Failed exam suggests deeper U.S. cuts at Deutsche 28 Jun 2018 The German lender was the only bank to flunk the Fed’s annual stress test, adding to its U.S. regulatory woes. Given compliance costs, the result could force new boss Christian Sewing to shrink the bank’s American presence even further. Wall Street titans will strut higher still.
Viewsroom: Trump goes hog wild on trade 28 Jun 2018 The U.S. president rejected hard-liners’ calls to ban China investing in sensitive U.S. tech. Yet he’s pushing for tariffs that could cost carmakers $45 bln and is livid Harley-Davidson will no longer make EU-bound bikes in the States. Plus: tapping China’s shale reserves.
Chobani swaps TPG for something sweeter 28 Jun 2018 The buyout firm exacted a high price for helping the yogurt-maker out in 2014. Now Chobani has found a Canadian pension fund to help show TPG the exit. Chobani’s value may have increased by more than 50 pct in four years. Private equity may have been unpalatable, but it worked.
Cox: If GE can break up, so can the United States 28 Jun 2018 Over a century the industrial conglomerate became too unwieldy to manage, unaccountable to stakeholders and financially undisciplined. Sound familiar? What works for corporate America could be applied to the government of a divided country showing similar symptoms of distress.
Amazon starts pharmacy war with carpet bombing 28 Jun 2018 Walgreens’ CEO isn’t “particularly worried” about Amazon buying online drugstore PillPack. But the deal prompted investors to lop some $30 billion off the value of drugstore chains, distributors and insurers. Consumers will happily fuel the fight over the sector’s fat margins.
Wall St feels little of Trump’s deregulatory love 28 Jun 2018 Lobbyists for the likes of Goldman Sachs and JPMorgan want watchdogs to reduce a capital surcharge, arguing it’s superfluous. The Fed wants to give it more weight. It’s another example of how smaller banks benefit most from the president’s pledges to roll back post-crisis rules.
Fintech lending throws banks another curveball 28 Jun 2018 Kabbage extends one-fifth of its small business loans at night or over the weekend. It’s no surprise such borrowers aren’t nine-to-fivers. But traditional lenders are. The ability of new entrants to transact 24/7 is just one more way technology is upending the industry.
AC Milan’s UEFA loss is Elliott’s gain 28 Jun 2018 The Italian soccer club has been excluded from next year’s Europa League given doubts over its finances. The ban likely curbs its struggling Chinese owners’ ability to resell it. But it boosts the chances that creditor Elliott ends up taking on the team at a rock-bottom price.
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.