Trump uses carrot and stick with wrong countries 30 May 2017 The U.S. president berated NATO for not spending more on defense, putting the tally at $119 bln. In Saudi Arabia, he praised leaders and facilitated a $110 bln arms sale. Trump needs more from Europe while Riyadh is dependent on D.C. He may be better served reversing tactics.
Writing by numbers is wrong route to right message 30 May 2017 World Bank Chief Economist Paul Romer wants staff to write more clearly. His rules include a strict limit on the frequency with which they can use “and”. The quest for simplicity is welcome. But as economists know, the pursuit of numerical targets can lead to perverse outcomes.
Goldman steps in avoidable $2.8 bln Venezuela mess 30 May 2017 Money managers at the firm bought oil giant PDVSA’s debt at a big discount, indirectly handing the central bank needed dollars. Investments aren’t necessarily moral choices, but can hit reputations. After trouble in Greece and Malaysia, Goldman ought to have a better nose for it.
U.S.-EU trade talks could yet be chalk and cheese 30 May 2017 Trump officials hope a transatlantic deal will be easier to forge because barriers are already low. T-TIP has its own special problems, though, including local rules for white-collar workers and protections on products like feta. Such issues can be just as tricky as tariffs.
Trump’s Paris accord call will be anticlimactic 26 May 2017 Even if the president pulls the U.S. out of the 2015 agreement, the impact should be limited. Cities, states, companies, investors and other countries will keep the anti-climate-warming momentum going. The bigger hit will be to America’s soft power and, potentially, its economy.
Jared Kushner conflicts hang on White House wall 26 May 2017 Donald Trump's son-in-law is under FBI scrutiny over Russian contacts. He and Ivanka Trump also didn't disclose their art collection. And the Kushner family used Jared's name to drum up Chinese business. The entanglements undercut his role in the administration, and its agenda.
Review: A premature requiem for the liberal order 26 May 2017 Globalisation is in retreat and democracy under attack. Two new books foresee a gloomy future for the Western-led economic and political system. Yet just as some were too quick to proclaim its triumph in 1989, the obituaries sparked by Donald Trump’s election may prove too hasty.
Fox pokes sleeping advertising bear 25 May 2017 Cars.com, Peloton and others yanked commercials from Sean Hannity's popular prime-time show as he pushes a fake conspiracy theory. Brands also have targeted Bill O’Reilly and YouTube of late. Madison Avenue may slowly be transforming from a passive investor to a more activist one.
Holding: Courts may save startups from redemptions 25 May 2017 Cashing out venture capitalists on demand can leave other investors in a lurch. A case involving onetime dot-com darling Oversee.net and Oak Hill suggests judges have growing concerns. It’s an overdue warning about how such conflicts can hurt fledgling firms and their owners.
Viewsroom: Trump budgets his way to la-la land 25 May 2017 Basic economics - and decency - fall by the wayside in the administration’s pitch that it can create $2 trln of revenue by cutting $3.6 trln of costs. OPEC and U.S. fields battle for oil supremacy. Zimbabwe invents the zollar. And Bill Ford escapes his CEO’s crash unscathed.
Retailers’ upturn is a false bill of goods 25 May 2017 Sears laid out a rare profit, Abercrombie & Fitch sold more surfer-inspired apparel than expected and Best Buy got a jolt from electronics sales. While that's encouraging, Tiffany’s quarterly slump is a reminder the industry remains under pressure. The only certainty is more volatility.
FX market might benefit from statement of obvious 25 May 2017 New guidelines for the $5 trln-a-day currency trading market exhort participants to behave ethically and fairly. That will hardly deter miscreants. Still, the code has a good stab at clarifying grey areas and avoids creating exploitable loopholes. Best of all, it will evolve.
Human cost of Obamacare repeal bill is too high 24 May 2017 The U.S. House legislation, newly scored, threads the financial needle by cutting healthcare outlays and taxes about equally. But 23 mln Americans could lose insurance by 2026, doubling the number without cover, and premiums may skyrocket. It's hard to see the Senate buying it.
ETF industry dances faster with risky new ideas 24 May 2017 The tradable funds have grown wildly popular as an easy way to play the market. Now sponsors are dialing it up with plans for ETFs tracking asset-backed securities and the first fund to lever stock exposure four times, among others. The frenzy may end with a bang, not a whimper.
Trump budget is schizophrenic on infrastructure 24 May 2017 This week's White House plan adds $200 bln of federal money over a decade. On the flipside, though, it slashes several existing infrastructure-related programs. There are some practical suggestions but, as in the overall budget, smoke and mirrors hamper any real analysis.
Twin aims push Toshiba, Western Digital to a deal 24 May 2017 The Japanese firm needs cash quickly while its U.S. partner hopes to buy its chip unit on the cheap. Yet Toshiba wants certainty and Western can’t afford to see a rival steal the prize. An $18 bln bid by Western shows the forces pushing the two sides toward an agreement.
Jump at Bunge shows Glencore has its M&A mojo back 24 May 2017 The commodity giant's agricultural arm approached the $11 bln U.S. grain trader about a friendly deal. A takeover may not be the goal, and Bunge is cool on a tie-up. But after some tough balance-sheet repair, Ivan Glasenberg’s trading powerhouse is clearly back on the offensive.
Whiskey and wine can make fine corporate cocktail 24 May 2017 At first blush, Constellation Brands, with roots in an upstate New York vineyard, and Brown-Forman, maker of Confederate tipple Jack Daniel's, seem to have little in common. But a heritage of family control, maintained via dual-class shares, makes a $56 bln union look doable.
Brazil’s economy teeters at the abattoir gates 23 May 2017 Laws and sausages alike are famously messy to make. That Brazil's President Temer, a master of the dark legislative arts, may lose his job over meatpacker JBS's corruption charges is perhaps fitting. But pension reform still needs forcing through Congress, whoever's in charge.
Saudi dollars overexcite Blackstone’s investors 23 May 2017 They've pushed the private-equity firm's shares up 9 pct since the kingdom's possible $20 bln infrastructure commitment was revealed, bringing the market cap to $38 bln. But finding investments will take time, and fees will be on the low side. The value uplift looks overdone.