Iceland first casualty of mostly pointless crusade 5 Apr 2016 Offshore assets exposed in the Panama Papers did for Iceland’s prime minister. It wouldn’t have happened if Icelanders didn’t expect better behaviour, and know how to ask for it. That’s the problem. Leaks thwack the mostly good, and leave the genuinely corrupt largely untroubled.
Inflation insurance is new U.S. fad 5 Apr 2016 Investors have a new-found appetite to buy American bonds offering protection against price rises. U.S. inflation is finally ticking up and could overshoot the Fed’s 2 pct target. With Europe showing no such signs, though, the fashion won’t cross the Atlantic any time soon.
Israel may give Silicon Valley run for its money 5 Apr 2016 Tech and cyber-security know-how, startup spirit, VC funds and even climate make the Middle East’s startup hub a bit like the Bay Area. Jerusalem is keeping Tel Aviv on its toes. Israel has other advantages, too – a global outlook and perhaps greater hunger than in the Valley.
Twitter may score big with football digital rights 5 Apr 2016 Jack Dorsey’s social-media firm won permission to stream 10 NFL games for a reported $10 mln. That’s the price of a one-minute Super Bowl ad, making the deal a cheap way to up the $12 bln service’s user base. Twitter may finally gain some ground against rivals like Facebook.
CalPERS learns social responsibility can be a drag 5 Apr 2016 The $290 bln California pension fund may reinvest in tobacco stocks after a report found that exiting the sector cost it $3 bln over 15 years. There’s more to the idea than higher returns, though. Engaging financially with controversial firms can be a better way to effect change.
Uncle Sam’s anti-inversion hunt may bag big trophy 5 Apr 2016 The United States is under fire for not doing more to prevent tax-reducing M&A deals. The $160 bln Pfizer-Allergan merger is a prime example. New rules seem to put it squarely in regulators’ sights. With the target’s shares down sharply, the Big Pharma tie-up looks under threat.
Blackstone bets Indian IT can weather US election 5 Apr 2016 The buyout firm’s $1.1 billion bid for Indian outsourcer Mphasis looks brave when U.S. presidential candidates are touting restrictions for skilled foreign workers. The low valuation and a long-term contract with seller Hewlett Packard Enterprise at least offers some protection.
Disney’s fairytale CEO plan gets twist in ending 5 Apr 2016 Bob Iger’s right-hand man Tom Staggs is stepping down, a year after he was anointed as heir apparent. That leaves no obvious succession plan at Disney after Iger twice extended his reign. An outsider would be surprising. At least the company has two years to find a replacement.
ValueAct takes hit to its most valuable asset 4 Apr 2016 Jeff Ubben’s hedge fund has been accused by U.S. prosecutors of being an activist where it said it was a passive investor. ValueAct’s reputation for agitating quietly is already suffering from the Valeant meltdown. A fight against the government invites more unwanted attention.
Wall St handed absentee role in TBTF Groundhog Day 4 Apr 2016 Minneapolis Fed boss Neel Kashkari had no big banks at his first forum on whether to break them up. New ideas on this much-debated conundrum were light on the ground, too. Banks are definitely safer, but only another crisis, not more jaw-jaw, can test whether they’re safe enough.
BATS’ second swing at an IPO may go awry 4 Apr 2016 The equities exchange plans to go public at an earnings multiple that its profit margin doesn’t justify. BATS may grow faster than rivals, yet it botched an offering in 2012 and comes to market at an inauspicious time for selling new stock. That’s reason enough for caution.
Panama Papers can only clean up so much 4 Apr 2016 A leak of some 11 mln documents from a law firm in the Central American nation has kicked off a global offshore tax hunt. Iceland’s prime minister is already under fire and other world leaders could be damaged. The impact may be limited, however, in the least democratic regimes.
M&A lawyers deal themselves in 4 Apr 2016 Paul Weiss hired a longtime Cravath, Swaine & Moore partner to be global head of mergers. Scott Barshay advised on over $250 bln of deals last year, almost as much as his new employer. The verdict is out, however, on just how much law firms can benefit from poaching rainmakers.
Alaska Air pays through nosecone for U.S. Virgin 4 Apr 2016 The carrier is securing coveted airport slots in its $2.6 bln deal for Richard Branson’s stateside flier. Cost savings are slim, however, leaving an expected sales uplift to justify the 87 pct premium. It’s a risky bet that the airline industry’s destructive ways have changed.
Buying Terex could make Zoomlion too big to fail 4 Apr 2016 As China’s construction boom has turned to bust, the machinery-maker’s profit hit a 15-year low. Sealing the $3.4 bln purchase of its U.S. rival looks designed to raise Zoomlion’s national profile and secure access to credit that may allow it to muddle through the downturn.
U.S. jobs offer election fodder for all candidates 1 Apr 2016 Hillary Clinton and other Democrats can point to another month of solid job creation – and promising details. But Republicans and Donald Trump may focus on the slow pace of gains and anemic wage inflation. The two-sided coin will probably still be spinning come November’s vote.
Tesla investors race to on-ramp of disappointment 1 Apr 2016 Founder Elon Musk unveiled the mass-market Model 3 to much fanfare and some 140,000 advance orders. The $32 bln electric-car maker probably will need more cash soon. And it faces growing competition from the likes of GM and Nissan. Tesla stock, though, is priced for nirvana.
Uber parks itself in a tight legal spot 1 Apr 2016 The ride-hailing service valued at some $63 bln claims its drivers are independent workers not owed benefits. If that’s true, setting the rates they charge might be illegal price fixing, a judge has ruled. The law may need some disruption before Uber can steer clear of court.
Alternative lenders brace for regulatory onslaught 1 Apr 2016 Avant is the first major fintech player to put a former watchdog on its board – ex-FDIC Chair Sheila Bair. Rivals have tapped Wall Street to bolster business. But the mix of new lenders’ success, high charges, rising rates and defaults is catching the eye of financial overseers.
Review: A sobering twist on high finance 1 Apr 2016 The bloody world of drug cartels becomes a fascinating business case study in journalist Tom Wainwright’s “Narconomics.” Supply-chain efficiency, R&D spending and even HR headaches factor into the analytical black joke. It’s also a lucid and persuasive argument for legalization.