Clinton wealth harder to spin than Trump’s 20 May 2016 The Democratic U.S. presidential front-runner has attacked her rival for not releasing his tax returns. Hillary’s are public and widely analyzed. But the Clintons make millions on the back of years in public office. That way into the 0.1 pct is a tough sell to disenchanted voters.
New Petrobras boss is step toward needed change 20 May 2016 Brazil’s interim president has picked former Bunge Brasil boss Pedro Parente to run the scandal-hit $40 bln state oil producer. While no stranger to government, Petrobras’ fourth boss in five years has promised to end political appointments. That would be a boost for governance.
Puerto Rico fix gives everyone something to hate 19 May 2016 U.S. lawmakers’ latest effort to provide a framework for the island to restructure $70 bln of debt would impose strong oversight. While it appears to bolster senior creditors’ claims, holdouts could end up with a bigger haircut than they’d like. That makes it a decent compromise.
Insider trading rap offers tip for U.S. boardrooms 19 May 2016 The prosecution of an ex-Dean Foods chairman and a gambling buddy is one of few to reach a company’s top echelons. It helps show that bosses aren’t above the law, and it suggests recently reversed convictions won’t eviscerate enforcement. Corporate America should be all ears.
Pushy investors test herd mentality in Washington 19 May 2016 The likes of Bill Ackman and Dan Loeb have been piling into the same stocks and now are joining forces to fight a perception they’re short-term focused. Congress could use the education, but is as excited about a call to do with Wall Street as boards are to hear from activists.
Chipmakers ailing from a double dose of trouble 19 May 2016 Sales at the likes of Qualcomm are falling for a second year in a row. Tight buyers in an unsettled global economy are partly to blame, but the semiconductor industry also lacks whiz-bang products. After a similar downturn during the financial crisis, the prognosis may be grim.
BASF best leaving Monsanto seeds for the birds 19 May 2016 Bayer’s bid for the U.S. seed maker puts its German rival on the spot. Monsanto and BASF work together on research and there are few other potential merger partners. Yet the maths of a $50 bln-plus counterbid would be a stretch. BASF has sat out other big deals; it can again.
Technip/FMC deal forged for a low oil price world 19 May 2016 France’s oil and gas services group is merging with US rival FMC Technologies. The all-share deal divides board seats and $400 million of annual synergies roughly equally. More to the point, it creates a business that can better compete for large projects in an oil price slump.
Goldman’s Tesla upgrade is a case of bad timing 19 May 2016 The Wall Street firm’s analysts moved the carmaker to “buy” just before its bankers took a role in a $1.7 bln stock sale. It smells bad - and watchdogs will surely take a look - but there are plenty of mitigating factors. This may just be Chinese walls working as intended.
Trump cheerfully digs deeper hole on his wealth 18 May 2016 The White House wannabe boasts a net worth of over $10 bln and self-declared income of $557 mln. He also insists there’s nothing to see in his actual tax returns. With inequality and job angst driving voter anger, Trump’s braggadocio is characteristically counterintuitive.
Deutsche, Barclays hit in D.C. watchdog crossfire 18 May 2016 Treasury’s new proposal to curb tax-driven cross-border M&A targets debt U.S. units issue to overseas parents. That, though, is what the Fed is making big foreign banks do to prevent bailouts. The two agencies are trying to fix the mess. But it puts Washington in a bad light.
Wall Street puts old Washington ways on ice 18 May 2016 Big banks are infamous for lobbying against swathes of financial reform. Of late, though, they’ve cut back. Now they’re actively pushing congressional GOP bigwig Jeb Hensarling to ditch a bill to repeal Dodd-Frank. Fears of a public backlash are staying their hand – for now.
Nokia phone demise a warning for all tech giants 18 May 2016 Microsoft finally ditched the basic handset business in a deal that will see the devices reborn under the control of former Nokia bosses and Foxconn. The $350 mln sale price for the former crown jewel of a $300 bln enterprise is a testament to how quickly tech empires can vanish.
Apple ally Didi highlights China’s tech muddle 18 May 2016 Last year China wanted firms listed abroad to return. Now some buyouts are struggling, while the $25 bln Didi is mulling a U.S. listing. Tech is China’s hottest sector. But unless it gets easier to float at home, the industry’s biggest success stories will keep looking overseas.
JPMorgan owners miss a trick snubbing breakup idea 17 May 2016 Just 2.5 pct of the bank’s investors voted for studying a possible split. There’s less reason to dismember the lender run by Jamie Dimon than Citi, whose shareholders dismissed a similar proposal. But it would be a useful exercise – and might even bolster the case for big banks.
Wall Street given license for yet more low returns 17 May 2016 Investment banks hoping a recovery will boost dismal earnings just got a slap from BCG. The consulting firm reckons they’ll lose more business to regulation and new competitors. The solutions it offers will take time and money, excusing subpar earnings for a few more years.
Dell, Dex sum up dozy bondholders in a nutshell 17 May 2016 The PC maker may face long-term decline yet is selling 30-year debt as part of a $20 bln package to help pay for EMC. The Yellow Pages publisher is hitting its fifth bankruptcy in seven years. They’re apt examples of how short-term yield boosts entice bond buyers to ignore risk.
Illinois governor all but summons bond vigilantes 17 May 2016 In an interview with Breakingviews, Republican Bruce Rauner challenged a pervasive belief in markets that governments can always just raise taxes to plug deficits. The issue resonates beyond his state’s $140 bln fiscal mess. Debt investors have neglected to focus political minds.
Pandora investor hits right note with sale push 17 May 2016 Activist Keith Meister’s firm urges the online music service to find buyers after becoming its largest shareholder. A costly purchase, CEO change and lack of song rights suggest the company’s fading. Rivals Spotify and Sirius XM are possible partners. The board should be all ears.
Cox: Pfizer death-row move serves investors, too 16 May 2016 The drugmaker best known for trying to dodge taxes and cure erectile dysfunction will restrict use of its compounds in executions. A bit like Google’s doing with payday lenders or CVS did with tobacco, it’s a moral stance made easier by ultimately reducing risk for shareholders.