GE Chief Jeff Immelt Resigns - major investor sought sea change

Jeff Immelt,who led General Electric through some tumultuous years after the celebrated Jack Welch retired,has turned over the reigns of the multinational conglomerate to John Flannery,President and CEO of the GE Health Care subsidiary.Mr.Immelt was faulted by investors for the company's lackluster share price;indeed,it was down about 12% on the year as of close of trading on Friday.
Mr.Flannery said:
I am privileged to have spent the last 16 years at the company working for Jeff,one of the greatest business leaders of our time.*
Mr.Flannery,who takes over on 1 August,also promised to assess the company's condition.He was credited with the turnaround of GE Health Care,increasing organic revenue by five percent in 2016.*
Mr.Immelt was well-liked by his fellow CEOs,including Jamie Dimon of Chase;Lloyd Blankfein of Goldman Sachs;and Jack Welch,his predecessor.As for GE itself,it stated that:
Immelt's vision has positioned GE for the future and greatly strengthened the GE culture.
Lead independent director Jack Brennan added that:
During this time of dynamic global markets and relentless focus on technical and operational excellence,there is no better person to lead GE than John Flannery.He brings unique experience and a broad skill set to the job.*
Jeff Immelt,who took charge immediately before the 9-11 attacks,saw the company through the years of the Afghan and Iraq Wars,as well as the Financial Crisis.He slimmed GE Finance down and jettisoned GE Appliances;while at the same time purchasing France's Alstom Power and establishing GE Software.This wasn't quite enough for one of the firm's biggest investors,billionaire Nelson Pelz,whose Trian Capital bought a one percent stake in GE in 2015.Trian pushed GE to reduce costs and boost profitability.*
The company's shares rose 3.67% to 28.97 as of 12:36 pm.*
General Electric (GE)

GE Begins Headquarters Relocation Process Soon

After 42 years at its Fairfield,Connecticut home,General Electric will begin moving to its new global headquarters in Boston later this month.Its executives will head for temporary offices on Farnsworth Street in the Fort Point Channel neighbourhood where the project will take shape;the bulk of the 800 headquarters staff will not arrive until 2018.Two extant brick buildings will be rehabilitated on the 2.4 acre site beginning later this year;while a new 12-storey building with 293,000 square feet of office space will be constructed there as well.A bridge and walkway will connect the three buildings.*
The new campus is to be a global epicenter of innovation,according to Ann R. Klee,GE head of Boston operations and development.Our headquarters is designed to engage and leverage the talent,technology and work ethic of Fort Point and greater Boston,while also giving back to the community through investment,rehabilitation and an inviting public space.GE expects our new headquarters will transform the existing unused site into a limb of technology,innovation and intellectual stimulation as well as become a new meaningful destination on the the city's Harbor Walk,Ms.Klee's statement said.*
The first floor and part of the second will feature a museum of GE's history and future.It will also offer a visitors' reception area and co-working space open to the public,plus a coffee bar.*
General Electric (GE)

Monday Newsline:Asian Shares Rise;GE Acquires Alstom Power;Michelle Wie Champion

Asian shares rose Moday,but trimmed their early gains as trading progressed,with the CNBC 100 ASIA IDX falling from an 0.24% gain down to an 0.13 rise.The Hang Seng index,for instance,had been up 0.25,but even slipped into negative territory,down 0.11%.India's Nifty Fifty futures were down 0.32%.
The CNBC 100 ASIA IDX was lifted by a strong ASX 200 as Australians were reassured by robust commodity prices,with both NYMEX and Brent crude futures appreciating on the Iraq crisis,and copper and aluminium markets being cheered by the flash HSBC China PMI Index,which showed expansion of Chinese manufacturing for the first time in six months.The index registered 50.8 in June versus 49.4 for the final May reading.A reading of 50 or above means increased factory activity.
South Korea's KOSPI was up 0.35% on the strength of Samsung Electronics' good showing.*
The S&P futures presaged a positive morning for US stocks,with the S&P futures up 0.25%.This follows on a record high for the S&P 500 and Dow Jones indexes on Friday.
One factor in play this morning is General Electric's succussful 17.6 billion dollar bid for the power assets of the French company Alstom,beating out the German conglomerate Siemens.This was in part due to several trips to Paris by GE CEO Jeff Immelt to sell the deal to French authorities.*
In sport,American Michelle Wie,24,long one of the star players of LPGA golf,finally achieved the milestone of winning her first major championship Sunday as she took the US Women's Open at Pinehurst Resort in North Carolina.It was the end of a long quest by the tall Stanford graduate and onetime wunderkind to meet the high expectations which were set for her.She clinched the national trophy with a two under par 70 on the rigorous Donald Ross Pinehurst #2 course.She now has won a total of four LPGA tournaments,her popularity with the media and her colleagues tending to exceed her actual career accomplishments until this point.*
General Electric(GE),Samsung Electronics Ltd(OO5930:Korea SE)

Asia This Day:APEC Summit;Petronas Plans for British Columbia

US Secretary of State John Kerry and Secretary of Commerce Penny Pritzker are in Bali,Indonesia for the Asia-Pacific Economic Cooperation summit of Pacific Rim nations.President Barack Obama was supposed to be a participant there as well,but political conflict in Washington is preventing him from attending.It is the third time since 2010 the president has had to cancel a trip to the region because of domestic concerns.
This is damaging America's reputation.The Jakarta Globe's Saturday edition depicts the president on its cover with the headline "Diminishing Superpower."There is a train of thought that says that China and Russia will fill the gap of the president's absence,reveling in the attention.If the US cannot manage its domestic affairs,how can it be a credible influence in the Asia Pacific?
John Rice,Vice Chairman of General Electric,said the general theme is,the US shutdown is disappointing,with a lot of unproductive rhetoric in Washington.American companies at the summit are disappointed the president is not here,but they also understand there are political issues at home.There are great leaders here:John Kerry and Penny Pritzker.
I think the US is showing commitment to Asia.We have to see what happens in the next couple of weeks and months,not just focus on one meeting the president missed.I'm optimistic about a resolution of the debt ceiling.Everyone knows how serious that would be.
The impacy of tapering is on exchange rates,but we can't make decisions based on currency moves that take place over six months.Companies like ours have to put capital and expertise on these infrastructure projects.We expect infrastrucutre requirements to go up an average of 15% over the next 5-10 years.Hundreds of millions of people need it.They want the same things you and I want.
We see health care deals and energy deals.If you don't have electricity,you can't provide for your people,Mr.Rice pointed out.*
Commerce Secretary Penny Pritzker said it's about a diversifying relationship with the Asia-Pacific:an economic;national security;commercial relationship.American companies are eager to come to Asia,and there is tremendous receptivity by Asian economies to receive American business.*
Malaysia's state energy firm Petronas plans to build a 35 billion dollar liquid natural gas plant and pipeline in British Columbia to export shale gas.The terminal would be completed by 2018.*
The MSCI Asia Pacific index fell 0.84% in early Monday trading,on fears around the US budget impasse.*
Petronas Gas BHD(PTG:Bursa Malaysia)

GE Makes New Saudi Commitment

General Electric,active in Saudi Arabia since 1942,has made a new commitment to invest 1 billion dollars there in the fields of energy,health care and innovation.The GE Innovation Center will be a collaborative place that will foster innovation in its DNA and drive a culture of co-creation to realise Vision 2020,the company says.The Center will open in early 2013 in the Eastern Province's Dharhan TechnoValley.
Vision 2020 emphasises Energy Diversification;Education;Research and Development;Quality Health Care;and Human Capital.The GEIC will bring together different players from customers,to academics and think tanks to collaborate and co-create,with the shared goal of finding solutions to realise Vision 2020.Reportedly 92% of Saudis feel innovation can drive a competitive economy.GE will work to incubate local innovation through the GEIC.
GE is providing Saudi Arabia with military and commercial aircraft jet engines;health care technologies and training;gas turbine technology through the GE Manufacturing Technology Center,or GEMTEC;and financial solutions.GEMTEC manufactures and services high tech energy equipment in the form of highly reliable and efficient gas turbines,which are characterised by operational flexibility and reduced emissions.
GEMTEC supports Saudi Arabia's strategic direction for the future.It currently employs 350 people,50% of whom are Saudis.GE is expanding GEMTEC to provide hundreds of new jobs in several new buildings.

General Electric:Viewpoint Today

It just is today the most resilient economic system on earth,GE CEO Jeff Immelt said of the United States.The stakes are so darn high for the country and for all of us.Nervous laughter is a bad strategy.
We're asking for the same territorial system that our global competitors have.We're kind of like the last American company that competes in the fields that we're in.
Fed Chairman Ben Bernanke has been consistent to his word.It's not bad to have one person in power who's been more or less consistent since 2007.
If the fiscal cliff happens,that's a failure of governance-and it shouldn't happen,Mr.Immelt added.
Jeff Immelt,56,has been leading GE,the world's third largest company,since September 7,2001.He has been named to Barron's "World's Best CEOs" list three times.Mr.Immelt is also head of the President's Jobs Council.
General Electric(GE)

Asia This Day:Gold's Second Half Outlook

Samsung is going shopping.The Korean electronics titan is looking to acquire medical device makers.It wants to challenge the likes of GE and Siemens in the industry.
Asians are shopping for gold.India and China are bidding up the price of the precious metal.
Both gold jewelry and bullion are in demand,the latter as security in uncertain economic times.The Indian middle class will continue lifting sales in the second half at the Mumbai bazaar.The wedding season in August will contribute to the increase.
China's property controls have slowed growth in the big cities.Now Beijing is imposing such measures in the smaller ones.According to the Xinhua news agency,Q2 residential land price appreciation slowed.Credit Suisse believes that home inventories are so high,owners will have to cut prices.
Asian shares were mixed Monday morning.Hong Kong,Tokyo and Singapore stocks rose,while Shanghai,Seoul and Sydney issues retreated.
Hong Kong saw scattered clouds Monday.It was 82F,with the humidity at 84%.Winds were W at 8 mph,and thunderstorms were in the forecast.

Who Owns msbnc.com

msnbc.com is a separate company from msnbc the cable channel.It is a 50/50 partnership between Microsoft and NBC Universal.msnbc.com is the news website for all of the NBC News family and Microsoft's MSN.According to Nielsen Online,it is the number one online news site in the U.S.
msnbc.com is considering a name change to safeguard its distinct identity.Its slogan is "A Fuller Spectrum of News."Comprehensive health news is one of the website's emphases.
The msnbc cable network went on the air on July 15,1996.For nine years,Microsoft and NBC Universal were equal partners in the venture.In December 2005,Microsoft sold most of its stake to NBC Universal.By 2007,Microsoft had entirely divested its holding in the channel.
In October 2010,msnbc openly acknowledged its approach as being politically progressive,although conservative views are also represented at times.
More than 78 million U.S. households have access to msnbc.It is also broadcast in various forms to Germany,South Africa,Europe,the Middle East and Canada.Its parent,NBC Universal,is now majority owned by Comcast,and General Electric owns the remainder of the company.
Comcast(CMCSA),General Electric(GE),Microsoft(MSFT)

Care Innovators:GE and Intel

General Electric and Intel have joined forces on Care Innovations,an initiative to support independent living of the chronically ill,improving their health and lowering the cost of care.The jointly-owned company,which combines GE Healthcare's Home Health division and Intel's Digital Health Group,will tap a market for Telehealth and home health monitoring that is expected to grow to around 7.7 billion dollars by 2012.
Care Innovations has a vision of providing innovative products and services that will enable new models of care,improving the quality of care and patient empowerment,while helping reduce health care costs through new technologies,according to CEO Louis Burns.The joint venture has received final regulatory clearances and is fully operational.
CI's core focus areas are disease management,independent living and assistive technologies.Among its products are patient monitoring,independent living concepts and assistive technologies such as the Intel Health Guide and GE QuietCare.The firm intends to continue developing this healthcare IT to enable lower healthcare costs and a higher quality of life for patients worldwide.
Dutch electronics titan Philips is also active in the field through its Telehealth Solutions.Among Philips' products are the TeleStation,Measurement Devices and Web-based Clinical Review Software.
General Electric(GE),Intel(INTC),Koninklijke Philips Electronics(PHG)

Comcast Left Bitter Taste

Comcast,the cable TV and broadband titan,alienated several customers on its way to the top.The company,which recently acquired a majority stake in NBC Universal from General Electric and Vivendi SA,consistently whittled away at its expanded basic tier of cable TV channels.It cut the NASA TV channel from the expanded basic lineup.Then it axed Retirement Living TV from the package.It also sheared off EWTN,the Catholic channel.Most recently,Comcast eliminated Maryland Public Television from expanded basic.
All the while it was depriving thousands of viewers of stimulating options,Comcast raised prices.The subscribers got less than what they originally signed up for,at a higher price.The taste of Comcast will not be on their favorite flavors list.Presumably the only reason Comcast hasn't eliminated expanded basic entirely is the political heat it would feel from local franchising authorities,should they dare to do so.No wonder these marginalized customers,many of them seniors,aren't cheering Comcast's recent success.

Vivendi Holds the Key

French communications firm Vivendi SA holds the balance of power over General Electric and Comcast at this point.The conglomerate has the final say on whether Comcast can acquire NBC Universal from GE.The decision will be handed down within three weeks,according to Vivendi Chief Financial Officer Philippe Capron.Vivendi owns 20% of NBC-U,and must sell its stake to GE,if the deal is to go forward.Mr.Capron said they are not there yet.
Through its various holdings,Vivendi is number one in video games and music worldwide;number two in France telecom;number one in Morocco telecom;and number one in Pay-TV France.It owns 56% of video gamer Activision Blizzard and 100% of Universal Music Group.The Parisian firm is led by CEO Jean-Bernard Levy.
Receiving a journalism award at Arizona State University,NBC Nightly News anchor Brian Williams said nothing about the deal.He did mention that NBC News viewership is up from where it was last year,however.GE's decision to sell NBC-U has been cited by some observers as a sign of the fading away of broadcast television.
Vivendi shares trade on the over the counter pink sheets.Their ticker symbol is VIVEF.

Q4 Success Stories

A number of companies did manage to improve their year over year profits in Q4 2008.They include Colgate-Palmolive,Amazon,Heinz,Hershey's,Netflix and Verizon Communications.Colgate-Palmolive even raised its dividend,as did Coca-Cola and 3M.General Electric cut its dividend recently,but it is still above average at over 4%.As of last Friday,only IBM had an increased share price,of all the stocks in the Dow Jones Industrial Average for 2009.

No Apologies Offered

Jeff Immelt continued to assess GE's Q4 performance.In his view,GE did well under the toughest conditions of his lifetime.We're not gonna apologize for our Q4 results,he stated.We have cash for mergers and acquisitions if conditions warrant.We're gonna lend money.We want to kind of stick it out and see what happens.Our businesses are good businesses:energy,health,aviation,lending.When the fog lifts someday,you've gotta like this company.We're good at things it pays to be good at.Nonetheless,the layoff cycle hasn't ended yet.You've got to count on that continuing in the coming months,Mr.Immelt cautioned.

A Sound Business Model

GE CEO Jeff Immelt says that he runs the company for investors.Our businesses generate cash even in this environment.My commercial paper's on the way down to fifty billion dollars.I get S and P's concern,but it's not gonna change the way we manage the company.We've got a business model in financial services that really works.We've de-risked the financial services business model.We did almost 40 billion of origination in Q4 of 2008.We will remain a significant player in the financial services market.One of the benefits of GE is we can take tax breaks from the financial services unit and apply them to the industrial sector,Mr.Immelt pointed out.

GE Delivers

General Electric delivered results in a very tough environment,CEO Jeff Immelt said.Our cash was very strong.Our liquidity was very strong at the end of the year.We've met or beat every cash number since the crisis began.We've got 48 billion of cash on hand.It makes me feel good about the dividend.We've got the cash and the operating model that's gonna secure the dividend in this environment.We've got a 100 billion revenue,Jeff Immelt noted.

An Unchanging Approach

Warren Buffett's course hasn't been altered by the current economic events.We've spent a lot of money in the past four months,Mr.Buffett pointed out.He mentioned his investments in General Electric,Goldman Sachs,William Wrigley and Dow Chemical.Mr.Buffett read the book "The Intelligent Investor" 60 years ago-especially chapters 8 and 20.My ideas haven't changed since,he insisted.I'm happy in my 50-year old house.I love it,Warren Buffett professed.

A Moment of Pride

NBC Entertainment is obviously the one piece we need to improve on,CEO Jeff Zucker continued.We're paying the people of NBC Entertainment to go with their gut.NBC has been a part of GE for 21 years.They've been a fantastic parent.I hope it continues for at least another 21 years.The fact that we're tracking ahead of the 2004 Athens Olympics,given what's happened to network television,is a tremendous accomplishment.The Chinese have a lot to be proud of.The Olympics hold a special place in my life.It's just an honor to be part of the Olympics,Mr.Zucker exclaimed.

NBC and GE

We need to embrace one another,Jeff Zucker,CEO of NBC Universal,said of his network and its parent company, General Electric(GE).We've had a very active 16 months in trying to reshape NBC Universal.The fact is,Jeff Immelt,CEO of GE,has been very clear that NBC is a very important part of GE.When the pipes work,there's nothing like it.Nobody has spent more on the media space than GE has on NBC Universal the past 16 months,Mr.Zucker revealed.Telemundo,the Spanish language network,remains an incredibly important part of NBC-U.It's been harder than we thought it would be to develop it.We need to continue to improve there,but I'm confident that will happen,Mr.Zucker asserted.

Domestic Weakness,Global Strength

The global infrastructure growth continues,GE CEO Jeff Immelt believes.There are tough times ahead vis-a-vis the U.S. consumer.Housing has to stabilize in order to feel like we have a consumer that wants to buy again.We don't see a slowdown in the global economy.These environments continue to be robust.We see in Mubadala a company like ourselves,the spirit of learning that still exists,Jeff Immelt explained.

The Full Power of GE

We shouldn't overdo partnerships,GE CEO Jeff Immelt continued,but when we do them,we put the full power of the company behind them.We are attractive to the best of the best because we have this unique structure as a country and a company.We want to bet on a multitude of energy technologies.Renewables have to be in the lead.We're investing that way.Abu Dhabi is building a renewable energy enterprise,thinking 10-20 years ahead.I agree with almost everything Boone Pickens says,Mr.Immelt added.Khaldoon al Mubarak,CEO of Mubadala,said that his firm is a GE in the making.This is a wonderful start today.