Facebook’s torrid growth turns up heat on Snap 1 Feb 2017 The social network beat expectations on both the top and bottom lines despite concerns business is slowing. The stellar results underscore the grip Facebook has over its nearly 2 bln users. Proving it can overcome such dominance will be rival Snap's big challenge ahead of its IPO.
Holding: U.S. boards can bank on Neil Gorsuch 1 Feb 2017 President Trump's Supreme Court pick has opposed class-action suits and the power of federal agencies while rarely opining on finance. Like many justices, he may also change his views. As a solid, whip-smart conservative, though, he'll fit right in with a business-friendly court.
Fintech lender adds bank accounts without the bank 1 Feb 2017 SoFi is buying an upstart that offers customers novel multicurrency accounts. Third parties hold the cash, sparing SoFi tough regulation but also fencing off the benefit of cheap deposit funding. Still, it's the closest thing so far to merging Main Street and Silicon Valley.
Pipeline’s $9.3 bln deal adds gas to energy M&A 1 Feb 2017 Oneok is paying a 22 pct premium for the rest of an eponymous partnership it doesn't own. Dividend hikes and a tax break sweeten the pot. But it's also a sign of a recovering sector. With prices and deregulation hopes rising, it won't be the last deal for either Oneok or rivals.
Insurgency is logical byproduct of Alcoa spinoff 1 Feb 2017 Alcoa coped with an irrational aluminum market by plowing capital into expensive acquisitions. Management hoped a separation would attract investor attention to its Arconic parts business, and provide a cozy escape hatch. It got what it wanted – but in the form of a proxy fight.
Saudi’s Trump friendship more about money than oil 1 Feb 2017 Riyadh may boost its investments in American energy under the new president. An abundance of shale oil and a focus on domestic supply means Saudi Arabian crude is no longer enough to secure U.S. political support in the Middle East. Its cash is still attractive, though.
Carlyle gets a boost from an LBO multivitamin 1 Feb 2017 The buyout firm is shopping nutritional-supplements maker Nature's Bounty for up to $6 bln. That price would deliver a 20 pct IRR for what was a pivotal deal in 2010. Carlyle's timing and strategic nous may have led to a higher valuation. Debt, however, provided the real muscle.
TalkTalk runs risk by embracing more of the same 1 Feb 2017 The telco will replace boss Dido Harding with the head of its consumer business. Founder Sir Charles Dunstone adds ballast as executive chair. After a long period of leaking retail clients, it's a dicey bet on continuity. M&A or regulatory changes are more plausible saviours.
Julius Baer’s singular model gets one up on UBS 1 Feb 2017 The $10 billion Swiss private bank pulled in more net new money than UBS in the second half and its revenue margin was steadier. U.S. dollar exposure and tougher tax rules pose risks to both wealth managers. Baer's simpler proposition is a big attraction.
Siemens beats activist investors at their own game 1 Feb 2017 Boss Joe Kaeser has carved out businesses, cut red tape and lifted payouts, all without outside pressure from militant shareholders. The group's impressive quarterly results and a better 2017 outlook vindicate the approach. Yet valuations have yet to reflect his success.
India favours poor with damage-control budget 1 Feb 2017 Finance Minister Arun Jaitley is relaxing a bit on deficit reduction, while taxing the rich more to fund big outlays for the rural poor. There are few benefits for corporate India. But the budget will help to limit the political fallout from India's big currency experiment.