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Jamie Dimon succession becomes mystery-horse race

8 Jun 2017

The JPMorgan boss is losing his leading successor candidate, COO Matt Zames. Age or inexperience may disqualify the bank’s capable division heads from being more than an interim boss. Giving CFO Marianne Lake a major business to run would signal she’s the next anointed one.

Nordstrom could be well suited for a buyout

8 Jun 2017

The family behind the $8 bln U.S. clothing retailer is considering taking it private. It looks workable at leverage of around four times EBITDA with insiders rolling over their stakes. The growing list of shopkeepers struggling with debt should sound a note of caution, though.

Blue Apron offers tasty food, nauseating numbers

2 Jun 2017

The meal-kit delivery firm that's going public serves up delicious meals and sales growth. But look closely at the ingredients. New-customer acquisition costs are surging, they're ordering less and competition is fierce. Like Groupon, the product is fine, the stock best avoided.

Exxon climate vote puts sector on notice

31 May 2017

Over 60 pct of shareholders backed a move that forces the $340 bln energy giant to ramp up global-warming disclosure, up from under 40 pct in 2016. Exxon already embraces the climate debate more than many in the industry. Holdout peers will have to follow or risk investor ire.

AIB’s IPO must balance politics and pragmatism

31 May 2017

Ireland plans to float 25 pct of the nationalised bank. A good result for the government would be a valuation similar to UK lender Lloyds. Similarities include low costs and strong market share. But AIB also has some things Lloyds doesn’t, like a bad loan ratio of 14 percent.

Goldman steps in avoidable $2.8 bln Venezuela mess

30 May 2017

Money managers at the firm bought oil giant PDVSA’s debt at a big discount, indirectly handing the central bank needed dollars. Investments aren’t necessarily moral choices, but can hit reputations. After trouble in Greece and Malaysia, Goldman ought to have a better nose for it.

Retailers’ upturn is a false bill of goods

25 May 2017

Sears laid out a rare profit, Abercrombie & Fitch sold more surfer-inspired apparel than expected and Best Buy got a jolt from electronics sales. While that's encouraging, Tiffany’s quarterly slump is a reminder the industry remains under pressure. The only certainty is more volatility.

CEO ejection hardly gets Ford back in the race

22 May 2017

The $43 bln carmaker lags domestic rivals on many fronts, including self-driving and electric vehicles. The stock's 36 pct decline under Mark Fields was the most visible manifestation of it flaws. But naming a 62-year-old furniture executive to replace him is a puzzling remedy.

Wall Street waking up to Washington reality

17 May 2017

A notable dip in the S&P 500 Index represents only a minor setback for the so-called Trump rally. The dollar, however, has given back nearly all its post-election gains. Treasury yields also have retrenched. Stockholders remain too optimistic about any D.C. policy uplift.

ValueAct practices what it preaches on succession

16 May 2017

The $16 bln hedge fund has made governance a signature issue in its activist approach. In handing over investing duties to longtime deputy Mason Morfit, founder Jeffrey Ubben is showing he can walk the walk. Other hedgies who hold on too long might learn from this example.

Thermo Fisher experiment starts with pricey deal

15 May 2017

The maker of scientific instruments is paying $5.2 bln to buy Patheon, which produces drugs and the chemicals used in them. Cost savings don’t come close to covering the premium. Its quarry's industry may be ready for consolidation, but Thermo also has a lot to learn about it.

China’s dealmakers edge out Trump in first round

12 May 2017

American cattlemen and financiers will get more access to mainland markets in exchange for chicken imports and a potential opening for Chinese banks. It's a good start but Beijing didn't give up much. U.S. negotiators will have to push harder if they want a better bargain.

Snap lays an egg worthy of Twitter nest

10 May 2017

The messaging app reported its first quarterly results showing a slowdown in user growth. That’s a worrisome trend since its lofty $27 bln value hinges on attracting more people. Meanwhile, rivals are co-opting features. The sheen of being the next new thing is fading fast.

Time may join ranks of regretful M&A refuseniks

10 May 2017

Days after spurning takeover interest, the magazine publisher cut its dividend amid falling revenue. Some companies wisely go it alone, but many can't recoup deal-imputed value. With Time's shares trading 40 pct below one bid, it has a steep climb ahead to justify independence.

Coach pays luxury price to catch up with LVMH

8 May 2017

The U.S. handbag maker is plunking down $2.4 bln for Kate Spade, a figure not justified strictly by the numbers. But Coach's owners like the move to a multibrand portfolio, which has worked for LVMH and Kering. Mature luxury marques can no longer expect to succeed on their own.

Sinclair $3.9 bln Tribune deal puts Fox in a hole

8 May 2017

The U.S. broadcaster is paying a 26 pct premium for its rival after Uncle Sam relaxed a wave of regulations. Tribune gives Sinclair more heft to mount a challenge to Rupert Murdoch’s Fox News. But it’s going to cost the buyer more than just the headline price tag.

French savers are a good bulwark against Le Pen

3 May 2017

Marine Le Pen’s anti-euro rhetoric will be a liability in Sunday’s election. Some undecided voters may share the far-right leader’s distrust of the EU. But ditching the single currency would be punitive for a country with the euro zone’s third-highest savings rate.

Barclays chief learns silence is golden

2 May 2017

Jes Staley vouched for his brother-in-law in a spat with buyout group KKR, a client of the bank. Helping out friends is a good quality in a human being, and a boss. A CEO’s job, though, is to keep a clear line between life and work. Investors have reason to expect it.

TV deal stirs ghosts of erratic Murdoch past

1 May 2017

Not long ago, Fox boss James Murdoch told investors to "rest easy" about the idea of the company buying more local U.S. stations. Now, it's looking at $6 bln Tribune with Blackstone. The reversal amid its messy Sky merger is a throwback to Rupert Murdoch's capricious ways.

Add Wells Fargo chairman to fake-accounts firings

25 Apr 2017

Just 56 pct of shareholders backed Stephen Sanger, a stinging rebuke for his failure as lead director during the scandal. After 5,300 employees and the CEO paid with their jobs, he and other board members with lackluster support should go, too, to help the bank rehabilitate.