Review: Capitalism and democracy are good friends 1 Mar 2019 “Democracy and Prosperity” persuasively argues that markets and shifting electoral balances have worked well together to support economic growth. Its two professor authors don’t think the new “populism” needs to break the pattern. Sadly, that case is much less compelling.
Thruppence: Who wins by sponsoring UK book prize? 29 Jan 2019 Man Group has ended its support for the UK’s prestigious Booker award. The hedge fund decided there were worthier recipients of its 1.6 mln pound annual cheque. Luckily for aspiring authors, Breakingviews columnists have a handy shortlist of those who could step into the breach.
The Exchange: Flint Mayor Karen Weaver 18 Jan 2019 Before its tainted-water scandal hit in 2014, the Michigan city was already infamous for high crime and poverty rates after a prolonged economic slump. Weaver discusses the fallout from the water crisis – and explains how the birthplace of General Motors is undergoing a revival.
Trump’s crisis powers are a Pandora’s box 9 Jan 2019 The U.S. president may yet try to bypass Congress to build a border wall by declaring a national emergency. In theory, similar authority could enable him to close CNN or block Facebook. Such scenarios would be tested in court. But there’s leeway, and only lawmakers can reduce it.
WeWork needs path to profit, not enlightenment 8 Jan 2019 The cash-burning office-share outfit – now “The We Company” – wants to “elevate the world’s consciousness.” SoftBank is investing $2 bln more, some at a notional $47 bln valuation. But that’s far less than mooted. Broadening its ambitions as backers shrink theirs is risky.
Firearms will test the mettle of woke financiers 2 Jan 2019 Wall Street dealt gunmakers a blow in 2018 for their part in facilitating gun violence. Yet the wounds were glancing. Investors like BlackRock aren’t especially suited to social activism. Banks, though, have a bigger bully pulpit, and 2019 will bring more reasons to use it.
Spain policy paralysis sets up dangerous dynamic 21 Dec 2018 Rising support for anti-immigrant Vox makes life harder for Socialist Prime Minister Pedro Sanchez, who was already struggling to pass a budget. That’s bad news for the labour market. Growth is slowing and politicians are unable to enact reforms that might help the unemployed.
Cox: France’s Macron can’t turn 41 fast enough 21 Dec 2018 The tail end of the president’s 40th year proved more eventful than he bargained for. The “gilets jaunes” caught him unawares and hardened the perception of him as an aloof dauphin. Business is still hopeful, but Macron needs more than rich Parisians’ backing to reform France.
Ted Baker is stuck in a bear hug trap 4 Dec 2018 Ray Kelvin’s habit of embracing employees has become a liability for investors. If an internal probe shows he is culpable of more than unwanted coziness, the fashion brand could push its largest shareholder away. Even if he holds on, Ted Baker will grapple with other challenges.
Cox: Why I’m relocating to Paris in the year ahead 4 Dec 2018 Riots on the Champs-Elysées are not the best advertisement for President Emmanuel Macron’s fight against illiberalism at home and abroad. But homegrown protests like those of the “gilets jaunes” come with the territory in the global centre of the resistance – my new home.
French riots present Macron with stiffer test 3 Dec 2018 Previous presidents faced protests like the “yellow vests” who rampaged through Paris. As before, the supposed cause - fuel taxes - masks other grievances. But Emmanuel Macron lacks heavyweight ministers or credible opponents. That makes him a lightning rod for public discontent.
Americans spend faster to die younger 29 Nov 2018 Life expectancy has fallen for the third year in a row. Yet the U.S. lays out far more money than other countries to foil the Grim Reaper – and the amount is rising. The issue isn’t just what’s spent but where. More on basic public health and education would be a good start.
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.
Review: New tech brings golden age of media 16 Nov 2018 The internet has provided ample fodder for the endless debate over culture versus commerce. In “Digital Renaissance,” business professor Joel Waldfogel says consumers have more good music, movies and television shows than ever to choose from, and haven’t bankrupted industry.
Corporate America leads the country to the polls 5 Nov 2018 Walmart, Tyson Foods and hundreds of other firms are making it easier for employees to cast a ballot in the U.S. congressional elections. A mishmash of state laws and the lack of a national holiday makes voting a challenge. This initiative shows how companies can be good citizens.
Facebook’s Africa friends need heart, not darkness 5 Nov 2018 Cameroon used a fake cannibalism video Mark Zuckerberg’s $430 bln outfit left on its pages to justify a military crackdown. Facebook has not done enough to combat online abuse as social media booms on the poorest continent. But effective monitoring would hardly break the bank.
Dick’s fires starter pistol for smart-gun market 2 Nov 2018 The $3.6 bln U.S. retailer that ditched AR-15s in February would support selling guns that can only be fired by their owner, an idea the industry traditionally hates. The previous stand on safety dented sales but helped profit. If this one takes off it could be good for both.
Google staff protests point to growing labor clout 2 Nov 2018 They were aimed at the company’s failures in tackling sexual harassment. Ditto at McDonald’s a few weeks ago. When executives at such different firms have to listen, though, it’s another sign – backed up by the latest U.S. jobs data – that workers are becoming a scarce commodity.
Exclusive: FedEx drops NRA deal by snail-mail 30 Oct 2018 The shipping giant is ending discounts for the U.S. gun-lobby group’s members, eight months after other firms ditched similar schemes. FedEx says it’s an economic decision, not a response to mass shootings. Even so, it suggests offending the NRA is no longer bad for business.
Khashoggi showcases moral trilemma of big business 26 Oct 2018 Total sent its CEO to Riyadh for Saudi’s flagship conference despite its role in a Saudi journalist’s death. HSBC fielded a big team, too. Firms strive to be larger, profitable and ethical, but often only achieve the first two. Profit’s lead over ethics appears to be narrowing.