White House seeks new economic Cassandra 3 Jun 2019 The Trojan princess was fated to predict the future but be ignored. While Kevin Hassett made imperfect forecasts and flattered Donald Trump, there’s little evidence even his better advice was heeded. His replacement at the U.S. president’s think tank has an unenviable job.
Bayer animal-health buyout will need heavy petting 3 Jun 2019 Private equity groups are itching to get their hands on the German group’s flea-powder and tick-collar unit, the FT says. To earn a decent return, a new owner would need to supercharge sales, boost margins and cut R&D. Even then, the mooted 8 bln euro price tag looks excessive.
Transatlantic $10 bln chip deal does not compute 3 Jun 2019 Germany’s Infineon is paying a premium of almost 50% to buy U.S.-based Cypress Semiconductor. CEO Reinhard Ploss has given few details on how he will hit ambitious long-term revenue targets. Given the deal’s success hinges on hitting these goals, the price looks too high.
Fiat’s French appeasement game is means to an end 3 Jun 2019 Chairman John Elkann is mulling concessions to get the French state to greenlight the $35 bln Renault merger. A board seat for Paris and some cash shouldn’t risk planned cost savings, or Nissan’s assent. It’s a small price to pay for first-mover advantage in car consolidation.
Southeast Asia offers some emerging market shelter 3 Jun 2019 Trade friction and a stronger dollar have dented asset prices in Indonesia and its neighbours. But election distractions are over and central banks have scope to help growth. Most helpfully, investors trust policymakers here more than peers in countries like Turkey or Argentina.
Guest view: Innovation transforms central banking 3 Jun 2019 Technology is upending payments and regulation, writes the Bank for International Settlements’ Agustin Carstens. As policymakers rise to the challenge, and even study the possibility of issuing digital currencies themselves, monetary and financial stability is their pole star.
Blackstone deal stacks GLP closer to China IPO 3 Jun 2019 The buyout firm will purchase $18.7 bln of U.S. properties from funds managed by the warehouse giant, tapping booming e-commerce demand. GLP can now concentrate on a bigger package, its portfolio in the People's Republic. A rival’s imminent listing could also help speed up delivery.
Beijing’s threats may soon come in bigger packages 3 Jun 2019 Officials are drafting a blacklist for badly behaved foreign companies. It is the latest warning signal, as China tries to respond to U.S. blows without escalating an increasingly bitter trade dispute. But that’s getting harder, and a new FedEx probe raises the stakes.