Growth slows sharply in first quarter 2016 GDP
The U S economy grew at an annual 0.5 percent in Q1 2016, down from 1.4 percent in Q4 2015, as business investment exports and federal spending fell. Consumer spending rose 1.9 percent but, with weaker momentum, the report warns of revisions and outlines potential Fed rate implications.
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Comcast to buy DreamWorks Animation for 3.55 billion
Comcast plans to acquire DreamWorks Animation for about 3.55 billion dollars, paying 41 dollars per share with a 24 percent premium. DreamWorks will join Universal Filmed Entertainment, bringing Illumination, AwesomenessTV, Netflix deals, and new Seuss projects under NBCUniversal. Analysts question strategic logic though highlight earnings challenges since 2010.
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Southwest Lowers Fares by Five Dollars Across U S Routes
Southwest cut most one way fares by five dollars for tickets bought within seven days of departure, a move that surprised rivals and Wall Street. Delta raised domestic fares by five dollars a one way on overlapping routes and did not match Southwest’s cut. Major carriers like American and United matched the Southwest reductions on shared routes but did not follow Delta’s hike. Analysts note airlines often align prices, sometimes reversing increases if key competitors don’t follow.
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