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Friday, 25 July 2014

Americas

Shareholders punish Amazon with whole new multiple

25 July 2014

The internet retailer’s stock trades at 112 times next year’s earnings, even though it barely turns a profit. A $126 mln Q2 loss, with worse to come, has investors worried. They wiped out $16.5 bln of value after hours, more than six times Amazon’s net income since its 1997 IPO.

A Goldman Sachs sign is seen above the floor of the New York Stock Exchange shortly after the opening bell in the Manhattan borough of New York January 24, 2014.

Goldman's new lead director better as chairman

25 July 2014

The bank tapped Credit Suisse’s former client kingpin Adebayo Ogunlesi to be new lead director. Though he has never led a public company, he runs a private firm. His 30 years of investment banking experience also will come in handy. If only Goldman saw fit to call him chairman.

Oil

M&A puts driller MLPs on more solid ground

24 July 2014

Breitburn and QR are probably just the first of several tiddler explorers to tie the knot. Such small companies only have a few wells each, leaving them prey to painful disruption if there’s a problem. Bulking up should ensure the steadier income MLP investors crave.

Ken Jacobs, Chief Executive Officer of Lazard North America,  speaks during the Reuters Investment Banking Summit in New York, November 15, 2006. (UNITED STATES)

Lazard shows Wall Street power of simplicity

24 July 2014

The M&A adviser and fund manager’s bumper Q2 makes larger rivals look staid. Cost cuts are paying off, return on equity is running at an eye-popping 68 pct, and its business isn’t under the regulatory pressure being applied to big lenders. Mega-banks must feel a touch of envy.

Ford logos are seen at the assembly line of a Ford car factory

Ford must navigate tricky global terrain

24 July 2014

The automaker aims to lift pre-tax income by up to 75 pct over the next few years. With U.S. sales now close to a historic peak, it puts a bigger onus on the overseas operations, which aren’t yet fully up to speed. That may leave Ford’s hopes resting squarely on its F-150 truck.

News Corp. chief Rupert Murdoch makes a comment to reporters as he leaves a midtown Manhattan office building following meetings

Murdoch calls on European outposts for Time Warner

24 July 2014

The mogul’s Fox empire is poised to sell pay-TV arms in Italy and Germany to BSkyB, his UK satellite affiliate. There’s strategic logic to the asset shuffle and proceeds could help sweeten the $80 bln U.S. bid. How Murdoch treats many non-Murdoch owners involved is the linchpin. 

A GM sign is seen outside the Medved General Motors car dealership in Arvada, Colorado

GM keeps driving through recall roadblocks

24 July 2014

The automaker is still feeling the financial pain of its faulty ignition fiasco, adding another $1.3 bln of charges in the second quarter. But car sales are holding up well, with incentives low. That’s good news for CEO Mary Barra and gives her breathing room to fix GM’s culture.

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