Trump “coal first” drive is blowing smoke 10 Oct 2017 His environment agency aims to reverse Obama-era pollution rules, while the energy department wants regulatory changes that favor nuclear and coal power generation. Even if both happen, the closure of a Texas power plant shows the economic and social forces pushing the other way.
Wal-Mart gets into e-commerce groove 10 Oct 2017 The $250 bln grocer said U.S. online sales will jump 40 pct next year. Additions like Jet.com help and it is using its 5,000-plus stores well. The channel represents less than 4 pct of Wal-Mart revenue stateside, so there’s room to grow. Maybe even Amazon should watch its back.
Pfizer and Glaxo may find romance over the counter 10 Oct 2017 The $215 bln U.S. drugmaker is preparing to detach its consumer-goods unit, and its British rival is a logical owner. Folding the Advil maker into GlaxoSmithKline’s existing venture with Novartis would be logical, provided CEO Emma Walmsley can whip the business into shape.
Time for Barclays to sever its U.S. cards arm 10 Oct 2017 CEO Jes Staley has a conundrum: the UK bank’s market value is so depressed investors are essentially getting the U.S. credit card business for free, according to Breakingviews calculations. Spinning off the unit would make Barclays less complex and help it to a richer valuation.
P&G scores hollow victory over Nelson Peltz 10 Oct 2017 The $234 bln toiletries firm says the activist has lost his fight for a board seat. Peltz says the vote is too close to call. Either way, the narrow margin should be a wake-up call for P&G’s insular leaders, even if change comes hard for them. Expect Peltz to stick around.
Honeywell puts Dan Loeb in his place 10 Oct 2017 The conglomerate is spinning off two small, low-margin risky businesses rather than the aerospace unit the activist had targeted. It’s a smarter way for new CEO Darius Adamczyk to improve returns without much pain, especially on top of the better margins he’s already producing.
HelloFresh IPO belongs in the deep-freeze 10 Oct 2017 The German meal-kit service is planning a float before proving it can turn a profit. That’s premature. The flame-out of U.S. rival Blue Apron’s IPO in June offers an unhappy precedent. Both firms could go stale if Amazon or traditional retailers launch an assault on the sector.
Companies WACC central bankers on yields 10 Oct 2017 Rate-setters have engineered ultra-low borrowing costs and the risk premium on stocks is down. In theory, that lowers the bar for business investments. In practice, corporate hurdle rates have barely budged for decades. It’s a reality check for policymakers trying to fan growth.
IKEA digital surrender raises flicker of IPO hope 10 Oct 2017 The Swedish furniture firm has grown through its warren-like stores and without needing external capital. Yet it now plans to sell through websites like Amazon to reach new customers. With competitive pressures growing, IKEA might also revisit its aversion to selling stock.
Disney chief’s priorities are out of whack 9 Oct 2017 The $155 bln media firm is wrestling with major industry changes as more consumers ditch pricey cable service. Yet Bob Iger is increasingly weighing in on political issues like gun control, sparking speculation he’ll run for office. That’s fine – but not on Disney’s time.
Holding: U.S. voters could use M&A conflicts rule 9 Oct 2017 If dodgy deals can be blessed by independent shareholders or directors, why not deem voting districts fair if neutral panels draw them? Biased lawmakers might exit the process and judges could duck political spats. It’s a boardroom fix for the latest Supreme Court elections case.
GE needs Nelson Peltz’s help – and takes it 9 Oct 2017 The $200 bln U.S. industrial giant, now with a new CEO, still seems unable to get people excited about owning its shares. A board seat for the activist investor’s top lieutenant may help. It’s a contrast with P&G, which is resisting Peltz – potentially to shareholders’ detriment.
Harvey Weinstein saga will leave filthy handprints 9 Oct 2017 Ejecting a misbehaving boss, as the U.S. film studio just did, is never simple. Corporate cultures are the offspring of their founders. While their departures can kick off a cleanup, vital skills exit with them. It's a problem enterprises like Uber and Fox are grappling with too.
Nobel Prize nudges economics to accept the obvious 9 Oct 2017 Richard Thaler won the award for showing how people don’t always behave rationally to maximise a narrow concept of well-being. His insights forced economics to confront its shaky tenets. They are less useful for building new theories of how economies and markets actually work.
Trump’s petty fight upsets art of the tax deal 9 Oct 2017 The U.S. president’s relationship with Republican lawmaker Bob Corker soured further during a Twitter argument. Yet the Tennessean’s support is critical to push tax reform in the Senate, where the GOP has a slim majority. The squabbling endangers a plan that is already under attack.
HSBC’s next challenge is how to grow responsibly 9 Oct 2017 The global bank wants insider John Flint to replace CEO Stuart Gulliver, according to the Sunday Times. If approved, he will take over a slimmed-down lender trading at 1.2 times book value. Investors now want growth – but Flint and Chairman Mark Tucker should heed past mistakes.
Server-farm growth fuels hot IPO mumbo jumbo 6 Oct 2017 Rocketing data-storage demand is creating winners – witness the 46 pct rise in Switch in its first day of trading. It also encourages silliness such as the company crediting its performance on CEO and “inventrepreneur” Rob Roy’s practice of “Switchful Thinking.”
U.S. Treasury drafts helpful Wall Street guide 6 Oct 2017 The administration’s latest proposals for reforming markets regulation overplay the drop in IPOs and fixate on a couple of needless changes. Overall, though, the report’s recommendations on everything from securitization to shaking up watchdogs make a fair degree of sense.
Cox: P&G counting on an investor electoral college 6 Oct 2017 There's no strong reason for the insular consumer-goods titan to deny Nelson Peltz a board seat. Hedge funds will back him, but as in U.S. elections only half the retail shares may vote. That leaves Vanguard, BlackRock and State Street to play Wisconsin, Ohio and Pennsylvania.
Honest Co may have missed its sell-out moment 6 Oct 2017 Jessica Alba's organic products line is facing a common startup dilemma: is it worse to fizzle or sell out? The company is raising new funds at a lower price, after a possible deal with Unilever disappeared. The magic ingredient for unicorns may be timing.