Target’s bull’s-eye will be hard to repeat 16 Nov 2016 After a rough summer, the $43 bln U.S. retailer notched an impressive jump in online sales and raised its 2016 profit forecast. Even so, Target needs more people in its stores over the holidays. Shopper habits are changing quickly and Amazon will keep flexing its muscles.
Anti-China report lobs match into Trump powder keg 16 Nov 2016 Congress is being advised to ban any takeovers of U.S. companies by the Middle Kingdom's state-owned firms. The report tars private firms with the same brush and heightens fears of spying and economic warfare. It's easy fodder for the president-elect's populist platform.
Shadow banking risk is now hiding in plain sight 16 Nov 2016 Complex forms of credit that helped trigger the crisis have mostly shrunk in recent years. Most lending has come from more transparent sources like the bond market. Even so, any system that depends on private investors remains vulnerable to a sudden loss of confidence.
Evercore’s two chairmen are an enviable problem 16 Nov 2016 Wooing ex-Goldman Sachs partner John Weinberg is a coup for the advisory firm. Making him executive chairman, though, while founder Roger Altman stays as senior chair, muddies governance and creates top-heavy management. Rivals can only wish they had a similar dilemma.
Amazon lends Morrisons scale, at a price 16 Nov 2016 The UK supermarket is extending its tie-up with Amazon, boosting its online sales. The deal isn't without risk for the grocer: Amazon is much bigger than it, and will have discretion over pricing. That's the price Morrisons pays for being slower than rivals to move online.
Dollar, rates or rules could zap EU bank rally 16 Nov 2016 The Euro Stoxx banks index is up 11.5 pct since the U.S. election. Expectations for higher interest rates and watered-down Basel capital rules could be too rosy. Meanwhile, the stronger dollar may reduce EU bank appetite for leverage, and presage wider financial instability.
Markets keep climate-change fight alive 15 Nov 2016 Having Donald Trump as global warming's denier-in-chief is a big setback for reducing emissions and a blow to the Paris accord. Other countries are still committed to action, though. Renewable energy is mainstream. And a strong financial case will keep green investment humming.
Estee Lauder pays $1.5 bln for fountain of youth 15 Nov 2016 The 70-year-old cosmetics maker hopes to goose up sales with the acquisition of millennial-friendly brand Too Faced. At 5.4 times sales, the price is rich compared to Lauder's own valuation. But it stacks up against similar forays by L'Oreal. That explains smiling investors.
Buffett’s love for moats trumps fear of flying 15 Nov 2016 The billionaire's Berkshire Hathaway has bet over $1 bln on four U.S. airlines. Buffett once called the industry a "bottomless pit," and jokingly wished aviator Orville Wright had been shot down at Kitty Hawk. That was before a spate of mergers created a profitable oligopoly.
Canada a small, vulnerable blip on Trump radar 15 Nov 2016 Markets up north have barely budged on America's surprising election outcome. Investors appear to be gambling Trump's call to rip up NAFTA won't affect the export-dependent economy. Perhaps, but Canada is susceptible to other forms of turbulence emanating from Washington.
Saudi has Trump-shaped reason to reverse OPEC cut 15 Nov 2016 The new U.S. president may boost oil drilling, snub climate change accords and cancel a sanctions deal with Iran. That would give Saudi Arabia an excuse to back out of the cartel’s shaky pledge to cut output. Though prices would fall, Riyadh would hang on to its market share.
Reynolds can get more of what BAT’s smoking 15 Nov 2016 The U.S. tobacco maker rejected an offer from its biggest shareholder that values the whole company at $76 bln. A new government at home gives Reynolds a smidgeon of extra negotiating heft. The case for a deal, meanwhile, remains as bewitching as the evil weed itself.
Banking boutiques put money where their mouths are 14 Nov 2016 Perella Weinberg will join forces with Houston's Tudor, Pickering despite a shaky oil patch and upheaval in the global order. It advances a growth strategy while minimizing overlap and cultural rifts. That makes this just the sort of deal they'd hopefully advise clients to do.
Cross-border sandwich deal handmade for new world 14 Nov 2016 UK-listed snack outfit Greencore is gobbling up U.S. peer Peacock Foods for $748 mln. The scope for economic returns and greater scale explains why. In a Trump world, reducing tax bills and preserving transatlantic divides - even in sandwich scoffing - will remain much in vogue.
Draining the swamp starts with Trump’s own team 14 Nov 2016 The property mogul faces big-league conflicts as the U.S. president-elect. The same goes for his potential Cabinet of vulture investors and CEOs. Trump wants to put his business into a family-run blind trust. It's an inauspicious way to fulfill his pledge to clean up Washington.
Facebook faces its own fake-news Twitter problem 14 Nov 2016 Mark Zuckerberg denies the social network helped elect Donald Trump because of made-up articles. Yet Facebook regularly boasts to advertisers about its influence over nearly 2 bln users. Like toxic tweets, allowing hoaxes to flourish has the potential to dent its business model.
Harman sale grooms stallion instead of unicorn 14 Nov 2016 Despite no stated savings, the 28 pct premium Samsung is paying for the connected-car supplier looks reasonable. The likes of Google are investing heavily to invent as GM and others bet on risky startups. This $8 bln deal suggests there are safer ways to play a mega-trend.
Cox: Good case for working in Trump’s White House 14 Nov 2016 The least-experienced man to occupy the Oval Office will need competent leaders to help run the government and sweat policy details, with lots of leeway. Jamie Dimon et al may blanch at working for him. The alternative - a Cabinet of D-list campaign cronies - is unthinkable.
Samsung buys $8 bln shortcut to smart car market 14 Nov 2016 The South Korean group is buying U.S. car component maker Harman in its biggest-ever deal. As cellphone growth slows, Samsung is betting big on "connected" auto technology. Harman's dominant market share and relationships with carmakers should put Samsung at the head of the pack.
Siemens pays full price for extra pixels 14 Nov 2016 The German engineer is buying U.S. software maker Mentor Graphics for $4.5 bln including debt. Adding electronic design automation software to its digital offering makes sense. For the deal to add value, however, Siemens will have to outperform its own target for extra sales.