Barron's : Renault Finds a New Gear

Renault Finds a New Gear
The French car maker is poised to profit from a savvy production plan

Renault ’s shares look set to accelerate as the French car maker profits from a savvy production plan.

Benefits from its alliance with Japanese auto maker Nissan Motor could provide a turbo boost to drive up the stock (ticker: RNO.France) more than 20% in 2015.

Renault, in which the French government owns a 15% stake, certainly looks cheap. Based on Friday’s closing price of 59.90 euros ($71.92), it trades at just 6.7 times forecast 2015 earnings. In comparison, Volkswagen (VOW.Germany) trades at a slightly better, if still modest, multiple of 7.5, while Peugeot (UG.France) looks rich at almost 13.

A consensus price target of €73.65 euros points to possible upside of more than 21% for Renault, which has a market value of €17.70 billion. There are plenty of estimates at €80 and above, suggesting impressive potential.

Analysts at Société Générale have a price target of €76. The price is derived from the median average of a discounted sum-of-the-parts valuation of €69, and the value of estimated 2015 earnings at a historic multiple of 8.4, which totals €83. What has analysts excited is the greater realization of synergies to come in 2015. Renault and Nissan (7201.Japan), both headed by Carlos Ghosn, established a new manufacturing approach to generate economies of scale through standardization of parts and modules.

Introduced in 2013, the approach will be extended across Renault and Nissan vehicle ranges through 2020, when it will cover 70% to 80% of the alliance’s production volume. This year will see Renault stepping up its use of the platform to market several new models, including an Espace, a crossover, a Laguna, and a Megane.

The strategy is projected to reduce Renault’s initial outlay per model by 30% to 40%, which will add to an impressive track record of savings. The Renault-Nissan alliance shared synergies of €2.8 billion in 2013. That figure should reach at least €4.3 billion by 2016. The impact on Renault’s bottom line will be immediate. In 2015, the company is forecast to report earnings before interest, tax, depreciation, and amortization of €4.85 billion, or €8.93 a share, on revenue of €42.35 billion. It is expected to post 2014 Ebitda of €4.28 billion, or €6.49, on revenue of €40.44 billion.

RENAULT’S PERFORMANCE IN THE IMPROVING European market is encouraging. Through the first three quarters of 2014, sales were ahead 7.6% year on year in a market that was up 5.5%. Its no-frills Dacia brand is performing particularly well. Renault has a 9.5% share of the European market, which accounted for about half of the 2.6 million vehicles Renault sold in 2013.

A solid performance in Europe is critical for Renault, especially at a time when emerging markets are a little bumpy. It has been hurt by a financial squeeze in Argentina and by sanctions in Russia, its third-largest market after France and Brazil. Renault owns a 25% stake in Russian car maker Avtovaz (AVAZ.Russia). Renault had targeted an operating margin of more than 5% by 2016 -- up from just 3% in 2013 -- but the challenging economy forced it to abandon that time frame. Still, Renault is headed in the right direction.

The Stoxx Europe 600 index rose 4.4% in 2014, to 342.54, a third-straight annual gain. Germany’s benchmark DAX eked out a 2.7% increase in 2014, while London’s FTSE-100 index fell 2.7%, snapping a two-year winning streak.

>>> Week in Review: Stocks Slide Into 2015


Week in Review: Stocks Slide Into 2015

The holiday-shortened week began with a full day of trading on Monday, yet the stock market acted like it was still on vacation. Volume was light and the major indices held to narrow trading ranges that bracketed the unchanged line for much of the session. The S&P 500 managed to eke out its seventh gain in the last eight sessions. In doing so, it established another record closing high that pulled it ever closer to the 2100 level. However, most of the action happened away from the U.S. stock market. To that end, European bourses had a roller-coaster session, riding a wave of Greek politics that included a third failed vote for the prime minister's preferred presidential candidate, the subsequent announcement that parliament would be dissolved, and news that snap elections would be held on January 25.

The stock market ended Tuesday on a broadly lower note. The Nasdaq Composite (-0.6%) was the weakest performer among the major averages while the S&P 500 (-0.5%) ended a bit ahead of the tech-heavy index. Equities began the day in negative territory and remained below their flat lines until the close. However, participation was very limited with just 524 million shares changing hands at the NYSE floor. The light activity was also reflected by narrow trading ranges with the S&P 500 bounded between 2,080 and 2,084 for most of the session. Cyclical sectors were responsible for the bulk of the weakness as three of six growth-sensitive groups settled in-line with or behind the broader market while the utilities sector (-2.1%) was the only laggard on the countercyclical side.

Equities ended the last session of 2014 on a lower note. The S&P 500 lost 1.0%, but that did not stop the benchmark index from gaining 11.4% over the course of 2014. Meanwhile, the tech-heavy Nasdaq ended the session (-0.9%) and the year (+13.4%) ahead of the S&P 500. All ten sectors settled in the red with utilities (-1.9%) ending at the bottom of the leaderboard. In all likelihood, the selling was a function of profit taking after the countercyclical sector led the 2014 market rally with a gain of 24.3%. The remaining groups did not fare much better. The top-weighted technology sector (-1.2%) was among the early leaders, but began fading from its high not long before noon ET, dragging the broader market down with it.

Bond and equity markets were closed on Thursday for New Year.

>>> Weekly Market Update: New Year's Blues

Weekly Market Update: New Year's Blues

Trading volumes were very light in the New Year's holiday week. Global equity markets dipped during the final session of 2014 and then fell lower on the first day of trading in the New Year as weak data and jitters about upcoming Fed and ECB action drove risk appetite into the deep freeze. Manufacturing industry data from around the globe out this week was not especially positive, adding to the tepid atmosphere.

Looking back, 2014 was very good for major US equities: the S&P 500 rose 11% to 2,059, its sixth year of positive returns and its third straight year of double-digit gains. The DJIA added 7.5% to 17,823 after slipping below 18,000 on the final two days of trading, and the Nasdaq advanced 13%. Small-cap stocks were not quite as solid: the Russell 2000 climbed 3.5%. Europe's EuroStoxx 600 Index gained 3.9% on the year and Germany's DAX Index added 2.7%, although France's CAC40 dropped 1.2%. Chinese equities had their best performance since 2009 even as overall emerging-market shares posted the first back-to-back annual loss in 12 years.

US housing market data out this week remained tepid. The S&P/CaseShiller October home price survey showed that real estate price gains slowing a bit. The y/y gain dropped to +4.5% from +4.8% in September. Yale economist Shiller commented that the housing market is fragile and is still reliant on low interest rates. The November pending home sales m/m figure beat expectations and returned to positive territory after October's contraction. The December Chicago Purchasing Manager survey and the ISM Manufacturing Index missed expectations, hitting their lowest levels since mid-2014.

Oil prices sagged to fresh five-year lows, with front-month WTI dropping from the mid-$55 area on Monday as low as $52.50 on Wednesday. The contract bounced off the lows but by Friday came very close to the $52 level. Brent crude bottomed around $55.50 but closed out the week around $56. Interestingly the oil equities themselves continue hold up better. The OIH and XLE remain above their mid-December lows which expedited the latest move to fresh all-time highs for US stock indices.

Comments from ECB President Draghi and ECB Chief Economist Praet left little doubt that quantitative easing is imminent. On Tuesday, Praet said euro zone inflation was below 0% and would stay there for an extended period. The official December euro zone CPI reading is out next week could cement expectations for European QE after the November reading matched a 4-year low at 0.3%. Praet argued that sovereign bonds were the only asset class with enough volume to make an impact on the inflation issue. Draghi was less sanguine, but highlighted that the risk of deflation in euro zone cannot be ruled out. Unsurprisingly, various German figures refuted these assertions. Germany's 'wisemen' said there was no deflation while the CDU Deputy party Chairman Fuchs said the euro zone was no longer obligated to rescue Greece as they were no longer systemically important. Between imminent QE and the Greek situation, EUR/USD gravitated toward the psychological 1.2000 level (though did not break through) and the 10-year bund yield fell to fresh all-time lows of 0.49% while the 5-year now offers a negative yield for the first time ever.

The Greek political crisis helped push yield spreads to fresh record levels as the Greek 10-year yield approached 10% even as most other EU government bonds are at or near record low yields. After lawmakers rejected the government's candidate for president last weekend, Greek PM Samaras was forced to dissolve the parliament and call a general election on January 25th. Polls showed Syriza, the leftist, anti-bailout opposition party of Alexis Tsipras, to be the frontrunner in the race. Tsipras has promised to get a better deal from the Troika on Greece's bailout payments. The EU has sternly warned that any new government must abide by prior obligations, suggesting that in the event of a Syriza victory irreconcilable differences could lead to a "Grexit."

China's official December Manufacturing PMI survey hit its lowest level since mid-2013, even as the non-manufacturing survey recovered to a four-month high. Manufacturing PMI components New Orders and Output were at 2014 lows, and inventories and employment were at 10-month lows. November industrial profits data fell by 4.2%, the largest y/y decline in 27 months. The PBoC published a report confirming that the government would change the rules on loan-to-deposit ratio calculations in 2015 to inject further liquidity into the system. The new rules would allow the inclusion of savings held by banks for non-deposit-taking financial institutions in banks' deposits, expanding the ratios and boosting lending capacity.

In Japan, Prime Minister Abe continues to fine-tune his efforts to extinguish deflation and jumpstart the economy. The government said it is planning a $29B (¥3.5T) fiscal stimulus package, featuring subsidies for households to help stimulate consumption along with more relief for earthquake-hit areas. The plan is estimated to add 0.7% to 2015 GDP growth. The government also announced it would aim to cut the corporate tax rate to below 30% over the next several years. The FY15/16 tax reform will cut the corporate rate to 32.1% from 34.6%.

(ZH) The Elephant Dragon In The Room: China's Hard Landing, In 21 Charts

The Elephant Dragon In The Room: China's Hard Landing, In 21 Charts
 
Back in September, before the crude crash started in earnest driven far more by the relentless Chinese - and global - economic slowdown than anything OPEC may or may not have done (and whose output, as a reminder, hasn't changed in years and actually declined, indicating the plunge is demand not supply driven) we showed, with the help of a few clear charts, that China is gripped by the worst commodity, and economic, crash in ages.
Today we update where China stands on its path to a very hard landing. As the charts below show, what has been so far a controlled descent is rapidly sliding out of control as the elephant-dragon in the room can no longer be ignored.
China's NBS manufacturing PMI at 50.1 in December, down from 50.3 in November, the lowest in one and a half years.

 

Industrial production (IP) growth declined to 7.2% yoy in November from 7.7% yoy in October. Growth in power production decelerated to 0.6% yoy in November from 1.9% in October.

 

Output growth of electricity, steel, cement and oil refining fell to 0.6%, 1.2%, -4.0% and 5.5% respectively from 1.9%, 2.0%, -1.1% and 6.3% in October.

 

Headline year-to-date FAI growth ticked down to 15.8% yoy in November from 15.9% yoy in October, in line with consensus. Real ytd FAI growth could have edged down to 15.3% yoy in November from 15.4% yoy in October. On a monthly basis, nominal FAI growth increased to 14.9% yoy in November from 14.4% yoy in October.

 

Investment growth of local projects (88% of total FAI) was 16.2% yoy in November, unchanged from September. Investment growth of central government projects  dropped to -11.0% yoy in November from 0.2% yoy in October.

 

Real estate FAI growth edged down to 10.5% yoy in November from 10.9% yoy in October.

 

Retail sales growth quickened to 11.7% yoy in November from 11.5% in October. In real terms, it accelerated to 11.2% from 10.8%. It was buoyed by surging sales during the Single Day (11 November).

 

Growth in total auto sales in volume dropped to 2.3% in November from 2.8% in October.  Growth in passenger cars fell to 4.7% in November from 6.4% in October.

 

CPI and PPI inflation slowed o 1.4% and -2.7% yoy in Nov from 1.6% and -2.2% in Oct. Both CPI and PPI inflations surprised on the downside.

 

In mom terms (not seasonally adjusted), food prices decreased by -0.4% in November as the warmerthan- usual weather ensured ample supply of vegetables and fruits.

 

Otstanding Total Social Financing edged down to 15.3% in November from 15.4% in October (read: "China's Shadow Banking Grinds To A Halt As Bad Debt Surges Most In A Decade")

 

November export growth came in below expectations at 4.7% vs. 11.6% in October (market consensus 8.0%). Import growth surprised on the downside at -6.7% from 4.6% in October and (market consensus 3.8%).

 

Growth in processing imports, a leading indicator of processing exports, declined to 3.9% yoy in November from 24.0% in October. Low-value-added processing exports plummeted to 1.6% yoy from 9.1% in October.

 

In November, new export orders dropped further to 48.4 from 49.9, likely showing the impact of CNY appreciation in NEER terms in 2014. In the meantime, monthly export growth dropped to 4.7% from 11.6% in October.

 

Export growth to the US declined sharply to 2.6% yoy in November from 10.9% yoy in October, while export growth to Japan improved to - 5.8% yoy in November from - 8.1% in October. Export growth to the EU was largely unchanged at 4.1% yoy in November. Export growth to ASEAN slowed to 14.6% yoy in November from 18.0% in October.
Growth in imports from ASEAN declined to -8.2% in November from 24.5% in October. Meanwhile, import growth from EU dropped to -6.8% from 10.4% yoy in October.

 

In volume terms, growth in iron ore, copper and crude oil imports slumped to -13.4%, - 3.6% and 7.9% yoy in November from 17.0%, -2.4% and 18.0% yoy, respectively, in October. In value terms, growth in iron ore, copper and crude oil imports dropped to -46.2%, - 9.8% and -10.9% yoy in November from -24.7%, - 5.6% and 3.8% in October, respectively.

 

In yoy terms, the number of cities that saw new home prices down/flat/up changed to 68/0/2 in November, compared to 67/0/3 in October. Prices of new commodity residential properties for 70 medium-to-large-sized cities surveyed by the National Bureau of Statistics (NBS) declined by 0.59% mom in November, versus 0.83% in October.

 

On the demand side, the yoy growth in new home sales in floor space terms and value terms slumped to -13.3% and -7.9% yoy in November from - 3.4% and -3.1% yoy, respectively, in October.

 

New home starts growth plummeted to -33.8% yoy in November from 38.6% yoy in October. The volatility in the yoy growth rates of new starts was partly due to big swings in the data last year. Growth in residential property investment dropped to 5.5% in November from 9.5% yoy in October.

 

Credit conditions for property developers worsened in November. Growth in domestic loans, a main source of funding for property development, declined to -10.6% yoy in November from 3.3% yoy in October. Meanwhile, growth in pre-sale proceeds dropped to -20.3% yoy in November from -12.1% yoy in October partly due to deceleration in home sales growth.

 

And the punchline chart: the Shanghai Composite over the past 12 months.
Source: BofA, Bloomberg

WSJ : Investors Pull $19.4 Billion From Pimco Fund

Investors Pull $19.4 Billion From Pimco Fund
December Withdrawals Were the Third-Highest for Total Return Fund During 2014

Withdrawals from Pacific Investment Management Co.’s flagship mutual fund jumped sharply again in December, suggesting the giant bond manager is still grappling with the abrupt departure of co-founder Bill Gross.

Investors pulled $19.4 billion from the Pimco Total Return Fund, up from the $9.5 billion yanked in November. However, the new outflows were down from $23.5 billion and $27.5 billion lost in September and October as investors reacted to Mr. Gross’s surprise exit to Janus Capital Group Inc. Total assets in the Total Return fund are down to $143.4 billion from $162.8 billion in November.

The December pullback indicates the Newport Beach, Calif., firm is not yet clear of the investor flight triggered by months of internal strife and the departure of its best-known manager at the end of September. Pimco, a unit of German insurer Allianz SE , also lost its former Chief Executive Mohamed El-Erian last year after clashes with Mr. Gross, who managed the Total Return Fund for 27 years.

The jump in December withdrawals came as Total Return’s performance slipped. The fund was down 0.48% for the month, worse than the benchmark Barclays U.S. Aggregate index and the average return of other funds in its category, according to fund tracker Morningstar. The return figure includes price changes and interest payments.

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For the full year, the Total Return Fund gained 4.69% compared with 5.97% for the Barclays U.S. Aggregate index. Pimco Total Return was ranked 190th in its category, which includes 276 funds that had data for full-year returns, said Russ Kinnel, director of manager research at Morningstar.

>>> US Close Dow+0,06% S&P-0,03% NAsdaq-0,20% Russell-0,49%

Closing Market Summary: Stocks Begin 2015 on Flat Note

The stock market began 2015 on a cautious note with the major averages surrendering their opening gains. The S&P 500 ended flat while the Dow Jones Industrial Average (+0.1%) settled just above its flat line.

Equity indices started the day with broad-based gains, but the early buying spree ended in a flash. The S&P 500 marked its high 11 minutes after the start of the session before reversing course. The index continued its retreat through the 9:00 ET release of disappointing Construction Spending and ISM reports, and marked its session low shortly after 13:30 ET.

The S&P 500 tried to fight its way back into the green during the afternoon, but losses among influential sectors like consumer discretionary (-0.7%), consumer staples (-0.4%), industrials (-0.2%), and technology (-0.2%) proved too large to overcome.

Notably, the discretionary sector suffered from broad weakness. Homebuilders and retailers lagged with iShares Dow Jones US Home Construction ETF (ITB 25.67, -0.21) and SPDR S&P Retail ETF (XRT 95.34, -0.67) falling 0.8% and 0.7%, respectively. The two groups helped the sector finish at the bottom of the leaderboard.

Elsewhere, industrials contributed to the persistent pressure as transport stocks underperformed. The Dow Jones Transportation Average lost 0.5% with all but five components ending in the red. Shipper Kirby (KEX 81.53, +0.79) outperformed while freight carrier CH Robinson (CHRW 73.84, -1.05) brought up the rear.

Similar to industrials, the technology sector kept the market under pressure during the afternoon. Large cap listings settled in mixed fashion, but Apple (AAPL 109.33, -1.05) fell 1.0%, which contributed to the underperformance of the Nasdaq Composite. However, chipmakers lagged early, but climbed into the afternoon, allowing the PHLX Semiconductor Index to end flat.

On the upside, the utilities sector (+0.6%) ended in the lead, but more notable was the outperformance of health care (+0.4%). The countercyclical group benefitted from daylong strength in biotechnology that sent the iShares Nasdaq Biotechnology ETF (IBB 306.34, +2.99) higher by 1.0%.

Also of note, the energy sector (+0.4%) ended in the green even as crude oil continued its retreat, dropping 1.6% to $52.57/bbl. Greenback strength factored into the move as the Dollar Index jumped 0.9% to 91.12. The dollar picked up about 1.5% against the British pound and 1.0% against the euro, with the latter sliding after a Financial Times op-ed penned by Mario Draghi was viewed as a preamble to a sovereign QE announcement from the European Central Bank.

Treasuries registered solid gains after erasing their overnight losses. The benchmark 10-yr yield fell five basis points to 2.12%.

Participation was in-line with recent totals as 628 million shares changed hands at the NYSE floor.

Economic data was limited to Construction Spending and ISM:
  • Construction spending in November declined 0.3% from October, which was revised up to show an increase of 1.2% versus 1.1% previously 
    • The November reading was below the consensus estimate, which called for a 0.1% increase 
    • The disappointment was rooted in public construction spending, which declined 1.7% to a seasonally adjusted annual rate of $277.30 billion largely due to a 2.5% pullback in educational construction spending 
  • The ISM Index for December checked in at 55.5, down 3.2 percentage points from the high 58.7 reading in November 
    • The December reading marked the 19th consecutive month of expansion; however, it was weaker than the consensus estimate, which was pegged at 57.5 
    • A number above 50 denotes expansion, so the pullback in December doesn't connote weakness so much as it connotes the manufacturing sector cooling down from a very hot November 
Monday's session will be free of economic data.
  • Dow Jones Industrial Average +0.1% YTD
  • S&P 500 UNCH YTD
  • Nasdaq -0.2% YTD
  • Russell 2000 -0.6% YTD

(TechCrunch) How Big Data Will Transform Our Economy And Our Lives In 2015

How Big Data Will Transform Our Economy And Our Lives In 2015

Codementor Wants To Help Developers Launch Projects In 2015 With Makers Year

Editor’s note: Deven Parekh is a managing director at Insight Venture Partners where he manages investments in e-commerce, consumer Internet data, and application software businesses on a global basis.

The great Danish physicist Niels Bohr once observed that “prediction is very difficult, especially if it’s about the future.” Particularly in the ever-changing world of technology, today’s bold prediction is liable to prove tomorrow’s historical artifact. But thinking ahead about wide-ranging technology and market trends is a useful exercise for those of us engaged in the business of partnering with entrepreneurs and executives that are building the next great company.

Moreover, let’s face it: gazing into the crystal ball is a time-honored, end-of-year parlor game. And it’s fun.

So in the spirit of the season, I have identified five big data themes to watch in 2015. As a marketing term or industry description, big data is so omnipresent these days that it doesn’t mean much. But it is pretty clear that we are at a tipping point. The global scale of the Internet, the ubiquity of mobile devices, the ever-declining costs of cloud computing and storage, and an increasingly networked physical word create an explosion of data unlike anything we’ve seen before.

The creation of all of this data isn’t as interesting as the possible uses of it. I think 2015 may well be the year we start to see the true potential (and real risks) of how big data can transform our economy and our lives.

Big Data Terrorism

The recent Sony hacking case is notable because it appears to potentially be the first state-sponsored act of cyber-terrorism where a company has been successfully threatened under the glare of the national media. I’ll leave it to the pundits to argue whether Sony’s decision to postpone releasing an inane farce was prudent or cowardly. What’s interesting is that the cyber terrorists caused real fear to Sony by publicly releasing internal enterprise data — including salaries, email conversations and information about actual movies.

Every Fortune 2000 management team is now thinking: Is my data safe? What could happen if my company’s data is made public and how could my data be used against me? And of course, security software companies are investing in big data analytics to help companies better protect against future attacks.

Big Data Becomes a Civil Liberties Issue

Data-driven decision tools are not only the domain of businesses but are now helping Americans make better decisions about the school, doctor or employer that is best for them. Similarly, companies are using data-driven software to find and hire the best employees or choose which customers to focus on.

But what happens when algorithms encroach on people’s privacy, their lifestyle choices and their health, and get used to make decisions based on their race, gender or age — even inadvertently? Our schools, companies and public institutions all have rules about privacy, fairness and anti-discrimination, with government enforcement as the backstop. Will privacy and consumer protection keep up with the fast-moving world of big data’s reach, especially as people become more aware of the potential encroachment on their privacy and civil liberties?

Open Government Data

Expect the government to continue to make government data more “liquid” and useful – and for companies to put the data to creative use. The public sector is an important source of data that private companies use in their products and services.

Take Climate Corporation, for instance. Open access to weather data powers the company’s insurance products and Internet software, which helps farmers manage risk and optimize their fields. Or take Zillow as another example. The successful real estate media site uses federal and local government data, including satellite photography, tax assessment data and economic statistics to provide potential buyers a more dynamic and informed view of the housing market.

Personalized Medicine

Even as we engage in a vibrant discussion about the need for personal privacy, “big data” pushes the boundaries of what is possible in health care. Whether we label it “precision medicine” or “personalized medicine,” these two aligned trends — the digitization of the health care system and the introduction of wearable devices — are quietly revolutionizing health and wellness.

In the not-too-distant future, doctors will be able to create customized drugs and treatments tailored for your genome, your activity level, and your actual health. After all, how the average patient reacts to a particular treatment regime generically isn’t that relevant; I want the single best course of treatment (and outcome) for me.

Health IT is already a booming space for investment, but clinical decisions are still mostly based on guidelines, not on hard data. Big data analytics has the potential to disrupt the way we practice health care and change the way we think about our wellness.

Digital Learning, Everywhere

With over $1.2 trillion spent annually on public K-12 and higher education, and with student performance failing to meet the expectations of policy makers, educators and employers are still debating how to fix American education. Some reformers hope to apply market-based models, with an emphasis on testing, accountability and performance; others hope to elevate the teaching profession and trigger a renewed investment in schools and resources.

Both sides recognize that digital learning, inside and outside the classroom, is an unavoidable trend. From Massive Open Online Courses (MOOCs) to adaptive learning technologies that personalize the delivery of instructional material to the individual student, educational technology thrives on data. From names that you grew up with (McGraw Hill, Houghton Mifflin, Pearson) to some you didn’t (Cengage, Amplify), companies are making bold investments in digital products that do more than just push content online; they’re touting products that fundamentally change how and when students learn and how instructors evaluate individual student progress and aid their development. Expect more from this sector in 2015.

Now that we’ve moved past mere adoption to implementation and utilization, 2015 will undoubtedly be big data’s break-out year.

>>> YHOO - Recode's Kara Swisher: Yahoo is not going to buy CNN, the costs and m

Recode's Kara Swisher: Yahoo is not going to buy CNN, the costs and management issues involved in running a news network would be overwhelming - CNBC 

- Separately, Variety reports that Yahoo has not approached SNI about buying the Food Network or the entire company.