United States of America

White House creates its very own jobs crisis

21 July 2017

Press Secretary Sean Spicer quit after the hiring of financier Anthony Scaramucci. Donald Trump also fired his FBI director, undercut his Treasury secretary and regrets his attorney general pick. Just as U.S. employers wrestle with labor participation, so too does the president.

GE’s new boss may find inspiration from Honeywell

21 July 2017

Jeff Immelt’s weak earnings swan song underscores the challenge for John Flannery atop the $222 bln industrial giant. Making quick progress on early goals is key, as Darius Adamczyk is doing several months in at Honeywell. With activists in both stocks, it should be a no-brainer.

Puppy love keeps IPO investors on the leash

21 July 2017

Snap's stumble, Blue Apron's disastrous debut and YogaWorks' yanked listing spelled doom for trendy, fast-growing businesses. Then shares of PetIQ jumped some 30 pct. More sensible pricing helped the maker of dog treats and medicine, but it also remains vulnerable to competition.

IPO baggage weighs heavier on ZTO

21 July 2017

A U.S. pension fund is suing the Chinese courier and its underwriters for inflating profit margins in its $1.4 bln New York debut last year. Shares have traded poorly since, and the company faces rising costs and fierce competition. Winning over sceptics will be even harder now.

Buyout firms bet $3.7 bln on fintech’s dicier side

21 July 2017

Blackstone and CVC’s bid for Paysafe fits with an M&A rush for financial technology. The UK-based payment processor has a penchant for the racy world of online gambling. Those risks may be better handled in private ownership. In exchange, the buyers stand to make a decent return.

Blackstone’s Asia move shows Eastern promise

21 July 2017

Blackstone plans to raise its first Asia private equity fund, Reuters reported, catching up with rivals like KKR. The timing looks smart, as toppy U.S. values make Asia look more attractive. Still, a correction in the region could give the global fund's investors a nasty shock.

Microsoft now benefits from fear it once instilled

20 July 2017

The software titan's transition into cloud computing has caused some pain, but strong growth in the latest quarter suggests the bold move is paying off. Burgeoning worries about Amazon's and Alphabet's dominance probably help. It's an ironic twist for once-almighty Microsoft.

Uber could one day end up like Yahoo

20 July 2017

The internet pioneer now called Altaba was worth more than $100 bln back in 1999. Holdings in Alibaba and Yahoo Japan eventually dwarfed its own business. After converting China and Russia operations into stakes in rivals, Uber and its $68 bln valuation may be on a similar path.

Viewsroom: Why U.S. tax reform is doomed, too

20 July 2017

Republicans’ failure to replace Obamacare throws into doubt Washington’s ability to keep other high-profile election promises, not least cutting corporate levies. Meanwhile, President Trump’s fuzzy agenda for reforming NAFTA could give Canada and Mexico more bargaining power.

GOP may get inside help to defang bank watchdog

20 July 2017

U.S. Republicans want to nix a key CFPB rule. Champions like Democratic Senator Elizabeth Warren will defend the consumer regulator created by the Dodd-Frank Act. But if Director Richard Cordray runs for Ohio governor, as seems plausible, the agency may soon wither away.

Unilever is half way there on Kraft challenge

20 July 2017

The Marmite maker has cut costs faster than expected, reducing ad spend and paying less to its suppliers. Its 20 pct operating margin goal looks reachable. Yet with U.S. rival Kraft Heinz free to reprise its hostile bid next month, volume growth is too low for comfort.

Publicis pleasant surprise flags ad world’s plight

20 July 2017

The French ad group’s top line grew 0.8 percent. But even that looks good: in the previous two quarters Publicis’ organic revenue shrank, and analysts were expecting it to do so again. The challenges to media buying make the industry’s low valuation look justified.

Crypto-currency deals recall an earlier tech craze

19 July 2017

A rash of initial coin offerings has raised $1.3 bln in 2017, much of it in the past month. These crypto-currency versions of an IPO bear the speculative hallmarks of the ‘90s tech boom. With untested managements and few if any investor protections, this wave may end just as badly.

Let venture capitalists subsidize your life

19 July 2017

Frustrated by an inability to invest in unicorns? Try another strategy. VCs and other investors lose money funding vendors of meal kits, car rides, music, data storage, and even household necessities. Here’s how to live well off Silicon Valley’s obsession with the future.

McCormick may struggle to digest $4.2 bln deal

19 July 2017

The $12 bln spice vendor is paying a fat 20 times EBITDA for the mustard and hot-sauce business of Reckitt Benckiser. With modest synergies in prospect, McCormick will need strong growth to pay down debt. Investors have reason to question the acquisition’s aftertaste.

Morgan Stanley gives Goldman a lesson in diversity

19 July 2017

Stabilizing fixed-income trading isn’t the only way CEO James Gorman showed Lloyd Blankfein his tail for the second quarter in a row. His growing wealth unit helped, too. With the diversified firm firing on all cylinders, it is justifiably overtaking Goldman even on valuation.

Discovery, Scripps tie-up a subscale DIY fix

19 July 2017

The cable network part-owned by John Malone may be in talks to combine with its smaller peer. A deal with the producer of HGTV would give Discovery more clout with distributors, but it would still be a bit player in a fast-changing industry. Bigger pockets might get the job done.

Reckitt shows bigger rivals how it’s done

19 July 2017

The UK company sold its French’s Mustard unit to U.S. food group McCormick for $4.2 bln, a spicy 7.4 times sales – even though there’s no recovery story and limited synergies. With buyers this hungry, less efficient peers Unilever and Nestlé ought to emulate Reckitt’s recipe.

Akzo’s misguided strategy will weather CEO change

19 July 2017

The Dutch paint maker’s new boss Thierry Vanlancker inherits his predecessor’s fanciful mid-term targets. The goals are backed by Chairman Antony Burgmans, a key opponent of a deal with PPG who may now find his position strengthened. Real change at Akzo is even less likely.

Einhorn’s bold Toshiba play has just enough logic

19 July 2017

The Greenlight boss unexpectedly took a stake in the beleaguered Japanese group, betting it's hit bottom. That's gutsy, but not necessarily reckless: Toshiba is closer to selling its chip business, which could give it much-needed financial relief and unlock value in other units.