Amazon’s one-click deal keeps Wal-Mart at bay 19 Jun 2017 The $230 bln superstore chain's stock fell 5 pct on news of the e-commerce giant's $14 bln purchase of Whole Foods. The target's shares rose above Amazon's offer, implying another bid might emerge. But a defensive effort from Wal-Mart or a worried rival looks a financial stretch.
U.S. Russia punch lands presidential double whammy 16 Jun 2017 Senators overwhelmingly backed sanctions on the old enemy as payback for the Kremlin’s election meddling. They also limited the White House’s ability to roll them back. That could leave Putin with a stalling economy and suggests Trump faces a harder time pushing his agenda.
Cox: NBC’s fake-news foray could have real fallout 16 Jun 2017 Comcast's $10-bln-a-year network faces a viewer and advertiser backlash over Megyn Kelly's upcoming interview with the founder of Infowars. Backing down would benefit the conspiracy theorist backed by Donald Trump. Only a hard-hitting takedown may help NBC avoid financial pain.
Amazon buys its way to the top of the food chain 16 Jun 2017 The e-commerce titan is going whole hog for U.S. groceries with the $13.7 bln acquisition of Whole Foods. Amazon's comfort with low margins and savvy in logistics make it a fearsome rival. The purchase price pales compared to the value the deal just chewed up across the industry.
Review: Gold’s financial fascination never dies 16 Jun 2017 Bullion-backed bucks won’t come back. Investments in it don’t yield dividends, either. "One Nation Under Gold" explains why the precious metal nevertheless captivates Americans. The shiny stuff, not unlike the Trump presidency, is a bet against elites and the establishment.
Europe and U.S. clash over who bullies the bullies 16 Jun 2017 Germany has bristled at draft U.S. sanctions against Russia, claiming the global policeman is overplaying its clout. Europe is readying a big fine for tech giant Google for doing something similar. Bullies aren’t easily toppled, but countries are harder to rein in than companies.
Dumb and Dumber 1MDB money trail is one to cherish 16 Jun 2017 Cash from the Malaysian fund ended up in a yacht, art, and rights to the film “Dumb and Dumber To”, the DOJ claims. The charges are incredible. But authorities are unlikely to recoup much. And alas, the days of U.S. crusades against global financial crime look numbered.
Bezos may surpass Gates in dollars, but not impact 15 Jun 2017 The Amazon founder could easily become the richest person, overtaking Gates' $89 bln. Volatility and high expectations make his e-commerce fortune fragile, though. Whatever the wealth score, Bezos can't claim philanthropic parity. At least he has started crowd-sourcing ideas.
Viewsroom: We need to talk about Uber 2.0 15 Jun 2017 Attempts to jump-start the ride-hailing app’s toxic culture stalled after board member and TPG founder David Bonderman’s sexist joke at a company meeting about sexism. The UK grapples with Brexit under a hung parliament. And could a Chinese invasion solve the North Korea problem?
Trump ethics waivers fail Delaware smell test 15 Jun 2017 Some White House officials have received permission to work on issues they handled as lobbyists. The exemptions violate earlier swamp-draining steps signed by the CEO-president. In the corporate context Trump prefers, such conflicts of interest also wouldn't stack up in court.
Kroger woes augur deep discounts at U.S. grocers 15 Jun 2017 The supermarket chain is the latest victim of price-cutting, losing nearly $5 bln in value after shaving earnings guidance. Wal-Mart is stepping up efforts to undercut rivals while German discounters Aldi and Lidl are expanding stateside. Consumer gains mean shareholder pain.
U.S. for-profit colleges get presidential clemency 15 Jun 2017 The education secretary chosen by the founder of defunct Trump University is set to rework two Obama administration rules that targeted dodgy degrees. They could be improved, but more likely they'll be weakened. Students may need to be more vigilant and taxpayers could lose out.
U.S. lawmaking umpire’s budget may meet resistance 15 Jun 2017 The Congressional Budget Office, the nonpartisan number-cruncher, wants a 7 pct funding bump. The Trump team doesn't control that directly, but it isn't giving other data agencies extra and it dislikes the CBO. It's crucial, though, to a rational assessment of new legislation.
Wells Fargo drives stagecoach further into mud 15 Jun 2017 The $270 bln lender is being sued for changing bankrupt borrowers’ mortgage terms without consent even as its fake-accounts scandal unfolded. Home loans should've been squeaky clean after earlier missteps, too. The bank now run by Tim Sloan is struggling to get the basics right.
Holding: White House holds trump card in gift suit 15 Jun 2017 Democrats in Congress filed a third case claiming Donald Trump violated the constitutional ban on presents. All the accusers face long odds of proving they were hurt directly or that the lawsuits belong in court. Impeachment remains the better option for the president's critics.
Investors may be new killer species at SeaWorld 14 Jun 2017 They voted against the re-election of the $1.5 bln theme-park group’s chairman in an apparent rebellion over pay. It’s a stunning rebuke in the absence of a proxy fight and with a newly minted Chinese 21 pct stakeholder. Activism doesn’t always require an activist.
Black gold collects more layers of tarnish 14 Jun 2017 U.S. crude prices dropped another 3.7 pct on the same day data showed wind and solar making up 10 pct of America's power generation for the first time. The trends may not be directly related, but they both reflect technology and demand trends that bode ill for fossil fuels.
Bonderman gaffe spreads toxicity past Uber exhaust 14 Jun 2017 The TPG founder’s sexist joke at a meeting about sexism shows how far the ride-hailing app has to go to change its culture. He at least quickly took responsibility and quit the board, unlike CEO Travis Kalanick. But the financier’s poor judgment may worry other firms he advises.
Fed raises balance-sheet nerds’ heart rates 14 Jun 2017 The U.S. central bank hiked rates as expected. It will also soon begin shrinking its $4.5 trln stock of bonds. The process will be gradual, taking a few years to trim the holdings below $3 trln. But when one of the biggest buyers of bonds throttles back, markets may face a test.
J.Crew bond revamp is roadmap for asset transfers 14 Jun 2017 The retailer is trying to restructure $567 mln of debt giving some bondholders access to valuable assets that will irk other lenders. To bridge the gap, they’re offering those lenders buyouts at par. It’s a clever way to mend several problems. Other wobbly retailers take notice.