Google co-founder’s will may go Elon Musk’s way 20 Mar 2014 Larry Page is considering leaving his money to the Tesla and SpaceX boss. Musk doesn’t need the cash, of course, but his companies pursue green power, space colonization and other projects that Page cares about. It’s a reminder that doing well can be one path to doing good.
First Solar’s technology may help it eclipse China 20 Mar 2014 Advances in making energy cells more efficient could give the U.S. panel manufacturer a price edge over Middle Kingdom rivals like Trina and Yingli. The Chinese still lead the market with products made from low-cost materials. But First Solar may soon get its time in the sun.
Company religion case may shake shareholder faith 20 Mar 2014 U.S. boards have a legal duty to put business interests first. Yet a Supreme Court challenge to Obamacare mandates could give biblical doctrine priority. A decision will turn on corporate religious rights, but laws designed to protect investors could suffer collateral damage.
Ukraine defence more crucial than Crimean sanction 20 Mar 2014 Western leaders are still debating their response after Russia moved to annex the Black Sea territory. Their focus should instead be on preventing Vladimir Putin destabilising Ukraine. That requires tougher sanctions than previously discussed, and preparedness for economic war.
Yellen and Carney miss chance for hard reset 20 Mar 2014 Central bankers say they’re paying more attention to the financial cycle but old economic fixations persist. The ECB hasn’t started to regulate banks and Janet Yellen’s Fed sounds as oblivious as Ben Bernanke’s. There’s progress at the Bank of England, but much more to be done.
Fed’s D.C. neighbors also need its jobs dashboard 20 Mar 2014 The U.S. central bank ditched its 6.5 pct target for headline unemployment, but Janet Yellen stressed broader indicators like U-6, which adds discouraged and part-time workers. Monetary stimulus may help at the margin, but lawmakers can use the data to guide structural changes.
Confused Fed adds to emerging market muddle 20 Mar 2014 U.S. policymakers have sent a garbled message about their intention to raise interest rates. Increased uncertainty makes global bond and currency markets more volatile. That raises the risks for developing countries already battling with slower growth and sagging investor morale.
Fed’s only useful guidance is for more stimulus 19 Mar 2014 The U.S. central bank has dropped its 6.5 pct jobless trigger for raising interest rates – a risk to its credibility. Moreover, the change in future outlook seems dictated by a bias toward long-term easy money. Janet Yellen’s Fed won’t be putting on the brakes any time soon.
JPMorgan commodities sale shows trading’s opacity 19 Mar 2014 The bank is selling what is probably a low-return unit with regulatory headaches to privately held Mercuria. The lack of financial details makes the price hard to judge, but at $3.5 bln the buyer seems to be paying top whack. With commodities under pressure, that’s a bold move.
Toyota and Wall Street steer GM in a bad direction 19 Mar 2014 The Japanese carmaker is paying $1.2 bln to resolve safety concerns from U.S. authorities just as its Detroit rival starts to grapple with its own. GM’s fiasco lasted longer and involves more deaths. The fine inflation in bank settlements doesn’t bode well.
Disney persists with Mickey Mouse governance 19 Mar 2014 To placate uppity owners, the Magic Kingdom said it would normally appoint an independent chairman – unless it doesn’t. Bob Iger, now chairman and CEO, has a strong record. Splitting the roles in good times, though, would help avoid a repeat of Disney’s 2004 leadership debacle.
Mega-medical buyout Biomet limps back to market 18 Mar 2014 Private equity has reaped good returns from several big LBOs that suffered near-death experiences. So the far healthier Biomet, taken private for $11.4 bln, might seem a natural winner. But a decline in prices for its devices means backers will endure nagging injuries.
Hertz needs a better way to spin its spinoff 18 Mar 2014 The rental car group is caving to years of pressure to carve out its hacksaw and backhoe hire unit. Not only does it make strategic sense, but peer multiples suggest it could boost the company’s value by 25 pct. Investors’ muted reaction shows Hertz has more work to do.
U.S. Senate mortgage fix shows crisis amnesia 18 Mar 2014 Scrapping Fannie and Freddie would be a smart step. But lawmakers want to replace them with another poorly capitalized entity. Other measures in the bill would promote risky lending and leave taxpayers on the hook. Sadly, eventual reforms are likely to look more like a rebuild.
Mystery bond shift doesn’t dent faith in dollar 18 Mar 2014 An unexplained $105 billion shrinkage in the Fed’s store of Treasuries held for other central banks caused no market ripples. That’s testimony to investors’ belief in the dollar’s reserve status. Even more remarkable: the world’s most liquid bond market still holds big secrets.
Ukraine rescue needs American Tea Party signoff 17 Mar 2014 Talk about irony. Obama will be the cheerleader for a $15 bln fund bailout of the embattled state. Yet the Republican right is still blocking an IMF overhaul agreed in 2010 giving extra power to the likes of China and Brazil. To get them to help Ukraine, the GOP has to budge.
Smartest U.S. export to China could be Max Baucus 17 Mar 2014 The new ambassador to Beijing arrives just as Uncle Sam seems to have lost interest in his biggest trade partner. China know-how is scarce in the White House; key seats sit empty. But Baucus could be an asset by helping cement new trade pacts that leave both sides better off.
Insider traders could profit from a drug case tip 17 Mar 2014 The U.S. Supreme Court says a pot dealer can beat a gun rap by not knowing his partner packed heat. That suggests traders may go free if unaware a source was paid for secrets. Judges disagree on the issue, but a street-crime ruling seems solid precedent for a Wall Street appeal.
EU’s Crimea sanctions only good as opening gambit 17 Mar 2014 Vladimir Putin won’t care much about the travel bans and asset freezes imposed by the EU on 21 Russian individuals. But these sanctions only make sense as a first-step response to Moscow’s actions in Ukraine. It’s now up to EU leaders to get serious about retribution.
Total’s solar boast may prove short-lived 17 Mar 2014 The French oil giant’s CEO has bragged about the profit made on a $1.5 bln stake in SunPower. But that’s hardly the benchmark if Total’s aim is to build a long-term solar business. Moreover, the panel maker’s rich valuation and dimming prospects could soon weigh its shares down.