Get the DealBook newsletter to make sense of major business and policy headlines — and the power-brokers who shape them.
DealBook’s one thing to watch today
General Electric said on Monday that it was replacing its chairman and chief executive, John L. Flannery, after just over a year on the job, as it continues to search for a viable turnaround plan. The company will also take a $23 billion write-down in its power business.
Back story: Mr. Flannery succeeded Jeffrey Immelt as chief executive last summer. His task: reinvigorate the industrial icon, whose stock price had stagnated for several years, despite Mr. Immelt’s efforts. Mr. Flannery, who spent much of his career as a deal maker, announced a new strategy in June. G.E. would shrink to just three major operations: jet engines, electric power generators and wind turbines. It also would spin off the company’s health care business and sell its stake in the oil field servicer Baker Hughes.
The news: Mr. Flannery’s plans haven’t lifted the company’s stock price. Shares in G.E. have fallen about 56 percent since Aug. 1, 2017, according to Capital IQ. The power division continues to struggle after badly misjudging a decline in demand. And G.E. also admitted that it will miss guidance for earnings per share and free cash flow for 2018.
What to watch: H. Lawrence Culp Jr., who served as the chief executive of the industrial conglomerate Danaher from 2000 to 2014 and joined G.E.’s board in April, will succeed Mr. Flannery. Investors will hope that Mr. Culp can accomplish what his forebears could not. G.E.’s stock price rose more than 13 percent in early trading on Monday, suggesting that shareholders are betting his turnaround plan will fare better.
Also coming up
Tesla shares are up. Investors appear to believe that Elon Musk’s deal to settle fraud charges made by the Securities and Exchange Commission have erased the company’s legal problems. But the S.E.C. is still examining other parts of Tesla’s business; the company’s operations still need fixing; and, despite the board pledging to rein in Mr. Musk’s public disclosures, the billionaire remains eager to tweet.
Goldman Sachs’s new C.E.O. starts. David Solomon takes the reins of the Wall Street firm from Lloyd Blankfein. His ascension comes as Goldman reduces dependence on trading, to favor businesses like investment banking and consumer lending.
Eurogroup finance ministers meet. They will discuss growth and jobs, as well as exchange-rate developments in preparation for meetings of the I.M.F. and the G-20 countries in Bali, Indonesia, in October.