U.S. water doesn’t let Trump dampen the mood 30 Jun 2017 Industry bigwigs in New Orleans extolled an all-in approach to managing H2O, with one exception. They ignored White House plans to curtail clean-water rules to focus on fixing aging systems. Securing the needed $5 trln is urgent, but limiting federal control could be costly too.
Amazon deal can help Nike get back on track 30 Jun 2017 The $96 bln sportswear maker confirmed it will sell its sneakers on Amazon after years on the sidelines. Though still the dominant brand, it has been losing share mainly to Adidas. The initiative, coupled with its own direct-to-consumer push, could make Nike a pacesetter again.
U.S. steel war invites needless collateral damage 30 Jun 2017 With overcapacity on the upcoming G20 agenda, the White House is mulling a 20 pct tariff on imports. That'd be risky for the auto and construction industries. A similar 2002 levy under President Bush led to 200,000 job losses. There are smarter ways to address market distortions.
Review: What really creates the value of money 30 Jun 2017 Christine Desan’s “Making Money” is not only a fine monetary history of England. The 2014 book is relevant today. It shows cash and governments go together, the gold standard was a misnomer and central banking is political. And we should stop outsourcing money-creation to banks.
Colombia faces peace paradox as FARC rebels disarm 30 Jun 2017 Ending five decades of civil war will lift the Andean nation's economy in the long run, but place additional burdens on tight government finances in the meantime if peace is to prosper. Encouragingly, murders are down and tourism up, but it could all still go wrong.
Spectre of old normal gives investors a fright 30 Jun 2017 Financial markets have grown used to sluggish growth, low inflation and rock-bottom interest rates. Now the hint of tighter global monetary policy has pushed up yields and knocked stocks. Though better economic prospects are welcome, a shift will be painful for investors.
Altice discount a dubious buying opportunity 30 Jun 2017 A float of its U.S. arm has made the Dutch telco’s discount to the sum of its parts more visible. It’s a good time to invest in the parent if founder Patrick Drahi can succeed at running it more as an integrated group. Limited synergies and questionable governance raise doubts.
Rocket cleans its plate in Delivery Hero IPO 30 Jun 2017 Floating its food delivery offspring for 1 bln euros is a much needed success for the German tech investor. It sold the maximum number of shares at the top end of the price range. The only snag is that there’s not a great amount left on the table for outside investors.
Hong Kong’s Enigma crash reinforces small-cap fear 30 Jun 2017 The city’s junior board has tumbled, led by a cluster of firms that an influential activist has dubbed "The Enigma Network". Investors were already souring on the low end of the market. Authorities ought to clean house before pushing to attract yet more small-cap listings.
Green bonds could help build new Silk Road 30 Jun 2017 Investors have yet to warm to the Belt and Road, China’s huge infrastructure plan. Beijing’s new development bank, the AIIB, could help by issuing green bonds to fund railways and ports. But if the projects’ environmental credentials are weak, the lender’s reputation will suffer.
Viewsroom: Blue Apron’s debut leaves bad taste 29 Jun 2017 The meal-kit delivery firm had an unappetizing IPO, barely opening above its much-reduced price of $10 a share. Investors are starting to wise up to fluffy concoctions with little meat. The more discerning environment will make it difficult for half-baked companies with high risk.
Dow boss gets in way of own ambitious deal 29 Jun 2017 Andrew Liveris wanted the $150 bln union with DuPont, now under way. But Glenview Capital dislikes the recent extension of his tenure. Like Dan Loeb's Third Point, the investor also wants tweaks to the post-merger breakup plan. The Dow CEO is stuck between his job and his vision.
FDA moves signal storm warning for pharma 29 Jun 2017 New commissioner Scott Gottlieb is wasting no time combating high prices. The U.S. agency will expedite reviews of generic-drug applications to promote competition. The changes will batter the likes of Valeant and Cardinal Health, and cast a cloud over branded drug makers.
Walgreens salvages mild boost from intense effort 29 Jun 2017 After antitrust pushback on acquiring the whole of Rite Aid, the U.S. drugstore is buying over 2,000 of its rival's stores for $5.2 billion. For CEO Stefano Pessina, doing about half the deal with half the benefits is something – but it's a modest return on 20 months' work.
Having aced stress test Citi now needs a strategy 29 Jun 2017 The $188 bln U.S. bank doubled its dividend and boosted its share buyback by $15.6 bln after clearing the Fed exam. CEO Mike Corbat has been laser-focused on returning capital and appeasing watchdogs. Spurring growth to match bigger investor payouts is a trickier challenge.
Murdoch’s Sky bid promises lack credibility 29 Jun 2017 Regulators say a bid by 21st Century Fox for control of pay-TV firm Sky may give the mogul’s family too much power over UK news. The government could approve the deal if it accepts remedies such as a separate editorial board. Murdoch’s history of meddling makes this unconvincing.
Draghi’s taper tizzy is sign of dangers to come 29 Jun 2017 Comments by ECB chief Mario Draghi drove up bond yields and the euro, despite later protestations that markets had misread him. The ado owes more to investor complacency than fuzzy talk. It highlights traders’ twitchiness and the challenges in withdrawing ultra-loose policy.
Lessons from Europe’s tricky trio of bank rescues 29 Jun 2017 Creditors saved Britain’s Co-operative Bank, Spain’s Popular was sold, and two Italian lenders received a bailout. Though circumstances differ, the common theme is that regulators remain wary of winding down troubled banks. New capital rules will eventually make the task easier.
Visma goes viral for private equity owners 29 Jun 2017 KKR is bowing out of the Norwegian software group, with a 22 pct annual return. The buyer, HgCapital, was the seller when KKR bought in 2010. All have done well, because the company’s value has increased ninefold to $5.3 bln. The hard part will be securing an exit at that price.
Staples’ $6.9 bln buyout could end in the shredder 29 Jun 2017 Private equity firm Sycamore is paying an 18 pct premium for the office supplies retailer whose revenue is falling. Even with generous assumptions, the buyout hardly passes return hurdles. Sycamore will need to flex superhuman turnaround muscles for this deal to pay off.
Alibaba readies for showdown in Southeast Asia 29 Jun 2017 The Chinese giant spent another $1 bln to tighten its grip on regional arm Lazada. The extra control could be useful as Alibaba confronts local upstarts, domestic peer JD, and possibly Amazon in the future. All will face formidable challenges, from logistics to payments.
Video offers thinning ray of hope for LeEco 29 Jun 2017 Worsening cash problems have pushed the Chinese tech conglomerate to focus increasingly on smart televisions and online streaming, as it sells other assets. Even if mounting financial and legal woes are surmounted, squeezing more profit out of Chinese television will be tricky.
Foreign banks get U.S. stress-test cheat sheet 28 Jun 2017 America's top banks passed the Fed’s annual checkup, including the so-called qualitative portion that has tripped them up before. International players like Barclays and Deutsche Bank will have to take the exam next year. Their U.S. rivals have given them a road map to follow.
UGGs could be cozy fit for buyout barons 28 Jun 2017 A pushy investor in $2.2 bln Deckers, owner of the trendy sheepskin-lined boots, issued an odd ultimatum to the board: sell the company or face a fight at the ballot. The numbers may stack up for private equity. It's a question of whether valuation and retail risk are too high.
Blue Apron cut suggests investors have discernment 28 Jun 2017 After feasting on Snap's nutrition-free IPO, it's healthy to see potential owners forcing the meal-kit maker's price down a third. Blue Apron's numbers were unappetizing even before Amazon's Whole Foods deal. Palates with a more refined taste for risk may find it digestible.
Ransomware reveals tech challenges past and future 28 Jun 2017 The Petya cyber attack spread from Ukraine to 65 countries, infecting software that could have been patched. Human error enables hacking of today's IT setups, making prank emails that deceived bank bosses alarming, too. The cloud reduces that danger – but introduces others.
Hadas: Time for a big rethink on interest rates 28 Jun 2017 Central banks are told to worry first about prices. The long-term global trend of low inflation makes that a distraction. The right focus now is on weaning investors off the false highs of easy credit and rising asset prices. Part of the withdrawal is making money more expensive.
Apollo mega-fund includes giant margin for error 28 Jun 2017 Leon Black's shop has accumulated the largest single pool of capital earmarked for buyouts, at $23.5 bln. Apollo adds to a growing private-equity stockpile that could make outsized returns harder to come by. With yields so low, though, it's easier to make fund investors happy.
Head-office heave shows Tesco’s weak hand 28 Jun 2017 The British supermarket is cutting a quarter of staff at its headquarters. This should help with plans to remove 1.5 billion pounds of costs and hit an ambitious 3.5 pct-4 pct margin target. Job losses are an unfortunate symptom of Tesco's limited pricing power.
Britain’s fund manager probe takes horse to water 28 Jun 2017 The Financial Conduct Authority wants clearer fees, more care for investors and better value for money. Its conclusion, that asset management is uncompetitive and too profitable, hit harder than its prescriptions. The question is whether clients will become more demanding too.