Trump fuzziness gives NAFTA mediators wiggle room 17 Jul 2017 The president wants to cut deficits with Mexico and Canada and strengthen rules for products made in North America. But his trade rep is offering few details, while cribbing other ideas from the ditched TPP. Such a vague approach may increase the chance of striking a decent deal.
Dimon acolyte injects controversy into custody war 17 Jul 2017 Ex-JPMorgan exec and Visa CEO Charlie Scharf is BNY Mellon’s surprise new boss. An accomplished outsider may initially please investors in a firm still lagging rivals despite a push from Nelson Peltz. But growing revenue from clients facing intense fee pressure will be tough.
U.S. student debt dims home-ownership outlook 17 Jul 2017 Economic growth is supposed to lure millennials out of their parents’ basements. But a study from the New York Fed suggests that borrowing for surging college costs accounts for up to a third of the decline in home buying by 28-to-30-year-olds. That purchasing power won’t return.
KKR’s former barbarians tackle toughest gate yet 17 Jul 2017 Joe Bae and Scott Nuttall look poised to succeed septuagenarian co-founders Henry Kravis and George Roberts. It may spark broader changes to boost the $16 bln firm’s value. But as public rivals Blackstone and Carlyle can attest, private-equity grandees cede power ever so slowly.
Central banks oust politicians as market fixation 17 Jul 2017 Investors are worrying about interest rates rather than elections. Statistics are a more reliable guide to the economic outlook than polls to political outcomes. But the path for monetary policy remains uncertain. Expect asset prices to be jumpy and their moves more synchronised.
BlackRock bitten by its own cannibalization 17 Jul 2017 The world’s largest fund manager pulled in over $100 bln of new money in the second quarter. Most went into cheap ETFs, making revenue and profit fall short. Larry Fink’s shop is still thriving, but it’s not immune to fee pressures partly created by itself and rival Vanguard.
Peltz goes for the close shave at Procter & Gamble 17 Jul 2017 Unlike his last proxy fight at DuPont, the activist is taking a more surgical approach, lobbying for one board seat at the $223 bln razors-to-detergent conglomerate. Trian is also supporting management and not calling for a breakup. Shareholders would be daft to turn him down.
Wanda’s M&A punishment is too much, too late 17 Jul 2017 Chinese banks have been ordered to halt lending to entertainment and property giant Dalian Wanda, Reuters reported, in what looks like retroactive punishment for big foreign investments. Such blurry lines around what is and isn't allowed do Chinese outbound investment no good.
Amazon monopoly game will take forever to play out 14 Jul 2017 The e-commerce titan's Whole Foods deal has sparked fresh fears of its dominance. One hedgie says whispers of a possible congressional review prompted him to short the stock. How antitrust law applies, though, is unclear. For now, consumers and investors probably keep winning.
Citi, JPMorgan and Wells show reliance on D.C. 14 Jul 2017 Higher interest rates helped all three big U.S. lenders beat estimates. But so, to varying degrees, did one-offs, low tax rates and benign credit costs. Performance isn’t yet justifying their healthy trading multiples. That will require more Washington talk to become action.
Review: How justice lost its way on Wall Street 14 Jul 2017 The financial crisis had millions of victims but, unlike previous ones, no apparent perpetrators. Jesse Eisinger's "The Chickenshit Club" blames political timidity, lobbying and D.C.'s revolving door for the failure to prosecute top dogs. Investors may yet regret the change.
Mexico and Canada on the lookout for new friends 14 Jul 2017 Donald Trump will soon present demands for a revised trade pact. Uncle Sam's size gives it leverage, but America’s neighbors have been seeking out partners in South America and Europe. This could benefit firms like Adecoagro in Argentina and Germany’s Oetker over U.S. rivals.
Murdoch’s Sky takeover can survive lengthy review 14 Jul 2017 The media mogul won’t offer more concessions to win quick approval for his 11.7 bln pound bid for the UK broadcaster. That will probably trigger an extended probe which investors think makes a deal less likely. But authorities can suggest remedies to clear the way for a deal.
Viewsroom: Elon Musk’s Down-Under wager 13 Jul 2017 Tesla’s CEO is putting the firm’s reputation, and $50 mln, on the line in a deal to quickly provide energy storage to South Australia. Over in Texas, a battle is brewing between investment icons Warren Buffett and Paul Singer over a long-suffering and oft-wooed energy company.
BlackRock opens new investment passivity front 13 Jul 2017 The firm that disrupted stock pickers with low-cost funds tracking equity benchmarks wants to do the same to bond managers. Larry Fink’s shop will sell ETFs using its own fixed-income indexes and slash fees. For an industry with no top-line growth, casualties may be widespread.
Cox: White House kitchen-sink job going down drain 13 Jul 2017 New CEOs often spend their first months at the helm ejecting all but the proverbial basin: strategy, assets and guidance. Donald Trump is aggressively using the approach to wash out his predecessor's legacy. It's taking too long, though, and impeding chances for fresh policy.
Macron’s choice: Europe or Gallic exceptionalism 13 Jul 2017 The French President and Germany’s Angela Merkel are keen to revamp the euro zone. It’s hard for Macron to be a role model as long as France’s budget deficit is too big – and harder still given the pressure to cut taxes quickly. This fiscal dilemma is the euro zone’s problem.
Uber plucks success from Russian game of chicken 13 Jul 2017 The ride-hailing service’s efforts to expand in eastern Europe didn’t have a chance at usurping Yandex – but it did make its rival’s losses balloon. Combining the businesses allows both to escape this trap, with a big paper profit for Uber.
Long-term optimists give Goldman too much credit 13 Jul 2017 Slow trading may doom the $90 bln firm to a ho-hum Q2. But analysts see its profit growth over the next 18 months far outpacing Wall Street rivals. Its valuation implies an even rosier outlook. The likes of JPMorgan, reporting on Friday, might reasonably feel under-appreciated.
Speed bump warranted in China-Chicago bourse trade 13 Jul 2017 Some U.S. lawmakers want the SEC to block the sale of the Midwest exchange to Chinese investors. Their concerns are largely fear mongering. But as self-regulators, all such venues will soon get access to customer data as part of a new audit trail. That justifies closer review.