Uber and Geely perform flying-car stunts 15 Nov 2017 Both the U.S. ride-sharing company and the Chinese automaker have bet on Jetsons-like transport. The deals may generate some helpful buzz, but driverless vehicles are a more immediate prize. And as drone makers also have found, regulation is a bigger problem than innovation.
Trump’s coal push loses power as U.S. goes green 14 Nov 2017 An administration plan to subsidize solid fuels has stirred a backlash from industry, which fears distorted power prices. Meanwhile U.S. carbon emissions from coal fell at a record pace in 2015. Environmental and economic forces conspire against the president’s campaign pledge.
Qualcomm jockeying is all about 5G chip race 14 Nov 2017 It’s no coincidence Broadcom made its $105 bln bid as operators start testing next-generation phone technology. Qualcomm’s heavy investment gives it an edge, and stands to reap rich rewards in a few years. That should stiffen its defense - and raise the odds of a higher offer.
Buffalo Wild Wings could push for a spiced-up bid 14 Nov 2017 Private-equity firm Roark Capital made a $2.3 bln bid for the chicken restaurant, according to a report. That’d give activist Marcato only a modest return after a tough battle for board seats. Buffalo Wild Wings has lost some flavor, but it can still press for a little more.
Central bankers go self-referential on rhetoric 14 Nov 2017 Fed Chair Janet Yellen and other top rate-setters took the stage in Frankfurt to discuss how they communicate. It’s a slightly meta admission of the role speechifying has come to play in monetary policy in an era of ultra-low interest rates. But wordiness brings its own perils.
Private equity deserves U.S. tax hit, not startups 14 Nov 2017 Tech firms are understandably upset over a Senate plan to tax stock options when vested. It would raise $13 bln over 10 years. Ending a loophole on investment profit for buyout barons would bring in more. It’s a better target for Republicans already accused of favoring the rich.
Amazon surrenders cheapest bit of Chinese cloud 14 Nov 2017 A local partner will buy the hardware associated with the U.S. web giant’s cloud-services business. Onerous new security rules – or, for critics, Beijing’s protectionist tendencies – are behind the sale. Amazon and other Western tech firms may yet have to give up more.
Breakdown: Redesigned TPP deal goes to 11 14 Nov 2017 The Pacific trade pact may be 70 pct less valuable in terms of global income. For Japan, Canada and nine others, though, good economic reasons exist to proceed. It's a defence against lopsided bilateral deals. And TPP could yet add partners to recapture many of the lost benefits.
Online lending defaults could soon go viral 13 Nov 2017 Peer-to-peer loans in the United States are going bad at double-digit rates, eerily like subprime mortgages a decade ago. Although the sector is small, the trend coincides with rising bank credit-card losses. These are classic late-cycle signs of stress among American consumers.
Shopping mall operators turn buy signal into sell 13 Nov 2017 Brookfield’s offer to take property investor GGP private, valuing it at $22 bln, looks cheap or pessimistic. It’s probably both. The prognosis for U.S. real estate overall is poor, and in a sector where prices aren’t very transparent, a lowball bid for GGP would deepen the gloom.
Hasbro Mattel bid would put Barbie in the corner 13 Nov 2017 Troubled $5 bln toymaker Mattel would struggle to rebut the logic of an offer from its stronger rival. Kids have moved on from dolls, and parents from toy stores. The two companies are traditional enemies, but Disney Princess and American Girl now have dangerous common foes.
Qualcomm’s rebuff only fuels deal hype 13 Nov 2017 The chipmaker says Broadcom’s unsolicited $105 bln offer “dramatically” undervalues it. It’s part of the M&A ritual. Sure, Broadcom might struggle to lift its price much, and there are antitrust risks. But the pressure’s on Qualcomm to sort out its own issues.
GE’s shaman exorcises ghosts of false expectations 13 Nov 2017 It doesn't take much imagination at work to grasp John Flannery's approach to the $178 bln conglomerate. He has halved the dividend, cut earnings guidance and questioned GE's portfolio of industrial assets. Next up is a total restructuring of GE's bloated, under-engaged board.
Freeport-McMoRan may be canary in copper mine 13 Nov 2017 Fresh violence prompted the company to close the main route to its Papua site. For all the fervour over electric-car demand for the reddish-brown metal, the flare-up is a reminder of looming supply issues. Beyond security concerns are sticky labour contracts across the industry.
Holding: Corporate America loves its bad Boies 10 Nov 2017 The lawyer David Boies may have helped disgraced mogul Harvey Weinstein try to hide his abuses, but don’t expect more than a shrug from the business world. In a realm that prizes results, the defender of the likes of ex-AIG boss Hank Greenberg will remain the go-to consigliere.
McKinsey needs to run a matrix on itself 10 Nov 2017 The consulting firm has been facing tough questions over hiring in Saudi, and work in South Africa. Neither helps its image. But more worrying is how data is making consulting a commodity. Doling out advice looks less valuable when one’s own business is struggling.
Viewsroom: Broadcom $130 bln bid signals market top 10 Nov 2017 The chipmaker’s hostile tilt at Qualcomm is a rare aggressive move in the sector. Qualcomm has its own issues, awaiting approval for its NXP deal and fighting Apple in court. It all suggests the tech sector is too frothy. Plus: Is Hong Kong losing its moxie as a financial center?
Review: The economic common good is hard to find 10 Nov 2017 Jean Tirole won the Nobel Prize for his work on regulating tricky industries. In “Economics for the Common Good” he takes on broader themes. Newcomers to current debates can learn from his general discussions, but the highlights are subtle descriptions of his area of expertise.
Equifax hack damage is only the start 10 Nov 2017 Revenue at the $13 bln credit arbiter’s U.S. data unit slipped in its last quarter, having previously grown at a 7 pct rate, even though a huge data breach was only revealed on Sept. 7. And that’s before the legal blows start to rain down. Investors are being too sanguine.
China gives foreigners second swing at cash piñata 10 Nov 2017 Beijing is relaxing, and later eliminating, caps on foreign ownership of banks and brokerages. It's less a concession than an enticement. China could use help deleveraging its economy. And the $10 trillion in personal savings languishing in Chinese banks are worth competing for.