The greenback is wobbling a bit after a stellar run. It’s a temporary setback. Dollar strength is supported by economic fundamentals, suits the euro zone, and is susceptible to a bandwagon effect. And the currency doesn’t look expensive on a long-term view. The rally will resume.
The mega-bank has given CEO Brian Moynihan the additional title of chairman. The move not only puts too much power in one person’s hands, it reduces the position to a perk that can be granted or taken away, depending on performance. That’s a lousy governance deal for investors.
The car maker seems to have avoided the potholes Ford hit in Russia and Latin America. Now CEO Mary Barra is promising bumper margins. Trouble is, these rely on sales or pricing power GM has yet to demonstrate – and on the lack of geopolitical risk, which it cannot control.
The beverage giant has backed off its controversial executive compensation scheme. That’s a win for Warren Buffett, investor David Winters and the company’s other shareholders. But the quibbles with Coke don’t end with excessive pay. Costs loom as the next activist target.
The $6 bln firm, one of the more prolific and measured U.S. activists, is shuttering as founder Ralph Whitworth battles cancer. Just days earlier, Bill Gross roiled markets by leaving Pimco. Such individual power is rare in banking, but big names reign in the world of investing.
A federal judge rightly tossed out a shareholder suit to recoup $72 bln of profit from the bailed-out mortgage firms. That means Fannie and Freddie earnings will keep flowing into Uncle Sam’s coffers. For as long as that continues, revamping housing finance looks a non-starter.
Growth may yet survive the deadly epidemic. The last four years’ 28 pct pace isn’t realistic, but controlling the outbreak soon should at least preserve investment. That won’t be easy, given the virus has now spread to the U.S. In saving lives and the economy, every day counts.