Amazon’s second HQ could be its easiest sale yet 7 Sep 2017 The e-commerce giant wants another headquarters besides Seattle, and it’s asking cities to bid for the privilege. With a lure of 50,000 jobs and $5 bln of construction spending, it’s sure to get juicy offers. But as Wisconsin found with Foxconn, victory may come at a steep price.
Viewsroom: Harvey’s path of financial destruction 7 Sep 2017 Texas is facing $180 bln in hurricane cleanup costs, the most of any U.S. natural disaster. The Lone Star State has the wherewithal and chutzpah to cover a large chunk, yet expects Washington to pick up most of the tab. Global water risks, meanwhile, may require $12 trln to fix.
Irma alone can’t wash away reinsurance excess 7 Sep 2017 Take a plentitude of capital and a paucity of disasters. Mix in a Florida building boom and massive hurricane, and the result looks like a giant hit to reinsurers. But the history of catastrophes suggests underwriting won’t become much more rational when the storm clears.
Life as Jamie Dimon’s bête noir pays off for ISS 7 Sep 2017 The JPMorgan boss once argued investors who rely on proxy advisory firms for shareholder votes are “lazy.” Selling one of them just bagged Vestar a threefold return. New private-equity owner Genstar needs client demand for climate-related advice to skyrocket to match that.
RH remodel adds shine but may not sway skeptics 7 Sep 2017 An earnings beat driven by a new membership program sent the furniture shop's shares up 41 pct, squeezing short sellers. A full restoration remains some ways off, though. After inflating debt to finance buybacks, the retailer needs to show more than a one-time boost to cash flow.
Peltz pulls his punches on P&G’s weak governance 7 Sep 2017 The Trian boss wants the $235 bln toiletries giant to restructure and pursue M&A to rev up growth. He blames directors for tolerating mediocrity yet declines to target any of them. It’s a missed opportunity. The company’s CEO-heavy board is bucking the tide of corporate America.
Best IPO looks to repackage Chinese logistics 7 Sep 2017 The Alibaba-backed group wants to list at a market value of $5 billion-plus. Best is growing fast and pushing into new businesses, but its core delivery operation still faces rising costs and fierce competition. A big premium to U.S.-listed rival ZTO is hard to justify.
Hurricanes taunt Texas to put money where mouth is 6 Sep 2017 As Irma threatens Florida, the Lone Star State has $180 bln of Harvey damage to pay for. Most will come from the feds even though Texas hates big government. With low taxes, billionaires aplenty and a GDP that dwarfs the cost, minimizing D.C. aid ought to be virtually a state duty.
Facebook’s fuzzy math blurs its TV picture 6 Sep 2017 A claim to reach 100 mln younger people in America doesn't square with U.S. census figures, an analyst found. Despite a growing list of number blunders, advertisers have limited sway over the $500 bln titan. As Facebook pushes into streaming, though, it'll find tougher pushback.
Fischer gives Trump freer rein over U.S. economy 6 Sep 2017 With the vice chairman leaving early and Chair Yellen’s term ending soon, the president can remake the Federal Reserve. His nominees will potentially make up a majority of Fed governors. That’s likely to speed the shift to a more conservative, less interventionist central bank.
Retailers’ credit-card life vest is over-inflated 6 Sep 2017 Macy's-branded plastic contributed nearly 40 pct of EBIT last year. At Kohl's and J.C. Penney, too, finance propped up profit. It's a quick fix at best for struggling U.S. mall tenants. They may find their credit-card partners pulling back as stores close and charge-offs rise.
Record basketball price is timely bet on Houston 6 Sep 2017 The owner of the Landry's restaurant empire will pay $2.2 bln for the NBA's Rockets. Buying a trophy asset as the city rebuilds after Hurricane Harvey makes for awkward timing. And yet sports often unify a community and the big investment suggests abiding faith in a recovery.
EU’s antitrust creativity drive hits roadblock 6 Sep 2017 A case that slapped chipmaker Intel with a $1.3 bln fine has been punted back to a lower court. This is a blow for antitrust tsar Margrethe Vestager, who has tried to get as innovative in policing tech giants as the companies are themselves. Proving abuses will be harder.
Guest view: Tax relief made for U.S. manufacturers 5 Sep 2017 President Trump's broad reforms probably will take many months to craft, but Congress already has a narrower bipartisan plan to help. Offering credits for putting R&D side by side with domestic factories can help productivity, argues Dhaval Jadav, the CEO of a tax consultancy.
Mort Zuckerman to newspaper industry: Drop Dead 5 Sep 2017 The NY property mogul sold the Daily News to the parent of the Los Angeles Times for $1 plus liabilities. It’s a victory of sorts for Tronc, which has lost other auctions and hovers near Gannett's takeover price. But it's another sad marker of print media's extinction.
Nasdaq signals information is the real market 5 Sep 2017 The tech-heavy exchange is paying $705 mln for eVestment, a data provider to asset owners and managers. It’s pricey at over 16 times adjusted EBITDA. But CEO Adena Friedman sees more value in information that brings buyers and sellers together than in acting as a trade conduit.
United Tech breathes rarefied air to bulk up 5 Sep 2017 The conglomerate is paying $30 bln including debt for Rockwell Collins. The combination makes sense but, with a weak 5 pct return on investment, UTC is paying up for aerospace scale. Elusive revenue benefits or a lucrative breakup are needed to prove the deal's potential.
Elliott shows tail wags dog in German M&A 4 Sep 2017 The U.S. investor has nudged Bain and Cinven into paying minority shareholders in drugmaker Stada 12 pct more than others got last month. Germany’s odd rules and passive investing make it all too easy for holdouts who own small stakes to throw their weight around.
Drahi’s U.S. adventure may end with a fizzle 4 Sep 2017 Telecoms magnate Patrick Drahi wants to expand his Altice group’s U.S. arm by buying other cable firms. The sector’s low margins could appeal to the famed cost-cutter. But larger companies, like $117 bln Charter, are out of reach. Drahi may have to make do with smaller fare.
Hurricane Harvey darkens forecast for OPEC cuts 1 Sep 2017 The oil cartel’s lower output was finally reviving prices before a storm knocked out around a third of U.S. refineries and dented demand. A glut of crude building up in tankers could force producers to rein in output even longer if they want to tilt the market in their favour.