Jeremy Corbyn pay row shows costs of bank excess 1 Dec 2017 The UK opposition leader attacked “speculators” and criticised banker pay, as UBS chief Sergio Ermotti defended it. A decade after the crisis, remuneration still fuels dissent. Shareholders' failure to rein it in has led to dismal returns. Volatile politics could be more damaging.
Viewsroom: Uber’s hard route back onto the road 30 Nov 2017 The ride-hailing app has hit a damaging set of speed bumps including accelerating losses, a bruising court battle with Alphabet and covering up a security breach. But new Chief Executive Dara Khosrowshahi’s most important challenge is proving the firm can handle the long haul.
GM drives towards self-disruption 30 Nov 2017 The biggest U.S. automaker reckons its technology and expertise give it the edge in autonomous vehicles, and that it could one day make more money at better margins from robo-taxis than its current business. That’s a challenge to how investors think as much as to Uber and Google.
Guest view: Bitcoin bubble obscures real worth 30 Nov 2017 Crypto-currencies are like South Sea Company shares: unanalyzable, but here to stay. For one thing, they offer a government-proof store of wealth. For another, real technological advances exist along with the scams. More stable prices are, however, needed for long-term value.
Botched process leads to Frankenstein tax plan 30 Nov 2017 U.S. Senate Republicans are rushing into a vote on their tax-cut effort. Changes to appease GOP critics have yet to be settled, including a trigger to raise taxes if growth falls short. Lower-income Americans will also face higher bills. Lawmakers are creating a scary mess.
Saudi needs OPEC cuts to work, but not too well 30 Nov 2017 The oil cartel agreed to extend cuts until the end of 2018. Its moderation has drained inventories and lifted prices. Further cuts won’t boost prices enough to balance Saudi’s budget. Then again, that gives the crown prince a reason to continue with his challenging reforms.
U.S. doesn’t even have a corporate tax problem 30 Nov 2017 Proposals in Congress would cut the levy on companies and, temporarily, on individuals. The move may give a late-cycle boost to the economy but add to the deficit and debt. The irony is that corporate profit is already plentiful while Uncle Sam's tax take is historically low.
Cox: Trump bump aside, U.S. stocks lag in 2017 30 Nov 2017 The president has unprecedentedly staked his political colors to the mast of rising equity prices, calling the S&P's rally a validation of his policies. Yet most other markets around the world have done even better. There are bigger forces at work than U.S. corporate tax rates.
Altran’s U.S. excursion needs precision execution 30 Nov 2017 The French engineering consultancy is buying KKR-controlled software specialist Aricent for 1.7 bln euros. There’s little overlap between the two, and cost savings may be hard to pull off. Still, rapid technological change and cheap borrowing make it a good time for bold deals.
Alibaba and the 40-year bond is one tall tale 29 Nov 2017 The e-commerce giant is selling the longest fixed-maturity paper ever by a Chinese company. Jack Ma’s outfit is smart to lock in cheap funding while it can. But with Beijing looking to influence the tech sector, investors should think hard about four decades of political risk.
Yellen gives Congress parting shot on growth, debt 29 Nov 2017 The outgoing Fed boss warned of growing deficit risks just as lawmakers weigh tax cuts that would exacerbate it. It’s also up to politicians to improve education, investment and infrastructure spending. Her message of central bank limitations is one her successor will echo.
Hadas: Bitcoin at $10,000 is even more dangerous 29 Nov 2017 The crypto-currency is on the verge of turning respectable, but a futures market cannot cure its faults. It is economic nonsense, socially irresponsible and an incoherent vote for cultural nihilism. Then there is the unadulterated greed. Disaster can't come soon enough.
Sexual misconduct will haunt 2018 annual reports 29 Nov 2017 This year brought revelations of companies using shareholder bounty to settle allegations male executives harassed and made unwanted advances on mostly female workers. In the coming proxy season, expect investor proposals pushing for greater disclosure and action on the issue.
Uber’s year of efficiency backfires 29 Nov 2017 The ride-hailing app’s 2017 goal was to grow while minimizing subsidies and cash burn. Instead, quarterly losses accelerated to nearly $1.5 bln. Uber faces a slew of problems, but has yet to answer a basic existential question: can it develop a sustainable business model?
Chipotle wraps succession up in rotten governance 29 Nov 2017 The embattled burrito chain’s founder Steve Ells is stepping down as CEO but becoming executive chairman. That puts too many bosses in the kitchen and may hamper the new chief’s ability to stir in much-needed new ingredients. It’s a maneuver other companies have come to regret.
Cineworld bid for Regal smells of rotten tomatoes 29 Nov 2017 The British group could make a $3.6 billion bid for the second-largest U.S. movie-theatre chain. It might boost lowly margins and strike better deals with studios and distributors. But a huge equity hike and threats from digital streaming make for a bad picture for investors.
Trump gives Xi first taste of trade acrimony ahead 29 Nov 2017 The afterglow of the U.S. president’s trip to China faded fast. Unimpressed by Beijing's progress on North Korea and market opening, he is taking an aggressive stance on aluminium dumping. This sets the stage for uglier, more economically significant fights on trade.
Fast-food deal cures activist indigestion 28 Nov 2017 Buffalo Wild Wings is selling to private equity-owned Arby’s for $2.4 bln. It ends the chicken restaurant’s bruising 17-month fight with Marcato. The juicy 38 pct premium also salvages a decent return for the pushy investor whose stake looked like it was heading for slaughter.
Fed chair pick shows mastery of central-bank arts 28 Nov 2017 Jerome Powell breezed through his Senate confirmation hearing with Zen-like confidence. He dodged the tax-reform debate, kept rate-hike comments predictable, backed Fed independence and defended its bank-rules review. The prospect of post-Yellen stability will please markets.
WeWork labors to keep itself looking different 28 Nov 2017 The shared-office provider’s latest purchase is Meetup. The social network’s get-togethers might fill WeWork’s space at slow times. But like investing in a wave-pool firm, starting a school and opening a gym, the consistent theme is desperation to not be a real-estate firm.