Research “Big Bang” sifts losers from megastars 1 Mar 2017 Sellside firms must charge fund managers an explicit price for European securities analysis from next year. Research is already competitive - hence brokerage CLSA chopping 90 staff in the Americas. More jobs will go, even as the best analysts command fatter pay packets.
Trump sends investors more conflicting signals 28 Feb 2017 Speaking to Congress, the president repeated his criticism of foreigners after telling journalists earlier he’s open to legal status for illegal immigrants. There also were scant details on tax and healthcare reforms. A still-hazy message bodes poorly for the economic agenda.
Harry Potter conjures Japanese growth for Comcast 1 Mar 2017 The U.S. cable giant is paying $2.3 bln to buy out Goldman Sachs and other partners in Universal Studios Japan. The theme-park operator's success highlights a part of the Japanese economy where growing domestic consumption is no chimera. A boom in tourism helps too.
JPMorgan dangles Trump-hued carrots to investors 28 Feb 2017 At its annual investor shindig the bank run by Jamie Dimon dangled the prospect of a 25 pct profit boost even before any White House cuts to taxes or red tape. The prediction is tantalizing but ignores the risks inherent in the new president's jingoistic America First policies.
Snapchat valuation requires different filters 28 Feb 2017 Parent Snap is set to go public this week. The traditional market cap at the top of the indicated range is $18.5 bln. Including stock promised to staff, that shoots up to $22.3 bln. Blocking out new money, it's $20 bln. All tallies demand heart-shaped, rose-tinted lenses, though.
SoftBank satellite bid orbits optimistic creditors 28 Feb 2017 The Japanese telecom group wants to merge its OneWeb startup with industry titan Intelsat. A combination depends on bondholders accepting haircuts on much of the $14 bln in debt. There's a juicy quid pro quo: long-term backing from Masayoshi Son’s giant tech fund.
Starbucks embarks on ultimate market test: Italy 28 Feb 2017 Howard Schultz wants to woo espresso-mad Italy, which inspired his $82 bln creation, with its first-ever swanky "Roastery" in Milan. Italians have long resisted filter coffee. But depressed real estate and a partnership with an artisan baker could give Schultz the jolt he seeks.
Pared Tudor fees still in hedge-fund royalty zone 28 Feb 2017 Paul Jones' $10 bln firm, once among the most successful and expensive, is cutting fees to 1.75 pct of assets and 20 pct of gains. That's finally inside the archetypal "2-and-20" but it remains above average. Like other hedgies, the veteran needs to rediscover elusive returns.
Target’s wobbly aim will take time to correct 28 Feb 2017 The U.S. retailer reported unexpected top-line weakness and forecast more pain, wiping $5 bln from its market value. Pressure from the likes of Wal-Mart is hurting. A 34 pct jump in online sales is encouraging, but Target will continue to struggle with changing shopping habits.
Trump’s “European Apprentice” is a real-life sequel 28 Feb 2017 The president’s support for Brexit and criticism of the European Union makes its members nervous. Though leaders publicly pledge a united front, they are privately jockeying for influence in his administration. It’s a closed-door version of the TV contest that made Trump famous.
Canada Goose IPO may lead investors on wild chase 27 Feb 2017 The fast-growing maker of downy winter coats will be controlled by backer Bain Capital using super-voting shares. High-end Italian rival Moncler offers an aspirational comparison and suggests a possible $1 bln valuation. Trendy fashion companies, however, can be fretful pursuits.
Trump wraps U.S. budget flaws in $54 bln flag 27 Feb 2017 Boosting military spending by that sum largely at the expense of diplomatic soft power may please ardent supporters. Fixing Defense Department mismanagement would be wiser, though, and avoid a clash in the president's own party. Jingoism risks bringing higher costs in many forms.
Masayoshi Son could make easy work of $100 bln job 27 Feb 2017 His SoftBank may plunk $4 bln into office-space upstart WeWork. Son blanched at two earlier opportunities to invest at valuations lower than the $20 bln now on offer. One big difference is the Vision mega-fund. Perspectives can change when other people's money gets in the mix.
Buffett’s $1 trln target for Apple is in sight 27 Feb 2017 The Berkshire Hathaway boss reckons the iPhone maker might be the first company worth that much. Growth has slowed, but Apple will continue to churn out huge profit for the foreseeable future. Just valuing the underlying business in line with the S&P 500 would hit the mark.
PwC might have seen Oscars mixup coming 27 Feb 2017 The accounting firm presided over an error that saw the wrong movie initially named as best picture before "Moonlight" took the prize. PwC's audit work for numerous scandal-hit companies has shown how even established processes are no match for human sloppiness, buck passing and vacillation.
Warren Buffett risks losing his own winning wager 26 Feb 2017 The Berkshire Hathaway boss devotes a big portion of his latest missive to extolling the virtue of index funds. He has proved his point in a successful bet with a market pro that hedge funds wouldn't overcome the S&P 500. By one metric, Buffett is struggling to do the same.
German wanderlust intensifies U.S. grocery wars 24 Feb 2017 Discount supermarket Lidl is following rival Aldi with plans to open 100 U.S. stores. Armed with an extra-lean business model, Aldi is already succeeding where Tesco, for one, failed. That will add to pricing pressures on traditional food retailers and even the likes of Wal-Mart.
Review: Steven Cohen’s enduring edge 24 Feb 2017 Sheelah Kolhatkar’s “Black Edge” is a compelling tale of the U.S. government’s decade-long failed attempt to charge the billionaire fund boss with insider trading. As Cohen prepares to open a new firm and politicians embrace deregulation, the epic struggle is clearly in the past.
Hollywood’s Oscar glow could be dimmed by China 24 Feb 2017 Some $5 bln from the People's Republic has been pumped into U.S. movie production since 2014. The infusion has been a big help as studio margins shrink. A Beijing crackdown on financing presents a threat, however, and could mean more belt-tightening after Tinseltown's big night.
Britain’s takeover regime is worth exporting 24 Feb 2017 “Put up or shut up” rules tightened after Kraft’s Cadbury deal have led to more deals where the bidder makes a firm offer, UK data shows. Generali, currently being stalked by Intesa Sanpaolo, will be envious. It would benefit if something similar was implemented in Italy.