Harvard struggles to overcome its hedge-fund past 23 Sep 2016 The Ivy League university's $36 bln endowment lost 2 pct in the year to June, falling short of its yardsticks and rival Yale's 3.4 pct gain. More than a decade after the champion of its partially in-house operation quit, Harvard faces problems of leadership and investment style.
Tech vultures try luck with broken-winged Twitter 23 Sep 2016 Google, Salesforce and others may want to buy the $16 bln social network. Slowing revenue and user growth, along with a lack of direction, make a sale a logical option for Twitter. The rationale for an acquirer is less clear, but cash piles and egos could prevail over reason.
Review: The bad and good of a world without work 23 Sep 2016 Will robots liberate everyone from boring labour, or will they make many workers redundant? Ryan Avent's "The Wealth of Humans" suggests they could do both. So it's up to governments to find new ways to share out the benefits. Past experience suggests this will not be easy.
Hadas: Central banks play with monetary absurdity 23 Sep 2016 Monetary authorities have taken recourse in increasingly empty promises. The Bank of Japan's Haruhiko Kuroda has taken this verbal drama to a new and ultimately dangerous level. Central banks could rely on deeds, not words, if their tools and targets were more realistic.
Yahoo hack could test sale to Verizon 22 Sep 2016 The internet firm disclosed the theft of data from 500 mln user accounts in 2014. The breach, apparently by a state-sponsored actor, is an embarrassing coda to Yahoo's independent existence. If it has a big enough impact, it could even give Verizon a way out of its $4.8 bln deal.
Carlos Slim may be necessary evil for Brazil’s Oi 22 Sep 2016 The Mexican billionaire's America Movil is interested in buying part or all of the bankrupt telecoms firm. Economic recession and a fragmented market pushed Oi over the edge and may now hasten consolidation. Slim wouldn't be Brasilia's first choice, but he has deep pockets.
Trump would follow in Obama’s debt footsteps 22 Sep 2016 The Republican presidential nominee's economic plan would add $5 trln in U.S. borrowing, a new study estimates. Barack Obama tallied about $8 trln during his two terms. Adding debt for infrastructure makes more sense than for cutting taxes on the rich. Both kick the can, though.
Music industry jams to a new scapegoat groove 21 Sep 2016 Subscription services like those from Apple and Spotify helped lift U.S. spending on tunes by 8.1 pct to $3.4 bln in the first half. It's the best news in years for music makers. They always seem to find a villain, though, and this time they're beating up on Google's YouTube.
Latest Apple rumor may vanish as fast as a McLaren 21 Sep 2016 The iPhone giant may have approached the British supercar firm. Apple, though, has made few acquisitions, even to help it pioneer smartphones. While McLaren is high-tech, it's hard to see it taking Apple's car ambitions far. Fancy can run free when a company has $230 bln of cash.
Fed “forward guidance” blows too much smoke 21 Sep 2016 The U.S. central bank again declined to raise rates, leaving what hedgie Dan Loeb called the crack cocaine of loose monetary policy in place. The Fed counts talking to the market as one of its tools. But its story has changed so much that it might do better being less chatty.
SEC is back in the fight on insider trading 21 Sep 2016 After losing against billionaire Mark Cuban and scoring only a partial win with Steve Cohen's former SAC Capital, the agency is suing Leon Cooperman and his Omega Advisors. If its hard-hitting account survives likely challenges, it'll be a fresh warning shot to hedge funds.
Petrobras boldly aims to do more with less 21 Sep 2016 The new five-year plan unveiled by Brazil's state oil company aims to boost production amid steeper spending cuts. It suggests new boss Pedro Parente is confident in his ability to make operations more efficient. There's undoubtedly room for improvement, but conditions are tough.
Viacom’s next boss may be Leslie Moonves 21 Sep 2016 The exit of interim CEO Tom Dooley leaves Sumner Redstone's ailing media group rudderless. He split Viacom and CBS in part because he couldn't decide on who should run the whole empire. This latest turn of events could accelerate merging it again under the CBS chief's oversight.
Microsoft keeps good piece of Steve Ballmer legacy 20 Sep 2016 Boss Satya Nadella raised the dividend and unveiled a new $40 bln stock buyback plan. His predecessor was at the forefront of big tech companies returning cash to shareholders. Even if Microsoft is also sticking with Ballmer's wild M&A ways, at least there's capital to go around.
SeaWorld is what can occur by swimming with sharks 20 Sep 2016 The embattled theme-park operator finally got around to suspending its dividend. Instead of preserving capital to tackle its whale-size problems, SeaWorld plans to buy back stock this year. Having Blackstone as its biggest owner may help explain the killer financial instincts.
Stumpf digs deeper hole for Wells – and himself 20 Sep 2016 Elizabeth Warren fired the most effective broadsides at the Wells Fargo boss during a Senate grilling over alleged fake accounts. Stumpf apologized but also made excuses and hid behind his board. He didn't look like the best person to rehabilitate the bank's sullied reputation.
Allergan is turning small deals into bigger ones 20 Sep 2016 Following the giant sale of its generic drugs arm, the Dublin-based company is back on the acquisition trail. It is paying up to $1.7 bln, or a 1,550 pct premium, for liver-disease biotech firm Tobira. Beware the use of money that's burning a hole in boss Brent Saunders' pocket.
Cox: Apple and Tesla really need each other now 20 Sep 2016 Tim Cook may be revamping his approach to autonomous cars, while Elon Musk needs capital and corporate credibility. An Apple stake in Musk's electric carmaker would help both. Adding the Tesla founder to the iPhone giant's board could catalyze innovation there, too.
Exclusive: Wells Fargo case bares regulatory gaps 19 Sep 2016 The Justice Department was kept in the dark until the last minute about the San Francisco-based bank's alleged fake accounts and its $185 mln fine. That's why prosecutors are only just now kicking off a probe. The abundance of U.S. financial watchdogs demands better teamwork.
Eldorado goes on risky search for gambling gold 19 Sep 2016 The Nevada-based hotelier is buying larger Isle of Capri Casinos for $1.7 bln. It's an aggressive step in what had been a steady strategic shift. The cost savings won't cover the premium being paid and Eldorado is larding on more debt, which could make deal treasure elusive.