Sea IPO lures investors angling for next big thing 20 Oct 2017 The Singaporean startup raised nearly $900 mln in a pricier-than-expected U.S. listing. That suggests investors looked past growing losses for fear of missing out on what could become Southeast Asia’s answer to Tencent or Alibaba. Those comparisons are a stretch.
P&G’s ho-hum quarter a gut check for management 20 Oct 2017 The $230 bln diapers-to-soap conglomerate contorted to keep Nelson Peltz off its board. Though it modestly beat quarterly earnings expectations, its underlying issues haven’t changed. Boss David Taylor is under pressure to make headway with full accountability for any stumbles.
Daimler’s reform drive lacks horsepower 20 Oct 2017 Bumper third-quarter sales do little to address the Mercedes parent’s long-term problems, which include a margin-sapping global shift to electric vehicles. Plans to split in three would lift valuations if that led to a separate listing. But progress is at walking pace.
Ericsson’s turnaround signal may weaken 20 Oct 2017 The telecom-kit maker’s results were less grim than expected, but sales are shrinking, and its operating margin is still feeble. New chief Borje Ekholm will struggle to meet his ambitious profit target unless he can shut – or find buyers for – its various loss-making units.
Lyft’s new $1 bln of cash spells gains over Uber 19 Oct 2017 The ride-hailing app has secured new funding led by Alphabet and a nearly 50 pct valuation increase. Its larger rival is struggling to regain momentum and is close to a down-round investment from SoftBank. Uber has the scale, but Lyft’s less aggressive approach is paying off.
Exchange Podcast: Scott Galloway 19 Oct 2017 The NYU marketing guru swung by Times Square to discuss what's next for "The Four" tech behemoths - Google, Apple, Amazon and Facebook. Among his predictions: one of them will be hit with a $10 bln-plus antitrust fine and Amazon will choose New York for its second headquarters.
HP Enterprise shows breakups can fail to shine 19 Oct 2017 Activists often prod companies to hive off promising businesses from boring cash cows. HP’s split shows the distinction isn’t always clear. The “exciting” servers and networking offshoot is returning more capital as expansion stalls while growth stirs at the PC and printer outfit.
Consumer goods makers poised for the big purge 19 Oct 2017 Nestlé, P&G and their peers are pumped far above their long-term valuations. Collectively, the biggest 10 would lose almost $350 bln of market value if history reasserted itself. A squadron of activists offer support, but Unilever’s earnings wobble hints at brittle share prices.
PayPal’s future rests on striking quadruple whammy 19 Oct 2017 The $80 bln payments firm is worth as much as Amex and has a higher multiple than Visa or MasterCard. Justifying that means renewing its deal with ex-owner eBay, nailing lending and expanding its popular Venmo app to merchants. For now, PayPal looks well-positioned to succeed.
Spare GE jet is symbolic target of Flannery sweep 19 Oct 2017 Scrapping a second plane that followed former boss Immelt around, just in case, is an easy sop for shareholders. The new CEO needs them on side as he mulls possible bigger changes at the $200 bln industrial giant, such as dropping long-held earnings targets or cutting dividends.
Hadas: Time to slay the free market-myth monster 19 Oct 2017 The oft-told story of vibrant private companies as economic heroes isn’t right, and the common tale of the incompetent state is equally wrong. A new group at University College London can help create a more accurate – and more complex – narrative. The economy is a shared project.
ICOs validate old-school “follow the money” mantra 19 Oct 2017 One of the biggest so-called initial coin offerings to date, $230 mln for what are known as tezzies, has led to a spat between its architects and a Swiss foundation that controls the digital cash. Where crowd-funding and crypto-currencies meet IPOs, traditional motivations apply.
Blackstone’s mass gives it gravitational pull 19 Oct 2017 Steve Schwarzman’s investment shop boosted earnings by 23 pct in the latest quarter, driven by management fees on its new $18 bln private-equity fund. With managed assets approaching $400 bln and $92 bln of dry powder, the alternatives firm has powerful momentum.
Verizon stuck in neutral as rivals shift 19 Oct 2017 The U.S. telecoms carrier reported a rise in wireless subscribers. But cable rivals Comcast and Charter are also offering mobile services. AT&T is trying to become a media company, and Sprint and T-Mobile may yet merge. A heavy debt load hobbles Verizon’s ability to quickly change lanes.
Unilever struggle gives hope to predators 19 Oct 2017 The consumer giant that fended off Kraft Heinz earlier this year reported weak third-quarter sales. Growth in developed markets is slow and consumers are fickle. CEO Paul Polman is sprucing up brands, but the more pedestrian Unilever’s performance, the more vulnerable it becomes.
Publicis pick-up the exception to ad land gloom 19 Oct 2017 The French group reported higher revenue, defying rivals WPP and Havas which binned growth targets this summer. That’s cold comfort for advertising bulls. Publicis seems to be taking a bigger share of a still-challenged market. Past underperformance makes it a poor barometer.
Rolet hands LSE successor a triple quandary 19 Oct 2017 The London Stock Exchange boss is going to exit once his replacement is found. The Frenchman expanded and diversified but failed to clinch a deal with Deutsche Boerse. His successor will inherit a company confronting big shifts in technology, capital markets and politics.
Ken Chenault a mediocre but tough act to follow 18 Oct 2017 The Amex boss is to leave after 17 years in charge. He survived a credit bust, an activist and losing the firm’s biggest client, Costco. But total return under his tenure lagged rivals. That may seem an easy target for new CEO Squeri to beat. But fintech will be his bugbear.
Greenhill loss heightens turnaround challenge 18 Oct 2017 The M&A boutique fell into the red last quarter and revenue plummeted as it completed fewer deals, even as most bulge-bracket rivals prospered. CEO Scott Bok is betting on a bumper recapitalization to boost shareholder returns, but that can’t mask the firm’s fundamental weakness.
Tootsie Roll bet could leave return cavity 18 Oct 2017 Hedge fund Spruce Point reckons the secretive confectionary firm may be worth half its $2 bln value. The short seller may have a point. But Tootsie Roll’s future rests on the health of octogenarian CEO and major shareholder Ellen Gordon. Betting against candy in general is safer.