Tag Archives: CNNMoney

Aluminum maker Alcoa battered by tough week

Alcoa Inc. Location Manager Ken McMillen, left, Sen. Lamar Alexander, Alcoa CEO Klaus Kleinfeld, U.S. Rep. John J. Duncan Jr., and Gov. Bill Haslam arrive for a groundbreaking for a $275 million expansion of the Alcoa Inc. rolling mill to produce automotive sheet aluminum on Thursday, Aug. 29, 2013, in Alcoa.  (Paul Efird/News Sentinel)

Alcoa Inc. Location Manager Ken McMillen, left, Sen. Lamar Alexander, Alcoa CEO Klaus Kleinfeld, U.S. Rep. John J. Duncan Jr., and Gov. Bill Haslam arrive for a groundbreaking for a $275 million expansion of the Alcoa Inc. rolling mill to produce automotive sheet aluminum on Thursday, Aug. 29, 2013, in Alcoa. (Paul Efird/News Sentinel)

The news hasn’t been good this week for aluminum manufacturer Alcoa Inc.
It’s stock price is tumbling, a Duetsche Bank analyst downgraded the stock to sell and forecasters were predicting aluminum prices would fall 12 percent or more over the next two years.
All this on the heels of Alcoa being booted last month from the Dow Jones Industrial Average.
The future of Alcoa, which recently announced plans for a $275 million expansion of its Blount County manufacturing operation, will have a significant impact on the East Tennessee economy. The company is investing in a plant upgrade in a move to take advantage of rising demand for aluminum by auto makers.
Alcoa will kickoff earnings season with the release of its quarterly financial report on Tuesday.
Given recent headlines it will be interesting to see how the company performed last quarter and its outlook for the near future.
Deutsche Bank analyst Jorge Beristain told Forbes the company should spin-off its primary metals business to ease its cash-flow problems.
Click the headlines below for more details:
CNNMoney: Alcoa CEO on debt ceiling
Motley Fool: Why Alcoa doesn’t seem so shiny
Forbes: Alcoa’s $1.2 Billion Drag: Analyst Makes Case For Breakup

Should the Fed keep quiet?

I encourage newsmakers to talk whenever they want to — or even when they would rather not. An informed public is a good thing, after all.

Ben Bernanke

Ben Bernanke

But Paul La Monica, assistant managing editor for CNNMoney, makes an interesting case for tell Federal Reserve Chairman Ben Bernanke to clam up.

Bernanke and the Fed deserve credit for helping “save the U.S. economy from a fate that could have been much worse in 2008.”

But the markets would be better off without the Fed’s new “transparency” policy, La Monica says.

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Corporate tax reform on the table

Corporate tax reform is the topic when Treasury Secretary Timothy Geithner meets today with business executives.

Geithner+China.jpgThat should be a fun. Corporate America likes its tax breaks and any attempt to close loopholes will face serious opposition from somebody.

CNNMoney.com asked six tax policy experts which tax breaks should be eliminated.

Among their recommendations: dump the 45-cent per gallon tax credit oil refineries take for ethenaol blended gasoline. Getting rid of that tax break would save $32 billion over five years.

It will be interesting to see which politicians, if any, have the guts to challenge Big Oil on this one.

Here’s the CNNMoney story: Corporate tax reform: Talk grows louder

Photo: Treasury Secretary Timothy Geithner (AP)