Theranos hobbles toward gluenicorn fate 8 Jul 2016 The blood-test upstart's value was already racing from $9 bln to zero. Now a U.S. watchdog is set to ban Elizabeth Holmes' company from the industry for two years. Theranos' aims were appealing, but reinventing technology, regulation and governance in one go is hard.
Kellogg’s café is millennial-friendly billboard 8 Jul 2016 The $29 bln food giant just opened a cereal outlet in Times Square. Despite the big-name restaurateurs involved, it's unlikely to challenge McDonald's for breakfast or nearby candy stores for dessert. Lazy millennials aside, it's more like a novel advertising gimmick aimed at reviving sales.
U.S. jobs volatility obscures still steady gains 8 Jul 2016 A whopping 287,000 new positions were created in June. But May was revised down to almost none. Beneath the choppy numbers, even the three-month average has only slowed to 150,000 a month. And that's after replacing all 8.7 mln jobs lost after the crisis and 5.7 mln more.
Grizzly-proof cooler maker defies IPO bear market 7 Jul 2016 Yeti, which sells ultra-rugged ice chests endorsed by pro bass fishermen and BBQ pitmasters, could be the biggest U.S. float of 2016. Building a cooler, um, cooler – and flaunting it – is the key to its success. But copycat competitors will soon be biting at Yeti's big feet.
Ken Griffin gives Wall Street sour taste of future 7 Jul 2016 The hedge-fund manager has shunned seasoned traders to instead hire Microsoft COO and ex Wal-Mart exec Kevin Turner as CEO of Citadel Securities. It's more than a nod to the rise of e-trading; it hints at larger industry changes where traditional skills may not be as relevant.
U.S. anti-inversion push has a harmful flipside 7 Jul 2016 Treasury's plan to rein in tax-motivated overseas M&A takes aim at intercompany loans. It's a good idea to curb so-called earnings stripping where deductible interest is sent to an overseas parent. The proposed rule is broad, however, and could hurt normal funding practices.
Kit Kat could give finger to most Hershey suitors 6 Jul 2016 The $23 bln U.S. candy company licenses the British snack from Nestlé, which could take the American rights back if Hershey is sold. That would melt value for suitor Mondelez or any rivals – except for Nestlé itself. It gives the Swiss group leverage to play kingmaker.
Fed model flatters stocks amid limping bond yields 6 Jul 2016 The old rule that relates 10-year Treasuries and S&P 500 equities has looked off-kilter since the financial crisis. Even so, as bond yields hit new all-time lows, the implication is that shares are becoming a better deal. The catch is the outlook on growth, inflation and profit.
Take Sanofi’s bid sweetener with pinch of salt 6 Jul 2016 The French pharmaceuticals group is dangling a so-called contingent value right in its richer $11 bln offer for Medivation. A similar special payout predicated on a drug's success helped Sanofi seal a deal for Genzyme in 2011. The result there should give the latest target pause.
Comcast and Netflix put growth ahead of gripes 6 Jul 2016 The video-streaming service helped scupper the cable provider's bid for Time Warner Cable. Now Comcast is putting its nemesis on its set-top box - with access to 22 mln potential subscribers - as it tries to build a one-stop video shop. Those are good reasons to bury the hatchet.
Tesla pressure clouds Elon Musk’s solar gambit 5 Jul 2016 The electric-car maker missed its delivery target again. That's bad news for a company aiming to quintuple production by 2018. A fatal crash also has invited scrutiny of Tesla's Autopilot feature. These concerns further undermine an already questionable effort to buy SolarCity.
FBI helps Hillary Clinton feel Wall Street’s pain 5 Jul 2016 The agency won't recommend charges against the White House hopeful for her "extremely careless" email choices. Like bankers who escaped prosecution, including Countrywide's Angelo Mozilo most recently, Clinton may find the result of limited value when it comes to public trust.
The declaration of independence from Europe 4 Jul 2016 It's 2076, and researchers finally gain access to Boris Johnson's private archives. They find a printed document bearing scribbled annotations made in 2016 by the American-born former London mayor, politician and campaigner for Britain's exit from the EU. Here are excerpts.
Apple skips a few beats in streaming battle 1 Jul 2016 The $535 bln iPhone maker may be mulling a purchase of Tidal, rapper Jay Z's online music service, to bolster its own. Meanwhile Spotify says Apple is harming it by rejecting an app upgrade. Apple has the clout to fend off rivals, but adding Tidal won't help get its rhythm back.
Review: To have and have not, Brazil-style 1 Jul 2016 In "Brazillionaires," Alex Cuadros explores Latin America's biggest economy through its wealthiest citizens, whose fortunes he tracked as a reporter. It's a tale of boom, bust and back-scratching among moguls and politicos that sheds a telling light on the nation's current woes.
Accountability flows from failed pipeline merger 1 Jul 2016 Nearly half of the Williams board – including the chair and two activists – quit after they failed to oust CEO Alan Armstrong. The departing directors supported the pipeline group's collapsed sale to ETE, which Armstrong had opposed. It's an uncommon win for oil-patch governance.
Skullcandy frenzy only mild music to investor ears 1 Jul 2016 The headphone maker's IPO in 2011 attracted considerable hype, fetching a valuation of over two times revenue. Since then, sales have stalled and profit margins shrunk. Despite at least three potential suitors now, long-term Skullcandy shareholders will be singing the blues.
Mondelez can stomach a richer bid for Hershey 30 Jun 2016 The confectioner rejected a lowball offer from Cadbury's parent. Mondelez could pay $26 bln without hurting its shareholders or incurring excessive debt. The jubilant reaction from investors to the initial bid may tempt CEO Irene Rosenfeld to sweeten the terms of her offer.
Guest view: Changing the definition of growth 30 Jun 2016 It's time to reconsider the all-consuming focus on GDP to concentrate on what underpins development, argues David Cruickshank of Deloitte. Measuring social progress can help countries identify and improve the factors upon which economic stability and prosperity depend.
Hershey makes tempting but sticky takeover target 30 Jun 2016 The $25 bln confectioner belongs with Mondelez's Cadbury. CEO Irene Rosenfeld may sniff sweet opportunity as the charitable trust that blocked past Hershey bids is roiled by scandal, and rival Kraft Heinz is still digesting its mega-deal. But it won't come cheaply.