Hudson’s Bay may be more real estate than retail 1 Aug 2017 The C$2 bln Canadian company is under siege from a pushy investor. Jonathan Litt has ideas about repurposing the Saks Fifth Avenue flagship location and exiting Europe. Even if too bold, the bleak outlook for department stores suggests it's time for Hudson's Bay to refocus.
Online giants can learn a lesson from Wall Street 1 Aug 2017 Some U.S. lawmakers want to make Facebook, Google and other internet firms liable for things users publish on their networks. There are also calls for more oversight. Big banks drew similar scrutiny after the crisis. Their experience shows Silicon Valley how to avoid a crackdown.
P&G shines a light on its board of entrenchment 1 Aug 2017 The $230 bln consumer giant says becoming a director is "not an entitlement" but the result of a very rigorous process. Maybe, but the board looks like a corporate country club of current or former CEOs. Adding Nelson Peltz as a voice for the investor class is still a good idea.
Corporate America faces little guy in tax reform 1 Aug 2017 The White House is pitching an overhaul of the tax code. Republican leaders highlight company rate cuts while rank-and-file lawmakers are prioritizing middle-class relief. Congress is also toiling over how to pay for the revamp. Corporations may have to temper their wish lists.
China’s trophy case could become discount rack 1 Aug 2017 Big dealmakers such as Anbang and Wanda might have to hold a yard sale. HNA is still keen on ousted White House adviser Anthony Scaramucci's firm SkyBridge, but it too may need to cut back. Bargain-hunters will benefit from any Chinese selling spree.
Scana move signals lights out for U.S. nuclear 31 Jul 2017 The South Carolina utility is pulling the plug on two unfinished reactors and banking guarantees from Toshiba. Southern has given a temporary reprieve to its plants but investors are betting it will follow Scana. The country that birthed nuclear power is sounding its death knell.
Firing Mooch solves sliver of White House problem 31 Jul 2017 New Chief of Staff John Kelly ousted financier Anthony Scaramucci as communications supremo. It’s a good first step in reining in the chaotic U.S. presidency. But the bigger task for the retired general is disciplining America’s CEO, Donald Trump. That battle may not be winnable.
U.S. sanctions on Venezuela a double-edged sword 31 Jul 2017 Washington is weighing fresh trade retaliation after Venezuela’s constitutional vote. New measures may embolden opposition to President Nicolas Maduro, including from the military. There’s hope for Venezuelans, but U.S. companies like Phillips 66 and Chevron will share the costs.
Discovery’s cable deal rests on rosy assumptions 31 Jul 2017 The producer of “Shark Week” is buying Food Network and HGTV owner Scripps for $14.6 bln. Cost savings won’t cover the premium, and getting distributors to pay up for more content will be a hard sell in a churning media market. The Scripps family is wise to take mostly cash.
Hutchison Telecom’s sell-off is a risky call 31 Jul 2017 The Li Ka-shing-backed firm is selling its fixed-line arm for $1.9 bln. The market undervalued the unit and a better-than-expected price reflects keen competition for Asian buyouts. Yet the remaining business will be painfully dependent on Hong Kong’s wobbly mobile market.
Wells Fargo testing limits of customer inertia 28 Jul 2017 The U.S. mega-bank tacked on unneeded insurance to more than 500,000 car loans, adding to the reputational damage of its fake-accounts scandal. By rights, rivals or fintech upstarts should benefit. As the financial crisis proved, though, rage doesn't often send consumers fleeing.
Repeal’s death gives new life to healthcare rally 28 Jul 2017 Republicans’ inability to repeal Obamacare offers a reprieve to the healthcare sector. Insurers, drug firms and hospitals have benefited greatly from the ACA, and it remains on the books. Political hostility may yet destabilize exchanges, but profits continue to roll in.
Elliott’s Oncor delay mainly helps Elliott 28 Jul 2017 The hedge fund won more time to find $9 bln to take the Texas utility’s parent out of bankruptcy. Its plan values Oncor more highly than Berkshire Hathaway’s agreed offer. But it looks as if Paul Singer’s fund would get most of the benefit. That makes Elliott’s deal a tough sell.
FDA crackdown on cigarettes a rare win for science 28 Jul 2017 The U.S. watchdog wants to lower nicotine levels in a hit to Big Tobacco, whose shares plunged. The agency says long-term use kills half of smokers. It’s a departure from Team Trump’s rejection of facts in climate change. The FDA is the odd regulator defying corporate interests.
Exxon looks longingly at Chevron’s primed pump 28 Jul 2017 Both oil majors reported vastly improved second-quarter results. But Chevron is boosting production as investments start to pay off, while Exxon’s output is still shrinking. CEO Darren Woods’ short-term fixes, especially in the resource-rich Permian, have yet to strike it lucky.
Earnings power gives U.S. market rally new impulse 28 Jul 2017 Notwithstanding Washington's spectacular dysfunction, corporations are beating profit forecasts, growing at a double-digit pace for another quarter. Corporate America's ability to fatten the bottom line without a spurt in the broader economy justifies bull-market convictions.
Barclays gets scant credit for new trimmer figure 28 Jul 2017 The bank is retreating from Africa, shrinking quickly to focus on its core business and has a new returns target of 10 percent. There’s no timeframe to hit the goal, which may explain why shares are trading well below book value. CEO Jes Staley can fix that by losing more fat.
Amazon rides open road with few bumps 27 Jul 2017 The $500 bln internet retailer reported another riveting quarter of top-line growth. Investors will fret about the sky-high valuation and reduced profit, but feedback loops within the company keep rivals at bay. Governments may one day intervene, but that reckoning is far off.
ADP owners cash checks from Pied Piper Bill Ackman 27 Jul 2017 The $50 bln payroll processor's stock shot up 11 pct after Bloomberg reported the hedge-fund manager had built a stake. Neither Ackman's high-profile stumbles nor the middling performance of activists broadly proved a deterrent. Following blindly is a dubious investment strategy.
Stress-test reform risks handing banks easy ‘A’ 27 Jul 2017 Randal Quarles, Trump’s pick to head regulation at the Fed, thinks Wall Street should get details of the annual exam, such as models. He says it’s about providing questions rather than giving answers. That, though, may mean lenders have more clues, which could defeat the purpose.