Most of U.S. economic might keeps faith with Paris 2 Jun 2017 Cities and states representing 60 pct of the nation’s GDP have pledged to support the climate accord despite Donald Trump’s withdrawal. They have a big say over local energy policies. Their stance can sustain a shift to a low-carbon economy despite the president’s cold shoulder.
Blackstone sells China some unlikely trophy assets 2 Jun 2017 The buyout firm is cashing in on an appetite for logistics by selling Logicor to CIC for 12.3 bln euros. A European e-commerce boom and shortage of property is driving up valuations and rents. Prime warehouses now have better yields than a luxury store in London’s Mayfair.
Blue Apron offers tasty food, nauseating numbers 2 Jun 2017 The meal-kit delivery firm that's going public serves up delicious meals and sales growth. But look closely at the ingredients. New-customer acquisition costs are surging, they're ordering less and competition is fierce. Like Groupon, the product is fine, the stock best avoided.
Hadas: Climate not real loser from Trump tantrum 2 Jun 2017 The decision to quit the Paris climate-change accord won’t have a big effect on either global warming or the fight against it. What is truly dangerous is the U.S. president’s frontal attack on the still underdeveloped system of global governance. A vigorous defence is now vital.
Review: Tragedy makes Facebook a better place 2 Jun 2017 COO Sheryl Sandberg’s "Option B," a moving exploration of grief, emerged from the death of her husband. Top executives rarely reveal so much. She has also changed Facebook's policies. More so than "Lean in," Sandberg's new book sets her up as the $450 bln firm's best ambassador.
Tight U.S. job market tests White House thinking 2 Jun 2017 Employers added 138,000 jobs in May, below projections. Unemployment is so low that a slowdown was inevitable. One problem now is supply, with baby boomers retiring. Boosting immigration and encouraging more women to work would help. Trump's policies so far act against both.
Top U.S. CEOs revolt against reality TV version 2 Jun 2017 Donald Trump’s rejection of the Paris climate pact drew swift opposition from corporate bosses, including those of GE and Goldman. The Tesla and Disney chiefs quit his advisory council. Losing business support this early bodes poorly for the administration’s economic promises.
Viewsroom: Donald Trump can’t melt Paris accord 1 Jun 2017 The president is pulling America out of the climate pact signed by 195 countries in 2015. But the continued commitment from cities, companies, investors and other states will limit the damage. Meanwhile Goldman Sachs steps into a Venezuelan mess. Plus: advertisers as activists.
Packaged-food firms rush to same M&A recipe 1 Jun 2017 Conagra is interested in buying $8 bln Pinnacle Foods, and both are eyeing Reckitt Benckiser’s North American food unit. Stagnating sales are pushing firms to bulk up in search of greater profits. With everyone looking to buy, selling is likely to generate the tastiest results.
GOP gives small-bank M&A an odd shot in arm 1 Jun 2017 Republicans have dashed hopes of regulatory relief for mergers that take assets above $10 bln. Compliance costs go up then, too. Ironically, that should spur a raft of mergers to justify crossing the threshold. It helps that the Fed is growing comfortable with deals of that size.
Deere deal is paved with good intentions 1 Jun 2017 The $40 bln U.S. farm-equipment maker is diversifying further into road building, paying $5.2 bln for Germany's Wirtgen. It's a big deal and overseas, but Deere's pitch on strategy and price sound reasonable. It will need to work out better than Caterpillar's Bucyrus bet, though.
Chicago emigration is warning of Detroit endgame 1 Jun 2017 More people quit the Windy City in 2016 than left any other U.S. metropolis. Chicago's pension funds and schools are already strapped for cash. A sustained exodus can only worsen the financial squeeze. If it's not reversed, the long-term risk is Motown's bankruptcy and blight.
Cox: Sgt. Pepper also taught the board to play 1 Jun 2017 It was 50 years ago that the Beatles spawned a music boom. The industry has changed, but the album's messages still resonate, even in the business world. As Warren Buffett or Steve Jobs might attest, if we work together, experiment and fix holes, things get better all the time.
Akzo is emblem for new “fortress Europe” 1 Jun 2017 The Dutch maker of Dulux paint thwarted a generous 25 bln euro takeover attempt from U.S. rival PPG without putting forward a convincing financial defence. As European governments reach for more power to fend off unwanted mergers, Akzo has shown how shareholders can lose out.
The Exchange: Festival season 31 May 2017 The first episode of our "Summer Reading" series kicks off on a musical note. Governors Ball co-founder Jordan Wolowitz discusses the economics of putting on a music festival, the business of live music and life as part of Live Nation, the world's largest concert-promotion company.
Trump climate exit has bright silver lining 31 May 2017 U.S. support for anti-warming measures will be missed, if its withdrawal from the Paris accord is confirmed. But states, cities and businesses remain on board. And for nearly 200 other countries, including top polluter China, progress may be smoother free of D.C. foot-dragging.
Three Mile Island signals nuclear climate change 31 May 2017 Nearly 40 years after the worst meltdown in U.S. history, nuclear energy’s dire economics are leading Exelon to pull the plug on the plant. Its carbon-free power is a valuable asset, but one that lacks political support as President Trump threatens to abandon the Paris accord.
NXP activists have a good shot at a sweeter offer 31 May 2017 Qualcomm is short of support for the purchase of its Dutch rival for $47 bln including debt. A rally in the chip sector has eroded the premium, and Qualcomm is desperate for diversification. A price hike looks needed to get NXP's owners – including agitator Elliott – on side.
Exxon climate vote puts sector on notice 31 May 2017 Over 60 pct of shareholders backed a move that forces the $340 bln energy giant to ramp up global-warming disclosure, up from under 40 pct in 2016. Exxon already embraces the climate debate more than many in the industry. Holdout peers will have to follow or risk investor ire.
Mark Zuckerberg listening tour could start at home 31 May 2017 Activists want the Facebook CEO to give up his role as chairman. The quixotic proposal doesn’t stand a chance as Zuckerberg controls the vote. Yet the idea holds merit. The $440 bln firm would benefit from an independent board boss and a patina of good corporate governance.