U.S. jobs gains yet to vanquish crisis hangover 2 Jul 2015 The economy added more positions in June and the jobless rate fell to 5.3 pct. It’s a steadily improving situation – yet there are clear signs of slackness, like a new low for workforce participation and stagnant wages. The damage from the 2008 crunch is proving persistent.
Iberdrola’s American dream gets harder to realise 2 Jul 2015 The Spanish utility’s $3 bln takeover of listed U.S. peer UIL has been dissed by the Connecticut regulator. Iberdrola can probably offer concessions to get the deal done. But the costs of doing so risk making its attempt to crack the fragmented American market less attractive.
Healthcare M&A pumped after Obamacare booster shot 2 Jul 2015 The U.S. top court decision upholding medical-coverage subsidies signals the official start of a race to consolidate. Centene and Health Net’s $6.3 bln deal gives the insurers an early lead. Big rivals like Cigna may catch up as the industry accepts that reform is here to stay.
Hugo Dixon: Greeks choose between bad and terrible 2 Jul 2015 Voting “Yes” in Sunday’s referendum would mean Greece suffers at least two years of recession. Voting “No” would bring financial havoc in the short run followed by the return of the drachma, hyperinflation and deep-seated economic depression. The right answer is “Yes”.
Dirty coal deal dents Merkel’s climate credentials 2 Jul 2015 A costly compromise protecting carbon-heavy lignite has sent RWE shares up 5 pct. But it puts Berlin’s ambitious 2020 emission goals at risk. Angela Merkel’s green credentials are suffering just when she needs them to push for consensus at December’s crucial Paris climate summit.
Macau investors look for end to long losing streak 2 Jul 2015 Shares in the enclave’s battered casinos rallied after June gambling revenues declined less than expected and the government loosened visa rules. Much of the bad news is priced in. Yet China’s ongoing graft crackdown precludes a speedy rebound. And valuations are still stretched.
Ousted CEO shows risks of SoftBank startup splurge 2 Jul 2015 Indian property site Housing.com has fired founder Rahul Yadav six months after the Japanese conglomerate became its largest shareholder. The 26 year-old was a liability and had to go. Still, it’s a reminder of the perils of listed companies making venture capital investments.
GE could yet pull cooking appliance deal from fire 1 Jul 2015 U.S. trustbusters sued to block Electrolux’s $3.3 bln purchase of the conglomerate’s oven business. The firms may be able to pull an American Air-US Airways and sell assets to save the deal, but market definition issues loom. Either way, Uncle Sam knows how to turn up the heat.
Nike displays unsportsmanlike governance conduct 1 Jul 2015 Founder Phil Knight’s transfer of stock that allows him to elect a majority of the board to a foundation constitutes a foul of sorts. Though investors will give the sneaker giant a pass for its extraordinary performance, their successors may rue that failed call.
Deutsche investors imbue new CEO with magic powers 1 Jul 2015 Shares in Germany’s biggest bank rose 5 pct after new boss John Cryan pledged to get tough. The reaction looks overdone: the co-chief executive is sticking to the strategy and delaying details on cost cuts. The right tone helps, but there’s no easy fix for Deutsche’s troubles.
ACE aims to defy history with $28 bln Chubb deal 1 Jul 2015 The Swiss insurer is buying its upscale U.S. rival. Cost and tax savings don’t cover the premium, implying ACE believes in promised revenue gains, also touted in the Willis-Towers Watson merger this week. The failed 1999 marriage of Provident and Unum, though, provides a warning.
Fossil fuels deserve dispassionate analysis 1 Jul 2015 Coal, oil and natural gas are dirty and contribute to global warming. They also make the global economy hum. Substitutes remain more expensive. That matters most in poor countries where GDP growth does the most good. A wise climate policy would count up both sides of the ledger.
Heathrow offers quaint lessons in infrastructure 1 Jul 2015 After at least six years of heated debate, a British government-appointed panel has backed the idea of a third runway for London’s largest airport. China has built 44 new airports in that time. The UK’s deliberative approach has advantages, but now it’s time to start building.
Greece could use German-style last-ditch mediation 1 Jul 2015 A proven technique to resolve deadlocked wage disputes in Germany is worth a try in the Greek standoff. Both sides could name an impartial mediator who proposes a non-binding compromise. By bridging the lack of trust, a breakup prohibitively costly for everyone may be averted.
Hugo Dixon: Tsipras looks like he is crumbling 1 Jul 2015 With Athens defaulting to the IMF, public opinion moving against the Greek PM and the banks closed, Tsipras seems desperate for a deal with his creditors. But it is not clear they will cut him any slack. They may prefer to deal with his successor.
Sony tests popularity with "selfie" capital hike 1 Jul 2015 Selling $3.6 bln of shares and convertible bonds is punchy after years of destroying value. But Sony is back in favour with investors. Plus, it has a weak balance sheet and a growth business to fund: sensors for the pin-sharp cameras that go front and back on today’s smartphones.
Fear all working robots, not just big bionic arms 1 Jul 2015 SoftBank’s Masayoshi Son says automatons may outnumber humans in 30 years. It sounds far-fetched. But robots are 80 percent cheaper now than in 1990, and getting lighter and safer for people to use. That makes them a big risk to many of the world’s 6 billion future workers.