Chinese tech stars are MAXD out beyond FANG stocks 7 May 2018 Handset-maker Xiaomi is the first of four mainland titans to unveil IPO plans. Ant, Meituan and Didi round out the quartet, whose combined valuations may exceed $400 bln. That leaves far less upside than was available to public investors in Facebook, Amazon, Netflix and Google.
Robo-Buffett no longer such a ridiculous notion 5 May 2018 The 40,000 crowding Berkshire Hathaway’s AGM didn’t come to hear buzzwords like “artificial intelligence.” Machine-driven investing, though, is eating into the Oracle’s competitive advantage. But for now, he has other differentiators – like zero fees, and a grasp of human nature.
The Exchange: Putting limits on central-bank power 4 May 2018 Central bankers emerged from the financial crisis with more clout than ever before. Can this be reconciled with democratic legitimacy? Former Bank of England Deputy Governor Paul Tucker explains why monetary authorities have become “overmighty citizens”, and how to rein them in.
Xerox directors jam company’s future for their own 4 May 2018 A deal with activist investors has foundered over extra legal cover for board members who were set to leave, including ex-Citi boss Chuck Prince. Now that they and discredited CEO Jeff Jacobson will stay, Xerox and its investors are in limbo. It’s a result best not copied.
Alibaba’s e-commerce engine powers buying spree 4 May 2018 The Chinese web giant’s revenue jumped 61 pct to $9.87 bln in the fourth quarter, beating expectations. Investments overseas and in bricks-and-mortar retailers dragged down margins. Yet the results are a reminder that Jack Ma’s core online business is still a juggernaut.
China and U.S. prepare for micro-managed trade war 4 May 2018 Treasury Secretary Steven Mnuchin has delivered a list of tough demands to the Chinese government, including a $200 bln trade deficit cut, the WSJ reported. Beijing rewarmed its offer of lower tariffs and increased imports. Neither side gave an inch, so things will get messy.
Viewsroom: M&A gets carried away 3 May 2018 Dealmaking is breaking records. But more tie-ups are being pulled. And recent proposed unions like T-Mobile US with Sprint and Xerox with Fujfilm come with regulatory or boardroom drama. Crisis throwbacks and the careless brag-song of Sainsbury’s CEO are sending warning signals.
U.S.-China trade gap adds spice to tariff talks 3 May 2018 The American trade deficit fell in March, yet the goods gap with China, $106 bln this year so far, keeps widening. That gives Steven Mnuchin more ammunition for meetings in Beijing. Threats of levies on imported goods may, more usefully, help prise open China’s service markets.
T-Mobile and Sprint’s 5G plea is believable 3 May 2018 John Legere says if regulators let his telecom group merge with Sprint, it will help America lead in wireless technology. Watchdogs thwarted a past attempt to merge on fears consumers would be hurt. The rationale this time is compelling, provided Legere sticks to his word.
Elon Musk charm autopilot suffers alarming glitch 3 May 2018 Tesla’s boss cut off Wall Street analysts for asking “boring, bonehead questions.” But that’s the nature of earnings calls. Musk’s history of missing targets, burning cash and raising capital makes “dry” financial queries entirely apt. Brushing them off won’t help Musk’s cause.
A tale of two super-voting stakes – and steaks 3 May 2018 Zynga’s Mark Pincus converted his founder’s stock into regular shares, cutting his vote from 70 pct to 10 pct. Though overdue, it liberates the online-gaming firm. Meanwhile, the owner of Steak n Shake jammed through a dual-class structure – a backward step, as investors showed.
KKR shows way again with corporate switch 3 May 2018 The firm that pioneered leveraged buyouts is taking advantage of reduced U.S. corporate tax rates to change from a partnership to a company. The move could attract a wider investor base and boost its market value. Rivals are bound to notice if its shares continue to outperform.
Flipkart bid would be rare defensive one by Amazon 3 May 2018 It'd be a coup if the e-commerce titan took control of its larger rival in India. Chasing the business started by former Amazon employees would suggest boss Jeff Bezos is worried by the idea of Flipkart uniting with Walmart. The battle underscores the significance of the market.
Tesla speeding toward capital raise crunch time 2 May 2018 The electric-car maker lost $710 mln last quarter. It also missed more production targets, annoyed a regulator, lost more key staff, clamped down on costs and got less than ecstatic support for CEO Elon Musk’s bonus plan. Better to sell new stock now than wait for more bad news.
Elaine Wynn needs to turn up the heat 2 May 2018 The casino company’s co-founder wants to replace a director, but not with herself or an associate. The soft approach was rebuffed by the company, which claims it’s changed since her ex-husband quit. Elaine needs a sharper approach – or activist help – if she wants to be heard.
Water M&A wars leave investors unusually placid 2 May 2018 The four-way fight over SJW’s bid for Connecticut Water is boiling over with accusations, intransigence, governance issues and proxy battles - none of it from shareholders. They’re either taking a surprisingly long-term view, or assuming hostile offers for utilities never work.
Latam oil opening demands hedged bets 2 May 2018 The region's growing receptiveness to foreign investment in its energy assets could be a dream come true for oil majors. Political winds can change, though, and there is no perfect blend of hydrocarbon potential and legal certainty. Brazil and Mexico will do better than the rest.
Xerox effort to go quietly is thwarted on all sides 2 May 2018 Carl Icahn and Darwin Deason have ousted the CEO and board members at the struggling copier company, and at least delayed any deal with Fujifilm. The outgoing CEO, directors and advisers all look bad. Yet Xerox needs a credible final act, and the activists don’t have one written.
Capitalism shunts all else aside in Beverly Hills 2 May 2018 Markets are fine, volatility is modest and trade war isn’t a big deal, say delegates at junk-bond king Michael Milken’s annual L.A. summit. In other words, the freewheeling spirit Milken once embodied is back in vogue. Thank President Trump – and a dose of complacency.
Sainsbury’s shows need for new antitrust approach 2 May 2018 The grocer, which is buying Asda for 7.3 bln pounds, wants UK competition authorities to vet retail mergers in a new way. The rise of discount rivals and online sales means it has a point. A revamp of the metrics used to make sure shoppers have enough choice looks inevitable.