China will make or break Reckitt’s $17 bln deal 10 Feb 2017 The cleaning products-to-condoms group is paying $90 a share in cash for baby formula-maker Mead Johnson. Cost savings only cover about half the $3.8 billion premium. Whether it can make up the balance will depend largely on boosting sales in the People's Republic.
Michael Dell holds good hand in KKR poker game 10 Feb 2017 The IT entrepreneur has built up a 10 percent stake in German consumer research group GfK. It's a punt that a tender offer by private equity group KKR will succeed, paving the way for a much-needed restructuring. For all the risks, Dell has a decent chance of tripling his money.
Apple sows seeds for India iPhone awakening 10 Feb 2017 The company is nearing a deal to assemble phones in one of the world's fastest growing handset markets. That may lower retail prices and boost potential sales. But lifting Apple's 2 pct market share depends on opening stores and resolving thornier issues like selling used models.
Wreckage of TPP could help fix NAFTA 9 Feb 2017 Donald Trump wants to renegotiate the 1994 pact with Mexico and Canada, covering over $1 trln of trade. The scrapped trans-Pacific deal included some helpful measures on dairy products and energy. They could be slotted into a revamped NAFTA, boosting the chances of a new deal.
Canadians walk fine line on Trump protectionism 9 Feb 2017 What's good for the U.S. is mostly good for the $2 trln economy to the north: it has been called "California with really bad weather." Unlike Mexico, Canada isn't a low-wage target. Some Trump policies pose risks, though – as does a gulf between the two nations' philosophies.
Twitter CEO’s excuses look like fake news 9 Feb 2017 Donald Trump's preferred social-media platform posted a feeble 1 pct increase in Q4 sales. Boss Jack Dorsey, also CEO of Square, said ad revenue would lag user growth, but Twitter only added 4 pct more monthly users. If the two-timing boss is giving his all, it's not enough.
One battle may remain for Anthem and Cigna 9 Feb 2017 A federal judge has nixed their $54 bln deal, agreeing with the Justice Department's competition concerns. In addition to fighting the government, Anthem and Cigna were squabbling with each other over the merger. That suggests the $1.85 bln break fee could be contentious, too.
Infineon U-turn is canary in Trumpian coal mine 9 Feb 2017 The German semiconductor group abruptly warned its Wolfspeed deal could be blocked by the U.S., a week after saying all was well. American regulators have tended to get antsy when Chinese deals are involved. A protectionist in the White House implies this could now be broadened.
Aramco fails to make a mountain out of Moelis 8 Feb 2017 The boutique's role advising the oil giant's mooted IPO added over $100 mln to its market value. That may seem like a big jump off one mandate. The opposite could be true though – investors may be underestimating the boost to Moelis's stature from its trophy deal.
Curing myopic CEOs requires playing long game 8 Feb 2017 A new McKinsey study finds that companies that focus too much on quarterly results badly underperform rivals with more distant horizons. It's just correlation not causality, but the research is a compelling start. Persuading investors might in time convince Corporate America.
Nordstrom handed a presidential gift certificate 8 Feb 2017 The higher-end U.S. retailer added some $300 mln in market value after Donald Trump deemed a business decision to discontinue his daughter's clothing line a personal attack. By overstepping his boundaries yet again, the president managed to turn shopping into an act of protest.
Winning with sports on TV becomes tougher game 8 Feb 2017 Fox and Disney blamed the price of broadcasting basketball, baseball and football for weighing down profit. The NFL and other leagues also are on the hunt for new sources of revenue, in another sign of how the television business model is no longer the slam dunk it once was.
Dan Loeb gets a little too bullish on bank stocks 8 Feb 2017 The high-profile hedge-fund manager reckons rate hikes will bolster lending and trading enough to jack up returns before tax cuts or deregulation. But sticky rules, the Trump rally's fragility and the fuzzy link between tighter monetary policy and fatter earnings warrant caution.
Gilead’s boom-bust presages gene therapy’s future 8 Feb 2017 A rapidly shrinking market for treating hepatitis C vaporized $9 bln of the biotech's value. A race by rivals to find and treat remaining patients could lead to further price cuts. It's a glimmer of how extraordinary success at treatment may pose a bottom-line conundrum.
GSK CEO leaves successor with scope for encore 8 Feb 2017 Departing chief Andrew Witty's final results beat expectations. He steered the drug giant through scandal and patent losses, but did smart deals, and created value. His vision of a diversified group is still unfinished, though, leaving successor Emma Walmsley plenty to do.
Crisis anniversary offers $30 trln sanity check 7 Feb 2017 That's one estimate of the cost of the financial meltdown that started 10 years ago with HSBC's $1.8 bln subprime mortgage loss. With talk of a regulatory rollback in the air, the anniversary offers a timely reminder that exuberance and loose standards can cause painful damage.
Silicon Valley fights for its life on immigration 7 Feb 2017 Over 100 tech firms, including Google and Apple, have joined the legal battle against President Trump's travel ban. They argue that the restrictions interfere with hiring and business operations. For an industry dependent on immigrants, the case represents a fight for survival.
Jose Cuervo IPO can drink to weak peso 7 Feb 2017 The U.S. election outcome put the Mexican tequila maker's stock float on ice. It's now back at a mooted valuation of over $5 bln with a Singaporean investor ready to take a shot. New tariffs in Jose Cuervo's biggest market are a threat, but a cheap currency may be just the tonic.
GM steers itself right to White House door 7 Feb 2017 The latest results from America's largest carmaker reveal it to be raking in even more from trucks and SUVs. That's good for margins and U.S. jobs. The implication, though, is that the new administration will have to ease off on emissions standards to keep the good times rolling.
China shows U.S. banks self-serving generosity 7 Feb 2017 JPMorgan and Citi have won coveted licences in China's onshore bond market. China's real goal might be to get inclusion in global bond indexes, which would bring stable foreign investment. But restrictions on capital flows make such bonds less appetizing than they could be.