JPMorgan’s new goals hint at U.S. tax doublespeak 27 Feb 2018 The bank hiked its main return target to factor in last year’s tax cuts. While some benefits may get competed away, for now shareholders get the lion’s share. Investing in the community is well and good, but so too is payback after years of absorbing higher costs.
Murdoch holds winning hand in Sky poker game 27 Feb 2018 Comcast’s $31 bln offer for the European pay-TV firm poses a dilemma for Disney’s Bob Iger. He can try to outbid Brian Roberts or reduce his price for Fox’s assets, excluding its Sky stake. Either way, Rupert Murdoch looks set to come out ahead as the seller in a seller’s market.
Comcast’s $31 bln Sky bid spoils Disney-Fox party 27 Feb 2018 The U.S. cable group is offering 12.50 pounds per share in cash for the UK broadcaster controlled by Rupert Murdoch. That complicates the mogul’s plan to sell his entertainment assets to Disney boss Bob Iger. Murdoch must enter a bidding war for Sky or re-think the broader deal.
Hadas: Billy Graham’s great missed economic chance 26 Feb 2018 The evangelist, who died last week, lived through a global debate over the Christian responsibility to help society. He put preaching before activism. If he had spoken out – as many European Catholics did – America might have a stronger welfare system now, and less populism.
George Foreman Grill maker gets leaner, not meaner 26 Feb 2018 The maker of the famed kitchen device – as well as bits and bobs ranging from faucets to fish food – is combining with its majority owner in a deal valued at $10 billion. Spectrum Brands comes out with a neater structure. Its collection of businesses, though, is still messy.
General Electric brings more bad things to light 26 Feb 2018 The $125 bln conglomerate keeps finding skeletons in its closets. A $4.2 bln charge to better account for service contracts was expected; less so are revelations GE Capital inflated its earnings. CEO John Flannery’s overdue cleanup is exposing flaws throughout the weakened giant.
Qualcomm slaps Broadcom with two Herculean labors 26 Feb 2018 The chipmaker laid down conditions for agreeing a merger – including boosting the proposed break fee to about $13 bln. Qualcomm is being reasonable but disingenuous. Its suitor would still have two very high bars to clear: raising the $120 bln price, and convincing regulators.
McKinsey’s next leader inherits a big project 26 Feb 2018 Kevin Sneader has been chosen to run the elite consultancy. He’s a traditional-looking candidate but a stint in Asia suggests growth markets are a priority. The challenge is to keep digital reinvention on track and avoid embarrassments like that recently suffered in South Africa.
Buffett generational shift applies to investors too 24 Feb 2018 The Berkshire Hathaway chairman’s fans will lap up his ample returns and folksy advice as they always do. But will their kids? Away from Omaha, big investors like BlackRock and Vanguard are positioning for a new generation of investors. A similar challenge awaits Buffett’s successors.
Dropbox seeks hard valuation for soft business 24 Feb 2018 The data-sharing company wants to raise $500 mln from public investors. In its favor are rapid revenue growth and strong cash flow. The trouble is that an early fundraising round inked a high value that’s hard to justify, especially with Dropbox’s growing competition.
Cox: Gun lobby meets match with economic protests 23 Feb 2018 Civil rights movements often embrace boycotts. Think of Gandhi's Salt March, suffragette strikes, South African divestment or MLK's final speech, where he told followers not to buy Coke. Now it's the NRA's turn, as consumers force all manner of companies to sever ties.
General Mills pays runaway price for Blue Buffalo 23 Feb 2018 The Cheerios maker is throwing an $8 billion bone at the natural-pet-food producer to beef up sales to furry darlings. The prospect of taking over the pantry is as appealing. But to make the investment stack up, General Mills’ new pet will need to grow faster than a puppy.
Review: Knocking at the door of tech’s boys’ club 23 Feb 2018 Women played key roles in the development of computers, but you wouldn’t know it by looking at Silicon Valley. A hostile culture has pushed them to the fringes of America’s technology hotbed. A new book says thinking differently would pay dividends for women, and the industry.
Trump Jr. corrodes India’s anti-corruption efforts 23 Feb 2018 The U.S. president's son is promoting his family real-estate brand and was due to speak in New Delhi on Indo-Pacific ties. A backlash saw that revised to a fireside chat. Still, the mix of business and politics undercuts Premier Modi's own efforts to end crony capitalism.
RBS is a step away from ending its lost decade 23 Feb 2018 The state-owned UK lender made its first after-tax profit in 10 years. A 4 pct rise in revenue and falling costs moves boss Ross McEwan closer to his return on tangible equity target. Settling U.S. charges over mortgage securities is the last hurdle to restarting dividends.
Viewsroom: Chipmaker battle fries M&A circuits 22 Feb 2018 Broadcom has lowered its hostile bid for Qualcomm after its target upped its longstanding offer for NXP. That decreases the chance the two larger rivals can strike a deal – assuming regulators wouldn’t nuke it. Plus: Credit Suisse shines a rare light on Asian investment banking.
Kardashian slap shows hole in Snap’s accounting 22 Feb 2018 Celebrity sibling Kylie Jenner wiped over $1.5 bln from the disappearing-message app’s wobbly value after she questioned its usefulness. Influential fans attract users – and repel them if they publicly flee. Such assets don’t show on the balance sheet. Maybe they should.
Macquarie Infrastructure slips on $2 bln banana 22 Feb 2018 That’s how much the power-to-airport-services group’s stock plunged after the loss of fuel-oil contracts led it to slash the dividend and put assets up for sale. Getting caught out by a shifting U.S. energy mix is embarrassing. Having too much leverage compounds the damage.
Holding: Privacy computes for Supreme Court 3.0 22 Feb 2018 High-tech snooping is back at the U.S. tribunal next week with Microsoft’s fight to shield users’ email from Uncle Sam. As in smartphone and GPS-tracking cases, the justices will probably focus on personal rights. The nine of them are remarkably attuned to technology’s risks.
Whistleblowers lose a shield, but so do employers 22 Feb 2018 Those who suspect U.S. securities breaches must tell regulators or lose some protection from vengeful employers, the Supreme Court says. Major misconduct should still get reported. But small stuff might fall through the cracks – depriving companies of a chance to tackle it early.