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CBC
08-07-2025
- Business
- CBC
A major defence contract is set to favour U.S. supplier, despite Carney's promise to diversify
Social Sharing The federal government is set to proceed with awarding a major defence contract despite industry concerns that its requirements are written in a way that all but assures a single American company is eligible. A tender for night-vision binoculars — worth more than an estimated $100 million — is set to close on Tuesday at 2 p.m. A competing company says the request includes a technical requirement that favours one American firm, at the exclusion of all others. The request requires a specific signal-to-noise ratio for the image intensifier tubes in the binoculars. The European competitor says the requirement is unique to the Canadian military — not reflecting industry norms, nor the requirements of NATO allies. The contract's posting comes at a time when Prime Minister Mark Carney has repeatedly said Canada is looking beyond the United States for defence spending. "We stood shoulder to shoulder with the Americans throughout the Cold War and in the decades that followed, as the United States played a dominant role on the world stage. Today, that dominance is a thing of the past," said Carney last month. In June, Carney signed a new defence and security agreement with the European Union, signalling his commitment to deepen Canada's partnership with the EU. On Monday, Defence Minister David McGuinty said he was unaware of the specifics of the night-vision binoculars request for proposals, but said he would look into it. WATCH | McGuinty says he'll look into request: Defence minister asked about contract terms that only U.S. companies could meet 12 hours ago Duration 1:09 But in a statement, European competitor Photonis said it has "attempted to engage the Government of Canada on this issue a number of times to course-correct the terms" of the request for proposals. "We have yet to receive an appropriate response," said Frédéric Guilhem, Photonis's chief commercial officer of its night-vision department. The company supplies night-vision products to other NATO allies. "This approach is clearly contrary to Prime Minister Carney's directive to closer integrate defence procurement and production with Canada's allies in Europe," Guilhem said. The tender was first posted before the federal election, but has been reposted six times since then. In addition to limiting competition, buying from the U.S. suppliers would mean opting into regulations that allow the U.S. State Department to control arms exports. Neither the Department of National Defence nor Public Services and Procurement Canada responded to questions about why the government chose the specific criteria for the night-vision binoculars. A leading defence expert says it will take time to reorient Canadian military defence procurement away from the United States. "We have not gotten to a space where we're investing 75 cents of every dollar in the U.S. market by accident," said Dave Perry, president of the Canadian Global Affairs Institute. "There's a bunch of structural conditions that have led to us spending a lot of those dollars in those places." Perry said those conditions include a longstanding policy direction from the federal government that the Canadian military work as closely as possible with the Americans. Of Canada's allies, the United States has the largest defence industrial base.
Yahoo
29-06-2025
- Business
- Yahoo
ExxonMobil Is One of the Largest Energy Companies by Market Cap. But Is It a Buy?
Over the last 12 months, ExxonMobil generated about $340 billion in revenue. ExxonMobil stock has significantly underperformed the S&P 500's total return over the last 10 years. 10 stocks we like better than ExxonMobil › ExxonMobil (NYSE: XOM) is one of the oldest and most iconic companies in American financial history. It's also gigantic. With a current market cap of nearly $500 billion, ExxonMobil is the 17th-largest American company overall, and the largest American energy company. But is ExxonMobil stock a good investment? Let's dig into the bull and bear cases. ExxonMobil bulls can point to several key points for why the stock is poised to deliver solid returns. First, ExxonMobil's global scale and diversification make it a solid choice for investors looking for an energy sector pick. The company has operations spread over dozens of countries, including Indonesia, Guyana, Papua New Guinea, Qatar, and, of course, the United States of America. In addition to this geographical diversification, the company enjoys diversification among its revenue streams. The company has upstream operations, focusing on exploring for and developing sources of energy. It also has downstream product divisions, which refine and sell fuel, lubricants, and other petrochemical products. What's more, ExxonMobil does this on a massive scale. Over the last 12 months, the company generated $340 billion in revenue. All of this makes ExxonMobil of central importance to the smooth running of the world economy. Turning more directly to its financials, the company has generated $33 billion in net income over the last 12 months and $28 billion in free cash flow. Those figures, in turn, help support the company's massive $20 billion annual share buyback program and annual dividend payments of roughly $17 billion. For bears, the energy sector itself presents a key risk. To start, commodity prices are famously volatile, leading to difficulty in balancing growth, costs, and investments. Similarly, geopolitical risks abound. ExxonMobil's global presence makes the company and its global assets vulnerable to war, political upheavals, and natural catastrophes. Furthermore, ExxonMobil faces an endless parade of regulatory and environmental hurdles that can send costs ballooning higher or halt production at any number of facilities. Finally, and perhaps most importantly, ExxonMobil's stock hasn't performed very well in recent years. Since 2015, shares have logged a total return of 100%. However, that pales in comparison to the S&P 500 index, which has generated a total return of more than 246%. ExxonMobil is one of America's most legendary companies. It has far-reaching operations and generates an astronomical amount of revenue each year. However, despite its advantages, ExxonMobil stock has underperformed the S&P 500 for years. It is susceptable to massive risks ranging from war to natural disasters. Furthermore, much of its stock's total return comes from its dividend payments. Currently, the stock pays a quarterly dividend of $0.99 per share, amounting to a dividend yield of 3.6%. Considering that ExxonMobil stock has generated a compound annual growth rate (CAGR) of about 7.2% over the last decade, that means that roughly half of the stock's return over the last 10 years has come from its dividend alone. So, while ExxonMobil stock might be tempting to income-seeking investors, others might want to look elsewhere. Before you buy stock in ExxonMobil, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ExxonMobil wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Jake Lerch has positions in ExxonMobil. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ExxonMobil Is One of the Largest Energy Companies by Market Cap. But Is It a Buy? was originally published by The Motley Fool
Yahoo
29-06-2025
- Business
- Yahoo
Micron Technology, Inc. (MU): 'It's The Old Micron!' Says Jim Cramer
Micron Technology, Inc. (NASDAQ:MU) is one of the . Micron Technology, Inc. (NASDAQ:MU) is the only American company that makes and sells leading-edge memory chips. This provides the firm with a wide moat at least when it comes to domestic exposure particularly due to President Trump's efforts to expand US manufacturing. Micron Technology, Inc. (NASDAQ:MU) is also NVIDIA's only American supplier of high-end memory chips to NVIDIA for the latter's high-end AI GPUs. The firm's shares have gained 42% year-to-date, with a fresh catalyst being its fiscal third-quarter earnings report which saw Micron Technology, Inc. (NASDAQ:MU)'s $9.3 billion in revenue and $1.91 in earnings beat analyst estimates of $8.87 billion and $1.60. The firm's $10.7 billion in guidance also beat estimates of $9.88 billion. Cramer discussed the stock's recent performance ahead of interviewing its CEO: 'You know David, about a year and half ago, I tried to get Sanjay Mehrotra to say incredibly bullish things. He pulled me back. He said, Jim it's not there yet. I'll tell you when it's there. Well, you know what, it's there now. Micron shares, moving higher after beating the top and bottom line. Shares now up more than 55% year-to-date. It's the old Micron!' A close-up view of a computer motherboard with integrated semiconductor chips. Earlier, Cramer discussed Micron Technology, Inc. (NASDAQ:MU)'s share price performance: 'I think it is getting a little toppy. I think the market's getting a little toppy and Micron's going to go with it. Now, it went down to 66. I think it could go down to 80 without a problem, and then you'll probably want to buy it again. But I sense that there is a trade here, not an investment, for the moment, and you need to do a little [kaching kaching].' While we acknowledge the potential of MU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Bloomberg
09-06-2025
- Business
- Bloomberg
Starbucks Joins China Price War With Discounts for Tea Drinks
Starbucks Corp. on Monday announced price cuts for a slew of its tea-based beverages at its stores across China, as the American coffee chain takes a more aggressive approach to revive sales at its second-biggest market. Starbucks will reduce prices by 5 yuan (70 cents) on average across more than a dozen Frappuccino, iced tea and tea latte options in its latest campaign to appeal to Chinese consumers for non-coffee offerings during summer, according to a statement posted on the company's official account on Chinese social media WeChat on Monday .
CBS News
05-06-2025
- Business
- CBS News
U.S. Steel says it will remain "American" in Nippon partnership. What that means is uncertain.
With the final details of the ownership structure for the not-yet-finalized partnership between U.S. Steel and Japan-based Nippon Steel still up in the air, it's an open question of whether the company will be "American" in a technical sense. Some local leaders disagree on how to define what exactly an "American" company is. President Trump, who said he has final say on a deal, first announced the partnership by saying U.S. Steel would remain in America, with U.S. Steel then coming out with a statement saying the company would remain "American." Mr. Trump said months ago that he would allow Nippon to invest in U.S. Steel, but he opposed a purchase. "America to me is owning the company, having ownership," said Cheryl Freedman, a Pleasant Hills Borough Council member. "I feel that being an American-owned company is important." She attended Mr. Trump's rally last Friday at U.S. Steel's Irvin Works in West Mifflin, which is not far from Pleasant Hills, and said she initially felt excited as she heard about the investments that were announced. She said she started to feel less comfortable once she started hearing words around her that she didn't expect after the rally. Specifically, she spoke with one individual whom she thought should know the details. "That person said 'purchase.' And I said, 'What do you mean purchase?' And, 'Well, we're not real sure yet. We don't have the details,'" she recalled their conversation going. To make her feel comfortable, she wants to hear what the ownership structure will be. She hopes Americans will own at least 51% of the company. West Mifflin Mayor Chris Kelly, who has been a vocal proponent of a deal with Nippon Steel, said that while he's unsure if the new U.S. Steel would be American in a technical sense, it doesn't have to be for it to be an American company. KDKA asked him to address the concerns people have about the yet-to-be announced or finalized ownership structure. "The mining is going to be done by Americans. The melting is going to be done by Americans. The manufacturing is going to be done by Americans," Kelly said. "Is that how you see what it means to be an American company?" KDKA asked Mayor Kelly. "Absolutely," he responded. He believes a deal with Nippon Steel will save thousands of jobs, along with the steelmaking legacy in Pittsburgh. "Let me make this easy," Kelly said. "It's going to be called U.S. Steel. That's one. It's going to be located in the city of Pittsburgh, headquarters. ... The guaranteed no layoffs, no plant closings and the furnaces are going to operate at capacity for 10 years. We win on that." The known details come from Pennsylvania U.S. Senator Dave McCormick and state Senator Kim Ward. They have said Americans would have a majority on the U.S. Steel board and what McCormick called a "golden share." "The golden shares is the oversight of the United States government," Kelly said. "They're going to be part of the decision-making as far as national security." The details from McCormick and Ward echo what Mr. Trump said at last week's rally. "Most importantly, U.S. Steel will continue to be controlled by the USA. Otherwise, I wouldn't have done the deal," Mr. Trump said. Freedman is, however, looking for more than control; she wants ownership. "I would like to see our companies, our American companies, remain owned by America," Freedman said. United Steelworkers International leadership has said it also wants more details, saying that partnering with Nippon is risky. Most steelworkers and Mon Valley leaders KDKA-TV has spoken with don't care what the ownership structure is; they just want whatever will preserve jobs.
