Review: Mad men struggle in vain to preserve past 1 Jun 2018 A new book examines Madison Avenue’s uneasy relationship with Facebook. Advertising firms are trying to combat the social network’s clout with electronic exchanges and use of data. But author Ken Auletta merely flicks at the obvious: The middlemen don’t have a prayer.
Petrobras CEO exit weakens Brazil’s adult oversight 1 Jun 2018 Pedro Parente had been a successful boss of the state oil giant until it cut diesel prices to placate striking truckers. Now his tenure looks more like a blip than the end of traditional government meddling. Petrobras’ share-price plunge is a warning about how the economy is run.
Investors retain edge over in-demand U.S. workers 1 Jun 2018 U.S. job creation strengthened in May with the unemployment rate hitting an 18-year low of 3.8 pct. Even so, wages rose only 2.7 pct year-on-year. The White House said corporate tax cuts would translate into higher pay. But buybacks have so far made shareholders the real winners.
EU divisions are weak spot in U.S. trade fight 1 Jun 2018 Responding to American tariffs with duties that hit Republican-controlled districts is shrewd. The next step is harder. Germany’s best option is to ease tensions by cutting car tariffs, but France opposes concessions. Eastern Europe may care more about U.S. security guarantees.
Spain can survive Frankenstein government 1 Jun 2018 A no-confidence vote in Prime Minister Mariano Rajoy has replaced his weak minority administration with a hodgepodge of parties. But the economy is growing and fresh elections, if held, might produce a more stable outcome. Political turmoil in Italy is probably a bigger threat.
UK funeral probe is death knell for juicy earnings 1 Jun 2018 The competition regulator is investigating pricing in the 2 bln pound industry, sending shares in the only listed provider tumbling. Remedies range from forcing providers to be more transparent about burial costs to price caps. Either way, it’s curtains for morbid profit margins.
CEO exit takes Samsonite rebuttal only so far 1 Jun 2018 The $5 bln luggage-maker parted ways with its boss after a short-seller revealed he didn’t hold a doctorate despite sometimes being called “Dr”. Samsonite’s efforts to knock down other accounting and governance allegations could take longer after it lost the benefit of the doubt.