Mike Bloomberg’s billions may not buy White House 9 Feb 2016 An independent run by the media mogul and former mayor would be well-capitalized by his own personal fortune. Solid financial backing has not, however, been a good indicator of success for Jeb Bush, Hillary Clinton and others. This race is dulling the power of money in politics.
Bridgewater spat tests odd but successful culture 8 Feb 2016 Founder Ray Dalio and a top lieutenant at the $154 bln hedge fund firm have been at odds. The “radical transparency” behind 25 years of 13 pct returns usually doesn’t include internal clashes spilling into the open. It may heighten “key man” worries at such an idiosyncratic shop.
Wobbly U.S. pipeline deal could do with less cash 8 Feb 2016 Energy Transfer’s planned takeover of Williams has shrunk to a third of its original $33 bln value. The buyer can’t obviously wriggle out of a bid made amid plunging oil prices. With big customer Chesapeake ailing, too, revisiting the mix of cash and stock would help both sides.
Tech investors bear up for painful reality check 8 Feb 2016 LinkedIn plummeted 44 pct after cutting this year’s growth outlook. Rivals were also hit. Worsening prospects are finally prompting shareholders to question the rosy adjusted-earnings scenarios often touted for tech companies. With valuations still high, more red ink lies ahead.
Argentina’s Macri puts money where his mouth is 8 Feb 2016 The president offered holdout creditors a 25 pct discount on $9 bln of defaulted debt. Two agreed. Hedge fund Elliott is holding out; Argentina’s Congress and a U.S. judge must OK any deal. But a functional economy and access to global markets may finally be in reach.
Decent U.S. jobs report leaves Fed in quandary 5 Feb 2016 Wage growth may finally be taking hold. Americans are getting better-paying work, spurring more people to seek it. January’s headline figure of 151,000 new jobs undershot estimates, though. And Janet Yellen et al know they’ll be blamed for global market volatility, too.
Hess stock buyback folly is one for the ages 5 Feb 2016 The $11 bln oil explorer is selling shares to shore up capital. Not long ago, it repurchased more than twice as many at double the price amid an Elliott insurgence. The toxic mix of a cyclical industry, activism and financial engineering should be a required boardroom case study.
Activist + private equity = no M&A for Symantec 5 Feb 2016 The internet security group netted $5.3 bln from selling Veritas. Pressured by Elliott, it’s now borrowing $500 mln from Silver Lake and returning all the cash to investors rather than keeping a war chest. Symantec’s questionable dealmaking record makes the straitjacket merited.
Super Bowl 50 could mark peak sports TV 5 Feb 2016 More than 100 mln people are due to watch the Panthers and Broncos battle for supremacy on Sunday amid $10 mln-a-minute ads. Live sports are pivotal for broadcasters but the $18 bln price tag is getting harder to justify. As cord cutting accelerates, the chalice will be poisoned.
Obama oil-tax idea deserves at least a test drive 5 Feb 2016 The U.S. president’s $10-a-barrel fee would fund infrastructure and nudge consumers from fossil fuels. It might also up demand for gas-sipping autos, helping carmakers meet emissions goals. And energy firms could pass on the cost. It will, alas, surely stall in an election year.
Viacom’s boardroom drama belongs on reality TV 4 Feb 2016 CEO Philippe Dauman replaced Sumner Redstone as chair of the $18 bln media firm, thwarting the controlling stockholder’s daughter, Vice Chairwoman Shari Redstone. She wanted an independent leader. Investors may not like the soap opera, but it has potential as a much-needed hit series.
Cox: Bloomberg’s White House hurdle is Wall Street 4 Feb 2016 The media mogul mayor may yet try to be U.S. president. Hands down he’d be the richest contender ever. It would take extreme candidates Bernie Sanders and Ted Cruz as nominees for Michael Bloomberg to run. The bigger issue is that he’d have his deep ties to finance to explain.
Conoco dividend cut is chance to assess priorities 4 Feb 2016 The $48 bln U.S. oil producer will pay out 66 pct less, a month after the CEO said it was the “highest priority.” The mixed signals are unhelpful, but the alternatives – borrowing more or sacrificing future production – are worse. It’s a prudent step for the industry to consider.
It’s time bully Louis Vuitton was sent packing 4 Feb 2016 The French fashion house’s often dubious trademark lawsuits are pricey to fight, so most targets fold. That can squelch free speech and fair competition. One tiny handbag maker just beat LVMH and wants it to pay its attorneys. Legal hubris may finally become an expensive luxury.
CBS board changes herald Viacom game of thrones 3 Feb 2016 Sumner Redstone is out as chairman of half his $40 bln empire, with the job going to the CEO. That swaps one kind of poor governance for another but at least Les Moonves has done well for shareholders. A double grip on power at Viacom may not come so easily to Philippe Dauman.
Amazon seeks brick hedges for click shipping costs 3 Feb 2016 Delivery subsidies cost $5 bln last year, and they are rising. A mall owner says Jeff Bezos’ internet-retailing giant may open hundreds of bookstores. If so, it will encourage customers to become their own “last-mile” service. The gains for Amazon would be biggest in cities.
Last thing Brazil’s economy needs is Zika panic 3 Feb 2016 The toll the virus may take on unborn babies is tragic, but it isn’t as infectious as Ebola or SARS. A bigger worry for tourists and Olympic athletes is dengue fever. Direct Zika costs also should be negligible. The danger is that headlines fracture already fragile confidence.
Syngenta up against element of regulatory surprise 3 Feb 2016 The Swiss seed maker says its $43 bln sale to ChemChina shouldn’t raise U.S. national security fears, despite hot-button facets like chemicals, food and China. Yet Philips’ blocked lighting-unit deal shows Uncle Sam can veto without explanation. That’s reason enough to be wary.
GM will struggle to take recovery up another gear 3 Feb 2016 The Chevy maker rode booming U.S. car sales to record full-year profit, hitting a 10 pct North America full-year margin goal 12 months early. GM thinks it can boost earnings, profitability and cash flow in 2016. Peaking U.S. demand means the climb will get harder from here.
EU curbs on free data flows are basically useful 3 Feb 2016 Europeans may get rights to stop indiscriminate U.S. data-snooping if national agencies agree to a new political pact called Privacy Shield. Multinationals won’t know how it works until April at the earliest. But this is the basis for a welcome check on Big Tech’s power.