Ant’s MoneyGram fail becomes America First symbol 2 Jan 2018 Jack Ma’s financial offshoot has scrapped its $1.2 bln purchase of the U.S. cash-transfer company. The Alibaba boss made nice with Donald Trump early on, but his pledge to spark 1 mln American jobs wasn’t enough to get the deal past a new, and bipartisan, prickliness with China.
Deals a better bet for drug giants than R&D 2 Jan 2018 Last year, U.S. regulators approved the most new therapies since 1996. Yet the return on research outlays for big firms, barely topping 3 pct according to Deloitte, is inadequate and falling. More focused, smaller firms are winning scientifically – and their owners financially.
Predictions 2018 2 Jan 2018 From elections to electric cars, we offer a series of insights into what 2018 has in store for companies and economies. Read our predictions online or download the book
TV content wars will have grisly season finale 2 Jan 2018 Netflix plans to hike its spending on programming by 33 pct this year. Add in Apple, Amazon and Hulu, and a fightback by traditional media, and budgets are rising faster than video-streaming revenue. It’s a golden age for viewers, and a nail-biter for the companies themselves.
Boeing’s stealthy Embraer approach has big aims 2 Jan 2018 The U.S. aerospace giant is considering joint ventures with the Brazilian planemaker rather than a takeover bid. That’s smart. A lower altitude should allow it to sidestep political and financial turbulence while forging more extensive links than rivals Airbus and Bombardier.
Activists’ guide to 2018 (sponsored by P&G) 2 Jan 2018 Investors seeking new strategies, more dividends or board seats aren't going away. The siege of the Pampers maker by Trian, which ultimately won a board seat, will embolden others to take up the cause. Resistance isn't futile, but needs to be more carefully considered.
Passive funds will claim a CEO scalp in 2018 2 Jan 2018 Index trackers keep winning market share but companies can’t take their passivity for granted. State Street campaigns for gender diversity, Vanguard and BlackRock defied Exxon on climate change, and the latter backed Nelson Peltz at P&G. Firing a poor manager is the next step.
Italy will go back to its old ways in 2018 2 Jan 2018 The country’s flawed electoral law will produce a hung parliament in national polls. Reformist forces will be weaker while former Prime Minister Silvio Berlusconi will gain traction. A return to the frail coalitions of the past makes it harder to cut public debt and red tape.
Fewer fines are upside of bank compliance drive 2 Jan 2018 The UK’s Financial Conduct Authority collected 230 million pounds in penalties in 2017. Though that’s a big increase on 2016, the haul was skewed by a record fine for Deutsche Bank. It suggests hefty spending on tightening up controls is finally delivering some benefits.
What we got right – and wrong – in 2017 2 Jan 2018 Breakingviews foresaw a dip in mega-deals; bank bailouts in India; and a “Chinese” turn in U.S. governance. But columnists overestimated the pace of change in America, and some fantasy M&A stayed precisely that. With 20/20 hindsight, silence was not always golden either.