Trump to U.S. businesses in China: drop dead 5 Dec 2016 U.S. President-elect Donald Trump's precedent-breaking call with Taiwan's president, followed by ominous tweets about Chinese policy and American firms' overseas production, has diplomats scrambling. One thing is clear: Trump doesn't care about U.S. investments in China.
Financial startups may soon storm gate 2 Dec 2016 New ventures like SoFi and Betterment could become banks under a new charter regime. The OCC's plan initially may please established lenders by leveling the regulatory field. It also, however, should help upstarts breach the industry's last line of defense: cheaper funding.
CEOs don’t deserve bonuses just for going shopping 1 Dec 2016 Activision's Bobby Kotick will receive an extra payout for doing a "transformative" deal. Investors have to benefit, but only for a limited time. Sensible M&A is part of what CEOs are already paid for. There's no need to reward them twice – or to encourage risky acquisitions.
Chess: a 1,500-year-old startup that doesn’t scale 2 Dec 2016 A fresh push to popularize the game at this year's championship between Magnus Carlsen and Sergey Karjakin faltered. Pay-TV won't woo fans who can watch board movements for free and broadcasts are too technical for novices. Poor governance and few sponsors are hindrances, too.
Starbucks brews a stronger succession plan 1 Dec 2016 CEO Howard Schultz is stepping back to serve as chairman and help roll out upscale coffee shops. Since returning to run Starbucks in 2008, the shares have gained 550 pct. New boss Kevin Johnson faces fresh challenges, but the company's mission and tech nous give him a hot start.
Trump’s AC activism more hot air than cold jobs 1 Dec 2016 The president-elect is touting a deal to keep over 1,000 jobs at heating and aircon maker Carrier in Indiana, after blasting a planned move to Mexico during his campaign. It's a partial win that cost a state subsidy. Trump will milk the PR, but as policy it won't easily scale.
Wells spotlights rivals’ chairman-CEO double duty 1 Dec 2016 Under investor pressure, the $280 bln U.S. lender has formally separated its top jobs. It's no sure way to avoid crises like Wells' fake-accounts scandal. But better governance and performance tend to go together. Peers combining the roles, like BofA, now have explaining to do.
U.S. housing revival remains under construction 1 Dec 2016 Home prices just surpassed their 2006 peak, boosted by more buyers amid tight supply. Further gains could be tough – or slow. Rising interest rates and privatizing the government agencies that back mortgages, as Trump's Treasury nominee wants to do, could impede affordability.
Viewsroom: Is Trump’s dealmaking already working? 1 Dec 2016 The president-elect brought in a rare bipartisan player as Treasury secretary, Steven Mnuchin and saved 1,000 jobs in Indiana. But bigger economic challenges await. And he has yet to solve his business conflicts. Elsewhere, Dallas' pension woes put a $4 trln industry on notice.
Starboard takes tricky tack with Rockwell deal 1 Dec 2016 The activist wants the aircraft-parts maker to consider ditching a $6.4 bln tie-up with B/E Aerospace. Grounding the merger has merit, but Carl Icahn and others have had mixed results agitating against M&A. A Trump-inspired rally in Rockwell's stock complicates Starboard's case.
Mnuchin’s first job: get own finances in order 30 Nov 2016 Trump's choice for Treasury has made millions on Wall Street. Unlike his boss, Steven Mnuchin will have to produce his tax returns to win congressional approval, a step that has tripped up past nominees. Mnuchin's wealth and potential use of tax loopholes could be problematic.
Cyber Monday confidence overshadows Black Friday 30 Nov 2016 Five days of U.S. holiday e-commerce totaled nearly $13 bln, up 15 pct from last year. That matches a surge in consumer optimism coinciding with Donald Trump's election win. It mostly didn't rub off on bricks-and-mortar sales, though. Traditional retailers need new ideas.
Trump puts GOP’s competing loyalties in play 30 Nov 2016 The president-elect's inconsistent comments about his business conflicts have spurred Democratic lawmakers to propose ways to rein them in. But Republicans will control Washington. Failure to tackle any issues could stymie policy goals like tax reform and spook markets.
OPEC resolve is strong enough to turbo-charge oil 30 Nov 2016 The cartel’s deal to cut crude output for the first time since 2008 ends its two-year-old policy of putting market share before higher prices. This may be self-defeating if shale production rebounds. But OPEC unity is convincing enough for oil to extend and sustain gains.
Trump Treasury chief an illogically logical pick 30 Nov 2016 Steven Mnuchin's Wall Street past will rankle Democrats. But unlike many on the president-elect's team, he's neither an ideologue nor a populist – and well qualified for the job. He's also bipartisan and relatively reserved. His nomination bodes well for fiscal policy.
Dollar strength spells more U.S. bond weakness 30 Nov 2016 As emerging market currencies wilt against a resurgent greenback, countries like India are dipping into their war chests to sell dollars. More may have to follow suit. Sooner or later, this will involve selling Treasuries. It’s more bad news for the battered U.S. bond market.
Linde’s workers hold key to $66 bln Praxair merger 30 Nov 2016 The US gas producer wants to breathe fresh air into a union with its German rival. Linde's prior demands for a share of top jobs and locations appear fixable, but its powerful workers may require generous guarantees. Such concessions could undermine the deal's financial benefits.
Corporate Clinton backers revert to drawing board 29 Nov 2016 Senior executives from Blackstone to Facebook may have been willing to serve in a Democrat-led White House. Now they're stuck in their jobs as President-elect Donald Trump fills his Cabinet. That means seeking a new exit path or ways to placate presumed successors.
Tiffany’s new sparkle dulled by rising global risk 29 Nov 2016 The jewelry retailer eked out its first quarterly top-line increase since 2014. But forex rates distorted overseas sales. And Tiffany is worryingly exposed to the vagaries of a Trump presidency, from its flagship store's proximity to his NYC home to his trade policy with China.
Hadas: Castro’s mourners show distress of the left 29 Nov 2016 The Cuban strongman's death would have passed almost unnoticed, if he had not been the last communist revolutionary idealist standing. He is unlikely to have successors on the left, which has been ideologically exhausted by success. The nationalist right is another matter.