Alphabet ad autopilot heads for profit and bother 27 Apr 2017 The $610 bln Google parent racked up another strong quarter with a 22 pct increase in revenue. Its deepening digital-advertising duopoly with Facebook helps make growth more predictable – but may also bring the companies closer to a face-off with antitrust watchdogs.
Viewsroom: Europe’s electoral frenzy 27 Apr 2017 France is about to choose a new president. The UK has called a surprise election. Germans head to the polls soon and Italians and Greeks could be close behind. As Brexit gets in motion and President Trump settles in, Europe’s election season will bring risks and opportunities.
Henry Kravis finds polite barbarian at his gate 27 Apr 2017 ValueAct disclosed a nearly 5 pct interest in KKR. Jeff Ubben's firm is usually friendlier than many activists and sounds positive on the buyout shop's prospects. Private-equity stocks have lagged bullish valuation hopes, though, and that could lead to a push for bigger changes.
Pharma deal offers new buyout double-dip trial 27 Apr 2017 Carlyle and Hellman & Friedman are swapping stakes in drug tester PPD while increasing its paper value 2.5 times, to $9 bln. The firm’s growth may justify the valuation but shuffling buyouts is opaque and can harm returns. As fund-to-fund deals grow, this risk will loom larger.
Archived tax plan could help White House close gap 27 Apr 2017 Donald Trump's bullet points, summarizing earlier campaign ideas, would add trillions to U.S. deficits over 10 years. Ex-Congressman Dave Camp sketched out a more balanced plan three years ago. It may offer a blueprint, albeit with smaller business-rate cuts than Trump wants.
Lazard’s buy-side bets deserve shareholder love 27 Apr 2017 Roger Altman’s Evercore trades at a higher multiple than rival Ken Jacobs’ firm due to faster M&A growth. But equity-market upheaval is hitting its trading business while Lazard’s asset-management unit is weathering industry changes far better. Its shares should reflect that.
Cox: Proximity to Trump no blessing for stocks 27 Apr 2017 Equity-market winners and losers from the president's first 100 days are surprising. "Failing" New York Times shares have surged. White House talent providers Goldman Sachs and Exxon are down. Blackstone and Fox are flat. Distance from the Oval Office may prove a virtue.
Dole’s latest IPO could leave owner sucking lemons 26 Apr 2017 David Murdock wants to take his fruit and veg empire public again four years after a controversial buyout that landed him in court. Even after paying down some debt, Dole may only be worth enough for Murdock barely to break even. That’ll please the investors he stiffed in 2013.
FCC puts dubious faith in U.S. broadband oligopoly 26 Apr 2017 New Chairman Ajit Pai wants to roll back rules that classify high-speed internet as a utility. He reasonably points to reduced investment following their implementation. A defanged regulator overseeing dominant providers of a crucial service, however, would be bad for customers.
Trump’s sketchy tax math will fail Congress test 26 Apr 2017 The president’s plan for big rate cuts relies on the unrealistic assumption that GDP will hit 3 pct and be enough to cover any revenue shortfall. The U.S. deficit, though, is growing at an alarming pace. Republican lawmakers are likely to demand a do-over before giving it a pass.
Chipotle partly fulfills Bill Ackman’s order 26 Apr 2017 Recovering sales at the $14 bln burrito chain helped keep the pushy investor's big bet on a roll. A new payments data breach could make investors queasy again, though. Chipotle has a long way to go before it cooks up the kind of return Ackman's Pershing Square typically craves.
Hadas: Nationalists are united by economic muddle 26 Apr 2017 Brexit fans want freer trade, Marine Le Pen is a protectionist and Donald Trump can’t make up his mind. Populists also disagree on fiscal deficits and industrial policy. What they share is an aversion to the truth that national prosperity starts with compromises on sovereignty.
Twitter unduly attracts financial followers 26 Apr 2017 The struggling social-media company touted user growth as evidence it can get back on track under moonlighting boss Jack Dorsey. Revenue also fell 8 pct, a first since Twitter's 2013 IPO, as advertisers grew skeptical. There's hardly enough evidence to justify the market zest.
Wal-Mart reroutes e-commerce race to last mile 25 Apr 2017 The mega-retailer may add khakis merchant Bonobos to its growing web collection. More significantly, Wal-Mart just started discounting online items if customers pick them up in stores. Making the model work is a tall order, but at least tries to exploit an edge it has on Amazon.
Add Wells Fargo chairman to fake-accounts firings 25 Apr 2017 Just 56 pct of shareholders backed Stephen Sanger, a stinging rebuke for his failure as lead director during the scandal. After 5,300 employees and the CEO paid with their jobs, he and other board members with lackluster support should go, too, to help the bank rehabilitate.
Trump finds a trade battle worth fighting 25 Apr 2017 The president is slapping a 20 pct duty on Canadian softwood after decades of officials complaining of subsidies. The administration has a good case in going after one of the nation’s closest allies. That should also give Trump some leverage – if he doesn’t overplay his hand.
Whole Foods can make Cerberus complete in grocery 25 Apr 2017 Trump pal Steve Feinberg's private-equity fund pulled a $12 bln float for supermarkets chain Albertsons in 2015. Albertsons could go public, and burnish its shelf space, by reversing into organic grocer Whole Foods. GE’s recent deal with Baker Hughes shows how that might work.
Fresenius bets $4.8 bln on post-Trump drug sector 25 Apr 2017 The German healthcare group’s bid for Akorn makes sense. The U.S. drugmaker’s high-margin business has little overlap and a full product pipeline. It is paying a 35 pct premium but Fresenius needs few synergies to meet its cost of capital. Politics may be the fly in the ointment.
Arconic takes battle of letters to Elliott 24 Apr 2017 The parts maker offered to back two of the activist's four board picks but accused Elliott of twice reneging on agreed compromises. The exit of CEO Klaus Kleinfeld after his own intemperate screed has not relieved the tensions. Regular shareholders may by caught in the crossfire.
U.S. “animal spirits” are turning into zombies 24 Apr 2017 The bump in U.S. stock prices and bond yields after November's election is still there, but fading. Donald Trump's business-friendly ideas are looking less likely to get through Congress. And if yardsticks measuring protectionism are any guide, that threat has evaporated.