Holding: U.S. judges could use CEO succession tips 19 Apr 2018 The Supreme Court’s Anthony Kennedy is expected to retire soon, taking advantage of a Republican president and Senate to ensure a like-minded heir. Yet his replacement probably won’t share his views, a new study suggests. Even when bosses have well-laid plans, they can go awry.
Shire makes needy suitors work for risky bet 19 Apr 2018 The London-listed pharma group has rejected a 42 bln pound offer from Osaka-based Takeda, and may now face a bid from Botox-maker Allergan. Shire’s business has its challenges, but its would-be acquirers have strategic issues and need a deal. The risk of overpaying is going up.
Blackstone finds welcome alternative with retail 19 Apr 2018 The $38 bln investment firm is selling more of its funds to individual investors. That helped boost fee-related earnings in the first quarter, partly offsetting hits from choppier markets and fewer deal exits. Stephen Schwarzman's shop is reaping the benefits of diversification.
P&G drug deal needs vitamin shot to persuade Peltz 19 Apr 2018 The U.S. consumer giant is paying 3.4 bln euros for the consumer arm of Germany’s Merck. For it to make sense P&G will have to crank up sales of Seven Seas vitamins while cutting out costs. Board member Nelson Peltz’s criticism of past acquisitions further raises the stakes.
Publicis shows WPP benefits of smooth succession 19 Apr 2018 The French group last year bumped longstanding boss Maurice Lévy up to the chairman’s suite. New broom Arthur Sadoun has, under Lévy’s guidance, revamped the strategy and revived growth. That is a lesson for its UK rival, which lost CEO Martin Sorrell without any obvious heir.
Wynn tosses female directors into boardroom brawl 18 Apr 2018 The $21 bln casino giant has added three women to an expanded group. This marks a serious attempt to move on from a sexual harassment scandal, but co-founder Elaine Wynn wants a full overhaul. With a battle brewing, these women had best come ready to rumble.
Wall Street’s word is its bond excuses 18 Apr 2018 BofA, Citi and JPMorgan booked less revenue from debt sales in the first three months. Activity was down, but banks’ talk about the impact of tax cuts and such was just a way of saying clients didn’t hire them. That left Goldman the surprise leader for a second straight quarter.
Hadas: Knowledge is better shared than patented 18 Apr 2018 China is moving towards stronger protection of intellectual property. Trump’s prodding may speed up the pace. But hoarding knowledge is getting harder and less worthwhile, especially in developing countries. A global “Republic of Technology” may eventually replace patent wars.
Morgan Stanley hands investors volatility challenge 18 Apr 2018 The Wall Street firm defended its top ranking in equities and doubled fixed-income trading revenue. That helped generate its best results in years, handily beating CEO James Gorman’s admittedly underwhelming targets. The dilemma for investors is whether that merits a higher valuation.
Icahn offers poaching insurance for VMware 18 Apr 2018 A stake purchase by the activist investor could add friction in a potential merger of the $53 bln software company with its controlling shareholder Dell. Minority shareholders in VMware ought to expect fair treatment. Icahn's presence might help ensure they get it.
China backlash could unravel 5G network effect 18 Apr 2018 Huawei's retreat and ZTE being cut off from U.S. vendors will slow telecom infrastructure development in both America and China. And given how instrumental the two companies are to 5G technology and the power of supply chains, the whole global rollout is likely to be impeded.
Starbucks’ anti-racism coffee break sets example 17 Apr 2018 After the arrest of two black men at a Philadelphia shop the $84 bln chain will shut some 8,000 U.S. outlets for an afternoon of racial-bias education. The swift response, perhaps costing $20 mln in lost latte sales, backs up Starbucks’ social goals and offers a lesson to others.
Electric bikes may show cars some pedal power 16 Apr 2018 Already big in China, sales of motor-assisted cycles elsewhere may double by 2025 as battery costs fall. The popularity of bike-sharing schemes could spark mass adoption in cities, where e-bikes can be an appealing alternative to autos. No wonder Uber just bought its way in.
Review: Comey is flawed champion of civics revival 17 Apr 2018 In his blockbuster memoir, the ex-FBI director who prosecuted Martha Stewart and worked at Bridgewater calls Donald Trump an unethical liar and a threat to American institutions. His yarn is riveting, but reveals Comey’s mix of principled leadership and sanctimonious showboating.
Marcus gives Goldman some much-needed buzz 17 Apr 2018 The Wall Street firm’s trading unit is improving but far from its glory days. Its new retail bank, by contrast, is bursting with growth, deal flow and impressive new hires. While Marcus won’t add much to the bottom line for some time, it’s a welcome breath of fresh air.
Tesla in pole position to win U.S.-China trade war 17 Apr 2018 Beijing has set deadlines to lift JV rules for foreign automakers. Ford and Daimler will be pleased, but Elon Musk's embattled $50 bln electric-car maker should benefit most. Freed to enter the biggest market without having to share technology, Tesla's risky strategy may pay off.
U.S. regulators ask if ZTE can hear them now 17 Apr 2018 The Commerce Department barred domestic companies from selling to the $20 bln Chinese telecoms equipment maker for years. It's a big blow given how much ZTE sources from the United States. Things could get worse depending on how fast political winds shift against it in Europe.
Netflix’s advantage is Facebook’s weakness 16 Apr 2018 The video-streaming service is outperforming its FAANG associate. Subscriptions give the business an edge – and an incentive for boss Reed Hastings to keep customers’ data close by. Cash burn is always a risk but for now Netflix is better situated than Facebook.
Trump’s Fed is more rerun than reality TV 16 Apr 2018 Nominating economist and Pimco adviser Richard Clarida as vice chair and regulator Michelle Bowman to the board are predictable moves. With the central bank, the U.S. president has shunned the turmoil sown elsewhere in government. For investors, that's comforting continuity.
Icahn will need to work to extend winning streak 16 Apr 2018 The investor is selling Tropicana, the casino he plucked out of bankruptcy, for $1.85 bln. It follows last week’s sale of Federal-Mogul to Tenneco, and Volkswagen is knocking on Navistar’s door. A bull market has given Icahn a hot hand, but it makes deploying the cash a challenge.