Old folks help cruise lines sail past cost iceberg 27 Jun 2018 Shares in $42 bln Carnival sank almost 8 pct as fuel prices and currency rates holed earnings. But the industry, like healthcare, is one of the few where retirees spend good money. As long as cruises remain a popular pensioner pastime, Carnival and rivals should remain shipshape.
Pro-business Supreme Court has dangerous downside 27 Jun 2018 Donald Trump gets to name a second top justice after Anthony Kennedy said he will retire. That favors companies, but may go against their interest on issues they care about, like immigration. The painful and divisive process of getting Senate approval could cause lasting damage.
Holding: Wall Street may soon feel the SEC’s pain 27 Jun 2018 Bankers might like a Supreme Court smackdown of the watchdog’s in-house judges. But that, and a lesser-known ruling last week, portend trouble. Both could weaken the regulator and push more cases into federal court. As BofA and Citi can attest, that’s a mixed blessing at best.
American socialist, 28, discovers secret of 99 pct 27 Jun 2018 “We've got people, they've got money.” With that slogan Alexandria Ocasio-Cortez triumphed over a well-funded opponent in a New York primary election. The phrase captures the idea that clobbered 19th-century free-market liberalism. It may just master today’s privileged 1 percent.
Conagra boss finally gets his Hungry-Man and more 27 Jun 2018 With an agreed $10.9 bln purchase of Pinnacle, Sean Connolly seals the deal on a takeover of the motley crew of slow-growth grocery goods he has pursued since 2014, when he ran Hillshire. But it’s a high price and ambitious cost cuts don’t cover the premium he’s paying.
Disney-Fox-Sky puts UK M&A regulators in a bind 27 Jun 2018 After the Mickey Mouse owner boosted its offer for Rupert Murdoch’s group, Sky investors reckon they’re due a bump. UK regulators’ keenness to protect minority investors implies it should agree. But doing so will also put it in the odd position of adding fuel to an already red hot bidding war.
Softer U.S. China plan is no comfort for investors 27 Jun 2018 President Donald Trump rationally chose to use national-security deal reviews to restrict Chinese investment. It’s a win for his Treasury secretary over trade hardliners. But the review body is opaque, mixed messages have confused markets, and Trump still wants auto tariffs.
IWG profit flub takes heat out of bidding war 27 Jun 2018 The serviced-office provider said profit this year would be lower than expected because it needs to invest more and revamp drab space. The miss suggests competition from rivals like WeWork is hotting up. That will also give private equity bidders the upper hand in takeover talks.
China dims chances to shine in Asia’s cloud 27 Jun 2018 Demand is rising for remote data services across the region, including from proliferating startups. Chinese vendors such as Alibaba are best placed to challenge the likes of Amazon. Beijing's push for "internet sovereignty," though, may impede expansion, even by local champions.
Big Oil win over U.S. cities will be short lived 26 Jun 2018 A judge dismissed a long-shot lawsuit by Californian metropolises trying to hold Exxon and others liable for climate change. But many cities are slashing their CO2 emissions, which account for some 70 pct of the global total. Those attempts can pipe fossil fuels into obscurity.
Uber leaves London pit stop with minor dents 26 Jun 2018 The ride-hailing app won back its permit to operate in the UK capital. Its new license is shorter than hoped, and concessions like providing drivers’ insurance will lift costs. But CEO Dara Khosrowshahi keeps his service on the road in Europe’s top market and an IPO on track.
Crypto goes to Hollywood without a happy ending 26 Jun 2018 An Italian producer has raised $575 mln in a private coin sale to take on the likes of Netflix and Facebook. His proposed entertainment platform will reward producers and viewers of films, music and other content with tokens. The audacious plan has as many holes as a B-movie plot.
Facebook D.C. probe could open a can of worms 26 Jun 2018 Congress wants to hold the social-media platform accountable for Russian election meddling and other concerns. That could affect a key protection for internet firms, which have broad legal immunity for posted content. Reducing it would expose them to a rash of costly lawsuits.
Migrants may offer for-profit prisons a reprieve 26 Jun 2018 The prospect of detaining immigrant families for months or longer could mean big bucks for incarceration factories CoreCivic and GEO Group. It’s one way these listed U.S. companies can hope to offset an aging population and reduced drug sentences threatening their businesses.
GE breakup ushers in brave new era 26 Jun 2018 CEO John Flannery is spinning off the ailing $111 bln conglomerate’s healthcare unit and selling Baker Hughes, ending more than a century of growth. Focusing on aviation and power has risks, but the plan slashes debt and makes GE manageable. It was Flannery’s only logical choice.
College dorms play host to financial keg party 25 Jun 2018 Greystar is paying a reasonable-sounding $3.1 bln for Education Realty’s student-bunking business. The astronomical cost of college is prompting changes to the market, though, such as kids telecommuting to class. It could deprive university real estate of its youthful glow.
Local TV deals face national-sized nemesis 25 Jun 2018 Gray Television’s purchase of peer Raycom Media for $3.6 bln will create the third-largest broadcaster in the U.S. Gray has similar problems to AT&T, Disney and Comcast, all doing debt-funded deals to catch more nimble rivals. But the TV minnows are starting from way behind.
GE’s small ball merely delays tough decisions 25 Jun 2018 The conglomerate is selling its distributed-power unit to buyout shop Advent for $3.25 bln. It brings CEO John Flannery closer to his divestment target but doesn’t really cut debt or bolster earnings. That will require bigger sales or spinoffs, and probably another dividend cut.
Harley throws wrench in Trump’s tariff gears 25 Jun 2018 The fallout from the president’s misguided economic nationalism has prompted the $7 bln American icon to move U.S. production of its EU-bound bikes overseas. Harley’s rational response to stupid policy should allow it to cut more than enough costs to outweigh short-term pain.
Trump’s trade-war scriptwriters lack an ending 25 Jun 2018 The White House plans to curb investment from China, which has already dropped off sharply. Meanwhile, Harley-Davidson will move some production abroad due to EU tariffs. Firms are hurting but it’s unclear what resolution would look like – or whether the U.S. side even knows.