Costs, notably R&D, rocketed 82 pct in Q2, twice the rate of top-line growth. The likes of Twitter and Yelp are also spending heavily for future revenue. With $4 bln in quarterly sales, plenty of cash and a record of savvy deals, Mark Zuckerberg has the clout to succeed.
Carlyle and Apollo found more to sell than buy in the second quarter, a pattern becoming hard to break. Along with Blackstone, KKR and others, global LBO shops have almost $500 bln to invest. As corporate buyers keep winning deals, private equity’s fuse may get short.
The $217 bln nappies-to-razors giant’s CEO passes the baton barely two years after returning to the job. A.G. Lafley has sold divisions, cut costs and killed duff brands, but P&G’s shares barely budged. It now falls to David Taylor to reignite growth - or risk activists’ ire.
Interim boss Jack Dorsey said the micro-blogging site isn’t satisfied with just a 66 pct increase in Q2 revenue. His prescription for what ails Twitter, however, is cryptic. Companies that can’t express goals clearly, especially ones seeking a CEO, reduce chances for success.
Many of Dilma Rousseff’s compatriots want the president impeached. S&P hasn’t gone that far but warns corruption and political turmoil may cost the $2 trln economy its investment-grade rating, which is another kind of indictment. Her second term will pay the price of her first.
The would-be U.S. president wants to tackle inequality. Proposals to tweak capital gains taxes, for example, are part of that. Things like raising minimum wages or abolishing the interest deduction might do more. Clinton’s problem is she can’t afford to knock business too hard.
One of the worst U.S. airports, in the country’s financial hub, is finally slated to be rebuilt, by 2021. At least $4 bln of funding will be public, private and local, but Washington played an important advocacy role. Absent a nationally led effort, it’s a decent model to follow.