Citi hits a twofer with its new chairman 5 Nov 2018 The $163 bln bank isn’t just sticking with governance best practice by replacing Michael O’Neill with another independent board boss. It’s also, in John Dugan, putting a former regulator in charge. With Citi’s history of lurching from one crisis to another, that’s a smart move.
Corporate America leads the country to the polls 5 Nov 2018 Walmart, Tyson Foods and hundreds of other firms are making it easier for employees to cast a ballot in the U.S. congressional elections. A mishmash of state laws and the lack of a national holiday makes voting a challenge. This initiative shows how companies can be good citizens.
Facebook’s Africa friends need heart, not darkness 5 Nov 2018 Cameroon used a fake cannibalism video Mark Zuckerberg’s $430 bln outfit left on its pages to justify a military crackdown. Facebook has not done enough to combat online abuse as social media booms on the poorest continent. But effective monitoring would hardly break the bank.
Brazil’s Bolsonaro gives China electric shock 5 Nov 2018 Beijing-backed energy companies hope to invest tens of billions in Brazilian power, but the president-elect has warned of Chinese intentions. Firms like State Grid would bring needed money and expertise, but populist suspicion might overrule commercial logic.
Review: How banks helped cause the housing crisis 2 Nov 2018 Why are homes so unaffordable in big Western cities? Josh Ryan-Collins blames decades of excessive mortgage lending rather than paltry building rates or planning rules. That’s depressing for millennials: the logical fixes are a much harder sell than just building more houses.
Tough U.S. Iran sanctions talk meets oil economics 2 Nov 2018 Eight countries can temporarily keep importing Iranian oil without defying sanctions. Top U.S. diplomat Mike Pompeo says the aim is still to go to zero. With a domestic election and Saudi in a mess, it’s a way to keep acting tough while limiting the risk of oil price spikes.
Dick’s fires starter pistol for smart-gun market 2 Nov 2018 The $3.6 bln U.S. retailer that ditched AR-15s in February would support selling guns that can only be fired by their owner, an idea the industry traditionally hates. The previous stand on safety dented sales but helped profit. If this one takes off it could be good for both.
Big Oil’s profit bonanza raises flaring risk 2 Nov 2018 Exxon and Chevron posted sharp earnings gains and the strongest cash flows since days of $100 crude. Texas drilling is rising and areas like Guyana are booming. But price rises may not last and investors are demanding greater returns. It’s not a time for spendthrifts.
Google staff protests point to growing labor clout 2 Nov 2018 They were aimed at the company’s failures in tackling sexual harassment. Ditto at McDonald’s a few weeks ago. When executives at such different firms have to listen, though, it’s another sign – backed up by the latest U.S. jobs data – that workers are becoming a scarce commodity.
Alibaba feeds fears of cooling Chinese consumption 2 Nov 2018 Quarterly sales hit $12 billion, but the e-commerce titan missed expectations and trimmed guidance. That suggests local shoppers and advertisers may be pulling back. It won't reassure investors rattled by trade tensions and lacklustre spending during a big October holiday.
Starbucks hasn’t got recipe quite right yet 1 Nov 2018 The coffee chain’s same-store sales increased 3 percent, as it got customers to spend more per transaction while tweaking menus and working practices. Boss Kevin Johnson’s experiments are helping to turn around the lackluster U.S. business. But profitability isn’t keeping pace.
Apple’s pricey strategy carries risk 1 Nov 2018 Making its new iPhones more expensive helped boost the tech giant’s revenue 20 percent in the latest quarter. Now Tim Cook is applying the same formula to the company’s Macs, iPads and accessories. But a warning that growth may slow suggests even Apple fans have price limits.
China trade-secrets case brings sanctions closer 1 Nov 2018 State-backed chipmaker Fujian Jinhua was indicted for allegedly stealing designs from U.S. rival Micron. It was already barred from buying U.S. parts, so this raises the stakes. Former President Obama mulled sanctions for industrial espionage. That idea could be in play again.
Goldman gets no closure from banker’s 1MDB plea 1 Nov 2018 Former star banker Tim Leissner pleaded guilty in the Malaysian money-laundering scheme. The firm can cite his lies and deception. But fat fees from bond offerings should’ve raised red flags. U.S. authorities have punished Wall Street for past examples of poor oversight.
Cox: A dead president is revived for wrong reasons 1 Nov 2018 While midterm U.S. elections may be a referendum on the living president, in one California town the fight is over William McKinley’s legacy. Citizens will vote on removing a statue of the “Napoleon of Protection”. Tragically overlooked in the debate are his faulty economics.
Dan Loeb wins if he loses at Campbell Soup 1 Nov 2018 The activist rightly blames bad dealmaking for the near-halving of the foodmaker’s share price, and wants shareholders to replace the whole board. Yet cost cuts from those bad deals should raise Campbell’s valuation whatever happens. A mass ousting is neither likely nor helpful.
Viewsroom: Europe faces life after Angela Merkel 1 Nov 2018 Germany’s chancellor won’t seek re-election in 2021 and is stepping down as party chair next month after electoral setbacks. It may herald a rightward swing at home and less EU unity. Plus: investors’ embrace of Brazil’s far-right President-elect Jair Bolsonaro may prove risky.
Spotify’s profitability song skips a beat 1 Nov 2018 The Swedish music-streaming service is attracting paying users at a slower rate, and plans to increase spending on tech and tools for artists. Both trends will forestall its efforts to move into the black. Jumpy tech investors hardly need much of a reason to sell.
U.S. vote could put Wall St, Big Tech in same boat 1 Nov 2018 Polls give Democrats a good shot at taking control of the U.S. House in next week’s elections. That would mean more scrutiny for big banks like Wells Fargo and Silicon Valley titans. Tension with the White House would rise, but mortgage agency reform may spur rare bipartisanship.
DowDuPont needs its breakup more than ever 31 Oct 2018 Recession fears and a writedown have burned off a quarter of the chemical giant’s value. It’s too strong a reaction: its businesses won’t suffer equally in a downturn. Dow’s worth some $175 bln, 40 pct above its current value. Next year’s three-way split should crystallize that.