Hadas: Good companies don’t have to self-harm 6 Sep 2017 Alphabet Chairman Eric Schmidt may be justified in not wanting to subsidise research critical of the web giant. Even so, powerful companies have serious social responsibilities. They can do better by expanding their mission, moderating greed and helping where they have hurt.
Record basketball price is timely bet on Houston 6 Sep 2017 The owner of the Landry's restaurant empire will pay $2.2 bln for the NBA's Rockets. Buying a trophy asset as the city rebuilds after Hurricane Harvey makes for awkward timing. And yet sports often unify a community and the big investment suggests abiding faith in a recovery.
EU’s antitrust creativity drive hits roadblock 6 Sep 2017 A case that slapped chipmaker Intel with a $1.3 bln fine has been punted back to a lower court. This is a blow for antitrust tsar Margrethe Vestager, who has tried to get as innovative in policing tech giants as the companies are themselves. Proving abuses will be harder.
Lego slams into virtual wall 5 Sep 2017 The Danish toymaker is packing away 1,400 jobs after its decade-long sales boom faltered. Attaching itself to hit movies like "Star Wars" cemented strong growth, including from nerdy adults. As toy-market competition intensifies, Lego’s success requires an augmented-reality shift.
Guest view: Tax relief made for U.S. manufacturers 5 Sep 2017 President Trump's broad reforms probably will take many months to craft, but Congress already has a narrower bipartisan plan to help. Offering credits for putting R&D side by side with domestic factories can help productivity, argues Dhaval Jadav, the CEO of a tax consultancy.
Mort Zuckerman to newspaper industry: Drop Dead 5 Sep 2017 The NY property mogul sold the Daily News to the parent of the Los Angeles Times for $1 plus liabilities. It’s a victory of sorts for Tronc, which has lost other auctions and hovers near Gannett's takeover price. But it's another sad marker of print media's extinction.
Nasdaq signals information is the real market 5 Sep 2017 The tech-heavy exchange is paying $705 mln for eVestment, a data provider to asset owners and managers. It’s pricey at over 16 times adjusted EBITDA. But CEO Adena Friedman sees more value in information that brings buyers and sellers together than in acting as a trade conduit.
United Tech breathes rarefied air to bulk up 5 Sep 2017 The conglomerate is paying $30 bln including debt for Rockwell Collins. The combination makes sense but, with a weak 5 pct return on investment, UTC is paying up for aerospace scale. Elusive revenue benefits or a lucrative breakup are needed to prove the deal's potential.
Elliott shows tail wags dog in German M&A 4 Sep 2017 The U.S. investor has nudged Bain and Cinven into paying minority shareholders in drugmaker Stada 12 pct more than others got last month. Germany’s odd rules and passive investing make it all too easy for holdouts who own small stakes to throw their weight around.
Drahi’s U.S. adventure may end with a fizzle 4 Sep 2017 Telecoms magnate Patrick Drahi wants to expand his Altice group’s U.S. arm by buying other cable firms. The sector’s low margins could appeal to the famed cost-cutter. But larger companies, like $117 bln Charter, are out of reach. Drahi may have to make do with smaller fare.
Hurricane Harvey darkens forecast for OPEC cuts 1 Sep 2017 The oil cartel’s lower output was finally reviving prices before a storm knocked out around a third of U.S. refineries and dented demand. A glut of crude building up in tankers could force producers to rein in output even longer if they want to tilt the market in their favour.
Vanguard slowly flexes corporate-governance muscle 1 Sep 2017 Index funds can’t choose to sell stocks. But the $4.5 trln fund giant is engaging more with companies and in the past year voted against management at Exxon Mobil, Viacom and Wells Fargo on climate change, pay and the like. It’s hardly activism but it beats pure passive investing.
Dream of U.S. job surge is partly in Trump’s hands 1 Sep 2017 Although August’s 156,000 new positions fell short of forecasts, the trend is steady. Yet the president may soon subject nearly 800,000 children of illegal immigrants to deportation. Some 30,000 could lose jobs each month; GDP would suffer too. That’s an avoidable hit to growth.
Vivendi still looks like a one-legged stool 1 Sep 2017 The French group delivered better than expected revenue in the first half. But most good news still came from music label Universal. TV unit Canal Plus remains a drag on growth despite signs of a turnaround. Chairman Vincent Bolloré gets little credit for his integration efforts.
Europe’s consumer giants are overindulging on ads 1 Sep 2017 Companies like Nestlé and Danone spend twice as much on marketing than U.S. peers relative to sales. They defend such profligacy by pointing to superior revenue growth. True, sales are better, but not by much. With activists circling, plump ad budgets are ripe for cuts.
Water investment glass isn’t even half full 1 Sep 2017 Hungary’s president has issued a rallying cry for the $12 trln needed by 2030 to meet water-linked climate goals. The problem isn’t a lack of money, but emerging states’ poor governance and lack of financial nous. Multinationals and pushy investors could help change that.
Soft tech dominance brings on hard fight 31 Aug 2017 The exit of internet-monopoly researchers from a Google-funded think tank signals a larger battle. Tech firms have reaped fortunes controlling search, data and advertising. The companies and regulators are slowly taking the concentration of influence more seriously.
Trump may unite Congress – against him 31 Aug 2017 The U.S. runs out of money in a month and the president is attacking lawmakers in his own party. That could prompt Republicans and Democrats to work together to keep the lights on. Plus: Rupert Murdoch could be overpaying for Sky.
Wells Fargo CEO exposed by supersized scandal 31 Aug 2017 The U.S. mega-bank uncovered another 1.4 mln potentially fake accounts. With the board and sales practices grudgingly refreshed, boss Tim Sloan, a 30-year Wells Fargo veteran, sticks out as a vestige of the old regime. New Chair Betsy Duke should rethink the case for keeping him.
Harvey’s damage will long outlast the storm 31 Aug 2017 The sun is out over South Texas but the toll from the hurricane’s record rains keeps rising. With refinery closures extending eastward and a chemical plant exploding, the governor says losses could top Katrina’s. Gas shortages and surging prices will spread the economic fallout.