IBM is splitting itself in two, spinning off its legacy technology services business to focus on cloud computing and artificial intelligence, a move that reflects how decisively computing has shifted to the cloud.

The split is IBM’s effort to grab more of that fast-growing business and thrive amid the market leaders, Amazon Web Services, Microsoft and Google.

The business retaining the IBM name will include its cloud operations, along with its hardware, software and consulting services units. They represent about three quarters of the current company’s revenue.

The business to be spun off, in a company that has not yet named, is IBM’s basic technology services business, which maintains, supports and upgrades the computing operations of thousands of corporate customers.

That business is sizable, with sales of about $19 billion a year, but it’s not where the growth opportunities lie in the technology business.

The split comes as

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Charles Stanley Group PLC’s (LON:CAY) price-to-earnings (or “P/E”) ratio of 7.8x might make it look like a strong buy right now compared to the market in the United Kingdom, where around half of the companies have P/E ratios above 18x and even P/E’s above 37x are quite common. However, the P/E might be quite low for a reason and it requires further investigation to determine if it’s justified.

Charles Stanley Group certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. It might be that many expect the strong earnings performance to degrade substantially, possibly more than the market, which has repressed the P/E. If you like the company, you’d be hoping this isn’t the case so that you could potentially pick up some stock while it’s out of favour.

See our latest analysis

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TipRanks

Morgan Stanley: 2 Strong Value Stocks to Buy Now

Volatility is back on Wall Street. Following a meteoric rise, fears that valuations have grown too high have put pressure on stocks. With the upcoming presidential election, ongoing pandemic and flaring U.S.-China tensions only adding fuel to the fire, investors are trying to gauge where the market goes from here. Even though many economists believe the Fed’s low interest rate policy fueled the market’s historic five-month rally, Morgan Stanley’s chief cross-asset strategist Andrew Sheets is singing a different tune.Sheets argues that the market’s charge forward wasn’t necessarily driven by the Fed’s actions. Rather, the run-up came as a result of better-than-expected economic data. “As much as the steady rise of markets seems disconnected from the conditions in the real economy, I’d argue that actually they’re more closely related. And going forward, that is a double-edged sword,” he explained. “This improvement,

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BEIJING/SHANGHAI (Reuters) – Four of China’s five largest state-owned banks said they have increased their provisions against bad debt to brace for future losses due to the impact of the global coronavirus pandemic.

All five reported their biggest profit falls in at least a decade and an increase in soured loans when announcing their half-year results on Sunday and last week.

The results highlight the impact of the pandemic and the economic slowdown on Chinese banks that bucked the first-quarter global trend with higher profits and steady bad loans.

Agricultural Bank of China Ltd (AgBank) said “the lagging impact of the epidemic and the risk of uncertainty are expected to be further transmitted to the banking industry,” in its half-year results on Sunday.

China Construction Bank Corp (CCB), the country’s second-largest lender by assets, said it plans to assess credit risks and up provisions, just as Bank of China Ltd

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