StanChart hired gun Promontory shoots self in foot 3 Aug 2015 New York regulators say the politically cozy firm whitewashed a probe of the bank and have suspended it from advising lenders. The penalty may curb conflicts and stings more than a mere fine. Maybe U.S. watchdogs will take the hint and stop waiving the consequences of misdeeds.
Challenges to U.S. carbon rules won’t save coal 3 Aug 2015 President Obama will unveil new pollution caps for power plants on the same day a big coal miner, Alpha Natural Resources, filed for bankruptcy. The limits are riling energy industry supporters, but for coal it’s economic pressures, not politics, that are causing the pain.
Exxon and Chevron may soon see European sights 31 Jul 2015 The two U.S. oil giants experienced even bigger drops in profit than were expected, pushing dividend yields closer to those of rivals across the Atlantic. Shell and BP have been more aggressive on capex and job cuts. If oil prices tumble further, Exxon and others could follow.
SoulCycle IPO endorphins inhibit pain potential 31 Jul 2015 The indoor cycling chain is inviting investors to join its “tribe” of athletes, renegades and rockstars. The company is profitable and sales accelerated by more than 50 pct in the first quarter to $35 mln. But management, growth plans and faddishness are weak points in the spin.
Ganja bank makes potent case for U.S. legitimacy 31 Jul 2015 A Colorado credit union is suing for access to national check clearing and money transfer systems. The law may be hazy, but opponents sound as if they’re just blowing smoke. Public safety, revenue and transparency are solid reasons for financial regulators to mellow out.
Numbers add up to HSBC leaving London 31 Jul 2015 The global bank is reviewing its head office location based on 11 criteria such as economic importance, transparency and tax. A ranking based on data compiled by Breakingviews shows Singapore, Hong Kong and even Toronto are more attractive than HSBC’s current home base.
Philip Morris can cut down easily in Jakarta 31 Jul 2015 The tobacco giant must lift the free float of its Indonesian unit. The potential $1.5 billion sell-down comes as an economic slowdown hits cigarette sales. Luckily for the Marlboro man, investors can hardly ignore a share sale by the country’s largest listed group.
Airbnb may force innkeepers into M&A pillow talk 30 Jul 2015 Sheraton owner Starwood is looking for partners. A deal with IHG might help it boost prices and lower costs, but even with synergies, the merged firms would barely match Airbnb’s $25 bln valuation. As the home rental service’s clout grows, hotels will face some sleepless nights.
BuzzFeed investors could be playing Price is Right 30 Jul 2015 The digital publisher and Vox are poised to get fresh capital from NBC. BuzzFeed’s $250 mln share would value it at $1.5 bln. That’s not far off the price of recent media deals. With the promise of millennials and advertisers strong, this begins to look like a reality show.
Rob Cox: Rick Perry is running for the wrong job 30 Jul 2015 The presidential candidate and ex-governor of Texas is a proponent of laissez-faire markets. Yet he has joined a global chorus of politicos and watchdogs pushing policies to break up the big banks. If he’s serious, he’d make a better Wall Street regulator than White House boss.
New seasoning brings out blandness of U.S. growth 30 Jul 2015 First-quarter GDP oddities have been addressed, but the basic message of the 2.3 pct pace of Q2 expansion is steady but unspectacular growth. There’s no excuse for the Fed to wait for more. The stable trend also ought to curb fiscal prognostications from presidential hopefuls.
Delphi deal crudely hitches to connected-car hype 30 Jul 2015 The auto supplier is paying $1.7 bln for a UK maker of “bundle management solutions.” HellermannTyton may be a solid company whose cable ties and such are integral components, but there’s a whiff of dot-com fever in the rhetoric. That’s not enough to justify the 45 pct premium.
At least Facebook has firepower to buy growth 29 Jul 2015 Costs, notably R&D, rocketed 82 pct in Q2, twice the rate of top-line growth. The likes of Twitter and Yelp are also spending heavily for future revenue. With $4 bln in quarterly sales, plenty of cash and a record of savvy deals, Mark Zuckerberg has the clout to succeed.
Buyout firms are sitting on dry powder keg 29 Jul 2015 Carlyle and Apollo found more to sell than buy in the second quarter, a pattern becoming hard to break. Along with Blackstone, KKR and others, global LBO shops have almost $500 bln to invest. As corporate buyers keep winning deals, private equity’s fuse may get short.
S&P warning portends grim road ahead for Brazil 29 Jul 2015 Many of Dilma Rousseff’s compatriots want the president impeached. S&P hasn’t gone that far but warns corruption and political turmoil may cost the $2 trln economy its investment-grade rating, which is another kind of indictment. Her second term will pay the price of her first.
P&G’s Lafley leaves second act only half finished 29 Jul 2015 The $217 bln nappies-to-razors giant’s CEO passes the baton barely two years after returning to the job. A.G. Lafley has sold divisions, cut costs and killed duff brands, but P&G’s shares barely budged. It now falls to David Taylor to reignite growth - or risk activists’ ire.
Clinton half-hearted on helping labor over capital 29 Jul 2015 The would-be U.S. president wants to tackle inequality. Proposals to tweak capital gains taxes, for example, are part of that. Things like raising minimum wages or abolishing the interest deduction might do more. Clinton’s problem is she can’t afford to knock business too hard.
Twitter’s mealy-mouthed strategy is hard to follow 29 Jul 2015 Interim boss Jack Dorsey said the micro-blogging site isn’t satisfied with just a 66 pct increase in Q2 revenue. His prescription for what ails Twitter, however, is cryptic. Companies that can’t express goals clearly, especially ones seeking a CEO, reduce chances for success.
LaGuardia gets a refreshing clearance for takeoff 28 Jul 2015 One of the worst U.S. airports, in the country’s financial hub, is finally slated to be rebuilt, by 2021. At least $4 bln of funding will be public, private and local, but Washington played an important advocacy role. Absent a nationally led effort, it’s a decent model to follow.
DuPont’s fight against Nelson Peltz rages on 28 Jul 2015 The $50 bln chemical maker may have seen off the pushy billionaire in May, but its shares have since tumbled 20 pct. DuPont now expects lower profit, and dividends from spun off Chemours look shaky. Boss Ellen Kullman soon could find shareholders wondering what might have been.