Context makes Santander’s Orcel fail even worse 18 Jan 2019 The Spanish bank expected UBS to honour a portion of its would-be CEO’s deferred pay. But recent executive moves at Deutsche Bank and Barclays saw new hires compensated in full. Andrea Orcel’s acceptance of a cut was a concession – making it all the odder Santander backed out.
Ford’s European repair job may need outside help 10 Jan 2019 If boss Jim Hackett hits long-term profit targets, the carmaker’s market value could rise by $10 bln. Yet that requires implausible cost cuts. Partnering with or selling to a continental rival might be better. Peugeot’s purchase of GM’s European arm shows both sides can benefit.
Strong U.S. jobs are weak tonic for markets 4 Jan 2019 Payrolls expanded at a surprisingly robust pace in December and wages ticked higher. The data shows an American economy ending the year on a high note. But employment is a lagging indicator. Slowing earnings and trade-war risks are likely to be more powerful market motivators.
German carmakers could show Trump art of the deal 14 Dec 2018 VW, Daimler and BMW are vulnerable to 25 pct auto tariffs threatened by the U.S. president, who’s also railing against GM for idling plants. The Germans could win some goodwill by taking up some of their American rivals’ spare capacity. That’s easier done for some than others.
Review: The uncertain new world of labour 7 Dec 2018 The number of worried and desperate workers seems to be increasing. Some cultural critics see a symptom of modern social decay. “Precarious Lives” looks at the numbers and finds mild damage. Its main finding: a strong welfare state is welcome, but this problem is hard to solve.
Mary Barra belatedly supercharges GM’s strategy 26 Nov 2018 Her decision to scrap low-selling brands and thin the $53 bln carmaker’s bloated executive ranks was overdue. But cutting $6 bln of costs gives GM more fuel to weather trade wars and slowing sales – and to inject into the electric-vehicle and self-driving race Barra hopes to win.
Jeff Bezos spreads jobs and disappointment 13 Nov 2018 By splitting his ballyhooed HQ2 between New York City and greater Washington, the Amazon boss can tap deep pools of tech talent. But the unconventional choice aggravates the socioeconomic divisions that plague America. It also exposes the year-long exercise as somewhat of a sham.
Goldman plays at VIP commodity theory 7 Nov 2018 The Wall Street bank elevated a measly 69 staff to partner level, even though its workforce and earnings are growing. Making the coveted title scarcer is intended to give staff a nudge. Ensuring it’s more accessible to people Goldman could use more of should be equally important.
South African boring is once again interesting 2 Nov 2018 New rules for the Rainbow Nation’s struggling mining industry strike a decent balance. Making investors bear less of apartheid’s social legacy will stop the sector’s decline. Taking the affirmative action shackles off explorers might even create some much-needed growth.
Hadas: Six economic reasons to hate Uber 25 Oct 2018 Economists are wrong to drool over the car service provider as an exemplar of free markets. This financial zombie has destructive effects on transit, a dysfunctional strategy and an antisocial approach to regulation. Also, it hurts its workers and makes investors look foolish.
Trump’s Saudi arms deal isn’t a jobs offensive 23 Oct 2018 The U.S. president is urging Congress not to sanction Saudi Arabia by blocking arms sales, saying that could jeopardize 1 million jobs. The deal would probably boost profit margins for Lockheed and others but not do much for employment. Claims to the contrary are largely spin.
Amazon gender-diversity fail shows limits of tech 10 Oct 2018 The $900 bln e-commerce giant scrapped a résumé-reviewing computer program after discovering it was prejudiced against women. Algorithms and machine learning hold promise, but are limited by programmers’ own biases. Weeding out such regressive traits requires human intervention.
Treasury yield surge is mostly about supply 5 Oct 2018 U.S. government debt issuance is rising while the Fed shrinks its balance sheet at a quickening pace. That’s bringing an end to an era of easy money that has lasted since the financial crisis. Along with trade tension, it’s a growing headwind for an economy at full employment.
Losing reliability is biggest threat to Ryanair 1 Oct 2018 Europe’s largest budget airline cut its full-year profit forecast by 12 pct due to strikes and higher fuel costs. Less profitable rivals are facing similar headwinds. But Ryanair customers are unsure it will fly at critical times like Christmas. That’s a harder issue to fix.
Orcel exit tests UBS’s Goldilocks investment bank 1 Oct 2018 Like the girl in the fairy tale, the Swiss lender wants a capital markets arm that is just the right size: not too big to weigh on its valuation, but not too small to compete. Departing chief Andrea Orcel managed the balancing act. His successors have to prove they can too.
UK shares-for-workers plan is appealing but flawed 24 Sep 2018 Forcing companies to transfer 10 pct of their equity to employees, as the Labour party proposes, seems a benign form of socialism. But capping dividends limits the benefits of spreading wealth. And handing the surplus to the government means it’s really a disguised tax hike.
Chancellor: “Haves” enriched most from Lehman bust 13 Sep 2018 Ultralow interest rates after the crisis may have lifted many boats, but the yachts of the wealthiest have been buoyed above all. Wall Street and the CEO class particularly benefited. This has come at the expense of the less fortunate, who are making their displeasure known.
U.S. wages rising – but not yet great again 7 Sep 2018 Job creation was strong in August and hourly earnings rose 2.9 pct year-on-year, the fastest since 2009. But that barely covers inflation. The White House says pay is understated. Polls suggest, though, that Americans don’t see improved finances, despite Republican tax-cut hype.
Hays gives dismal performance review for UK plc 30 Aug 2018 The British division of the 3 billion pound recruiter is cutting staff, and barely growing. Luckily, the sluggish UK economy was offset by hiring in Germany and Australia. Like Hays, UK companies will increasingly have to seek their fortune overseas.
Only casualties will dissuade Trump on trade war 3 Aug 2018 The White House may increase tariffs on $200 bln of Chinese imports to 25 pct. Big firms like Caterpillar can absorb the cost, but an escalating battle could force smaller businesses to close or fire workers. It may require a heavy toll, though, for the president to call a truce.