Goldman scores inside straight with SEC chair pick 4 Jan 2017 Avowed swamp-drainer and President-elect Donald Trump named Jay Clayton, the ultimate Wall Street legal insider, to run the financial watchdog. At Sullivan & Cromwell, Clayton worked on bank rescues and bailouts, including Goldman's. Hope and change cede to plus ca change.
Privatizing Medicare would be bad elective surgery 4 Jan 2017 The federal program is a relatively solid part of the U.S. healthcare system. Republicans nevertheless want to revise it so the elderly buy subsidized insurance privately. That'd satisfy a smaller-government ideology, but at a price of greater inefficiency and worse coverage.
Climate change will unclog water’s pipes 4 Jan 2017 The $1 trln H2O sector is growing slower than hoped despite rising threats to cities and companies from drought, flooding and population growth. But efforts to cut greenhouse gases could boost demand in 2017. General Electric is quitting the business at the wrong time.
Gene therapy is ready to become hereditary 3 Jan 2017 The prospect of treating diseases like hemophilia and cancer by tinkering with DNA has a long history of both promise and frustration. Steady progress means 2017 should be the year the technology finally hits the U.S. market. The problem may be figuring out how to pay for cures.
Trump stimulus will only delay next U.S. recession 3 Jan 2017 The president-elect inherits an economy that's in fairly good shape. His planned tax cuts and infrastructure spending will give growth an added short-term boost. Though that may postpone an overdue downturn, Trump is still likely to face a crunch before the next election.
Trump adds attack-dog bite to global-trade bark 3 Jan 2017 GM is the latest target of the president-elect's ire for outsourcing to Mexico. His pick for U.S. trade rep knows how to impose import restraints and tariffs. Robert Lighthizer's nomination heralds a more comprehensive assault on free trade than Trump's Twitter tirades.
Jain’s low-key Cantor role pins hopes on upside 3 Jan 2017 Ex-Deutsche Bank boss Anshu Jain is joining scrappy capital markets firm Cantor Fitzgerald. Though not the high-profile job he might have coveted, the German lender's travails during his stint in charge suggest why. Privately-held Cantor can grow outside the limelight.
Exec pay is crying out for a race to the bottom 3 Jan 2017 Battles against corporate excesses are worthy but come unstuck all too quickly. Bosses keep getting paid more than their predecessors. To save capitalism, some could tender their services more cheaply. The tradition of the $1 CEO serves as a template. Even better: work for free.
Best of Breakingviews 2016: Our readers’ top picks 30 Dec 2016 You demonstrated a varied, voracious appetite for insight in 2016. The most-clicked columns, podcasts and graphics encompassed the rise of Trump and Brexit Britain to Singapore, Saudi Arabia, negative rates, tech titans and an ethical dilemma for Harvard's business school dean.
Viewsroom Predictions 2017: Part 1 30 Dec 2016 Breakingviews columnists from Europe, Asia and the United States discuss what’s ahead, including Donald Trump and inequality, how smaller M&A deals will shine over big acquisitions, and why Disney may ponder buying Netflix. Plus, what we got right – and wrong – about 2016.
Disney buying Netflix could be practical magic 30 Dec 2016 The $160 bln media firm is on the hunt for technology that will connect consumers directly with its movies and TV shows. It's also searching for a successor to boss Bob Iger. Buying the $50 bln Netflix, plus CEO Reed Hastings, would be a financial stretch but just might pay off.
Pharma’s middlemen will feel the squeeze in 2017 30 Dec 2016 The U.S. healthcare system's opacity and complexity have stoked drug prices, fueling the flow of dollars to insurers, wholesalers and pharmacy benefit managers. The growth of high-deductible insurance will bring much-needed transparency - and unaccustomed pressure on these firms.
Hadas: Russian Revolution won’t be the last 30 Dec 2016 Soviet communism initially looked like the future, but rapidly became a cruel failure. Its disappearance left big-government democratic capitalism as the sole surviving system. A century later, that hybrid model is now under global threat. It might not last another century.
Drones will take off for big business 30 Dec 2016 Today's market mainly targets hobbyists. That will change in 2017, as countries clear up legal uncertainty and big corporations turn to commercial drones for everything from crop-dusting to parcel delivery. Tech groups from Intel to Chinese unicorn DJI should benefit.
Trump’s job spin pales beside Obama’s recovery 29 Dec 2016 Some 8,000 new roles at Sprint and OneWeb touted by the U.S. president-elect already were planned, part of a bigger pledge by investor SoftBank. Economic activity is creating 180,000 positions monthly. To keep that going much longer will require more than Trump's double-talk.
Hadas: Four resolutions for a more humane economy 3 Jan 2017 Brexit and Donald Trump’s election are part of a rebellion against the social and economic establishment. Changes are needed to prevent a dangerous disintegration. Here are some suggestions: forget GDP, fight alienation, support communities and promote local decision-making.
American inequality will widen under Trump in 2017 29 Dec 2016 A populist wave sent the real-estate developer to the White House. But his economic policies will help working-class folks the least. His tax cuts, repatriation of corporate cash and infrastructure push will line the pockets of the rich before trickling down to the less well-off.
GE’s succession path lit by dueling deals 29 Dec 2016 The $275 bln industrial giant has a long list of executives capable of taking over when Jeff Immelt retires. In addition to engines and turbines, GE manufactures CEOs. The progress of two major M&A transactions will give the board a clearer view in 2017 on who should get the job.
Psychedelic drugs enlighten $2.5 trillion problem 29 Dec 2016 That was the cost of mental illness in 2010, an expense set to double by 2030, says the World Economic Forum. Psilocybin, magic mushrooms' active ingredient, has alleviated suffering in clinical trials. Illicit stigma aside, high returns on investment could make it worth a trip.
Banking whales have had their day 29 Dec 2016 A year ago, Bank of England boss Mark Carney suggested regulators had cracked the "too big to fail" bank problem. Yet new rules keep coming, and international cohesion is fading. The biggest cross-border lenders like HSBC will find it ever harder to make their cost of capital.