United States of America

Exxon’s record profit belies missed opportunity

26 Jul 2012

The $15.9 bln bottom line may have been the best single quarter in corporate history, but it was greatly flattered by the sale of a Japanese refinery. Worse, Exxon’s U.S. crude output slipped and U.S. capex fell by a third. The domestic surge in oil production is passing it by.

New York Times looks blind in land of one-eyed

26 Jul 2012

Fellow embattled companies like Yahoo and Avon found respectable CEOs in relatively short order. After eight months, however, the newspaper publisher is still searching. Circulation growth helped lift an otherwise dim Q2. But the long quest for a boss is a bad sign of the Times.

Zynga disaster casts cloud over Facebook

26 Jul 2012

The Bubble Safari creator’s Q2 results were a mess. Most popular games lost users, its recent purchase of the maker of Draw Something looks a bust and Zynga pointed the finger at Facebook for some of its woes. Their symbiotic relationship will hurt as much as it has helped.

Macau’s high rollers cut bets as China’s odds dim

26 Jul 2012

Weaker profits at Las Vegas Sands suggest mainland gambling fanatics are taking a breather, including VIPs. There might be more at stake than just gaming profits: in better times, Sands owner Sheldon Adelson offered to wager $100 million on Mitt Romney’s U.S. presidential bid.

Ford’s dings shouldn’t distract investors

25 Jul 2012

The Detroit automaker made clear in its latest results that it has some kinks to hammer out in Europe and South America. But its U.S. business is cruising along nicely and the balance sheet is well-tuned. Ford isn’t the lemon the market valuation implies.

Ills of offshore stashes matched by state hoarding

25 Jul 2012

Over $12 trln was held in the top tax haven private banks in 2010, a 63 pct increase from 2005, says a new study by an advocacy group. Meanwhile, central bank foreign exchange reserves grew twice as fast. Bad policy fueled both and helps explain sagging economies.

Insider traders pay too dearly for defiance

25 Jul 2012

Miscreants like ex-McKinsey partner Anil Kumar get off lightly by snitching next to those who don’t cooperate. John Kinnucan’s guilty plea after he famously refused to help a U.S. probe provides a fresh chance to distinguish between breaking the law and being stubborn.

Sandy Weill U-turn fuels big bank breakup fire

25 Jul 2012

The former Citi boss wants banks to ditch their Wall Street ops. That’s rich coming from the man whose banking behemoth helped overturn Glass-Steagall. But it reflects growing frustration with financial reform across the political spectrum. A convert like Weill is hard to ignore.

Conoco underlines rich nations’ oil resurgence

25 Jul 2012

The company’s first earnings report as a refinery-free driller made much of surging production in the U.S. and other developed economies. The trend reflects a renewed focus on resources in the rich world as opposed to emerging markets. While it lasts, it’s less risky for Big Oil.

Anticipation makes Apple miss

24 Jul 2012

An unexpectedly sub-stellar quarter knocked nearly $30 bln off the company’s market value. Apple’s success has become a kind of burden. With most fresh products a hit - the next a new iPhone - it’s ever harder to get customers to buy current devices as launches approach.

IMF gets quasi-Goldman resignation moment

24 Jul 2012

Greg Smith’s public rant triggered fresh scrutiny of the Wall Street firm even though he said nothing new. So it could be with Peter Doyle, a 20-year IMF economist. His exit blast is causing internal soul-searching. Yet no-one should be surprised to hear that the fund is flawed.

Obama’s not the trustbuster he thought he would be

24 Jul 2012

The president promised an antitrust crackdown. A new study finds, however, that despite high-profile cases like AT&T, he’s no bolder than his predecessor, who Obama called wimpy on the subject. While tough talk can be a deterrent, the law trumps politics in deal enforcement.

Do-it-yourself law firm IPO looks a bit too feisty

24 Jul 2012

Bankers are valuing LegalZoom at a whopping 40 times last year’s earnings. That’s justifiable if the U.S. online legal site can turn impressive revenue growth into consistent earnings. But rising competition and potential lawsuits are just two of the company’s biggest risks.

Investment banking job cull is long overdue

23 Jul 2012

Faced with slumping income and tough regulation, the industry is bracing for another round of cuts. That won’t be easy: to make savings, banks will have to ditch business lines or redesign structures. But with shareholders antsy and no rebound in sight, they have little choice.

GE’s carve-up efforts remain half-hearted

20 Jul 2012

The $210 bln conglomerate is hacking its energy arm into three after doing the same with another division in 2010. Cost savings would be worth only some $300 mln. Maybe CEO Jeff Immelt, who has presided over a halving of GE’s share value, will warm to a breakup on a bigger scale.

Yahoo pays up for dream of CEO stardust

20 Jul 2012

The fading search firm hopes Marissa Mayer is the ticket to a turnaround. After churning through several CEOs, it’s easy to see why the Google hotshot snagged a $70 mln pay deal. But as J.C. Penney with its ex-Apple boss shows, there are no magic fixes for deep problems.

U.S. Dodd-Frank Act hits the terrible twos

20 Jul 2012

The landmark financial regulation’s second birthday marks a new phase as some of its most important rules soon take effect. The Act’s usual opponents will keep plotting infanticide. But smothering the boisterous toddler won’t be easy politically or logistically.

Chevron doubles down on Chavez staying power

20 Jul 2012

Venezuela’s bond yields have gyrated with investors’ changing views of the strongman’s cancer survival odds. But Chevron’s $2 bln loan to the state oil giant is a clear bet on Chavez’s re-election and survival. His shadow may darken the nation’s economic outlook for a while yet.

Citi, M. Stanley reveal randomness of M&A advice

19 Jul 2012

The two are trying to set a price for a stake in their wealth management JV. Bankers for Citi, the seller, think the unit is worth over $22 bln. The buyer’s whiz-kids conveniently reckon nearer $9 bln. There may be reasons for the gulf, but it’s a bad advert for merger science.

Google bogged down by shift to mobile hardware

19 Jul 2012

The search giant is pressing hard in computing on the go. Q2 results show strong growth in Android handsets and mobile search. Google’s numbers also now include Motorola Mobility. But the upfront costs of owning the handset maker mean progress isn’t yet translating into profit.