Review: Ellen Pao cracked door for women in tech 29 Sep 2017 In "Reset," the venture capitalist recounts her decision to fight Kleiner Perkins in court over sexism, rather than settling. She lost, but several women have since publicly confronted the bro-culture of Silicon Valley at Uber, SoFi and beyond, yielding more promising results.
Guggenheim sells its way to some rare good news 29 Sep 2017 The Wall Street firm has snagged a hefty 12 times EBITDA from Invesco for its ETF unit. The buyer also bags a big tax break, but barely gains ground on industry giants. Guggenheim, meanwhile, pockets a welcome $1.2 bln distraction from months of debilitating executive squabbling.
Volkswagen can’t even get its kitchen sink right 29 Sep 2017 The German carmaker set aside another 2.5 billion euros for costs related to its emissions-cheating scandal – more than a tenth of the previous total. Two years on from Dieselgate, the final bill is still far from clear. Little wonder investors are so pessimistic.
Crypto-currencies’ strength becomes their weakness 29 Sep 2017 Freedom from regulation was the big draw of bitcoin, ether and the like. But exchanges established to trade them often lack basic controls on identity, fraud, tech and even volume. Without fixes, digital currencies will stay on the financial fringe, prone to crime and bubbles.
Ryanair’s cheapskate reputation is its best asset 29 Sep 2017 Angry customers and an irate regulator might pose an existential threat for most companies. Not the budget airline. Cancelling 20,000 flights will cost it a little in compensation and slower growth. As long as travellers favour discount fares, though, its planes will remain full.
Telecom Italia CEO’s job: fix governance discount 29 Sep 2017 The telco named Amos Genish its new boss. The Israeli’s to-do list includes mending relations with the Italian government and clarifying those with shareholder Vivendi – as well as fighting fresh competition. Unless he addresses these problems, TI’s lowly valuation will endure.
Banks’ health squeezed by rampant compliance costs 29 Sep 2017 They now spend an average of around 4 percent of revenue to comply with regulators’ requirements, according to a poll by Duff & Phelps. That is expected to increase to as much as 10 percent by 2022. Red tape will keep weighing on lenders’ margins as well as employees’ sanity.
Xi Jinping can’t get Chinese planes to run on time 29 Sep 2017 As millions of Chinese people set forth to travel during the "Golden Week" holiday starting Sunday, many could spend more time in the departure lounge than on the beach. Their airports are the world's most delayed, but instead of reforming airspace, Beijing prefers fiddling data.
Expect buybacks but not M&A from China’s Sina 29 Sep 2017 An activist wants the $8 bln web group to consider a sale or a merger with subsidiary Weibo. The former would never get past boss Charles Chao, and the latter is a bad idea. But Chao could compromise by expanding the board, stepping up buybacks and handing out more Weibo shares.
Cox: Where are the taxpayers’ private jets? 28 Sep 2017 Corporations long ago learned that hangars full of airplanes present an easy target for activists. Even mighty GE is grounding its fleet. So it's puzzling to see Trump's civil servants flying in such high style. It makes firing HHS director Tom Price his easiest call to date.
Brazilian oil auction gives Temer some validation 28 Sep 2017 The president is doing his country's economy good even as his popularity craters over graft charges. A less nationalist energy policy paved the way for a record haul in a drilling-rights auction and bodes well for more. It may leave Mexico and its oil deals battling for bids.
TaskRabbit deal reveals what even IKEA can’t build 28 Sep 2017 The Swedish furniture giant has bought the odd-job app. Though the price is undisclosed, it's a rare tech acquisition that makes sense given how much of TaskRabbit's business must be assembling Billy bookcases and such. By contrast, most startup M&A has been poorly constructed.
White House pins tax cuts on fanciful economics 28 Sep 2017 Presidential adviser Gary Cohn says its costly plan will pay for itself because of the expansion it'll spark. Skepticism is warranted. GDP growth topped 4 pct for a bit following Reagan and Clinton reforms, but the correlation isn’t as strong as the GOP would like to believe.
Viewsroom: Trump tax overhaul will be a long slog 28 Sep 2017 The U.S. president and Republicans want to reduce the corporate tax rate to 20 pct from 35 pct. After a blistering defeat over Obamacare, the prospects of significant reform are slim. Meanwhile, Equifax’s CEO slinks out of the building. Plus: Puerto Rico’s prayer for relief.
Lyft IPO would amplify Uber’s troubles 28 Sep 2017 The ride-hailing firm is readying to go public as early as next year, Reuters reports. It would be an opportunistic way to capitalize on its larger rival’s self-inflicted damage. Additional capital for the No. 2 U.S. player would merely compound the frontrunner’s injuries.
Amazon European shopping talk is wishful thinking 28 Sep 2017 Supermarkets Carrefour and Sainsbury have been floated as potential targets following the e-commerce giant’s $13.7 bln purchase of Whole Foods. But CEO Jeff Bezos already owns the one grocer he really needs. Bid speculation only obscures the broader competitive pressures.
BJ’s buyout may prove salivating retail exception 27 Sep 2017 Leonard Green and CVC snagged the cash-and-carry chain with a low-ball bid in 2011. They have taken out hefty dividends and are hawking it for some $4.5 bln. Even if they can’t find an enthusiastic buyer, the returns may prove tantalizing enough for others to reconsider retail.
Hugh Hefner’s stamina outlasted the Playboy model 28 Sep 2017 The sexual revolution's great salesman has put down his smouldering pipe at 91. He built his pioneering magazine's blend of nudity and smarts into an empire with a logo recognised worldwide. But the internet, cultural change and competition saw his business age less gracefully.
Rocket Internet rejig exposes valuation mismatch 28 Sep 2017 The German tech investor is jettisoning half its stake in Delivery Hero for 660 mln euros. That’s welcome, but investors still don’t trust boss Oliver Samwer with the cash. Unless he pledges to return more of it to shareholders, Rocket’s stratospheric discount will persist.
Italy gets narrow lead in race for EU naval giant 28 Sep 2017 Shipbuilder Fincantieri has won conditional control over French rival STX, which Paris nationalised suddenly in July. The pact defuses a cross-border diplomatic row. But the real battle will be fought over the ownership of a European naval champion that is now in the making.
Bond investors toss a coin on Saudi reforms 28 Sep 2017 The kingdom’s $12.5 bln bond was oversubscribed. Rising oil prices and low debt help explain the appeal. But the 30-year notes remain a bet that Crown Prince Mohammed bin Salman can wean Saudi Arabia off oil. Investors’ zeal is a benchmark of the demand for emerging market debt.
Toshiba swaps electronic for financial engineering 28 Sep 2017 A bizarre $18 bln buyout of its memory unit keeps voting control in Japan, while customers and rivals from Apple to SK Hynix provide cash. The deal could also be re-cut thanks to a spat with JV partner Western Digital. The confusion means the risk of a Toshiba delisting persists.
U.S.-Mexico water deal will get investment flowing 27 Sep 2017 The two countries set aside broader trade disputes in a new pact to share the Colorado River. More cooperation gives clarity to the 40 mln people who rely on the waterway. It will also help secure the billions needed for conservation, reusing water and upgrading infrastructure.
Charmed life for Indian IPOs may be short 28 Sep 2017 Huge inflows of domestic cash and a lack of healthy financial stocks have helped two insurers float at punchy valuations. At this rate, India is on track for a record year for new issues. But foreigners are selling and the economy looks shaky. Would-be issuers need to move fast.
Hit IPO undercuts the case for new Hong Kong board 28 Sep 2017 Shares in Chinese online insurer ZhongAn soared on their debut. This deal suggests the bourse’s push for a new venue with looser standards is misguided. The city should be able to lure desirable Chinese tech listings just fine by making tweaks to the existing regime.
Crypto-currencies can’t salvage hedge-fund junkies 27 Sep 2017 One-time star manager Mike Novogratz is pinning a comeback on digital coins. Their volatility is alluring when tranquil markets are depressing industry returns. But as the former Fortress executive knows, that can be a trap. He was burned by a bad Swiss franc bet two years ago.
Google clears deck for huge antitrust fight 27 Sep 2017 The company is separating its European shopping unit and allowing rivals to bid for ads. That solves one problem it has with watchdogs while minimizing losses and continuing an appeal. It also frees up Google to battle the EU over claims it uses Android to dominate online search.
U.S. plane spat morphs into unwinnable dogfight 27 Sep 2017 The UK joined Canada in threatening to punish Boeing after the Trump administration slapped duties on Bombardier’s flagship jet. Targeting aircraft subsidies is laudable, but Washington’s tough tactics, matched by Justin Trudeau and Theresa May, could shoot down all sides in flames.
State tax deduction pain would spread to Trumpland 27 Sep 2017 GOP leaders want to scrap the break that mainly helps upper-income earners in Clinton-backing locales like New York. It raises $1.3 trln over a decade to help offset tax cuts. Yet all states take advantage of the deduction, which includes sales tax. It sets up a bruising fight.
Electric vehicles lack killer spark – for now 27 Sep 2017 BHP reckons battery-powered cars are reaching a tipping point. Even vacuum maker Dyson is building one. And driverless vehicles could make EVs a huge money-spinner. High costs and concerns over raw-material supplies, though, will keep the combustion engine purring for years.