DOJ fights uphill battle; Google a losing one 12 Sep 2023 A trial kicked off that pits the search engine’s $1.7 trln owner against the US Department of Justice. Google gleans data freely given and has beaten other rivals. That makes the government’s case tough. By fighting it, though, the tech firm risks exposing its creepy reach.
Feel-good war on short flights misses the mark 4 Sep 2023 European states like Germany are mulling bans on air travel under a certain distance. Short-haul commercial flights make convenient climate scapegoats. But going after private jets, which can emit 45 times more carbon per passenger, would bring more benefit with less disruption.
Climate change turns US utilities grimly exciting 31 Aug 2023 Hawaii’s biggest electricity provider is at risk of bankruptcy after wildfires destroyed a town. Increased capital expenditure can mitigate, but not eliminate, damage from storms and heat. Little wonder investors are slowly waking up to the dangers posed by litigious customers.
Shady export leaks suggest Russian sanctions work 29 Aug 2023 A suspicious bump in European exports to countries like Kazakhstan may be helping Moscow evade Western bans. The G7 price cap on Putin’s oil is also porous. But these cracks are marginal and help demonstrate the embargoes’ effectiveness – and why they can be tightened.
Capital Calls: Diversity initiatives 23 Aug 2023 Concise views on global finance: The group that got the Supreme Court to overturn affirmative action at universities is suing financial firms to end programs for diverse applicants. It will make companies rethink recent diversity initiatives.
Altice’s beaten-up debt is only a bet for the bold 8 Aug 2023 Patrick Drahi’s telco empire faces a funding crunch, with $60 bln of debt coming due by 2030. He must pull off a tough turnaround in France and sell assets, a tricky task made even harder by a corruption probe. Even with current high yields, Altice debt is a risky punt on Drahi.
ICE cuts tortuous path through frosty trustbusters 7 Aug 2023 It took 15 months, two divestitures and an 11% discount, but Black Knight’s $12 bln sale to the NYSE operator is set to close after deal enforcers dropped a lawsuit. It’s a small sign that even FTC chief Lina Khan can see clear to settle, if merger participants concede enough.
One-two punch barely fazes Uncle Sam 2 Aug 2023 Donald Trump became the first US president to face two federal indictments while Fitch yanked the country’s AAA status. Washington is more volatile than it has been in decades. Yet a resilient economy and the world’s reserve currency make it hard to bet against the United States.
NatWest goof is a boon for sketchy bank clients 21 Jul 2023 The UK lender’s CEO apologised to right-wing talking head Nigel Farage amid an account-closure row. Britain will now force banks to respect freedom of expression. Yet that may make it harder to ditch other, more problematic clients – and weaken the fight against money laundering.
Amazon-EU web content spat is all about grey areas 20 Jul 2023 The $1.4 trln e-commerce giant is fighting Brussels’ decision to class it as a large online platform and hence face extra scrutiny. Given its size, Amazon’s challenge at first looks like a long shot. Yet the legislation’s vague language creates scope for disputes.
Ireland becomes guinea pig for booze clampdown 13 Jul 2023 Drinks like Guinness and Smirnoff vodka will feature cancer warning labels by 2026. It’s a bold move that will be watched closely by the US and Europe. If it’s a success and is replicated, rosy forecasts of alcohol sales soaring to $2 trln by 2030 may be revised.
History is against UK and Spanish telecoms M&A 12 Jul 2023 Vodafone and Orange have deals worth $40 bln on antitrust agencies’ desks. Europe has only once approved a similar merger without competitive remedies, which involved a tiny Dutch player. The telcos may have to make big concessions, undermining their tie-ups, or accept defeat.
Ukraine can rebuild without a Russian asset grab 30 Jun 2023 Using Moscow’s frozen assets to fund Kyiv’s $400 bln-plus recovery risks violating the rule of law. Suing Russian entities for the damages brought by the war is more promising. It allows Ukraine to build up claims that would be part of future peace talks.
Capital Calls: KKR’s reluctant bidding war 30 Jun 2023 Concise views on global finance: Despite pushing arguments about antitrust and financing risks, the buyout shop ended up parrying a rival suitor for industrials company Circor by matching it on price.
Credit-card crackdown will net limited rewards 22 Jun 2023 Over 80% of Americans have one, yet plastic’s complexity rivals financial derivatives. A Biden administration plan to cut late fees to $8 sounds like a step toward simplicity and a savvy vote-winner. Banks will probably be no worse off, however, and consumers scantly better.
AI’s regulation naysayers protest too much 21 Jun 2023 Lawmakers in the European Union and elsewhere are scrambling to draft artificial intelligence rules. Industry leaders like OpenAI boss Sam Altman warn the approach is too onerous. Yet the risks of pandering to special pleading exceed the dangers of stifling a nascent industry.
Crypto is dead: long live crypto! 16 Jun 2023 Already reeling from fraud and falling prices, cryptocurrencies suffered a fatal blow with US charges against two leading exchanges. Yet Felix Martin argues that the demise of speculative digital tokens may help revive their original purpose as private global currencies.
Capital Calls: Zee, Embracer 13 Jun 2023 Concise views on global finance: India’s securities regulator banned the media group’s CEO from holding any key managerial positions, putting its merger with Sony’s local unit under a cloud; the $3 bln video-game group’s new strategy hits the right buttons.
Odey brokers’ belated rethink is a cautionary tale 12 Jun 2023 JPMorgan, Morgan Stanley and others are reviewing links to the fund manager. Odey’s 2021 firing of his executive team should have been a red flag to do so even before further sexual assault allegations emerged. Brokers’ tardy responses just raise questions about their processes.
Coinbase investors are still aiming for the moon 9 Jun 2023 A lawsuit from the US Securities and Exchange Commission poses an existential risk for the crypto exchange. Yet it’s still valued at more than $11 bln, excluding spare cash. Loyal shareholders are betting CEO Brian Armstrong can avoid the crackdown – and find new ways to grow.