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.
Uber’s journey to good governance jerks to a start 13 Jun 2017 CEO Travis Kalanick will leave temporarily as the ride-hailing firm tries to impose order. An indefinite absence and putting a shrinking group of direct reports in charge are murky first steps. Finding an independent chairman should help, but the board could use a bigger shakeup.
Viking blazes hedge-fund path with capital return 13 Jun 2017 The hedge-fund giant is replacing its CIO and returning $8 bln to investors after a spell of poor performance. Viking hopes to generate stronger returns by working with fewer assets. This could be a teachable moment for an industry struggling to justify its excessive fees.
Altice IPO offers new reason to dislike cable guy 13 Jun 2017 Entrepreneur Patrick Drahi is seeking a $23 bln valuation for his U.S. unit while giving investors almost no voice. With hefty debt and few assets to buy, it’s hard to see Altice achieving its grand ambitions. There are plenty of reasons to be a cord-never, financially speaking.
Exchange Podcast: Tony Ressler 13 Jun 2017 As co-founder and CEO of Ares, Tony Ressler oversees the management of $100 billion. During a recent conversation in Los Angeles, he talked about the bull market under President Trump, his firm's struggling investment in Neiman Marcus and the rising cost of higher education.
Treasury report trumps Trump on Dodd-Frank reforms 13 Jun 2017 Steven Mnuchin’s department is signaling a more modest overhaul of the financial law than the president has suggested. It would weaken the consumer-protection authority and modify, not eliminate, the Volcker Rule. It’s a more realistic approach that still gives relief to banks.
Toshiba cash gives only half-life to nuclear plant 12 Jun 2017 The Japanese company’s $3.7 bln settlement shores up Southern’s finances but leaves a cloud over its troubled reactors. Construction continues for now yet the utility is still on the hook for overruns. It may yet decide to pull the plug on the plant, and nuclear’s U.S. future.
Getting Uber out of reverse hard for whoever’s CEO 12 Jun 2017 Whether it's Travis Kalanick or anyone else, running a sprawling enterprise is a challenge. Uber also faces a mass exodus of senior executives, a toxic culture about to be laid bare and a business model based on inventing the future. Downward spirals in tech don't often end well.
White House woes provide ironic spur for Congress 12 Jun 2017 Behind the administration’s toxic headlines, GOP senators are quietly working on Obamacare repeal. Lawmakers need a win before the summer recess, and looming budget battles, to keep President Trump’s economic agenda alive. The Russia probe serves as both distraction and impetus.
Yahoo investors are U.S. tax-reform skeptics 12 Jun 2017 With the sale of its core business ratified by shareholders, the company's $52 bln worth should reflect the after-tax value of stakes in Alibaba and Yahoo Japan. For now, the implied tax hit is 35 pct. People who believe Trump will succeed in slashing taxes should buy the stock.
Tech selloff lumps apples with oranges 12 Jun 2017 Shares in technology giants including Apple, Facebook and Amazon have suddenly tumbled. Given their rapid ascent this year, a correction always seemed likely. Still, such sector-wide moves obscure huge differences in different companies’ earning power and cash reserves.
Data-center realty disconnects from tech reality 12 Jun 2017 The race by Amazon, Google and other firms to dominate cloud computing has brought huge demand for server farms. A $7.6 bln merger of Digital Realty and DuPont Fabros creates one of the biggest such collections. It's a good use of overvalued stock, but still too pricey.
GE’s CEO choice pushes the boundaries 12 Jun 2017 By anointing John Flannery to succeed Jeff Immelt the industrial titan is doubling down on a strategy that transcends its U.S. roots. Flannery knows restructuring and has run GE units from India to Argentina. Geographically and structurally, the company's lines may be redrawn.
Competing Dodd-Frank visions make rollback uncertain 9 Jun 2017 The U.S. House voted to undo post-crisis financial rules. The Senate has a tamer view that rejects gutting the consumer protection agency and resolution powers, and overhauling capital standards. A deal requires compromise. That’s not a forte of bill sponsor Jeb Hensarling.
Pandora opens itself to Malone’s box of tricks 9 Jun 2017 The $2 bln music-streaming service agreed to a capital infusion from the U.S. media mogul's Sirius XM. John Malone eventually took over the satellite-radio company after a similar initial investment. Pandora rejected a full buyout, but may now be exposed to creeping control.
Trump officially becomes Indian IT business risk 9 Jun 2017 The $21 bln outsourcer Wipro named the U.S. president high up in a list of risk factors for investors. It's the first strong warning in print, and it hammers home the particular vulnerability of Wipro's industry to Western protectionism – and the shortage of options to counter it.
Review: Zippy Uber trip gets barely halfway there 9 Jun 2017 Readers of "Wild Ride" are in safe hands with Fortune's Adam Lashinsky at the wheel. The book is efficient and effective, like travel using Uber's app. Given the fast pace of events for the $68 bln firm, however, life already has sped past this literary journey's destination.