negative consequences for nearly every link in the automotive industry: manufacturers, spare parts suppliers, dealers and even transport companies. And GM and Ford have to compensate for the decrease in production in Canada and Mexico and the return of production in the United States. Likely to minimize the negative impact of tariffs, companies also need to subsidize the sales at the initial stage. In the future they will shift these expenses on consumers, increasing the price of their products”.

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