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.
Tech deal fails English, scores well on math 19 Sep 2016 In buying a unit of Avnet for $2.6 bln, Tech Data trots out gobbledygook such as "hyper-converged infrastructure" and "value-added distribution." At least sorting through the numbers is easier. Cost savings should help the acquisition deliver a healthy return on investment.
Government bonds signal confusion, not cheer 19 Sep 2016 Yields on long-term sovereign debt have perked up across the developed world. Normally that's a sign of optimism. Yet borrowing costs remain ultra-low. The upward drift most likely reflects uncertainty about central bank policy and worries about the effects of negative rates.
N.Y. enforcer clutches at straws with Exxon 19 Sep 2016 Eric Schneiderman's dig into whether the $350 bln energy giant hid the dangers of climate change raised echoes of Big Tobacco. He also explored whether forecasts misled investors. The New York attorney general's latest tack, Exxon's writedown policies, looks a stretch.
Milk recovery sounds sour note for food producers 19 Sep 2016 Dairy Crest says higher cream prices could hit its margins, though it expects to meet full-year guidance. Sharp falls in milk prices over the past two years mean there are now fewer cows to go around. Yet as the cycle recovers, it's hard to pass higher costs on to consumers.
Trading really is about survival of the fittest 19 Sep 2016 A new study finds trading prowess is linked to accurate detection of one's own heartbeat, a trait common in people with lower body mass indexes. Despite its limitations, the paper implies physiology has a profound role in markets, and that humans still have an edge on machines.
Smaller fine might still force Deutsche fire sale 16 Sep 2016 The German lender insists it won't pay as much as the $14 bln proposed by the U.S. Justice Department. But even two-thirds of that amount would deplete its reserves, a Breakingviews calculator shows. Deutsche may then need to sell assets to meet rising capital requirements.
SVG holds up frail shield to HarbourVest battery 16 Sep 2016 The private equity fund fending off a hostile bid brought forward results and hinted at a better deal. That may stop investors selling to the U.S. investment group. Yet rigid UK rules, and HarbourVest's aggression, give SVG just three weeks to flesh out a tricky alternative.
Deutsche’s frailty is strength in DOJ dispute 16 Sep 2016 The U.S. Justice Department has proposed the German lender pay $14 bln to settle mortgage securities charges. Peers have negotiated the DOJ down, and Deutsche can't afford much more than half that. The bank's significant size and weak capital position may secure a big discount.
Oracle avoids non-standard metrics, still confuses 15 Sep 2016 The headline on the $166 bln software firm's earnings release touted 77 pct revenue growth. Unfortunately, that was for a unit that accounts for only 9 pct of sales. Total top-line growth was 2 pct. Though a standard GAAP figure not a custom measure, it's still unnecessary spin.
Larry Summers goes topsy-turvy on bank risks 15 Sep 2016 The ex-Treasury boss argues in a new paper that U.S. lenders are no safer than before the crisis. But his choice of metrics is confusing. For example, a decline in bank equity value isn't the same as a rise in systemic risk. At best it's a hodgepodge aimed at too many audiences.
Wells Fargo puts size to a fresh regulatory test 15 Sep 2016 U.S. authorities aren't finished with the $1.9 trln bank's fake-accounts scandal. Top brass at small lenders have been punished harshly in the past, including industry bans, for misdeeds. If Wells Fargo executives slip away, it'll escalate tension over the accountability divide.
Myanmar is no longer too hot to handle 15 Sep 2016 The U.S. will end sanctions and accept duty-free imports from the Asian nation. It is a milestone. A blacklist of companies and individuals had made it difficult and costly to deal with the country. Scrapping that makes Myanmar a lot less scary for foreign banks and other firms.
Huawei’s cyber diplomacy short on reciprocity 14 Sep 2016 A new security guide for tech buyers looks like a sales pitch for Chinese telecom giant Huawei, which is more likely to benefit than co-sponsor Microsoft. That won't do much to persuade Washington and Beijing to lower tech barriers over potential electronic spying.
Lula may wind up masterminding a pro-market Brazil 14 Sep 2016 Prosecutors have accused the country's ex-president of being the chief architect of a graft scheme at state oil giant Petrobras. If proven, it'd be a major blow to his Workers' Party and end chances for Lula to return to power. It also could embolden agents for change in Brazil.
Bayer seed deal depends on cultivating farmers 14 Sep 2016 The German chemicals group finally persuaded Monsanto to accept its takeover bid. The harder part will be convincing the agricultural industry and trustbusters that the deal's strategic logic goes beyond just raising prices. Consolidation elsewhere only makes the challenge grow.