Guest view: Trump’s contempt clouds Supreme Court 17 Nov 2016 His list of possible successors to Antonin Scalia and other justices may reassure conservatives. Trump's temperament and seeming disregard for the rule of law, however, should worry both ends of the political spectrum, says Columbia Law School senior fellow Reynolds Holding.
IBM understands the art of the deal 16 Nov 2016 Boss Ginni Rometty pitched President-elect Donald Trump with a job-training program, IT efficiency and a tax cut. They'd be good for IBM, and maybe even America. Conspicuously missing from her letter, however, is any mention of how Watson is bound to displace many workers.
Target’s bull’s-eye will be hard to repeat 16 Nov 2016 After a rough summer, the $43 bln U.S. retailer notched an impressive jump in online sales and raised its 2016 profit forecast. Even so, Target needs more people in its stores over the holidays. Shopper habits are changing quickly and Amazon will keep flexing its muscles.
Evercore’s two chairmen are an enviable problem 16 Nov 2016 Wooing ex-Goldman Sachs partner John Weinberg is a coup for the advisory firm. Making him executive chairman, though, while founder Roger Altman stays as senior chair, muddies governance and creates top-heavy management. Rivals can only wish they had a similar dilemma.
Amazon lends Morrisons scale, at a price 16 Nov 2016 The UK supermarket is extending its tie-up with Amazon, boosting its online sales. The deal isn't without risk for the grocer: Amazon is much bigger than it, and will have discretion over pricing. That's the price Morrisons pays for being slower than rivals to move online.
Dollar, rates or rules could zap EU bank rally 16 Nov 2016 The Euro Stoxx banks index is up 11.5 pct since the U.S. election. Expectations for higher interest rates and watered-down Basel capital rules could be too rosy. Meanwhile, the stronger dollar may reduce EU bank appetite for leverage, and presage wider financial instability.
Estee Lauder pays $1.5 bln for fountain of youth 15 Nov 2016 The 70-year-old cosmetics maker hopes to goose up sales with the acquisition of millennial-friendly brand Too Faced. At 5.4 times sales, the price is rich compared to Lauder's own valuation. But it stacks up against similar forays by L'Oreal. That explains smiling investors.
Buffett’s love for moats trumps fear of flying 15 Nov 2016 The billionaire's Berkshire Hathaway has bet over $1 bln on four U.S. airlines. Buffett once called the industry a "bottomless pit," and jokingly wished aviator Orville Wright had been shot down at Kitty Hawk. That was before a spate of mergers created a profitable oligopoly.
Canada a small, vulnerable blip on Trump radar 15 Nov 2016 Markets up north have barely budged on America's surprising election outcome. Investors appear to be gambling Trump's call to rip up NAFTA won't affect the export-dependent economy. Perhaps, but Canada is susceptible to other forms of turbulence emanating from Washington.
Saudi has Trump-shaped reason to reverse OPEC cut 15 Nov 2016 The new U.S. president may boost oil drilling, snub climate change accords and cancel a sanctions deal with Iran. That would give Saudi Arabia an excuse to back out of the cartel’s shaky pledge to cut output. Though prices would fall, Riyadh would hang on to its market share.
Reynolds can get more of what BAT’s smoking 15 Nov 2016 The U.S. tobacco maker rejected an offer from its biggest shareholder that values the whole company at $76 bln. A new government at home gives Reynolds a smidgeon of extra negotiating heft. The case for a deal, meanwhile, remains as bewitching as the evil weed itself.
Facebook faces its own fake-news Twitter problem 14 Nov 2016 Mark Zuckerberg denies the social network helped elect Donald Trump because of made-up articles. Yet Facebook regularly boasts to advertisers about its influence over nearly 2 bln users. Like toxic tweets, allowing hoaxes to flourish has the potential to dent its business model.
Siemens pays full price for extra pixels 14 Nov 2016 The German engineer is buying U.S. software maker Mentor Graphics for $4.5 bln including debt. Adding electronic design automation software to its digital offering makes sense. For the deal to add value, however, Siemens will have to outperform its own target for extra sales.
Mexico’s greatest defense against Trump is time 11 Nov 2016 The U.S. president-elect's victory sent the peso plunging. His trade and immigration policies could, if enacted, turn Mexico into the poor, unfriendly country Trump's overheated rhetoric decried. But economic and political reality suggest patience could pay off.
Chancellor: Trump victory upsets the rent-seekers 11 Nov 2016 A belief that elites are taking an ever larger slice of the economic pie is what got the real-estate mogul elected. This conforms to political scientist Mancur Olson's theory that growth declines when "distributional coalitions" are maintained. Trouble is, Trump is one of them.
Review: Hubris opens door to white-collar crime 11 Nov 2016 In "Why They Do It," Harvard professor Eugene Soltes seeks to find out what propels executives like Bernie Madoff to do wrong. Each culprit has their own particular story. The clubby and entitled atmosphere of executive culture, however, is a common catalyst for bad behavior.
New York gets nose in front in finance hub contest 11 Nov 2016 Donald Trump wants to pause rulemaking and scrap Dodd-Frank banking reforms. Much rests on the U.S president-elect's choice of Treasury secretary, who may whack big lenders. But firms cooler on London since the UK's vote to leave the EU may now be even keener on the Big Apple.
Trump may make Mario Draghi great again 10 Nov 2016 European bonds are tracking the rise in U.S. yields sparked by President-elect Donald Trump's spending plans. This helpfully expands the number of bonds that the ECB boss can buy. U.S. protectionism would also hurt the euro zone economy and push Draghi back into the limelight.
Trump’s team puts new economic theory to test 9 Nov 2016 The reality-TV star appealed to voters by railing against the establishment. And yet a range of financiers from Goldman Sachs, KKR and various hedge funds may wind up advising him. It's time to see whether a group without Washington experience can improve on America's fortunes.
Goldman’s new elite get cherries on promotion cake 9 Nov 2016 The 84 employees elevated to partner status were greeted by a rise in the bank's stock price following Trump's victory. Goldman Sachs alumni also could serve in the administration, a path considered blocked. This latest class has more reasons for optimism than recent peers.