Short-term bank gains may turn into long-term pain 9 Nov 2016 Trump's victory should bring welcome volatility to global trading desks. A GOP-led Congress usually appeals to markets, too. They may not be enough, however, to offset economic uncertainty augured by the president-elect's erratic positions on trade, the Fed and bank breakups.
Trump infrastructure push is some relief for Fed 9 Nov 2016 The U.S. president-elect promised spending on roads and bridges in his victory speech. A fiscal splurge would make it easier for the central bank, with its limited monetary policy tools, to keep raising rates. Clarity on the fate of Chair Janet Yellen, however, matters more.
Pollsters make an all-too-easy punching bag 9 Nov 2016 Pollsters have had a terrible 2016, missing Brexit and now the U.S. election results. But factor in margins of error and the picture looks better. The risk is that high-profile failures lead to voter cynicism, fewer polls, and less transparent data.
Trump gives Europe’s iconoclasts fresh credibility 9 Nov 2016 Anti-establishment politicians in Germany, France and the Netherlands hailed the next U.S. president. He shows inexperience and nationalism are no barrier to victory. Mainstream parties could borrow their rivals' clothes before elections next year. But time is not on their side.
Putin gains Trump card in geopolitical poker game 9 Nov 2016 The election of America's new president leaves Ukraine, the Baltic states and Russian sanctions up in the air. A falling oil price and Syrian engagement limit Russia's options, and Trump's true views are unclear. But the electoral outcome leaves Putin with more freedom to act.
Few winners in Asia from Trump’s shock victory 9 Nov 2016 Rising protectionism and a weaker commitment to regional security are particularly worrying for South Korea, Japan and Taiwan. But heightened uncertainty could hit economies and markets across the continent. At least for China trade losses may be offset by geopolitical gains.
Trump may embody his own isolationist policy 9 Nov 2016 The reality-TV star clinched an unlikely White House victory. In winning over a majority of the electorate, he alienated nearly everyone in a position of power. That means checks and balances on his presidency could mark a huge test for the American experiment and economy.
American institutions are biggest election loser 9 Nov 2016 The modern era's most rancorous campaign damaged the legitimacy of several pillars of democracy and free markets. Congress was already at a nadir. Fold in the idea of a rigged system, where the FBI and free press are politically biased, and governing will be nearly impossible.
Risk markets bear brunt of Trump volatility 9 Nov 2016 Mexico's peso, a barometer of sentiment throughout the White House race, plunged 11 pct to a record low against the dollar, which also fell. Stocks in Asia sagged along with U.S. index futures. Treasuries and gold rose. The next president's calling card is uncertainty.
Disney can draw bigger audience to ratings fight 7 Nov 2016 The $150 bln media giant is squawking over Nielsen figures that show fewer households getting its ESPN sports network. Investors already are worried that the company's biggest business may be challenged. One way to combat confusion would be for Disney to release some data itself.
Valeant heralds second act of pricing pushback 8 Nov 2016 The embattled drugmaker slashed its profit forecast to below the lower end of a previous range. Some problems are specific to Valeant. The whole industry, however, faces mounting pressure from aggressive politicians and insurers, upending the business model of charging more.
Merger medicine fails to cure CVS Health 8 Nov 2016 The $80 bln drugstore chain warned that profit growth would slow down. Fewer customers and the loss of a couple big contracts were factors. Industry-wide pricing pressure adds to the challenge. Two big deals last year worth a combined $14 bln may be causing bad side effects.
Fat donkey-tail risk lurks in U.S. elections 7 Nov 2016 Investors are pricing in Hillary Clinton as the next president and Republicans hanging onto control of at least one congressional chamber. A Donald Trump win would shock and scare Mr. Market. There's also a small chance of a Democratic sweep, a less-discussed bearish outcome.
Shared to-do list no matter who nabs White House 7 Nov 2016 U.S. political rancor reached a depressing height in the 2016 campaign. But there is some bipartisan harmony on the need for a corporate-tax overhaul, infrastructure spending boost and immigration reform. Amid a dispiriting race, there's a sliver of hope for actual governance.
Cox: Trump would – briefly – make America great 7 Nov 2016 U.S. stocks are bound to freak out, Brexit-style, if the reality-TV star wins the White House. Yet the instability also would send investors in search of less risky assets. Beyond cash, those are mostly dollar-denominated. Longer-term, though, a President Trump is another story.
Larry Ellison stores hardball M&A tactics in cloud 7 Nov 2016 Oracle's founder has won his $9.3 bln battle for NetSuite, even though T. Rowe, the seller's biggest independent investor, made a strong case for a higher offer. Fear that Oracle would walk cowed shareholders - a reminder to prospective targets that Ellison takes no prisoners.
Och-Ziff turns paper-shuffling into winter sport 4 Nov 2016 The hedge fund's property arm and EPR are paying a Florida REIT $830 mln for 15 ski resorts. The deal has plenty of twists and turns, like EPR giving Och-Ziff a mortgage to fund part of the transaction. Long-term leases, though, mean the new owners can do little but groom the slopes.
Drug probe is caboose of consolidation train 4 Nov 2016 U.S. prosecutors are investigating Mylan, Allergan and others for colluding over generic-medicine prices. Lawmakers are on the case, too. But proving conspiracy is hard as barriers to entry and limited competition mean companies can raise prices in sync without acting illegally.
U.S. employers deliver an early Christmas gift 4 Nov 2016 They added a modest 161,000 new jobs last month. Wage gains accelerated, however, bringing the annual increase to 2.8 pct, the biggest since 2009. That could help lift consumer spending, an important engine of economic growth, heading into the holiday shopping season.
Review: The folly of shorting the American dream 4 Nov 2016 "Betting on Zero" dramatizes Bill Ackman's battle to prove Herbalife is a pyramid scheme that dashes most recruits' hopes of prosperity. The short-seller is still down on his $1 bln wager. But the nutrition marketer's attempts to muzzle the documentary could backfire.