Didi will seize the wheel of a Chinese carmaker 17 Dec 2018 The $56 bln ride-hailing firm has tied up with the likes of Toyota to develop vehicles and services, as lines between tech firms and auto manufacturers blur. Boss Cheng Wei, inspired by falling valuations in China’s car sector, will deploy Didi's $12 bln cash pile to buy a brand.
J&J’s talc crisis will linger for years 14 Dec 2018 Investors erased $40 bln of market value after Reuters revealed the U.S. company knew for decades its baby powder was sometimes tainted by asbestos. Based on past consumer scandals, the real hit could be smaller but long-lasting. Lawsuits and brand damage don’t easily dissipate.
Review: The attack of the killer fridges has begun 14 Dec 2018 The world is ever more connected via the internet, from cars and power grids to home appliances and toys. That means ever more things are dangerously hackable, security expert Bruce Schneier writes in “Click Here to Kill Everybody.” His title isn’t as hyperbolic as it may sound.
European banks stuck in bond market prison 13 Dec 2018 Lenders may need to raise over 500 bln euros of loss-absorbing capital when investors are fretting over weak growth, rising rates, and geopolitical tensions. Borrowing costs are rising, and even strong banks are scrapping deals. To avert a crunch, the ECB may have to step in.
Big Tech has a mission in U.S. flyover country 11 Dec 2018 Facebook and its rivals need friends in Washington, yet they mostly aid the urban elites. That’s a missed opportunity, because it’s in America’s interior that they can do more good, by creating jobs. That would be a slow but lasting way to build goodwill.
U.S. markets could be Huawei’s best ally 6 Dec 2018 Stocks fell after the CFO of the Chinese telecoms group was arrested for U.S. sanctions violations, jeopardizing a U.S.-China trade truce. President Trump helped Huawei rival ZTE when it was in a similar boat. His keen interest in buoyant markets may lead him to act again.
Huawei settles into eye of geopolitical storm 6 Dec 2018 Meng Wanzhou, the Chinese telecom equipment maker’s CFO, was arrested in Canada for allegedly violating U.S. sanctions. The case arises just as more countries put the squeeze on Huawei. Suppliers will be rattled, too. It may be a microcosm of a broader containment effort.
Silicon Valley mud fight leaves all splattered 4 Dec 2018 Apple boss Tim Cook is taking aim at social networks' privacy issues. Meanwhile Facebook CEO Mark Zuckerberg has been keen to point out the iPhone’s dominance. Where other industries stick together in the face of regulatory challenges, tech is making politicians' work easier.
Euro zone reform leaves crisis fault lines intact 4 Dec 2018 The single currency’s finance ministers agreed to make sovereign bailouts and debt restructuring smoother, and share the cost of winding down banks. Yet support for troubled countries and lenders remains limited. The region is still unprepared to cope with future economic shocks.
Big Weed is better off without Big Tobacco embrace 3 Dec 2018 Altria can easily afford to swallow $2 bln pot producer Cronos. It’s the seller – and its peers – that could pay a high price. Companies want the product to be seen as medicinal not lethal, edible not smokable, and more like beer than tobacco. Not all capital infusions are equal.
Tribune gets better M&A script in second season 3 Dec 2018 Nexstar is buying the U.S. media group for $4.1 bln. Tribune recently pulled out of an earlier deal after suitor Sinclair irked U.S. regulators. This go-around looks like a stronger plot. The price is higher, the buyer’s record is strong and there’s a clean sheet with watchdogs.
Review: Paul Volcker’s exemplary life 30 Nov 2018 The former Fed chairman is famous for crushing inflation. His new memoir, “Keeping At It”, reveals the attributes that made him arguably America’s greatest central banker. His common sense, distrust of economic theory and personal integrity are valuable guides to his successors.
India is hit hardest by Asia’s $4 trln water risk 30 Nov 2018 That’s how much GDP is at stake if the region doesn’t better manage the 10 Himalayas-fed rivers its economic hubs rely on. China appears to be steering a good course. But India isn’t fixing the governance mess exposed by rising water stress. That threatens economic growth.
Altria could polish cut-price Juul 29 Nov 2018 The $100 billion Marlboro maker may be eyeing a stake in the vaping unicorn as e-cigarettes cut into its growth. Buying upstarts can be expensive for mature companies threatened with disruption. But Juul now has regulators on its back. That could help Altria strike a bargain.
Deutsche Bank’s new dark clouds have silver lining 29 Nov 2018 The lender has been hit by police raids linked to clients’ alleged tax evasion and speculation its investment bank head could leave. Yet Panama Papers issues have thus far not meaningfully hit European banks. And Deutsche’s traders should have a decent 2019 – whoever’s in charge.
China’s gene-edited babies cry out to regulators 29 Nov 2018 A scientist says he genetically altered human embryos to protect them from HIV, sparking a firestorm. Clearer guidelines are needed, but sweeping restrictions could stifle biotech innovation. The Chinese research community’s weak self-discipline is another problem.
Hadas: How to stop radical CEOs from going rogue 28 Nov 2018 Renault and then Nissan hired Carlos Ghosn to subvert conventions. But the will to transgress is hard to keep within boundaries. Companies have four defences against talented but errant bosses: bureaucracy, conscience, boards and punishments. All of them can be strengthened.
Crypto disruptors want a hug from Wall St 27 Nov 2018 Enthusiasts snapped up bitcoin and its digital imitators believing they would replace financial intermediaries. But an 80 pct price collapse has dampened the revolutionary fervor. Now the likes of NYSE and Fidelity can’t come soon enough with futures, ETFs and custody services.
EU sends mixed signals to scale-hungry corporates 27 Nov 2018 Commissioner Margrethe Vestager may wave through a Dutch mobile merger but not the Siemens-Alstom rail deal. One decision hints at flexibility in the EU’s antitrust thinking. Still, politicians hoping to build regional champions to counter the U.S. and China will be disappointed.
New global bank cop faces political stress test 26 Nov 2018 Fed Vice Chair Randal Quarles is a strong choice to lead the Financial Stability Board but the Basel-based body faces many challenges. A divided U.S. Congress is fighting about whether to be tough or soft on Wall Street. Brexit and other forces will also test cross-border unity.