Managerial competence makes the difference in 2016 5 Jan 2016 Markets are getting choppier. Capital is becoming more expensive in the world’s largest economy. Globalization is taking big knocks. Economic growth is middling. Good managers will distinguish winners from losers as much as valuable assets do from lousy liabilities.
Wanda’s Hollywood ambitions show legendary savvy 5 Jan 2016 The Chinese entertainment group is adding the U.S. studio behind “Jurassic World” to a portfolio that includes a Spanish soccer team and Ironman races. Buying Legendary Entertainment should help fill seats in its cinemas globally – and perhaps even bolster China’s soft power.
VW’s U.S. lawsuit shows reboot is only half done 5 Jan 2016 A strongly worded government complaint has undermined Volkswagen’s progress in tackling its emissions scandal. U.S. laws are tougher than in Europe, and the German carmaker’s lobbying clout there is smaller. VW needs drastic steps to win goodwill.
GM CEO gets wrong reward for do-over year 4 Jan 2016 Mary Barra is adding the chairman’s job. She boosted margins and steered the Detroit automaker through an ignition-switch fiasco that marred her first 12 months. But she had help. Giving her both roles is bad governance. And GM’s history shows a need for more oversight, not less.
Lost decade demands Viacom get with the programs 4 Jan 2016 The MTV owner’s shares have barely budged since it split from CBS 10 years ago. In that time, boss Philippe Dauman oversaw some $21 bln in stock buybacks, more than Viacom’s current $17 bln market value. It’ll take greater creativity to rejuvenate Sumner Redstone’s networks.
Healthcare M&A will wear down in 2016 4 Jan 2016 Obamacare and tax avoidance spurred over $550 bln of U.S. deals in 2015. That’s three times more than the previous record. With the obvious combinations already struck, acquisitive companies hurting and trustbusters sharpening their pencils, a repeat will be challenging.
Technology can help banks do a hard reset on costs 4 Jan 2016 U.S. lenders face slow growth, barely rising interest rates and a likely jump in bad loans. They ought to pinch a few ideas from the financial-technology crowd. That could make banks far more efficient - and do wonders for the sector’s mediocre returns.
GM’s $500 mln Lyft stake hedges against tech’s rise 4 Jan 2016 The bet gets the U.S. carmaker a way into the growing ride-hailing industry and another partner for developing autonomous vehicles. The deal taps into potential changes in car ownership and usage, and even employment – all threats to the traditional business of building vehicles.
Viacom, Time Warner among 2016 merger wannabes 31 Dec 2015 U.S. media distributors such as cable outfit Comcast have bulked up, and Apple, Amazon and the like have built new streaming models. The giants have 12-digit valuations. With the exception of Disney, traditional content makers are looking puny. They’ll feel the urge to merge.
Oil will blow past $80 a barrel in 2016 30 Dec 2015 Low-cost OPEC producers will win the hydrocarbon price war because they can fight harder for longer. For now, OPEC is flooding the market with cheap crude. But it is building power over prices by making rival output uneconomic. The next big move in the oil price will be up.
Jamie Dimon, 10 years on, is hard bank CEO to beat 30 Dec 2015 Looking back on a decade running JPMorgan, the boss has had missteps like the London Whale, big legal fines and clashes with regulators. Yet Dimon has fashioned a bank with leading market share, top-tier returns and a head start in fintech. It’s well placed for the next 10 years.
U.S. chipmaker etches path for Chinese suitors 30 Dec 2015 Beijing is encouraging local semiconductor companies to buy foreign rivals. The threat of American lawmakers intervening is real, but CFIUS also has approved multiple deals. Fairchild is using these trends to its advantage in a $2.4 bln sale. It could become a popular playbook.
Giants of central banking will be cut down to size 30 Dec 2015 The limited power of the Draghis and Yellens of the world is evident. They can’t conjure up inflation and the market impact of unorthodox monetary policies has waned. Rate-setters did their bit to support the global economy. It’s time fiscal and wage policies did more work.
Carl Icahn’s Pep Boys fight can go another round 29 Dec 2015 The auto-parts chain is spurning Japan’s Bridgestone in favor of a sweetened $1 bln offer from the raider-turned-activist. Icahn is offering a 52 pct premium. But shareholders seem to be betting that Bridgestone has the financial wherewithal to punch its way to a higher price.
Rail mega-deal holds ticket to runaway M&A train 29 Dec 2015 Canadian Pacific’s $28 bln bid for Norfolk Southern involves an industrial buyer facing low growth and an aggressive investor. The offer is unsolicited, cross-border and legally messy. After a record year of mergers, this one transaction foretells much of what to expect in 2016.
Worst CEO job in America for 2016? P&G 29 Dec 2015 David Taylor will struggle to make his mark on the lumbering $200 bln giant. His predecessor-turned-Chairman A.G. Lafley already axed weaker brands, leaving Taylor to sort out growth. He may be forced to break up the Tide-to-Pampers icon or spend the year fighting calls to do so.
Deutsche Bank beats sensible retreat from China 29 Dec 2015 The German lender is selling a $3.8 bln holding in retail bank Hua Xia to a local insurer. Like rivals before it, Deutsche is crystallizing a solid return – while admitting that minority stakes on the mainland are of little use. Capital ratios also get a welcome boost.
Freeport chairman exit eases credibility problem 28 Dec 2015 James “Jim Bob” Moffett is leaving the $9 bln mining group he helped found amid pressure from activist investor Carl Icahn. It’s a needed step to restore confidence after faux pas including an ill-timed, cozy-looking 2012 oil deal. His replacement, though, has his work cut out.
Valeant’s latest fix reinforces its challenges 28 Dec 2015 The $38 bln drug company is handing the reins to three execs while CEO Mike Pearson is on medical leave. And three directors will “oversee and support” them. The double triumvirate shows how reliant on one man Valeant now is as debt, R&D and strategy issues take center stage.
Clinton White House run clouded by home economics 28 Dec 2015 The Democrat who could become America’s first female commander-in-chief in November is ahead in early polls and at the bookies. Growth is up and unemployment down under Obama, too. It might not be enough, though: traditionally, voters only reward bigger economic dividends.