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.
Flu exposes U.S. folly in weighing fear and risk 3 Apr 2017 Americans are 1,000 times more likely to die from this common illness than terrorism. The current, and worst, bird-flu outbreak in China means the imbalance is even higher. Washington's decision to spend so much more on homeland security than preventing disease is misguided.
Baked-in premium makes Panera a fattening morsel 3 Apr 2017 The $6.6 bln bakery chain has leavened its growth rate with new mobile ordering and delivery services, which has buyers circling. An 8 pct price jump pushed its valuation to new highs. Buying the company, like eating one of its 720-calorie pecan rolls, could produce indigestion.
Wildcatters hold hot hand in Permian land grab 3 Apr 2017 Local oil companies were early to snap up land and drill in the U.S.’s largest shale formation. Their success in producing profitably even at low prices has everyone from oil majors to Russia looking to follow suit. It will cost them dearly to enter this game of Texas Hold’em.
Apple imagines away chip supplier’s future 3 Apr 2017 Imagination Technologies lost more than 60 pct of its value after the iPhone maker said it would stop using the UK firm's technology. That may wipe out half Imagination's revenue and any hope of profit for the time being. It's a risk small suppliers run with control-freak Apple.
Reckitt is smart to go easy on the sauce 3 Apr 2017 The UK consumer-goods group may sell the division that makes French’s mustard for around $3 bln. Cashing out would take the heat out of the company’s debt-financed $17 bln bet on Mead Johnson – even if it seems odd to sell a business that’s growing fast and highly profitable.
Linde’s erratic unions test Germany’s formula 3 Apr 2017 The gas maker's workers are challenging a $65 bln merger with Praxair they previously seemed to support. Germany's system of handing enormous power to unions works because they mostly use it wisely. In this case, pushing too hard could backfire in more ways than one.
D.C. officials need Wall Street disclosure lesson 31 Mar 2017 Ex-Trump adviser Michael Flynn, under fire for Russian connections, belatedly registered as an agent of a Dutch firm tied to Turkey. Such transparency is required but feebly enforced. As financiers know, that can change – and catch people out more easily than underlying misdeeds.
IMF’s renminbi disclosure starts with a whimper 31 Mar 2017 The Chinese currency makes up just 1 pct of global central-bank reserves, according to the organization's first such breakout. The fund has promoted international use of the yuan and recently included it in its own in-house basket. The real world is moving much more slowly.
U.S. state insurance watchdogs need EU credibility 31 Mar 2017 With deregulation in the air, AIG and Prudential could lose their systemically risky labels – along with MetLife. That would end Fed monitoring. But they're also global SIFIs in the eyes of regulators in the EU and elsewhere. Fragmented state oversight might not cut it overseas.
Hollywood’s box-office script could use a rewrite 31 Mar 2017 Movie-ticket sales barely budged last year, at $39 bln globally. Sony Entertainment and Viacom’s Paramount Pictures are changing bosses amid serious challenges. Netflix is forcing studios to make films available on demand sooner. Tinseltown may want to recast its formula.