Cox: Klaus Schwab remakes Davos as The Apprentice 22 Jan 2018 To ensure intrigue when world leaders and CEOs are locked in the Swiss mountain resort, the World Economic Forum mastermind is employing reality TV tricks that made Donald Trump a star. This year's gathering may rival the business show for ratings-boosting drama. But it's risky.
Viewsroom: Donald Trump goes to Davos 19 Jan 2018 The U.S. president heads to the Swiss Alps confab that’s the antithesis of his “America First” ideology. He’ll have competition: keynote speaker Narendra Modi, with his “Make in India” policy. Plus: BlackRock’s Larry Fink pushes social activism. And why Ford is stalling.
Insurance M&A benefits from thin U.S. safety net 19 Jan 2018 Lincoln National is paying $1.4 bln for Liberty Mutual’s employer-based insurance business. It gives the buyer added heft in a growing field as more Americans top up life, health and disability coverage through the workplace. Cost cuts give this deal an added bit of assurance.
Tax cuts are looking like rare Trump win 19 Jan 2018 The U.S. president’s first anniversary coincides with a possible federal funding hiatus. Slashing corporate taxes last month was a GOP success and the administration now wants infrastructure investment. But the shutdown wrangling is indicative of the partisan deadlock to come.
Qualcomm slipping away from Broadcom’s grasp 19 Jan 2018 The odds were always long on the chipmaker’s $105 bln unsolicited bid. A new federal probe into Broadcom, Qualcomm’s progress with approvals to buy NXP and souring U.S.-China relations raise them further. Broadcom holds a few cards but its hand would be stronger played elsewhere.
Review: The high cost of measuring the economy 19 Jan 2018 GDP has become an idol. “The Growth Delusion” condemns the idolatry, because this measure includes too much of some things and not enough of others. But author David Pilling misses the revolutionary implication. Economies are too complex to be summed up in a single figure.
Nestlé fashions a more activist-friendly board 19 Jan 2018 The CEOs of Zara-owner Inditex and Adidas are among the Swiss giant’s proposed new heavyweight non-executives. Their e-commerce expertise will help steer efforts to sell more directly to consumers. They also pre-empt any move by activist Dan Loeb to install his own candidates.
Aramco IPO beggars needn’t feel like losers 19 Jan 2018 BAML, UBS and Barclays have missed the cut to be global coordinators on the Saudi oil giant’s mega-listing, Reuters reports. Forgoing big fees from a $100 billion IPO will be cause for garment rending. Then again Saudi is a risky client and the process is replete with uncertainty.
Amex is a rare real victim of U.S. tax cuts 18 Jan 2018 The $86 bln charge-card group took a big hit from December’s tax revamp. Unlike at other financial firms, its capital ratios fell below acceptable levels. Suspending buybacks to rebuild the cushion makes sense, but it will delay the benefits of the new low-tax regime.
Wall Street dethrones its wealth managers 18 Jan 2018 Citi, Morgan Stanley and UBS all pulled out of a ceasefire that reduces scope for lawsuits when brokers got poached. BofA says it will stay. The rules were already being interpreted liberally. Still, scrapping them sends a grim message to wealth-management staff about who’s boss.
Gasoline tax is obvious infrastructure piggy bank 18 Jan 2018 The U.S. Chamber of Commerce wants a 25 cents-a-gallon increase to raise $400 bln for investment in transportation. It seems a contrary proposal coming from a group whose members just secured huge tax cuts. But it makes sense: American gas is cheap, and a higher levy is overdue.
Amazon HQ2 choices disappointingly undisruptive 18 Jan 2018 The e-commerce giant has cut the field for its second headquarters to 20 prime locations including Dallas, Atlanta and New York. Hundreds of cities hoped Amazon would think outside the box, but a desire for talent and a welcoming environment led it to the usual hot spots.
Cineworld CEO can crush any rebel forces 18 Jan 2018 The UK movie-theatre group wants $2.4 bln from shareholders to fund a bid for U.S. peer Regal. A deal that was already unappealing looks even less so now that U.S. tax cuts have removed part of its logic. But CEO Mooky Greidinger’s large shareholding will ensure he gets his way.
Guest view: Market rocket fuel will run out 18 Jan 2018 Investors are pushing up U.S. equities with little regard for an array of warning signals, writes former Citibank executive William Rhodes. The Federal Reserve is running out of time to warn them about their “irrational exuberance” before a probable market correction this year.
Wall Street puts trading axiom to test 18 Jan 2018 Investment banks say underwriting for companies brings in more trading revenue and vice versa. Morgan Stanley's performance in debt over the past five years bears that out. Goldman's, though, suggests that's not always the case.
Tim Cook goes as American as Apple’s pie 17 Jan 2018 The iPhone maker will pay $38 bln in tax on its huge pile of overseas cash. It’s also pulling an Amazon with plans to open a new U.S. campus, invest $30 bln and create 20,000 jobs. The Apple boss has cleverly engineered some common ground with Donald Trump.
Wall Street owes Steinhoff a billion thanks 17 Jan 2018 The South African retailer’s woes forced Citi and three peers to take hits totaling more than $1 bln. The pain is manageable. Like the collapse of UK builder Carillion, though, the episode offers a chance to review risks before a broader downturn brings more red ink - and faces.
Celgene readies $10 bln mix of need and hope 17 Jan 2018 The drug group may buy Juno Therapeutics, a biotech promising ways to modify immune cells to fight cancer. The two already have a partnership, but Celgene needs to grow. If it’s also sensing real potential, it could pay an eye-watering price for a firm with no approved products.
Ford stock’s staying power makes no sense 17 Jan 2018 The Motown automaker expects costs and currencies to impede its earnings recovery. It also trails GM on autonomous cars and is having to double its electric-vehicle investments. Yet Ford trades at a higher multiple than its Michigan rival. GM's prospects look brighter.
Hadas: Malthus, Condorcet and “shithole” economics 17 Jan 2018 The English curate was totally wrong about permanent poverty, but the legacy of his grim expectations still clouds judgments. His lesser-known French rival was a better guide. Condorcet would have expected the recent progress in countries the U.S. president seems to despise.