CFPB leadership row won’t stop inevitable gutting 27 Nov 2017 It’s unclear who’s in charge at the U.S. consumer protection agency. The departing Obama-appointed director named his interim successor, as did the White House, provoking a legal fight. But Trump can name a permanent head, and make good on his promise to eviscerate the watchdog.
BlackRock ETF bot makes turkeys of human managers 27 Nov 2017 Larry Fink’s $6 trln asset manager is turning to computers to run a new batch of exchange-traded funds tracking shifting industry sectors. Machine learning and big data should do it well and at low cost. It adds more worries for flesh-and-blood stock pickers.
Time beats the clock in $2.8 bln deal 26 Nov 2017 After rejecting earlier entreaties, the publisher of People and Fortune is being bought by rival Meredith at a hefty 46 pct premium. It's a break for Time, whose go-it-alone strategy looked doomed. Bountiful cost savings, though, will help the buyer and backers the Koch brothers.
Jana’s Outback bet beats a walk in the Olive Garden 24 Nov 2017 The activist has taken a 9 pct stake in the Aussie steakhouse’s owner. Cheap grocery prices and the rise of delivery apps have battered such restaurants. It took a wholesale revamp by investor Starboard to turn Olive Garden around. Jana, though, may be targeting easier pickings.
Bankers’ rule-change wish list starts in the weeds 24 Nov 2017 Executives have plenty of regulations they want a more industry-friendly Fed to overhaul. But for many the top target is an obscure supervisory letter that has turned often minor infractions into roadblocks for everything from new branches to M&A. It’s unnecessary red tape.
Clariant and activist lack a positive reaction 24 Nov 2017 The Swiss chemical maker will devise a new strategy after its merger with rival Huntsman flopped. It rejected demands from White Tale to explore a breakup. Clariant cannot ignore its 20 pct shareholder, but the activist that scuppered the deal needs to propose as well as oppose.
Big Food should resist organic Thanksgiving feast 23 Nov 2017 Natural-foods businesses have grown faster than processed purveyors of late. That makes $4.3 bln organic producer Hain a tempting target for Nestlé or others. But high valuations, changing consumer tastes and the looming threat of Amazon warrant moderation over M&A indulgence.
Hadas: Be thankful for good economic news 23 Nov 2017 The launch of bitcoin futures contracts grabs headlines, but has no weight on the scales of history. A half-century of sharp declines in global misery is another matter. This may be the greatest economic achievement ever. Be grateful - and angry at how much is still not done.
Altice’s Caribbean selloff signals shrinking ambition 23 Nov 2017 Patrick Drahi’s telecom and cable group may dump its Dominican Republic unit just four years after buying it. That adds credibility to the entrepreneur’s plan to cut debt by flogging assets. It also underscores that Altice’s days of heady, M&A-led growth are firmly in the past.
Sabotaging Obamacare backfires on Republicans 22 Nov 2017 President Trump claims his predecessor’s health-insurance program is dying. He and the GOP have eliminated some subsidies and slashed marketing. Yet the pace of enrollment has risen from last year. The political cost of efforts to kill the program is rising.
The Exchange: Jim Rogers 22 Nov 2017 The longtime Asia bull and Quantum Fund co-founder thinks the worst bear market of his lifetime is coming. He swung by our Hong Kong bureau to discuss the risks, as well as Trump’s Asia tour and why America could become its own worst enemy if it lets China dominate the region.
Fed eggheads scramble online-loans takedown 22 Nov 2017 Analysts at the central bank’s Cleveland unit had to pull a study claiming peer-to-peer lending was highly risky after its data was questioned. It’s a tricky sector to define and worsening consumer credit is a concern. But the Fed’s hasty conclusion tarnishes its own reputation.
P&G’s battle with Peltz is practically poetic 22 Nov 2017 The consumer giant fights on with Peltz, backed by hubris and nothing much else. Insularity remains, causing new corporate stains - as the activist readies fresh welts.
Emerson’s $29 bln bid for Rockwell has a big flaw 22 Nov 2017 That’s the fact that much of the takeover approach, while reasonably priced, is in Emerson stock. Rockwell’s board is using that to justifiably question the bidder’s long-term plan, and questionable synergy estimates. It’s hard to see how anything other than cash can win the day.
Uber cover-up makes new boss’s job even harder 22 Nov 2017 The ride-hailing app paid off hackers but didn’t tell regulators, or 57 mln people whose data might have been exposed. It’s an ugly coda to ex-CEO Travis Kalanick’s irresponsible reign. With Uber’s London future, for one, in the balance, Dara Khosrowshahi has his work cut out.
Chinese micro-lender has big problems 22 Nov 2017 Beijing is clamping down on online outfits that issue small-ticket loans to Chinese consumers. The regulatory uncertainty has spooked investors in the rapidly growing industry. It is another reason why New York listing hopeful LexinFintech may have a tough ride.
Akzo’s no-deal still worse than a good deal 22 Nov 2017 The Dutch paint maker is temporarily solo after talks with U.S. peer Axalta foundered. That combination, good on paper, was challenged by the two companies’ uneven size and likely job cuts. Even so, Akzo’s future if it’s determined to remain single is unappealing.
Nippon Paint’s run at Axalta looks off-colour 22 Nov 2017 The Japanese group has lobbed in a cash bid for its U.S. rival, Reuters reports, ending the target's merger talks with Akzo Nobel. A deal valued at some $12 bln including debt, even assuming hefty savings, would destroy value. Fulfilling global ambitions may be costly for Nippon.
Rio Tinto distracted by shiny new thing 22 Nov 2017 The mining giant is mulling a stake in $15 bln lithium producer SQM. Rechargeable-battery fever has helped lift the Chilean company's valuation to a tech-like multiple. Deals will return with industry growth, but after past mistakes including Alcan, Rio is looking late again.
China’s Skype crackdown invites messaging wars 22 Nov 2017 Apple removed Microsoft's internet phone service from the local store, as foreign call and chat apps get squeezed out of the market. Suppression also supports overseas expansion of homegrown tools Beijing monitors, like Tencent's WeChat. Chinese tech should gird for retaliation.