Facebook puts workplace social networks on notice 7 Mar 2016 Mark Zuckerberg’s $300 bln giant is aiming for company business with separate software informed by its 1.6 bln-strong personal platform. Apple quickly dethroned BlackBerry among mobile warriors. Facebook may steal corporate friends from the likes of Yammer, Jive and trendy Slack.
Job growth masks U.S. economy’s deeper weaknesses 4 Mar 2016 More Americans found work last month than expected. But productivity gains have not kept up. Nor has GDP, in large part because consumers are nervous about the future. That’s holding them back from spending more, reinforcing America’s status as a slow-growth economy.
Brazil gain trumps Dilma pain as ex-leader probed 4 Mar 2016 Former President Lula, the nation’s most powerful politician, has been questioned in a kickback scandal at state oil company Petrobras. Investors welcomed the move, though it deepens the troubles of his successor, Dilma Rousseff. The biggest winner is the rule of law.
Microsoft boss shows refreshing M&A restraint 4 Mar 2016 Satya Nadella reportedly declined to buy corporate messaging service Slack for an eye-popping $8 bln. The trendy startup may currently be valued at up to $4 bln. Nadella’s caution is an improvement on former CEO Steve Ballmer’s lavish spending on aQuantive, Nokia and the like.
Review: A love letter to shareholder poison pens 4 Mar 2016 In “Dear Chairman,” hedge fund manager Jeff Gramm unearths prickly missives fired off to boards to chronicle decades of pushy investing. The book, which features Benjamin Graham, Warren Buffett and Carl Icahn, is a breezy but sophisticated guide for today’s activist era and beyond.
Chinese tycoon’s U.S. movie merger has rare logic 4 Mar 2016 Wang Jianlin’s AMC cinema group will buy American rival Carmike for $1.1 bln. It looks like a rational deal at a sensible price – something lacking from the property magnate’s recent splurge on movie studios, theme parks and soccer clubs. Perhaps financial reality is kicking in.
Trumpcare looks unhealthily expensive 3 Mar 2016 Apart from repealing Obamacare, there are few specifics in U.S. presidential wannabe Donald Trump’s healthcare reform plan. But a first cut based on similar ideas suggests billions in extra federal costs despite millions fewer Americans being insured. That doesn’t seem so great.
Cox: Time has come for Zynga to sell the farmville 3 Mar 2016 Liquidating the $2 bln company and returning the proceeds to shareholders is probably the best option at this point. Unfortunately, the once high-flying videogame maker is entirely rigged by founder Mark Pincus. Zynga is a prime example of the problem with super-voting powers.
Mexico’s oil star may start to outshine Brazil’s 3 Mar 2016 Low prices mean both countries’ state-controlled producers could need bailouts. After years of falling output at oil giant Pemex, Mexico is imposing smart reforms. Brazil’s Petrobras, though, is hobbled by debt and scandal, undermining hopes of tapping huge deep-sea deposits.
Wall Street sees ray of hope in SunEdison woes 3 Mar 2016 The likes of Citi and Goldman have soured on backing the troubled energy company’s purchase of Vivint, and they may have found a way out: the buyer’s failure to deliver current financials. It’s a breach of contract and a chance for the banks to avoid losses and maybe boost fees.
Ambac getting right pressure from wrong place 3 Mar 2016 The bond insurer may soon face a proxy fight from Canyon Capital. The hedge fund wants it to speed up settling $4 bln of financial crisis-era claims. That makes sense. Trouble is, Canyon has a position in both sides of the trade. It’s a worrying conflict of interest.
Flawed Aubrey McClendon changed the energy world 2 Mar 2016 The former Chesapeake boss has died, a day after he was accused of conspiring to rig bids for oil and gas leases. Controversial business practices cost him his job and left the company struggling. He also helped kick off the shale revolution, a legacy that will endure globally.
AT&T screens TV’s cordless future 2 Mar 2016 In its first big move since buying DirecTV for $49 bln, the U.S. telecom titan is rolling out a video service that bypasses the set-top box. Verizon is selling a similar plan as T-Mobile US allows customers to binge on data. Consider the battle against King Cable fully engaged.
Guest view: Job numbers miss gig economy’s impact 2 Mar 2016 Official U.S. employment figures shed light on the millions of so-called platform workers driving cars or walking dogs. Understanding this evolution is critical to developing better labor policies, says former White House economist Diana Farrell of the JPMorgan Chase Institute.
Chesapeake ex-CEO may give enforcers overdue scalp 2 Mar 2016 U.S. prosecutors have failed to nail top executives in Libor and mortgage scandals, but bid-rigging charges against the energy firm’s McClendon might be a chance for some redemption. Though his antics make him a clear target, there’s nothing easy about holding bosses accountable.
Sports Authority loses game with unforced errors 2 Mar 2016 The U.S. retailer declared bankruptcy a decade after a $1.3 bln buyout. Debt and internet competition contributed to its demise, but rivals like Dick’s survived similar challenges and turned in a stellar performance. Bad management was largely to blame for the costly strikeout.
Rolls-Royce’s board activist is double-edged sword 2 Mar 2016 U.S. activist fund ValueAct has a seat on the board of Rolls-Royce. If the engine maker’s No. 1 shareholder musters enough patience, it can underpin the turnaround engineered by CEO Warren East. But should it push for quick fixes like a breakup, Rolls’ predicament could worsen.
Wall St girds for role as White House battleground 2 Mar 2016 Hillary Clinton and Donald Trump emerge from Super Tuesday as their parties’ likely presidential nominees. Both have vulnerable ties to high finance. That’ll be fodder for heated attacks and even wayward campaign promises. Bankers are resigned to it. But it’s just what markets hate.
Spotify’s cash hoard signals it’s ready to dance 1 Mar 2016 The digital music service may be about to raise $1 bln of convertible debt, much of it from TPG. That’d hand the private-equity firm an IPO discount without affecting the $8.5 bln valuation from last year’s funding round. It’d also give Spotify firepower to hunt for partners.
U.S. bank watchdog may at last be back in business 1 Mar 2016 The Senate committee that oversees Wall Street essentially has been on hiatus for months as Chairman Richard Shelby tends to his re-election. Ex-Im Bank, the Fed and the SEC are all waiting. An end to this pathetic case of congressional inaction hinges on Tuesday’s polls.