SoftBank-GM self-driving deal is more than a hedge 31 May 2018 The Japanese firm’s Vision Fund will invest over $2 bln in the U.S. carmaker’s AV unit. It’s betting self-driving cars become so huge that investing in future winners and losers alike will still pay off. The risk may not be spreading its bets too widely, but being too early.
Greyhound owner’s turnaround faces lengthy delay 31 May 2018 Bus and rail operator FirstGroup’s CEO resigned and its shares fell after it reported a loss, due to competition from low-cost airlines. It can cut costs and sell assets, but tough markets and management upheaval don’t help. A sale looks easier, but may not deliver a good price.
Exxon shareholders dutifully take back seat 30 May 2018 One year after rebuking management over climate change, owners of the $330 bln oil giant turned quiescent. They toed the company line on pay, lobbying and splitting the chairman and CEO roles. If returns remain subpar, investors will have no one but themselves to blame.
Volcker tweak reveals Powell Fed’s cautious streak 30 May 2018 Banks hoping for an overhaul of the prop-trading ban will be disappointed by the U.S. central bank’s modest revisions. Compliance costs may fall but Jerome Powell’s team doesn’t want Wall Street to go back to its freewheeling ways. It rightly retains distaste for big risk-taking.
Wall Street’s software roll-up contains a glitch 30 May 2018 Private equity is on a tech binge. KKR’s $8.5 bln purchase of BMC from rivals led by Bain and Elliott sets the firm up for more deals. Enterprise software is sticky, so this play can mint money. But with copycats lining up, the strategy’s popularity will eventually kill returns.
Roseanne exposes Disney’s double risk 30 May 2018 The media firm led by Bob Iger wasted no time axing the popular TV sitcom after its star tweeted a racial slur. The family-friendly Disney had little choice. The dynamics of entertainment have changed: talent, advertisers and consumers can defect more easily than ever.
Dollar rally comes at exquisitely awkward time 30 May 2018 The greenback's recent strength creates a policy headache. If sustained, it’ll reheat real estate, pull capital from emerging markets and complicate Trump's attempts to push U.S. exports. And it’ll buttress the currency’s dominance despite rising doubts about the U.S. government.
Cox: Peter Thiel’s next target should be Infowars 30 May 2018 The tech billionaire financed a lawsuit that bankrupted Gawker and said he’d help others challenging similar sites flouting First Amendment freedoms. A complaint by Sandy Hook families against conspiracy king Alex Jones provides a test for Thiel’s democratic bona fides.
Puerto Rico deaths will take toll on debt talks 29 May 2018 Last year’s hurricane ultimately killed some 5,000 people, a new study claims. That’s more than perished in Katrina in New Orleans or the Sept. 11 attacks. The extraordinary number will buttress the federal overseer trying to curtail payments on the island’s $70 bln of debt.
Bad-boss risk rises for activist and target alike 29 May 2018 An investor who took aim at a REIT chief accused of sexual misconduct is now fighting claims against himself. Such allegations are harder to contain for companies, which usually face more scrutiny than hedge funds. The asymmetry has limits though, especially if fund returns fall.
Trump moves on China give investors whiplash 29 May 2018 Congress hopes to stop the U.S. president from rolling back penalties on telecoms manufacturer ZTE. The White House also wants tariffs on $50 bln in Chinese imports. It would be unwise to tune out Trump’s good-cop-bad-cop tactics, as lawmakers can only do so much to rein him in.
Numbers add up to Germany retaining World Cup 29 May 2018 Who will lift soccer’s ultimate trophy in Russia this summer? Breakingviews ranked the 32 contenders according to player values, population, home support, and participation in the sport. Put them all together, and Germany is best placed to successfully defend its crown.
Holding: $1,745-an-hour lawyers due for disruption 25 May 2018 Kirkland & Ellis billed that lofty fee in the Toys R Us bankruptcy, and on Monday scored a Supreme Court win against workers’ right to save money by suing en masse. Even cheaper firms exceed most Americans’ means. Ending attorneys’ monopoly on law could bring affordable justice.
Apple would make a good backer for Foxconn IPO 25 May 2018 The Taiwanese contract manufacturer wants strategic investors to anchor a $43 bln Shanghai listing. Apple could strengthen its relationship with the iPhone assembler and help its robot initiatives. Beijing might also appreciate the endorsement of its push to attract tech stocks.
U.S.-China spat poses serious hazard for WTO 25 May 2018 The two countries are sparring at the Geneva-based organisation about how the WTO should handle Beijing’s brand of state capitalism. A U.S. threat to veto the appointment of judges could paralyse the trading body’s dispute resolution mechanism – and hold the outfit to ransom.
Viewsroom: America sees red on China trade deal 24 May 2018 Getting Beijing to force companies to buy more U.S. soybeans and oil may help the Trump administration claim a numbers victory. But it reinforces China’s statist instincts while ignoring most U.S. business beefs with Sino-American trade. Plus: has Tencent hit a peak?
Biggest U.S. drugs face a competitive reckoning 24 May 2018 Seven of the ten best-selling U.S. drugs, including arthritis therapy Humira, have lost their main patent or will soon do so. Rivals hoping to duplicate these so-called biologics face a thicket of legal and market curbs. But a determined FDA may soon slash a path to lower prices.
How Comcast can boost its chances of snaring Fox 24 May 2018 The cable group is preparing to scuttle Disney’s $52.4 bln bid for some of Rupert Murdoch’s assets. A major Fox shareholder is receptive to the idea. But Comcast boss Brian Roberts needs more than the best price to get a hearing. He could start by offering a bigger break fee.
Football is imperfect hedge for hedge fund mogul 24 May 2018 Appaloosa’s David Tepper brings a winning attitude to Carolinas' Panthers, which he’s buying for $2.3 bln. America’s biggest sport is all about active management and performance - a welcome break from the pressures squeezing hedge funds. But data geeks are targeting the NFL too.
EMI deal calls out to 1MDB bounty hunters 24 May 2018 Sony is taking control of EMI Music Publishing. The sale could mean a $420 mln payout to financier Jho Low. U.S. prosecutors allege he used funds stolen from Malaysian fund 1MDB to make the purchase. That’s a temptingly huge sum for authorities in both countries to pursue.