JBS takes shareholders on zany rollercoaster ride 11 Sep 2017 The scandal-plagued Brazilian meatpacker raised a much-needed $1 bln by selling a poultry business to Pilgrim’s Pride. That gave investors a bit of a high after the low provided by the unraveling of the controlling family’s corruption plea deal. More stomach-churning lies ahead.
U.S. banks suffer summer squalls of their own 11 Sep 2017 A less destructive Hurricane Irma than expected should be a relief for lenders from Citi to SunTrust. Interest rates and trading revenue are falling, though, as global tensions and credit costs rise. Dimming hopes for major policy change also keep the industry forecast cloudy.
Goldman’s biggest asset in UK banking is lateness 11 Sep 2017 The investment bank will start taking British deposits under the Marcus brand next summer. A startup with Wall Street infrastructure is an appealing mix. Sure, it’s a sign Goldman’s main business is looking limp – but baggage-laden UK lenders should not be too dismissive.
Elliott takes activist-buyout firm fight to Japan 11 Sep 2017 The two Wall Street tribes are increasingly at odds. Now Elliott has bought into a $3 bln Hitachi unit that KKR covets, presumably seeking a better price. For private equity groups, mining Japan’s promising seam of corporate carve-outs may be about to get a little bit harder.
Cheap genetic tests leave insurers exposed 8 Sep 2017 23andme’s value is getting a 50 pct booster shot thanks to its simple, affordable way of checking if you’re a high risk for Alzheimer’s and the like. Those who are may want more health, life and disability coverage. That will make the dysfunctional U.S. healthcare system worse.
Equifax hack provides an Exxon Valdez moment 8 Sep 2017 Sensitive personal data of 143 mln consumers may have been compromised at one of the big U.S. credit-grading agencies that double as gatekeepers. Just as the oil shipwreck spurred anti-pollution policy, Equifax could be the best catalyst yet to rethink corporate cyber security.
Jamie Dimon could offer Gary Cohn an escape route 7 Sep 2017 Trump has grown cold on his chief economic adviser following his criticism of the president's handling of Charlottesville. A return to Goldman Sachs looks unlikely. But JPMorgan needs a CEO-in-waiting. Breakingviews imagines Cohn’s resignation letter, with Wall Street’s help.
Akzo investors get whiff of reality. It smells bad 8 Sep 2017 The Dutch paint maker promised much better earnings in its defence against an attractively priced takeover by U.S. rival PPG. A profit warning for 2017 shows Akzo will struggle to meet its fanciful targets. But it’s hard for new chief Thierry Vanlancker to wipe the slate clean.
China’s grand plans help Advent to shore in Brazil 8 Sep 2017 The buyout firm is selling port operator TCP in a $1 billion deal. That is a good outcome after a recession and a currency rout, and the target fills a strategic gap for its Chinese state-backed buyer. China’s trading ambitions mean more overseas port deals should follow.
Comcast cord-cutting scare forces it to mobilize 7 Sep 2017 After warning that up to 150,000 video customers would flee this quarter, the U.S. cable titan lost some $11 bln of market value. Disney similarly spooked investors two years ago about ESPN. The Comcast selloff intensifies pressure on CEO Brian Roberts to solve for wireless.
Amazon’s second HQ could be its easiest sale yet 7 Sep 2017 The e-commerce giant wants another headquarters besides Seattle, and it’s asking cities to bid for the privilege. With a lure of 50,000 jobs and $5 bln of construction spending, it’s sure to get juicy offers. But as Wisconsin found with Foxconn, victory may come at a steep price.
Viewsroom: Harvey’s path of financial destruction 7 Sep 2017 Texas is facing $180 bln in hurricane cleanup costs, the most of any U.S. natural disaster. The Lone Star State has the wherewithal and chutzpah to cover a large chunk, yet expects Washington to pick up most of the tab. Global water risks, meanwhile, may require $12 trln to fix.
Irma alone can’t wash away reinsurance excess 7 Sep 2017 Take a plentitude of capital and a paucity of disasters. Mix in a Florida building boom and massive hurricane, and the result looks like a giant hit to reinsurers. But the history of catastrophes suggests underwriting won’t become much more rational when the storm clears.
Life as Jamie Dimon’s bête noir pays off for ISS 7 Sep 2017 The JPMorgan boss once argued investors who rely on proxy advisory firms for shareholder votes are “lazy.” Selling one of them just bagged Vestar a threefold return. New private-equity owner Genstar needs client demand for climate-related advice to skyrocket to match that.
RH remodel adds shine but may not sway skeptics 7 Sep 2017 An earnings beat driven by a new membership program sent the furniture shop's shares up 41 pct, squeezing short sellers. A full restoration remains some ways off, though. After inflating debt to finance buybacks, the retailer needs to show more than a one-time boost to cash flow.
Peltz pulls his punches on P&G’s weak governance 7 Sep 2017 The Trian boss wants the $235 bln toiletries giant to restructure and pursue M&A to rev up growth. He blames directors for tolerating mediocrity yet declines to target any of them. It’s a missed opportunity. The company’s CEO-heavy board is bucking the tide of corporate America.
Best IPO looks to repackage Chinese logistics 7 Sep 2017 The Alibaba-backed group wants to list at a market value of $5 billion-plus. Best is growing fast and pushing into new businesses, but its core delivery operation still faces rising costs and fierce competition. A big premium to U.S.-listed rival ZTO is hard to justify.
Hurricanes taunt Texas to put money where mouth is 6 Sep 2017 As Irma threatens Florida, the Lone Star State has $180 bln of Harvey damage to pay for. Most will come from the feds even though Texas hates big government. With low taxes, billionaires aplenty and a GDP that dwarfs the cost, minimizing D.C. aid ought to be virtually a state duty.
Brazil’s Temer gets a win as more graft oozes up 6 Sep 2017 Forcing state lender BNDES to cut back soft loans to business will shrink the government's role in the economy and help its ailing finances. New graft allegations against the president’s predecessors show how badly such measures are needed. Sometimes corruption can be his friend.
Facebook’s fuzzy math blurs its TV picture 6 Sep 2017 A claim to reach 100 mln younger people in America doesn't square with U.S. census figures, an analyst found. Despite a growing list of number blunders, advertisers have limited sway over the $500 bln titan. As Facebook pushes into streaming, though, it'll find tougher pushback.