Abe best off keeping Trump out of economic rough 3 Nov 2017 The Japanese premier has established an uncommonly good rapport with his U.S. counterpart. At their upcoming meetings, including on the golf course, Shinzo Abe would be well-served focusing on North Korea. Trade and currency matters only risk creating a momentum-slowing wedge.
Production snags don’t take the shine off Apple 2 Nov 2017 Customers ordering today won’t see the latest handset until December, and developers are still figuring out the augmented-reality apps that make it worth buying. Hiccups aside, the X model will accelerate demand for services. The iPhone gold mine has plenty of nuggets left.
Republican tax plan both sublime and ridiculous 2 Nov 2017 Reducing mortgage and interest deductibility has merit. So do some proposals for simplifying the code. But carried interest is left as is, one of several sops to the wealthy. Ideas on churches, childcare and state taxes look overly political or mean-spirited – and ripe for haggling.
Viewsroom: Saudi Arabia’s city of the future 2 Nov 2017 Crown Prince Mohammed bin Salman has a $500 bln plan to attract new business to the oil-dependent kingdom: build a utopian society on the Red Sea free of many of Saudi’s legal and cultural constraints. Plus: why tech and finance execs won’t be joining President Trump in Asia.
Carlyle clinches takeover of top Fed jobs 2 Nov 2017 Jerome Powell, the nominee to lead the U.S. central bank, is an ex-private equity partner. So is vice chair Randal Quarles. Carlyle co-founder David Rubenstein is a D.C. fixture, but for a while the firm tried to shed its politically connected image. Now it's unavoidable.
The Exchange: Ellen Pao 2 Nov 2017 The investor sued Kleiner Perkins for discrimination, becoming a canary in the coal mine for a raft of sexual-harassment and gender-bias allegations rocking Silicon Valley, Hollywood and beyond. She discusses if this is a turning point for what she describes as a systemic problem.
Botched Republican pitch bodes ill for tax cuts 2 Nov 2017 The revised plan only partly deals with criticism it benefits the rich. White House salesmen Gary Cohn and Steven Mnuchin did their own damage by defending cuts for the wealthy and vastly overstating middle-class income. Such poor marketing puts Trump’s economic goals in danger.
Axalta is a chip in DowDuPont’s paintwork 2 Nov 2017 Activist Nelson Peltz once pilloried chemicals giant DuPont for selling its coatings business to private equity. He was right. Axalta is now weighing a merger with Akzo Nobel. With a bit more love, it might have given investors in what’s now DowDuPont a 29 percent annual return.
Alibaba splurges to impress China’s store owners 2 Nov 2017 Sales are soaring at Jack Ma's $477 bln e-commerce giant. But it is investing heavily in experimental supermarkets and malls that show off its payments, logistics and marketing prowess to others. It's a costly way to keep Alibaba’s technology and services revenue growing.
Shell and BP stuck incinerating shareholder value 2 Nov 2017 After years adjusting to cheap oil, Shell and BP are beating earnings estimates and throwing off enough cash to cover dividends. BP will soon be buying back shares, too. It’s a start. But even if prices hold up, it will be years before their returns top their cost of capital.
Facebook’s long-term problem just got shorter 1 Nov 2017 Mark Zuckerberg vowed to do more to combat fake content in response to the fallout from Russia-backed ads. He warned profitability will take a hit just as the social network added almost $5 bln to the bottom line. As government scrutiny grows, the $500 bln firm has little choice.
Parts makers offer safer Auto 2.0 bets than Tesla 1 Nov 2017 Elon Musk’s outfit trades at an outlandish valuation on hopes it’ll lead the electric and autonomous car revolution. Yet it routinely misses targets and faces intense competition. Battery makers like LG Chem and Tesla partner Panasonic may pave a less volatile road to riches.
EQT and its critics make up to break up 1 Nov 2017 The gas company and activists are seeing the value of dialogue. After investors opposed a $7 bln plan to buy rival Rice, management has vowed to speed up work on a split. Shareholders now look set to approve the deal – and retain the threat of a proxy war to keep the firm honest.
Duff & Phelps deal puts price on wonky valuations 1 Nov 2017 Buyout firm Permira is paying $1.8 bln for the advisory and valuation shop. The firm ought to benefit from frothy asset prices, as clients seek help to avoid overpaying. An even bigger beneficiary might be seller Carlyle: in under five years, Duff & Phelps has doubled in value.
Holding: Facts may spoil board-elections brawl 1 Nov 2017 Shareholder advocates say subjecting all directors to annual votes keeps firms fit, while critics like lawyer Marty Lipton argue it rewards costly short-term moves. Now a compelling study pokes holes in both views. It’s welcome progress in a testy but needed governance debate.
Chicago School gets $125 mln for being wrong 1 Nov 2017 The university’s tradition leans heavily towards free and efficient markets. Hedge-fund boss Ken Griffin’s name and cash – generated in an industry that depends on markets being inefficient – will now endow the economics department. Kudos to Griffin and Chicago’s open mind.
Wall Street loses in search for easy China wins 1 Nov 2017 Energy and industrial companies like GE will get to cozy up to Beijing’s new leaders during Trump’s Asia trip, but financial services aren't part of the group. That reflects White House desires for low-hanging deals to tout, and dim hopes for improved market access.
Pragmatism could give bank deregulation new life 31 Oct 2017 U.S. House Financial Services Chair Jeb Hensarling will retire at the end of 2018. The Texan pushed innovative ideas for undoing Dodd-Frank but failed because of a dogmatic stance that alienated even some Republicans. His successor would do better to not follow his example.
Complacency is biggest risk for Facebook investors 31 Oct 2017 Mark Zuckerberg’s firm set new highs even as it said nearly half of American voters may have seen Russian propaganda on its site. The fallout from fake content could hit its runaway value, but investors can’t be bothered as long as advertisers keep flocking to the social network.
Emerson’s tilt at Rockwell lacks killer blow 31 Oct 2017 The rejected $28 bln offer for the U.S. automation group represents a premium of just 15 pct, paid partly in stock that has systematically undershot Rockwell’s. With valuations high, an all-cash bid might have tested the target’s independence. That looks beyond Emerson’s means.