Hadas: Basic income is basically confused 3 May 2017 As new technology threatens job security, the dream of giving all citizens a simple payment is making a comeback. But the idea is too expensive to be practical. It also ignores the biggest drawback of modern welfare states: that lives are complicated and people are not angels.
Elite animal spirits shift to comfortable smugness 3 May 2017 Dramatic U.S. tax cuts and deregulation may no longer seem certainties, but financiers and other bigwigs at the annual Milken Institute shindig in LA are sanguine. The Treasury secretary's in-jokes added to the coziness. Whether the easy feeling trickles down is another matter.
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.
Sainsbury over-seasons a stale retail recipe 3 May 2017 The supermarket’s full year like-for-like sales fell 0.6 percent, despite help from recently acquired Argos. Rival Tesco is diversifying too through its purchase of wholesaler Booker. Greater complexity masks problems caused by a long price war, but doesn’t fix them.
ITV boss picks prime time to duck out 3 May 2017 Adam Crozier is leaving the UK’s largest free-to-air TV firm after seven years as CEO. His strategy of building up ITV’s production arm has been vindicated, but the vulnerability of ad revenue and the rise of digital giants like Netflix and Amazon will vex his successor.
India’s Minister for Everything poses a problem 3 May 2017 Finance Minister Arun Jaitley also oversees defence and corporate affairs. Rolling out a giant tax reform, tackling bad debt, and managing military spending is too much for one person. It reflects a talent crunch in New Delhi as much as the playbook of a strongman ruler.
Coach’s luxury shopping habit risks distraction 2 May 2017 The high-priced handbag maker’s good third quarter is a bright spot amid struggling retailers. It doesn’t justify buying Jimmy Choo or Kate Spade, however. CEO Victor Luis vows no poor deals, but most are likely to be a tougher fit than his 2015 acquisition, Stuart Weitzman.
Apple plays soothing iPhone hold music 2 May 2017 The tech colossus sold nearly 51 mln smartphones despite a resurgent Samsung and maturing markets. App-store sales also grew and more dividends and buybacks are on the way. That should pacify investors until Apple rolls out the 10th anniversary edition of its pioneering device.
U.S. air-traffic revamp is overdue for boarding 2 May 2017 The White House wants to privatize flight control and overhaul ancient systems at an estimated cost of $35 bln. Canada pioneered a self-funding, stakeholder-governed model. A similar approach could work for America if carriers, politicians and others can dump their baggage.
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.
ConocoPhillips is wasting its oil crisis 2 May 2017 Only asset sales kept the company’s earnings out of the red in the first quarter. The cash from such deals will help Conoco cut its high debt load but CEO Ryan Lance is still splashing out on buybacks and dividends instead of reinvesting. That well has a limited lifespan.
EU clearing spat epitomises perils of hard Brexit 2 May 2017 Brussels may try to restrict euro-denominated clearing in the UK, a report says. European regulators have long fretted over the fact that most of it occurs outside the euro area. A compromise is more than possible – but is harder to achieve if Britain leaves the single market.
Money managers can’t dance to save themselves 2 May 2017 Fee pressure, passive investing and technology ought to spell big industry mergers. Yet those pressures, and the poor response to recent tie-ups, make such marriages hard. Deals to fill product and sales gaps, like Invesco’s Source bid, look like a more palatable option.
Cheap boss is a luxury Bovis can’t afford 2 May 2017 The troubled UK homebuilder's investors approved a hefty pay package for its new boss. He could earn over 100 times the average UK construction worker, up from 76 times for his predecessor. A politically incorrect salary is the price Bovis pays for a much-needed turnaround.
BP is pumping its way out of trouble 2 May 2017 After several years of pain the oil giant has almost recovered from its near-death experience in the Gulf of Mexico. Earnings tripled in the first quarter, helped by favorable prices and higher output. Even its hefty debt pile is manageable provided it keeps production flowing.
UK fund merger may tempt staff more than investors 2 May 2017 Aberdeen and Standard Life have set aside a reported 35 million pounds to retain star workers after they merge. The cost savings should be bigger and Aberdeen’s latest results support the strategic rationale for the deal. Yet market moves suggest shareholders are sceptical.
Indian IT torn between job-hungry world leaders 2 May 2017 Infosys plans to hire 10,000 Americans over two years. That makes sense. Outsourcers are expanding services that require more face-time with clients and U.S. visas may become harder to obtain. But good news for President Donald Trump is bad for Indian premier Narendra Modi.
ANZ edges towards capital safety zone 2 May 2017 The first big Australian bank to report first-half earnings shows improved capital levels. As Oz property prices keep skyrocketing, regulators want higher buffers defending the highly concentrated bank sector. ANZ's move is timely and necessary, even if investors aren't cheering.
DoCoMo spoils in India not enough to go around 2 May 2017 Another multinational is set to leave India with its shirt and little else. A local court upheld a London arbitration order for Tata Sons to pay the Japanese telco $1.2 bln owed for a JV gone awry. But the win against Indian authorities is scant comfort to foreign investors.
Trump rains on his own dealmaking parade 1 May 2017 Lawmakers kept Uncle Sam running with a temporary budget that called the president’s bluff on everything from the border wall to the environment to Obamacare. With no sign of leverage elsewhere, turning himself into a lame duck may be Trump’s major first-100-days achievement.
Dish’s lousy picture enhanced only by sale static 1 May 2017 The $30 bln pay-TV operator lost more customers even as it kept slashing costs. Investors are squarely focused, however, on Dish's expanding trove of spectrum and the company's value to potential suitors. The waiting game being played by boss Charlie Ergen is getting riskier.
Canada pipeline bid takes M&A momentum too far 1 May 2017 Pembina’s C$5.7 bln bid for Veresen comes after rising oil prices and hopes of favorable U.S. policies lifted valuations. But the 4 pct drop in the buyer’s stock suggests investors still require the basics: cost cuts that cover the deal premium and down-to-earth expansion plans.
AllianceBernstein shakeup sends active sell signal 1 May 2017 The firing of CEO Peter Kraus is the latest wakeup call for Wall Street stock pickers. Diversification efforts at the AXA-controlled firm failed to offset a long decline in its once-potent equities business. The upheaval suggests other active managers also have nowhere to hide.
Collegiate corporate finance may prove infectious 1 May 2017 Indiana's top public university is gambling its reputation for a shot at disruption. Purdue is buying online diploma mill Kaplan from the Graham family. The deal could either pre-empt a digital education revolution - or spread the bad behavior of for-profit schools even wider.
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.