Americas

Saudi turmoil is new twist on old C-suite dilemma

20 October 2018

The kingdom’s admission that Jamal Khashoggi died in its Istanbul consulate damages the crown prince’s ability to execute his Vision 2030 strategy. If Saudi were a company, its chairman would replace the CEO and continue with economic reforms. That possibility remains remote.

The Exchange: Stephen Harper

19 October 2018

Canada’s former prime minister, in office through the financial meltdown a decade ago, is an advocate for conservative politics with a small “c.” He talked to Breakingviews about the revamped NAFTA, Donald Trump’s standoff with China and the pros and cons of the loonie.

P&G’s innovation drive could use a boost

19 October 2018

Healthy consumers helped the consumer-goods giant report strong sales. Even its troubled razor business has sharpened up a little. P&G is following activist Nelson Peltz’s advice and trying new things. With costs rising and pricing power weak, it can’t afford to slacken the pace.

Facebook hires one weapon for two-handed fight

19 October 2018

Nick Clegg, former UK deputy PM, will lead global affairs at the $450 bln social network. His anti-Brexit stance and EU background could help with tribulations in Brussels. But he’s an odd choice to deal with Washington, where scrutiny may intensify after the midterm elections.

Holding: Company babysitters get deserved spanking

18 October 2018

The U.S. Justice Department will cut back on hiring monitors for corporate wrongdoers. Trusted to keep Citi, Apple and others in line, these super-nannies often turn into meddlers fond of excessive oversight and fees. Policing business misconduct is too important to outsource.

Viewsroom: Saudi fiasco sets Wall Street ablaze

18 October 2018

Bankers and officials have ditched a huge Saudi shindig after Turkey accused the kingdom of killing a prominent journalist – but big deal fees and oil reserves make the kingdom hard to shun. Breakingviews columnists discuss the financial ramifications of the diplomatic crisis.

Bond investors add fuel for Uber’s profit bonfire

18 October 2018

The ride-hailing company has tapped the junk market for $2 bln, even though it generates no EBITDA from which to pay interest. Investors are betting either that Uber will turn a profit – or more likely, that its dash for growth will lure future investors who can pay them back.

Guest view: Governments need more accountants

18 October 2018

Many states waste their resources and hide their obligations, write Ian Ball and Dag Detter. Poor accounting is partly to blame. Measuring public assets and liabilities is a first step to better financial management. That requires more accountants - and fewer economists.

Blackstone’s $1 trln goal needs some protection

18 October 2018

Steve Schwarzman’s outfit hopes insurers can help double its assets by 2026. Its credit funds offer the higher yields the industry is dying for, while steady fees might boost Blackstone’s valuation. The trick is to persuade risk-averse insurers that a buyout firm is a good home.

U.S.-EU derivatives kumbaya could get canned

18 October 2018

The U.S. swaps regulator wants to increase global cooperation. But trade tensions, Iran sanctions and a long and painful history of overreach by the U.S. itself are reasons for Europe to say no. Even though both sides could benefit, attempts at playing nice could come to grief.

Wall Street offers no relief to European rivals

18 October 2018

On average, U.S. investment banks reported a 7 percent jump in equities revenue in the third quarter, while fixed income trading declined. If results from European peers follow the same trend, top-line growth will be minimal. That leaves more cost cutting to boost dreary returns.

U.S. Treasury hasn’t yet been Trumped

17 October 2018

China again escaped being named a currency manipulator by the U.S. agency, despite pressure from the president. Although some trade-related penalties are already happening through other means, it’s a rational decision. Steady hands at Treasury and the Fed offer investors comfort.

SEC data-fee ruling hits exchanges where it hurts

17 October 2018

The U.S. securities regulator’s rejection of two increases won’t hurt NYSE and Nasdaq in the short run but it does challenge their business model. The fragmentation of equity trading has made data as valuable as execution or listings. Losing pricing power is a big risk.

Finance makes Apple and Google forced friends

17 October 2018

Steve Jobs once wanted to destroy Google for copying the iPhone. The company he founded is now dependent on the search engine and its parent Alphabet for around 10 pct of its profit. The growth of mobile search and the market for secondhand phones will bind the two even tighter.

Dollar Tree proves money doesn’t grow on mergers

17 October 2018

The $20 bln U.S. ultra-discount chain has lost a quarter of its value in nine months. That’s despite winning a fight to acquire Family Dollar in 2015 and beating merger cost-cut targets. Now activist Carl Icahn may be buying shares. Deals only buy time for struggling retailers.

Wall St seeks ambitious banker for lit new role

17 October 2018

Canada has legalized recreational marijuana, and other countries are likely to follow. That’s an investment-banking opportunity. Goldman Sachs and Bank of America have already dabbled in cannabis deals. It’s only a matter of time before a big firm hires its first “head of weed.”

Guest view: Climate activism nears final frontier

17 October 2018

Google, Planet, MethaneScan and space agencies are starting to track pollutants from orbit, giving big emitters like Coal India and PetroChina more reason to come clean. That, writes Thomson Reuters sustainability guru Tim Nixon, gives a needed boost to tackling global warming.

Hadas: Beware of the curse of financial markets

17 October 2018

In theory, movements in bond and stock prices have big economic effects. In practice, the ties are fairly tenuous. But the widespread belief that these minor and inaccurate indicators are valuable is enough to give them power. A bad week in the markets can do real economic harm.

Japanese banks sit quietly pretty in Saudi saga

17 October 2018

Top U.S. and European bank bosses have pulled out of Riyadh’s investment conference. Japanese rivals MUFG and Mizuho are relatively insulated from the same culture of protest. If anything, it’s a chance to court favour in the kingdom and increase their share of Saudi’s fee wallet.

Netflix is online video’s Walmart, and its Tiffany

16 October 2018

CEO Reed Hastings has created a firm that has both the scale of the giant retailer and the pricing power of the luxury jeweler. That’s rare. The trick will be ensuring his $145 bln outfit, which added more subscribers than expected last quarter, can maintain both labels.