Americas

Water can flow around U.S. infrastructure blockage

24 May 2019

The $1 trln needed to fix the nation’s aging pipes and other H2O infrastructure isn’t coming any time soon – as a new delay to a U.S. funding plan makes clear. The industry still has room for improvement, though, starting with better use of technology, data and capital.

Hollywood superagents demand investor tolerance

24 May 2019

Endeavor, the owner of William Morris, IMG and UFC mixed martial arts, is going public with a complex structure. In a town built on relationships there are benefits to keeping those with the best contacts close. But governance and an industry in flux confuse the IPO script.

Isolated Huawei may be shoved into Beijing’s arms

24 May 2019

Important suppliers such as Arm and Intel are abandoning the Chinese telecom titan after the United States blacklisted it. That puts $50 bln in overseas revenue at risk. Huawei has cash to cope for now, but a breakup or state intrusion can’t be dismissed as potential endgames.

Tech firms can be citizens as well as piggy banks

23 May 2019

San Francisco is mulling a so-called IPO tax to help fund affordable housing. Money isn’t really the issue, though: useful projects get snared in local opposition. Facebook and its ilk would do more good getting staff to be engaged citizens, and even incentivizing them to do so.

Viewsroom: America’s topsy-turvy regulators

23 May 2019

Qualcomm lost a lawsuit brought by one DC overseer, even as the DOJ intervened, while $26 bln T-Mobile US-Sprint merger is getting yanked around by agencies with opposing views. Doing business is hard when agencies no longer act in unison. Plus: Is Luckin Coffee going cold?

Closing diversity gaps involves no mystery

23 May 2019

Many global asset managers think improving diversity compromises returns. Meanwhile JPMorgan persuaded most shareholders that disclosing its gender pay gap was too onerous. These are excuses. The solution is simple: show the gaps, close them, or expect lawmakers to step in.

Brazil’s Natura is Avon’s logical final house call

23 May 2019

An equity value around $2 billion is an ignominious end for the famous cosmetics brand. But the Sao Paulo-based buyer, which also owns Body Shop and Aesop, is probably the right one, strategically and geographically. Synergies worth more than 3 times the premium attest to that.

Cox: “China does it” is a bad antitrust argument

23 May 2019

Sheryl Sandberg says Facebook shouldn’t break up since its Middle Kingdom rivals never will. France and Germany pushed hard for an anti-competitive train merger because of a looming Chinese monopoly. Western values should guide competition law, not Beijing’s Communist Party.

Boeing boss’s job is to restore trust – or quit

22 May 2019

The aerospace giant has a technical fix to the problem that caused two 737 MAX crashes. The real challenge for CEO Dennis Muilenburg is to regain the confidence of regulators and the public. That starts with owning up to mistakes made. If he isn’t up to the task, he should go.

Canada adds startup-like optimism to tech turf war

22 May 2019

The country has simpler immigration, livable cities and lower valuations than its southern neighbor. Capitalizing on U.S. dysfunction in a bid to become a tech magnet is smart. But if Silicon Valley is any guide Prime Minister Justin Trudeau should be careful what he wishes for.

Qualcomm, Sprint show U.S. policy blowing in wind

22 May 2019

A judge ruled against the $94 bln chipmaker in an Obama-era case the current administration failed to stop. The DOJ may block the FCC-recommended $26 bln telecom merger with T-Mobile US. Such cases highlight the random nature of Trump-era oversight. That’s bad for business.

Hadas: “Zero privacy” is both blessing and curse

22 May 2019

Back in 1999 a computer executive told people worried about disclosing personal data to “get over it”. They mostly have. Shared information is now too useful for regulation to restore lost innocence. For oppressive governments, meanwhile, individualised media is also valuable.

Google’s hidden costs give Beijing sticker shock

22 May 2019

Reaching for sharper trade weapons, Washington has clamped down on Huawei's access to the U.S. giant's software. Chinese handset makers selling abroad rely on Google tech: the free Android system powers their phones. A crackdown leaves much of a $175 bln export market vulnerable.

BP vote pours gas on Exxon’s climate fire

21 May 2019

Owners of at least a quarter of the U.S. oil major’s shares backed the overwhelming vote for more emissions pledges from its UK rival. BP’s support helped, but the result also shows the growing power of climate activists. Exxon’s decision to fight them now looks even more risky.

Big Tech deserves Wall Street-like global cop

21 May 2019

The G20 helped rein in systemically risky banks after the financial crisis by creating the Financial Stability Board to develop new rules. Adapting that approach to set up an Internet Accountability Board would be a smart way to police the likes of Facebook, YouTube and Twitter.

Samsung reaps benefits of U.S.-China tech war

21 May 2019

Restrictions on Huawei’s use of American chips and software will make it harder to sell telecom gear outside the PRC. And Apple products could be vulnerable to a backlash in China. That leaves openings for the Korean group to sell network equipment as well as more smartphones.

Oil market constrains Trump’s Iran war talk

21 May 2019

The U.S. president’s belligerent stance towards Tehran belies his dislike of costlier crude. While Saudi Arabia could increase output, it’s an imperfect hedge to the squeeze that would follow a conflict. Tight supply means Trump has little leeway for more than sabre-rattling.

Jaunts abroad offer useful cover for China’s Ctrip

21 May 2019

The $20 bln travel giant, owner of Skyscanner, has become a top shareholder in India's MakeMyTrip. Efforts at diversification are prudent: rivals are proliferating at home, and the economy is cooling. There's protection too, if Beijing pulls tourists into a worsening trade war.

Pay-TV tycoon comes to his own rescue

20 May 2019

Dish is suffering from falling subscribers and revenue, a heap of debt and needs bidders for its spectrum assets. Founder Charlie Ergen’s short-term fix is to pay stock to another of his companies, EchoStar, for some satellites it uses. The cash saved will buy Dish some time.

The Exchange: The trouble with America

20 May 2019

The country no longer loves the unremarkable and its inequitable universities are unsustainable, NYU’s Scott Galloway tells Breakingviews. As his new book “The Algebra of Happiness” hits the shelves, he also discusses his prescient Amazon call and why Big Tech needs breaking up.