United States of America

Bitcoin’s slide blows digital stardust to winds

20 November 2018

Fans dreamed the cryptocurrency would consign conventional finance to the dustbin. But it’s more vulnerable than stocks and bonds to investor funk, plummeting a third in a month and 75 pct from its peak to below $5,000. Bitcoin’s flaw remains its lack of fundamental value.

Toys R Us buyout firms offer crumbs for holidays

20 November 2018

KKR and Bain are giving $20 mln to employees who lost jobs in the retailer’s bankruptcy. That’s better than nothing, and an intriguing precedent. But it won’t go far among tens of thousands of people. It’s also a pittance compared with the fees the firms took over the years.

Target deserves as much investor love as Walmart

20 November 2018

Owners wiped 11 pct off the retailer’s stock after it just missed estimates. Yet soaring online revenue and a rise in same-store sales show Target, like Walmart, is dealing well with shoppers’ changing habits. Its larger rival, though, sports a better multiple on lower margins.

Beyond Meat IPO could go from rare to charred

19 November 2018

Investors who take a bite of the plant-based meat maker could get a taste of rapid growth, top-notch leaders and a way to address the looming food crisis. But the company is restricting some shareholder rights and faces competition from traditional and fellow upstart firms alike.

Facebook’s higher calling is now a liability

19 November 2018

The social network is getting grief from U.S. lawmakers for hiring Washington consultants to fight critics. Many companies do that, including older tech firms. Facebook, though, has styled itself as more than just a company. Mark Zuckerberg is now tripping up on that high bar.

Colfax trades aging industry for aging Americans

19 November 2018

The industrial outfit is pivoting to healthcare by acquiring orthopedic-device maker DJO from Blackstone for $3.2 bln. Baby boomers’ growing need for knee braces and implants ensures a healthy market. But loading up on debt makes this a stressful way to chase perpetual youth.

The Exchange: 1MDB, Goldman, Jho Low and Leo

19 November 2018

The new book “Billion Dollar Whale” chronicles the Malaysian mega-scandal involving Goldman Sachs and Leonardo DiCaprio. Co-author Tom Wright joined Breakingviews in Hong Kong to discuss how alleged mastermind Jho Low pulled it off and what the saga’s next chapter may bring.

Cannabis industry shops for a suit and tie

16 November 2018

Money is pouring into weed as valuations rise and legal barriers fall – nudged further by recent U.S. election results. Companies like Canopy, Aurora and MedMen are starting to take on a veneer of acceptability. That doesn’t make them good investments, but it’s progress.

Chip industry’s new paradigm looks like old one

16 November 2018

As cutting-edge semiconductors got harder to make and demand boomed from new fields like bitcoin mining, top manufacturers seemed invulnerable. Shrinking sales forecasts from Nvidia and Applied Materials show companies are as prone as ever to economic cycles and excess inventory.

Levi Strauss IPO would be financially retro

16 November 2018

The jeans group may go public more than 30 years after a family-led LBO. It has done well in the recent retail turmoil that hit the likes of Nordstrom and a mooted $5 bln valuation looks fair. But the skinny from Levi’s own ups and downs is that staying private is a better fit.

Review: New tech brings golden age of media

16 November 2018

The internet has provided ample fodder for the endless debate over culture versus commerce. In “Digital Renaissance,” business professor Joel Waldfogel says consumers have more good music, movies and television shows than ever to choose from, and haven’t bankrupted industry.

Mark Zuckerberg pushes wrong kind of independence

15 November 2018

Facebook’s CEO is setting up an external committee to police fake news and hateful content after more revelations about how he and others dealt with Russian meddling. But outsourcing decisions won’t fix Facebook’s culture. Removing Zuckerberg as chair would be a good first step.

GE may be canary in credit market’s coal mine

15 November 2018

The firm’s bonds tanked this week even as an asset sale briefly lifted its shares. That’s a warning shot for all credit investors. U.S. companies carry more debt than ever, and quality has deteriorated. Rising interest rates and slowing growth could make this a big problem.

Viewsroom: Europe fights U.S. Big Tech

15 November 2018

Digital titans like Alphabet and Apple may rule the roost, but EU rules on data privacy are helping startups flourish on the other side of the Atlantic. Meanwhile, Facebook’s inability to police fake content spreads to Africa. Plus: Mumbai’s ride-share drivers go on strike.

Dell puts $2 bln price tag on VMware resistance

15 November 2018

The PC maker’s second attempt to go public by buying out its subsidiary’s tracking stock should work. A higher valuation, extra cash and a board seat address skeptics’ main concerns, and have won over Elliott and others. The rewards of acceptance outweigh the risks of voting no.

Walmart ticks all the right boxes on the home front

15 November 2018

The retail giant reported better-than-expected U.S. sales at its stores and raised guidance for the year. E-commerce is humming along too. Investments in India and China have hit some bumps. But after Amazon warned of slowing growth, Walmart’s steadiness gives it an edge.

Chinese phenom Pinduoduo has some explaining to do

15 November 2018

The $19 bln favoured e-commerce site for frugal “aunties from Wuhan” is inflating its top line and understating its costs, alleges short-seller Blue Orca. If true, the charges are damning and threaten PDD’s superlative as the fastest-growing internet seller on the planet.

Oil forecasting goes from tough to pointless

14 November 2018

In recent months crude has hit $86 a barrel, fallen to $65, and is now rising again. Oil prices drive other markets, but predicting them can be a waste of time. Changing demand outlooks, Saudi turmoil and Trump are only the most volatile of a series of uncertainties.

Goldman has half a defense in 1MDB mess

14 November 2018

Two former executives accused in the Malaysian corruption scheme openly lied to the bank, U.S. authorities say. Rival firms have found leniency in similar cases. But an indictment also cites a culture that favored deals over compliance. That could warrant a deferred prosecution.

Snap shareholders deserve little sympathy

14 November 2018

Some are suing the social-media firm for misleading them before its IPO about competition from Instagram. Now U.S. watchdogs are conducting a probe. Bad conduct deserves punishment. But investors willingly bought stock with no rights in an immature company with lots of rivals.