Fiat Chrysler would rev up China’s Great Wall 21 Aug 2017 The $19 bln Italian group has bid interest from the Chinese carmaker. Just as Geely’s takeover of Volvo helped it revamp designs, Great Wall could benefit from Fiat’s knowhow, especially at Jeep. But this could seriously stretch the buyer’s finances and management capacity.
Economic nationalists still linger in White House 18 Aug 2017 Steve Bannon, who advocated protectionist, "America first" policies, is out. That's a plus for the economy. But other foes of trade and immigration continue to influence Donald Trump. The centrists’ fight waged by Gary Cohn and others will get easier but it’s not over.
Calpine $5.6 bln buyout puts chips on gas hegemony 18 Aug 2017 A consortium is taking the heavily indebted electricity company private at a 51 pct premium. It’s a bet natural gas will dominate the nation’s power grid. Problems with other sources justify that for now. Longer term, stagnant electricity prices and usage makes it a big risk.
Short-selling fee bastion will be hard to topple 18 Aug 2017 Wall Street makes $9 bln helping pension funds lend stocks to fuel hedge-fund bets. Now three public retirement plans are accusing Goldman, JPMorgan and others of collusion. It’s a business ripe for disintermediation. But it’s too lucrative for banks to concede without a fight.
P&G’s best defense shouldn’t be a takeover offense 18 Aug 2017 As the consumer giant faces a proxy fight with activist Nelson Peltz, one idea doing the rounds is to consider an acquisition. The trick is to find a target as alluring as Gillette once was. The more obvious candidates - Colgate, Clorox and Kimberly-Clark - don't really stack up.
Viewsroom: Corporate America dumps CEO president 17 Aug 2017 Donald Trump’s inflammatory comments about white supremacists have lost him the support and advice of business leaders, leaving him increasingly isolated and ineffectual. Qatar’s stake in the LSE may prompt Saudi Aramco to shun the exchange for its IPO. Plus: M&A for the MAGA era.
Slim’s Movil win could dial up Mexico oil reform 17 Aug 2017 A court sided with the billionaire against government efforts to end his telecom dominance. That may persuade President Peña Nieto and his PRI party, already lagging in the polls for 2018 elections, to offer more sweeteners to keep his other landmark reform, on energy, pumping.
Ackman needs sharper ideas guys on his ADP payroll 17 Aug 2017 Activists succeed by pursuing clear, deliverable goals, such as ditching non-core units or removing failing executives. Urging the employer-services firm to become an agile software company is nothing of the sort. Investors are giving the Pershing Square boss a deserved raspberry.
Gary Cohn faces worst career investment dilemma 17 Aug 2017 He steered Goldman Sachs during the financial crisis. Now he’s under pressure to abandon Trump. Remaining hurts his brand. He’s been a moderating influence on trade and point man on taxes. Losing his Wall Street savvy would be a blow to the White House - and the country.
Elliott is grasping at straws in Oncor battle 17 Aug 2017 The hedge fund says it has enough debt in the bankrupt utility to block Warren Buffett’s $18 bln offer. Yet the move makes little sense in the absence of a firm alternative. The judge is likely to see through Elliott’s posturing, as is the Omaha sage, who refused to up his bid.
Wal-Mart beats Amazon at its own game 17 Aug 2017 The $244 bln retailer cranked out its 12th quarter of growing sales in a row as smaller rivals suffered. E-commerce soared 60 pct, in part sparked by food shoppers. That gives CEO Doug McMillon a leg up as the industry waits for Amazon to digest its $13.7 bln Whole Foods meal.
Market shows faith in U.S. institutions, not Trump 16 Aug 2017 The president disbanded his advisory councils after a raft of CEOs quit. They are the latest to abandon a leader who has been defied by Congress, courts and the military. These bodies will be crucial in ensuring the nation’s stability. Investors so far appear confident they will.
U.S. blunt force ill-suited to NAFTA intricacies 16 Aug 2017 President Trump’s trade chief demanded changes to reduce the country’s trade deficit at the renegotiation kickoff. He also wants to speed up talks given upcoming elections. The America First tone fails to recognize that Canada and Mexico have leverage, and face pressure at home.
Like much else, Amazon can sell debt in a flash 16 Aug 2017 The e-commerce giant’s blowout $16 bln bond deal suggests further potential for it to pursue M&A. Yet in nearly tripling debt to buy brick-and-mortar Whole Foods, Jeff Bezos’ outfit is starting to look like a traditional retailer. The risk is that its stock will do the same.
Hadas: A lesson for the Brexit mess from Obamacare 16 Aug 2017 The British vote to leave Europe and the vow by Republicans to cut back government health insurance were triumphs of dreams over reality. Facing the unpopular prospect of actually reducing benefits, the Americans blinked. The UK, with even worse choices, could do the same.
Mortgage interest deduction’s death long overdue 16 Aug 2017 White House officials are considering limiting a tax break that encourages home purchases. The incentive mostly helps the rich and induces risky behavior. The gimmick has also had little impact, with the home-ownership rate falling to a 51-year low in 2016. Its demise is welcome.
Elliott finds part-victory in Akzo defeat 16 Aug 2017 The U.S. activist failed to arm-twist the Dulux paint maker into a merger with PPG. The Dutch group has, though, committed to a full breakup and put two solid new members on the board. It’s a decent result for Akzo’s investors – although less than Elliott’s might have wanted.
What CEO would dare to join Trump now? 16 Aug 2017 The U.S. president reckons he can easily replace the bosses of Merck and Intel as advisers. Backlashes, though, put the likes of Pepsi and Campbell in awkward positions. His credibility-boosting executive brain-trusts are more likely to keep shrinking or disband than be rebuilt.
Chinese tech titans suffer credibility GAAP 16 Aug 2017 Online retailer JD generated quarterly profit of $144 mln. Apply conventional accounting practices, however, and it lost $42 mln. Alibaba also emphasizes figures that flatter by excluding stock-based pay. It widens a chasm with U.S. peers like Amazon that have kicked the habit.
Pyongyang nudges Seoul onto Trump’s bad-boy list 15 Aug 2017 The U.S. president is unhappy with South Korea's softer approach to hostile North Korea, putting pressure on other disputes. America is scrutinizing its ally over currency manipulation and trade barriers. With China squeezing the economy, compromise would be advisable.