Breakdown: EU gains new powers for Big Tech fight 21 May 2018 Europe’s new privacy rule, the GDPR, prohibits covert data gathering and allows users to have information moved or deleted. The likes of Google and Facebook may initially find it easier to comply than smaller companies. But over time they’ll face a hostile EU with new weapons.
Review: Silicon Valley gets a reality transfusion 18 May 2018 “Bad Blood” tells how Theranos, a company with a single flawed idea, attained a $9 bln valuation. A combination of need, greed, ignorance and hubris made it possible for a seductive fairy tale to outpunch scientific skepticism. Companies can’t live on stories forever, though.
CBS, Shari Redstone litigate selves off M&A rails 17 May 2018 A judge denied the $20 bln media firm’s restraining-order request against its controlling shareholder. But CBS may be able to argue Redstone is breaching her fiduciary duty. It almost ensures a long legal drama that’ll shunt deals with Viacom or other companies onto the sidings.
Italian radical agenda is a recipe for chaos 16 May 2018 A leaked plan by likely coalition allies 5-Star Movement and League says states should be able to exit the euro zone and cancel debt. That, along with a soaring budget and proposals for a shadow government, promise conflict with the EU. Bond markets are too complacent on Italy.
Caps not breakups are best cure for Big Four woes 16 May 2018 UK lawmakers suggested forcing auditors to hive off their consulting units. That might prevent conflicts but could make the companies less profitable and competitive. Imposing limits on auditors’ market share is a better way to make the sector more efficient and avoid blowups.
Viewsroom: 1MDB rears head in Malaysian election 16 May 2018 The $5 bln sovereign-wealth fund’s scandal played a role in voters replacing Prime Minister Najib Razak with nonagenarian Mahathir Mohamad. Its resurgence could mean bad news for Goldman Sachs and Najib himself. Plus: Walmart nabs Flipkart in a big bet on e-commerce in India.
Holding: Lawyers can make even charity look sleazy 15 May 2018 The U.S. Supreme Court will decide whether Google can settle an $8.5 mln privacy lawsuit with nonprofit gifts. The tech giant says the public will benefit, but only attorneys win big while victims get zilch. As with M&A suits, legal eagles have soiled a potential good with greed.
EU transparency purge may boost bitcoin legitimacy 14 May 2018 The European Union will force exchanges to identify users who trade in cryptocurrencies. That could make it harder for criminals to use them to hide ill-gotten gains. The clampdown might deter some traders, but should make virtual currencies more respectable.
Barclays slap calls time on UK banker-bashing 11 May 2018 Regulators fined CEO Jes Staley 642,000 pounds for trying to identify a whistleblower. The relatively low penalty reflects lenience towards misbehaviour which doesn’t involve ill-gotten gains or investor losses. Bank chiefs can no longer complain they are being treated unfairly.
Holding: A bribe is a bribe, abroad or at home 10 May 2018 AT&T and Novartis would risk criminal prosecution if they paid a foreign leader’s pal for political influence. Yet handing big bucks to Trump fixer Michael Cohen seems well within U.S. law. The double standard undermines America’s claim “to spread the gospel of anti-corruption.”
Wall Street Schneiderfreude would be misplaced 8 May 2018 New York’s attorney general levied hefty fines against JPMorgan, Barclays, RBS and others. Now he has resigned amid allegations of abuse. It’s no reason for banks to gloat. Any successor will have just as much incentive, and perhaps more credibility, to pursue financial misdeeds.
Hong Kong reveals capital imbalance in LGBT spat 4 May 2018 The city is fighting to stop a lesbian from obtaining a spousal visa. Morgan Stanley, Freshfields and others have backed the woman's case, recognising the value of human capital. Hong Kong favours the financial kind, evidenced by the relaxation of rules to attract more IPOs.
Xerox effort to go quietly is thwarted on all sides 2 May 2018 Carl Icahn and Darwin Deason have ousted the CEO and board members at the struggling copier company, and at least delayed any deal with Fujifilm. The outgoing CEO, directors and advisers all look bad. Yet Xerox needs a credible final act, and the activists don’t have one written.
Elliott sends powerful signal with Seoul case 2 May 2018 The hedge fund wants payback from South Korea for a tie-up between two Samsung units. Fighting this under free-trade rules is highly unusual. But the scandal around the deal bolsters Elliott’s case and its determination puts other targets, like Hyundai, on notice.
Mooch returns to place that’ll have him: Wall St 30 Apr 2018 Anthony Scaramucci is heading back to SkyBridge, the investment firm he founded, after HNA dropped its bid. The Chinese conglomerate’s rationale for buying it was more absurd than his chaotic turn as a White House flack. With HNA out and the Mooch back in, order is restored.
Glencore can dig its way out of Kinshasa quagmire 30 Apr 2018 A former partner is threatening to freeze two of the $71 bln commodity giant's operations in Congo, demanding $3 bln. It's the latest in a list of woes in the African country, including a tough new mining code. But the 6 pct drop in the stock over the past week is overblown.
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.
Faith in Bolloré brain trust resists Africa probe 25 Apr 2018 Shares in Vincent Bolloré’s group fell 9 percent after French police questioned the tycoon about dealings in Guinea and Togo. Yet Vivendi, chaired by his son Yannick, barely moved. Investors are trusting that the family’s dealmaking dynamism will survive the test.
Holding: U.S. judges could use CEO succession tips 19 Apr 2018 The Supreme Court’s Anthony Kennedy is expected to retire soon, taking advantage of a Republican president and Senate to ensure a like-minded heir. Yet his replacement probably won’t share his views, a new study suggests. Even when bosses have well-laid plans, they can go awry.
Review: Comey is flawed champion of civics revival 17 Apr 2018 In his blockbuster memoir, the ex-FBI director who prosecuted Martha Stewart and worked at Bridgewater calls Donald Trump an unethical liar and a threat to American institutions. His yarn is riveting, but reveals Comey’s mix of principled leadership and sanctimonious showboating.