Rail strikes will test French appetite for Europe 9 Apr 2018 President Emmanuel Macron’s plans to overhaul the state-run train company have sparked mass walkouts. He’s not the only one with much to lose. If voters turn against rail reforms, they may also blame EU laws that are forcing the pace of change and grow more critical of Brussels.
Russian stocks deliver sanctions face-palm moment 6 Apr 2018 The U.S. sanctioned Rusal and EN+, as well as related oligarchs like Oleg Deripaska. The danger that groups close to the Kremlin might get burned was pretty clear in EN+’s recent IPO prospectus. Governance and politics are as critical to such companies’ value as their operations.
U.S. companies in China prepare to be squeezed 6 Apr 2018 President Trump is aiming new tariffs at $100 bln of Chinese exports after Beijing threatened duties against U.S. products. American firms have invested over $250 bln into China in the past 25 years. Their assets are now exposed to regulatory harassment and shifting trade flows.
China brings a gun to its U.S. trade gunfight 4 Apr 2018 Beijing proposed duties on $50 bln of American exports hours after the U.S. said it would tax the same value of Chinese exports. Doing so may hit China’s economy, but that’s the point. The readiness to go toe-to-toe implies Trump’s trade war will be neither good nor easy to win.
Cox: Sinclair is more totalitarian than democratic 4 Apr 2018 Donald Trump's favorite $3 bln broadcaster is downright deplorable, at least when it comes to corporate governance. The board is stocked with ancient cronies – with no women in sight. Fold in the controversy over its Orwellian editorial policies and the stock is best avoided.
U.S. levies on China showcase the widget economy 4 Apr 2018 Washington wants to apply 25 pct duties to 1,300 Chinese imports. Politicians love high-tech industries, but this list is dominated by mundane products like dental tools and floor polishers. It’s a reminder of the crucial role everyday items play in economic growth.
Berlusconi scores point off Bolloré in mogul feud 3 Apr 2018 Shares in the former prime minister’s Mediaset TV group jumped after it agreed to collaborate with Sky’s Italian unit. An investor in Mediaset, Vincent Bolloré’s Vivendi will gain from the deal. But, as Berlusconi and Sky grow closer, Bolloré’s own ambitions risk being sidelined.
China’s soybean trade card is difficult to play 3 Apr 2018 New tariffs target $3 billion worth of U.S. imports. But they don’t touch a big American pressure point: soybeans. This first round is a warning shot, to be sure. But retaliating against this commodity would hurt Chinese farmers and consumers, so Beijing might save it for last.
Qualcomm’s director election offers double rebuke 30 Mar 2018 Support for incumbents averaged under half the U.S. chipmaker’s outstanding shares. That’s a warning after the board resisted Broadcom’s $117 bln hostile bid, nixed by Donald Trump. Meanwhile, the convoluted process and an error voting Vanguard’s shares shame an archaic system.
Walmart may have hit on healthy kind of disruption 30 Mar 2018 Merging with insurer Humana could put clinics in the U.S. retailer’s stores, keeping patients out of hospitals and insurance costs down. Walmart isn’t given to big acquisitions and $37 bln Humana wouldn’t come cheap. But a broader partnership could bring many of the benefits.
Rocket-fueled stocks finally feel the burn 28 Mar 2018 Amazon lost as much as $50 bln in value, perhaps partly because Donald Trump isn’t a fan. Tesla’s stock fell another 8 pct-plus. Facebook has shed nearly $100 bln of market cap. Investors once whistled past concerns that haven’t changed much. Maybe they are opening their ears.
Hadas: Populist economics can be sensible 28 Mar 2018 U.S. President Donald Trump, Italy’s 5-Star Movement and other modern populists are floundering with outdated or bad economic plans. They would do more to help those left behind by globalisation if they used higher taxes to create better jobs and strengthen welfare security nets.
Unilever-FTSE standoff is test of index power 28 Mar 2018 The benchmark compiler must decide whether to keep the Marmite maker in the FTSE 100 after it opted for a Dutch head office. Recent tax changes and activist pressure may prompt similar rejigs at heavyweights Shell and BHP. The index may have to bend its rules to retain its clout.
UK gender pay gap requires “just do it” approach 28 Mar 2018 Disclosures have revealed discrepancies, especially in finance, which will not close on their own. The state can help. Fining employers which fail to make progress over several years would align the interests of women and investors. CEOs would have to match words with actions.
Kim Jong Un’s change of heart might be for real 28 Mar 2018 The despot is acting suspiciously nice, mending fences with Seoul and Beijing and warming to U.S. President Trump. This could be another ruse to lift sanctions. Yet there are reasons to believe a more secure Kim is ready to start turning North Korea into a more normal country.
Wells Fargo is wrong objection to NY Fed candidate 27 Mar 2018 John Williams, who heads the U.S. central bank’s San Francisco operation, may be close to the top Liberty Street job. Wells sinned on his watch, as Senator Elizabeth Warren has noted, but other watchdogs deserve blame. For anyone looking, there are better arguments against him.
Meirelles’ sanity will be a hard sell in Brazil 26 Mar 2018 The man running Latin America's biggest economy is resigning and wants to be president. His competence and pro-market stance are a welcome addition to a wide-open field ahead of October’s election. But voter disgust for establishment figures could mean rejection for his approach.
Ego is Italy’s main barrier to radical government 26 Mar 2018 The rightist League sided with the 5-Star Movement to elect parliament’s speakers. It’s a sign the two forces, which want to unpick reforms and spend more, can collaborate. A coalition of mavericks would strain euro zone relations. But agreeing on a prime minister will be tough.
Japan steels itself for worse on trade 26 Mar 2018 U.S. metals tariffs won’t hurt Tokyo much. But trade tensions can cause indirect harm too, since Japan is a big supplier to China, and market jitters unhelpfully boost the yen. President Trump’s scorn for a close ally hints at pressure to come over cars, agriculture and currency.
China sows confusion with two central bank bosses 26 Mar 2018 The head of the banking and insurance regulator may also become party chief at the People’s Bank of China. Guo Shuqing would outrank new Governor Yi Gang, making for an awkward combination. Guo might be the more effective reformer, but his brash style could unsettle markets.