Americas

Chesapeake gets pistol-whipping from shareholders

8 Jun 2012

Owners of the besieged U.S. gas giant voted overwhelmingly against renaming directors and the board’s executive pay plan, while favoring a slew of investor proposals to improve Chesapeake’s governance. It’s hard to see how Aubrey McClendon can keep running this circus.

OPEC ill-placed to stop oil price slide

8 Jun 2012

Some of the cartel’s worst infighting in its 50-year history hangs over next week’s meeting. That won’t help it cope with the euro crisis, which shows no signs of easing and augurs poorly for the price of crude. The evidence suggests OPEC won’t be able to do much about it.

Bankers can’t always hide behind bad legal advice

8 Jun 2012

A former Deutsche Bank broker won’t get a new trial on tax evasion because of blunders by his counsel. And yet ex-BofA boss Ken Lewis is blaming lawyers for poor disclosure during the Merrill merger. Passing the buck is a Wall Street pastime, but can be a risky game in court.

U.S. basketball finals hold odd election allure

8 Jun 2012

Embattled Chesapeake boss Aubrey McClendon and Bain Capital’s Steve Pagliuca are respective part-owners of the Thunder and Celtics, teams still in the hunt to be champs. The White House winners’ fête would tickle a President Romney, but could prove awkward for a re-elected Obama.

California shows way through tricky pension mess

8 Jun 2012

San Jose and San Diego want current public workers to make sacrifices for their pensions, like contributing up to 16 percent more of salaries to fund retirement schemes. Backed by voters, the proposals look to be a sensible way forward in the thorny thicket of pension reform.

Brazil’s meat champ gets rude welcome to big-time

8 Jun 2012

JBS, now the world’s largest meat producer, is vowing to sue Greenpeace after the environmentalists accused the company of damaging the rainforest. The spat showcases the risks that can come from quickly scaling up to become a global player. It’s a coming of age moment for JBS.

Review: Low finance can get into trouble, too

8 Jun 2012

High-concept trading and complicated derivatives aren’t necessary to lure bank bosses into deadly ego-traps. A new book chronicling Washington Mutual’s failure shows how unbridled ambition and poor controls led the lender from caution to disaster.

Disney’s sports battle with Murdoch goes global

8 Jun 2012

The rival media empires keep ratcheting up the war to broadcast everything from baseball to soccer in America and Europe. Now, they’re set to square off over cricket and more in Asia, after dissolving a 16-year partnership. The rising value of sports rights just got another bump.

Pfizer animal care spin-off will unleash value

7 Jun 2012

The name for the $165 bln pharma giant’s veterinary business - Zoetis - is pretty awful, but its prospects are bright. The coming IPO and separation of the unit, maybe worth $16 bln, underline Pfizer’s more than 15 percent valuation discount to peers. The gap isn’t justified.

Lululemon’s downward dog gnaws at yoga bubble

7 Jun 2012

The $9 bln maker of pricey sweatpants rattled investors’ chakras by warning of slower than expected sales and profit growth. Yoga may still be one of the world’s fastest-growing forms of exercise, but Lululemon’s stretched valuation is more about fashion than yogi proliferation.

Nasdaq pours gasoline on Facebook fire

7 Jun 2012

The exchange offered brokers a measly and controversial $40 mln to compensate them for over $120 mln of losses derived from the badly botched IPO of the social network. That has galvanized customers and rivals against Nasdaq. Boss Bob Greifeld is starting to look more exposed.

Google’s antitrust problem is all about privacy

7 Jun 2012

They seem like separate issues, but the internet search giant’s market power is largely fueled by its access to personal data. Limiting that could give competition a useful jolt. U.S. and European regulators need to keep that in mind as they move closer to legal action.

Bankia shows why U.S. Sifis must be ready to die

6 Jun 2012

Uncle Sam might easily wind down a firm the size of the sick Spanish bank. But coping with systemic institutions is different. A looming deadline for U.S. giants to draft living wills is a chance to prove they’re not too big or complex to fail. Otherwise, breakups could beckon.

Wisconsin puts proactive policies back on the map

6 Jun 2012

Governor Scott Walker’s victory in the Badger State’s recall election doesn’t just affirm his 2011 union-curbing budget reforms. It also suggests well-designed controversial policies are far from doomed. That’s good news for politicians of all hues battling Washington’s gridlock.

Party City celebrates embattled private equity

5 Jun 2012

A $2.7 bln deal for the costume and streamer chain wraps together the mixed feelings U.S. voters have for the buyout industry. Revel in the huge jobs and profit growth created by three Boston-based owners. But a dividend recap and growing debt leave the affair somewhat subdued.

Newest bank sheriff can’t let JPMorgan moment pass

5 Jun 2012

Just two months into the job, Thomas Curry got a swift reminder about the shortcomings he confronts running the OCC. Despite being JPMorgan’s primary U.S. regulator, it missed the whopping trading loss. Curry now has a chance to show if he’s ready to toughen up the agency.

Brazil’s easy money squeezes banking weaklings

5 Jun 2012

The central bank seized consumer lender Cruzeiro for “serious” financial violations. The episode may show what happens when a bank loses its way in a lending frenzy. Government policies of lax lending and loose money are taking a bite out of an otherwise sound financial system.

Record low rates encourage fat and lazy Uncle Sam

5 Jun 2012

Rock-bottom borrowing costs make future attempts by the Federal Reserve to boost growth largely irrelevant while giving Washington a free pass to do squat on the nation’s long-term fiscal problems. The U.S. needs a reality check, but markets continue to conspire against one.

Facebook’s short-term greed carries long-term harm

5 Jun 2012

Going public is more than just a one-time money-raising event. Facebook is a case in point. Debuting at a lofty valuation helped insiders. But the 30 pct stock plunge has hurt the social network’s reputation, a new Reuters poll shows. That’s bad for a consumer brand.

Latam’s new oil king dons large and heavy crown

4 Jun 2012

Colombia’s Ecopetrol is jockeying to surpass Brazil’s Petrobras as the region’s biggest oil producer by market value. Solid management has lured billions in capital away from rivals in meddling nearby states. But Ecopetrol may struggle to live up to the high hopes for its reign.