Weak U.S. hiring looks like blip in steady economy 7 Apr 2017 For Donald Trump, who touted strong jobs growth in February, a mere 98,000 new positions last month was a reversal. The 12-month average is still over 180,000, though, and key unemployment rates declined. One month of data, good or bad, rarely tells the whole story.
Trump’s Syria strikes don’t justify crude worries 7 Apr 2017 Oil spiked after U.S. missiles rained on Syria. The fear isn’t that supplies will be disrupted but that Syrian ally Iran, which has been increasing its output of crude, will be hit with renewed sanctions. Even if that happens, other forces could keep markets well supplied.
Even Cohn-Warren can’t bring back Glass-Steagall 6 Apr 2017 The mixed bag of supporters for separating commercial and investment banking now includes Gary Cohn. The former Goldman Sachs president advising Donald Trump is aligned with Wall Street scourge Elizabeth Warren. Congress, however, is too busy to bother with breaking up banks.
Viewsroom: Jamie Dimon’s bank-reform cheat sheet 6 Apr 2017 The JPMorgan CEO’s latest shareholder letter hands President Trump and Republicans plenty of tips and sound bites for rolling back post-crisis rules. But the administration’s failure to replace the Fed’s departing top regulator throws more doubt on a Dodd-Frank overhaul.
Ex-Lending Club CEO’s new gig offers similar tests 6 Apr 2017 Renaud Laplanche is launching another online lender, Upgrade. He may avoid the scandal that cost him his Lending Club job. But alternative lending suffers from high costs, flighty funding and poor earnings. These give old-school banks the upper hand – if they can capitalize on it.
Comcast wireless ambitions could get a lot pricier 6 Apr 2017 The $180 bln U.S. cable firm is pushing into cellular service, nipping at the heels of Verizon and AT&T, which in turn are edging into TV. Paying Verizon for bandwidth is a prudent way to start. Yet success could lead boss Brian Roberts to go shopping, maybe even for T-Mobile US.
Bezos’ rocketing wealth fuels space ambitions 6 Apr 2017 The Amazon founder is selling $1 bln of stock a year to finance his dream of colonizing space. Both he and his company can afford it. The firm’s dominance in cloud computing has added $25 bln to his worth in the past year. With a trajectory like that, the sky is not the limit.
Staples buyout belongs only on back of an envelope 6 Apr 2017 The $6.4 bln office-supplies chain is in talks with private-equity shops about a possible deal. Even if a new owner could stop profit from falling, use ample debt and extract dividends, the return math looks shaky. And it would be crazy to count on reviving an Office Depot merger.
7-Eleven owner steps on the gas in Texas 6 Apr 2017 Japan's Seven & i will pay $3.3 bln for most of Sunoco's gas stations, building on its lead as America's top convenience-store chain. Financial details are scant, but there is a good geographic fit. The buyer has also clearly moved on from last year's sensational boardroom coup.
China’s reformers could use tough line from Trump 5 Apr 2017 The U.S. president has threatened his Chinese counterpart with punitive trade policies. A more creative approach would target barriers to foreign investment in the People’s Republic. That would find support from U.S. corporations – and China’s frustrated pro-market faction.
Amazon does a clever bit of shopping itself 5 Apr 2017 Jeff Bezos, who upended retail as a dominant seller, will power his warehouse forklifts with a novel deal. In exchange for buying hydrogen fuel cells, Amazon gets discounted warrants in supplier Plug Power. The customer imprimatur could make a good investment even better.
Republicans lose their way on Main Street 5 Apr 2017 The chairman of a House panel told CFPB Director Richard Cordray he should be fired. This escalating fight saps resources from guarding consumers against predatory lenders and debt collectors. Political dogma is obscuring the agency's mission and a populist message from voters.
Panera buyout overeggs fast-food feeding frenzy 5 Apr 2017 At $7.5 bln, JAB is paying 41 times earnings for the sandwich maker. That may prevent interlopers from mounting a counteroffer. And the owner of Krispy Kreme and Peet’s Coffee has brand expertise and good management. But such a rich valuation will have few rivals in the M&A oven.
White House cross-border M&A rethink risks blowback 5 Apr 2017 President Trump may make it harder for foreigners to buy U.S. firms. The process for divining national-security threats in takeovers needs an overhaul. But many of the ideas smack of pure protectionism against China ahead of President Xi’s state visit. It could spur retaliation.
Jamie Dimon hands out bank-reform cheat sheet 4 Apr 2017 In his latest shareholder missive, JPMorgan's CEO reprises many old beefs with financial regulation. He has a more receptive audience now that Republicans run Washington. Dimon's rosy take on rewriting the rules should play well even to a president unconcerned by details.
Latin America needs leaders who can say “adios” 4 Apr 2017 A reluctance to cede power is a common failing in a region known for strongmen and weak institutions. Protesters who torched Paraguay’s Congress over the issue last week had the right idea, if wrong method. Rulers’ refusal to let go clouds prospects in Ecuador and Venezuela too.
Fed fails self-audit with tardy Lacker ouster 4 Apr 2017 The Richmond Fed president quit after saying he had a hand in leaking policy details in 2012. It's a shock at an institution that hates surprises. The central bank’s slowness to examine itself may fuel demands for closer scrutiny – and sets a poor example for banks it regulates.
Empty Fed seat an obstacle to banks’ reform hopes 4 Apr 2017 Regulatory chief Daniel Tarullo defended the central bank’s post-crisis rules in a farewell speech. Trump wants a rollback but first he’ll need to replace the governor, which could take months. While bank bosses are clamoring for reform, the Fed may be on autopilot for a while.
Fox scandals weaken Murdochs’ TV future 4 Apr 2017 Mercedes-Benz pulled its advertising after news that on-air host Bill O'Reilly has faced sexual harassment claims. The cost to Fox is low, for now. Yet as with, say, Uber, a toxic culture can damage long-run efforts to broaden consumer appeal – especially with younger cohorts.
Airline cycle goes roundtrip with Frontier’s debut 4 Apr 2017 The no-frills U.S. carrier filed for an IPO eight years after going bust. Like most airlines, Frontier has gained from efficiencies, low fuel prices and passenger growth. Its liftoff has risks, but low-cost carriers are well positioned relative to legacy operators for a downturn.