Ford investors are driving at big drop in profit 28 Jan 2016 The humble six times earnings at which the automaker trades implies a 40 pct fall in the bottom line. GM and Fiat Chrysler look worse. China’s wobbles, a peaking U.S. market and autonomous cars warrant caution. At least Ford is better prepared for a downturn than a decade ago.
Goldman shuffles further from eye of 1MDB storm 28 Jan 2016 The Wall Street firm made outsized fees raising money for the fund at the centre of a scandal that nearly toppled Malaysia’s prime minister. Now a top banker involved in the deals has gone on leave. Though it distances Goldman from the controversy, reputations are harder to mend.
Facebook mobile growth accelerates down open road 27 Jan 2016 Revenue from smartphone and tablet ads grew a whopping 81 pct last quarter year-over-year, accounting for most of the social-media giant’s $5.8 bln total revenue. With companies getting more comfortable touting wares on digital devices, Facebook still has plenty of room to expand.
Greenhill owners buckle up for roller coaster ride 27 Jan 2016 Delayed deals have sent the bank’s stock into a deeper dip of late than rivals’ shares. Positive signs in last quarter’s results may reverse the drop. If shareholders can’t grasp the boutique’s quirky business, though, they’ll keep ending up with their stomachs in their mouths.
United’s pesky investors chart risky flight path 27 Jan 2016 Altimeter Capital and another fund are pressuring the No. 2 U.S. airline, whose stock has sagged amid the CEO’s health problems and lower traffic at its Houston hub. Cheap oil creates room for share-lifting payouts, but United could use the cushion when future turbulence strikes.
Ackman inadvertently makes case for index funds 27 Jan 2016 The Pershing Square boss rails against passive portfolio managers in his latest missive. Bill Ackman also blames his own woeful 2015 performance on bad market timing and hedges that didn’t work. That encapsulates why most investors should stick to the likes of the S&P 500.
U.S. companies off-key singing strong-dollar blues 27 Jan 2016 Apple, DuPont, J&J and P&G blame the greenback’s rising value for lowering quarterly sales. They have a point, but a robust currency helps consumers, importers, service providers, real-estate sellers and others. That’s reason enough for Americans to whistle while they work.
Marchionne’s new Fiat goals verging on fanciful 27 Jan 2016 The Italian auto boss has achieved the near-impossible before, turning around Chrysler, cutting debt and spinning off Ferrari at a luxury valuation. But his new plan to grow operating profit by 20 percent a year looks like a real stretch, especially with the U.S. market peaking.
Even hedgies have (Tudor) Joneses to keep up with 27 Jan 2016 An annual ranking of the 20 most profitable hedge-fund managers ever, including Ray Dalio and George Soros – but this time excluding Bill Ackman – suggests they have made almost as much as the rest combined. Would-be investors take note: The 0.1 pct have their own 0.1 pct.
Twice-jilted Meredith may yet find merger love 27 Jan 2016 The U.S. magazine and TV group lost its $2.4 bln deal with Media General, which has run off with Nexstar. A marriage to Time Inc, planned before Time Warner spun it off, collapsed earlier. It has been solo for nearly two years, so there’s a chance to rekindle the relationship.
Phibro deal resurrects Wall Street’s worst ways 27 Jan 2016 Morgan Stanley’s ex-commodities boss is acquiring assets of the oil-trading shop that once bought Salomon Bros. Breathing life into this old brand is misplaced sentimentality. Phibro’s history is stuffed with coups, excess pay, trading hubris and the buy-high, sell-low mentality.
Apple may be in for model-cycle purgatory 26 Jan 2016 The $550 bln tech giant’s top line nearly flatlined as demand for its smartphones stalled in the last quarter of 2015. Sales are set to slide in the current period. A $216 bln cash hoard and a low valuation should offer solace, but investors could fixate on the next new iPhones.
Dell-EMC deal stuck between two zero options 26 Jan 2016 The computer-storage maker’s market cap has fallen below $50 bln, against an original headline buyout value of $67 bln. And equity prices suggest either the deal is in jeopardy or the VMware tracking stock EMC holders will receive is worthless. Merger overreach may be to blame.
Establishment oil outlook is ripe for disruption 26 Jan 2016 Exxon and OPEC reckon oil and gas will provide the lion’s share of world energy in 2040, with solar and wind still bit-players despite the recent climate pact. The view reflects past snail’s-paced shifts, but it’s vulnerable to driverless cars, better batteries and other tech.
Cox: Argentina, Aramco are deals for tricky times 26 Jan 2016 Two big transactions dominated Davos. One would open up a democracy to capital markets after years of feckless governance and isolation. The other is designed to help a repressive regime retain power. In the world’s current parlous state, it’s to be hoped that both get done.
AIG makes late push toward mediocrity 26 Jan 2016 The mega-insurer unveiled plans to sell businesses, slash costs and return $25 bln to shareholders. That’d be a lot for most companies under siege from an activist like Carl Icahn. It’ll only get AIG to a subpar return on equity of 9 pct. This breakup story has further to go.
Banks give U.S. regulators a deal to cherish 26 Jan 2016 Buying cross-state rival FirstMerit for $3.4 bln should make Huntington Bancshares big enough to compete without being too big to fail. With some $100 bln in assets, it’ll be a stronger rival in important Midwestern cities. Even if shareholders have worries, watchdogs shouldn’t.
Sprint staggers into a merger showdown 26 Jan 2016 The smallest of four big U.S. wireless carriers surprised investors with a cheerier outlook. Even so, it’s weighed down by debt and engaged in a price war set off by U.S. authorities blocking consolidation. Eventually, Masayoshi Son’s Sprint will need more cash – or a deal.
Viacom CEO’s pay thumbs nose at shareholder value 25 Jan 2016 Philippe Dauman took a 30 pct bonus cut last year as the media company struggled. But the stock he got to renew his contract more than made up for it. With revenue, earnings and shares all falling, his comp is an apt example of the tin-eared nature of Sumner Redstone’s empire.
Hollywood can give virtual reality its star power 25 Jan 2016 Facebook’s Oculus Rift just went on sale for $599. As with most new technology, it’ll mainly appeal to video gamers and other nerdy enthusiasts. Rupert Murdoch’s Fox buying a stake in a Silicon Valley augmented-reality firm offers a glimpse of what it’ll take to woo the masses.