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.
U.S. gives investors final excuse to swerve Iran 9 Nov 2016 It’s assumed President-elect Donald Trump wants to unpick a “disastrous” deal lifting nuclear sanctions on Tehran. The curbs were only lifted in January, and the risk of dealing with the proscribed Revolutionary Guard already means foreign firms are wary. Trump settles the issue.
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.
Whole Foods founder may have to break his own mold 3 Nov 2016 John Mackey is becoming sole boss, ending a rough six-year run for the $9 bln grocer under a co-CEO structure. Sales have been falling amid stiff competition. Starbucks and Apple proved an entrepreneur's zeal can revive a company, but Whole Foods could use radical rethinking.
Newspaper business model imposed by market 2 Nov 2016 New York Times quarterly print revenue declined a fifth and the Wall Street Journal is radically redesigning to cope with tough conditions. A long-running debate by publishers over the merits of advertising versus subscriptions seems quaint. The choice has been made for them.
AT&T gets a sneak preview of Time Warner fight 2 Nov 2016 U.S. trustbusters sued the telecom titan and its DirecTV unit for sharing information with rivals over baseball TV rights. The case reflects worries about gatekeepers gaining power over programming. As it seeks approval to buy Time Warner, AT&T can expect to hear the question often.
Time Warner’s sale to AT&T obscures future hurdles 2 Nov 2016 The HBO operator handily beat quarterly expectations as it prepares for its $85 bln sale to the telephone company. Still, small signs serve as a warning for the buyer. Chief among these is the long-term sustainability of cable fees from its powerful Turner networks division.