American oversight of financial tech looks so 2007 9 Mar 2016 U.S. regulators are falling short of policing this emerging industry, partly because of the outdated patchwork of state rules. The UK and others are further ahead in addressing the sector in fresh ways. Creating a modern, federal regime to oversee these firms is a priority.
Valeant’s new directors portend suits and sales 9 Mar 2016 The drug firm’s challenges can be seen in its new board appointees: an M&A specialist, a law professor and retired judge, and a drug entrepreneur with experience selling companies. These directors can help Valeant prepare for a future chock-full of litigation and divestitures.
Why the Yankees are swinging their bats at Comcast 9 Mar 2016 The $140 bln cable operator is sticking by a decision to drop the channel that airs the team’s baseball games, risking the ire of Bronx Bombers fans as the season starts. The fracas underscores bigger problems in the pay-TV universe as distributors become choosier about networks.
U.S. tech sanctions more risky than bank crackdown 9 Mar 2016 America has used its dominance of international finance to force foreign lenders to cut ties with enemy states. New restrictions on Chinese telecom firm ZTE extend the principle to technology. But that could have much bigger ramifications for U.S. firms.
Amex boss needs better credit with shareholders 8 Mar 2016 Ken Chenault this week faces investors tired of missed targets, slow growth and an underperforming stock. A mega-merger fix isn’t possible, and some issues are industry-wide. But he has to sell owners on his plan for boosting results – or risk having them find him in default.
U.S. anti-gun rulings put freer markets in sight 8 Mar 2016 Courts have upheld assault-weapons bans, adding heft to a Connecticut suit that tests laws shielding firearms firms from liability. The case is still a stretch, but growing assent to gun-rights limits may force the likes of Remington to compete without unfair legal protection.
U.S. banks may distrust watchdogs’ hints at easing 8 Mar 2016 Some officials reckon lenders have gone too far to prevent money-laundering risk, cutting vulnerable people off from the banking system. The concern is valid, but tough enforcement has made banks allergic to gray areas. They’re unlikely to accept regulators’ pleas to relax a bit.
United Airlines board dogfight could be win-win 8 Mar 2016 Two hedge funds are gunning to get six new directors appointed, including a retired Continental boss. It’s a headache for CEO Oscar Munoz as he returns from sick leave. Despite heated rhetoric, though, a compromise on a revamped board should suit both sides better than a battle.
ZTE needs a U.S. solution as soon as possible 8 Mar 2016 The Chinese network-gear giant faces a ban on using U.S. suppliers for allegedly violating sanctions on Iran. That would cripple ZTE: most of its kit and handsets rely on American components. One way or another, it urgently needs to resolve this problem.
Wall Street pay and profit hint at bloat 7 Mar 2016 Bonuses in the Big Apple’s securities business tumbled 9 pct to $146,000 on average, New York’s comptroller found. Earnings fell, too. The two are more closely aligned than they’ve been in years. Such drops often precede either a recession or a culling of bank staffs. Or both.
Silicon Valley unicorns to starve without tourists 7 Mar 2016 Funds of the mutual, hedge and sovereign wealth variety have been feeding tech startups and the $1 bln mythology. As valuation clouds darken the rainbows, these outside investors will retreat and the herd will thin. That should help venture capitalists get back to reality.
Dow-DuPont deal would be tough nut for interlopers 7 Mar 2016 German chemical giant BASF may be considering a counterbid for U.S. rival DuPont. The price would have to include a whopping premium – and cover a $1.9 bln break fee. The tax benefits alone could make the agreed-upon $130 bln union and spinoff with Dow Chemical close to ironclad.
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.