The Exchange: Festival season 31 May 2017 The first episode of our "Summer Reading" series kicks off on a musical note. Governors Ball co-founder Jordan Wolowitz discusses the economics of putting on a music festival, the business of live music and life as part of Live Nation, the world's largest concert-promotion company.
Trump climate exit has bright silver lining 31 May 2017 U.S. support for anti-warming measures will be missed, if its withdrawal from the Paris accord is confirmed. But states, cities and businesses remain on board. And for nearly 200 other countries, including top polluter China, progress may be smoother free of D.C. foot-dragging.
Three Mile Island signals nuclear climate change 31 May 2017 Nearly 40 years after the worst meltdown in U.S. history, nuclear energy’s dire economics are leading Exelon to pull the plug on the plant. Its carbon-free power is a valuable asset, but one that lacks political support as President Trump threatens to abandon the Paris accord.
NXP activists have a good shot at a sweeter offer 31 May 2017 Qualcomm is short of support for the purchase of its Dutch rival for $47 bln including debt. A rally in the chip sector has eroded the premium, and Qualcomm is desperate for diversification. A price hike looks needed to get NXP's owners – including agitator Elliott – on side.
Exxon climate vote puts sector on notice 31 May 2017 Over 60 pct of shareholders backed a move that forces the $340 bln energy giant to ramp up global-warming disclosure, up from under 40 pct in 2016. Exxon already embraces the climate debate more than many in the industry. Holdout peers will have to follow or risk investor ire.
Mark Zuckerberg listening tour could start at home 31 May 2017 Activists want the Facebook CEO to give up his role as chairman. The quixotic proposal doesn’t stand a chance as Zuckerberg controls the vote. Yet the idea holds merit. The $440 bln firm would benefit from an independent board boss and a patina of good corporate governance.
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.