World will improve where it matters most in 2019 24 Dec 2018 By next December, more people will have electricity and clean water. Child deaths are likely to be rarer and education more common. In future years, the pace of gains could accelerate. The open question is whether progress will undermine prosperity by also bringing more conflict.
Byju’s educates startups in better business 20 Dec 2018 After raising fresh funds for overseas expansion, the Indian learning app is valued at $3.8 bln and growing fast despite pricey subscriptions. Success feeds off proud parents and lousy schools. On the verge of profit, Byju’s is a reminder that unicorns can grow without subsidies.
UK universities graduate to bailout candidates 1 Nov 2018 Tertiary education colleges across the UK are issuing more and more debt. The lack of an insolvency framework means any default would be messy, but lenders reckon the government would probably prevent a default. With demand for degrees waning, the bet may soon be tested.
Post-crisis Pearson now faces tougher growth test 17 Oct 2018 The education group’s U.S. textbook unit is no longer in freefall, and cost cuts mean profit should finally grow again. Yet with its shares above historical norms, Pearson’s much-touted digital-education model needs to bear fruit. There’s little sign of that so far.
Holding: Lawyers have a case for a free education 28 Aug 2018 NYU Medical School's new free-tuition policy allows graduates to avoid loans that keep many from entering low-paying yet vital fields. The logic could also work for the law. Relieved of debt, more legal eagles might choose public-interest work – to the benefit of U.S. justice.
College dorms play host to financial keg party 25 Jun 2018 Greystar is paying a reasonable-sounding $3.1 bln for Education Realty’s student-bunking business. The astronomical cost of college is prompting changes to the market, though, such as kids telecommuting to class. It could deprive university real estate of its youthful glow.
Chinese tutor’s short answer will be instructive 15 Jun 2018 Muddy Waters invoked Enron in its fraud accusations against $24 bln Tal Education. Complicated attacks can be hard for outsiders to parse, but corporate responses to bearish investors are often telling. China Internet Financial Services and AMD provide useful case studies.
Puerto Rico budget ignores the human element 27 Apr 2018 The bankrupt island’s federal oversight board certified plans that include cuts to pensions and other austerity measures. Some are in line with what Puerto Rico’s governor proposed. But they don’t adequately address the risk of yet more working-age people jumping ship.
Review: Pluralist economics is a work in progress 23 Mar 2018 “Econocracy”, a book by rebel Manchester undergraduates, gives mainstream economics a well-deserved thrashing. They could have been even tougher. But where are the alternatives? Too much of the companion volume, “Rethinking Economics”, seems underdeveloped, not to say flaky.
Gary Cohn could go from White House to blackboard 7 Mar 2018 President Trump’s departing economic adviser may fancy staying in government. Or perhaps he’ll try to return to finance. But America is awash with politicians and bankers. Becoming a teacher would be a fine display of public service. Cohn now has some valuable lessons to pass on.
Hadas: Billy Graham’s great missed economic chance 26 Feb 2018 The evangelist, who died last week, lived through a global debate over the Christian responsibility to help society. He put preaching before activism. If he had spoken out – as many European Catholics did – America might have a stronger welfare system now, and less populism.
Pearson investors need their homework checking 17 Jan 2018 The $8 bln education publisher’s revenue has stopped cratering after it stemmed a decline in sales of U.S. textbooks. The relief may be temporary. Colleges are shifting to cheaper course materials and a price war is looming. That is hard to square with a rich valuation.
Harvard fund helpfully expels star pupils 18 Dec 2017 The university endowment is spinning out its real-estate team to buyout firm Bain. Investment boss Narv Narvekar had promised to outsource more of the $37 bln portfolio. Pushing out one of the bits that’s actually turning in stellar performance is a reassuring sign he means it.
Indian family writes its own philanthropic code 24 Nov 2017 The Bhartis are donating $1.1 bln to their own foundation. Though the sum pales next to other billionaire pledges, there's a creative twist. Money will be used to start a university to teach AI and robotics, free to poor kids. There's no global playbook when it comes to giving.
Chicago School gets $125 mln for being wrong 1 Nov 2017 The university’s tradition leans heavily towards free and efficient markets. Hedge-fund boss Ken Griffin’s name and cash – generated in an industry that depends on markets being inefficient – will now endow the economics department. Kudos to Griffin and Chicago’s open mind.
UK student loan sale has costly Corbyn hedge 31 Oct 2017 Britain is pushing ahead with the sale of 4 bln pounds of loans, despite Labour leader Jeremy Corbyn’s promise to ease student debt. Investors will get compensation from a complex scheme if government policy changes. That further strains the logic of the sale.
For-profit college deal textbook merger of equals 30 Oct 2017 Strayer and Capella are forming a company worth $1.9 bln as regulatory pressures force them to improve the quality of their degrees. Pooling resources, and slicing out $50 mln in costs, gives them a better chance to disrupt America's overpriced higher-education racket.
Pearson’s improved report card could be erased 17 Oct 2017 The education publisher issued a slightly more optimistic forecast for operating profit and said its U.S. textbook business is unlikely to repeat its catastrophic 2016. But Pearson has misread its key market before. The shift to digital publishing still looks painful.
Harvard endowment risks wasting its big advantage 20 Sep 2017 An 8.1 pct gain in the year to June was far from Ivy League. Newish boss Narv Narvekar says it will take years to fix performance. But worrying about short-term returns misses a Harvard strength. Its $37 bln pot is ideally suited for the ups and downs of very long-term investing.
Endowment CIO pay demands greater academic rigor 23 Aug 2017 The boss of Harvard’s $35 bln fund recently made nearly three times as much as the head of Yale's $25 bln pot despite much weaker returns. Colleges generally base compensation more on size than performance, as companies tend to do with CEOs. They should grade more carefully.