United States of America

Americans can’t feel better than companies forever

27 Sep 2012

U.S. consumers are cheerier about life. But the corporate world is gloomier. If consumption jumps, it could soothe the business world’s blues. But the weak global economy and dysfunction in Washington are stunting hiring and could drag people down along with executives.

More leeway won’t help SEC without better cases

26 Sep 2012

The watchdog is asking the U.S. Supreme Court for more time to sue investor Marc Gabelli for wrongdoing a decade ago. Granting the request could make finding fraud easier. But effective enforcement requires making solid cases against perpetrators. The SEC too often falls short.

Arctic oil setbacks may be darkness before dawn

26 Sep 2012

Warnings from Total’s CEO about the safety of drilling in the region might sound like sour grapes. But environmental issues forced Shell to delay plans and deterred peers. Technological progress and $110 crude, though, won’t keep Big Oil from tapping the Arctic’s riches for long.

Ethical economy: Who suffers in the U.S. economy?

26 Sep 2012

Some think the American middle class is imperilled because median income has fallen by 9 percent from the peak. But that decline is a statistical artefact. Others worry about increasing inequality in favour of the rich. The inequality against the poor is a more serious problem.

World without dollar primacy a blast from the past

26 Sep 2012

Goldman boss Lloyd Blankfein reckons the dollar’s reserve status may be at risk. Having no dominant currency would hark back to the 18th century, when silver pieces of eight competed with many other coins. Specialist currencies might emerge, but trading costs could rise.

BBA ouster is right first step for Libor reform

25 Sep 2012

The British Bankers’ Association is resigned to losing its role setting and overseeing the critical interest rate benchmark. After this summer’s rate-fixing scandal, that’s no surprise. Still, it’s an encouraging sign that Libor reform will be meaningful rather than piecemeal.

Law schools owe students truth about job market

25 Sep 2012

Goosing graduates’ employment statistics isn’t illegal, several courts have ruled. But it’s shameful nonetheless. With work scarce and tuition soaring, lawyer wannabes deserve honesty from institutions that teach legal ethics. Caveat emptor makes for a lousy school motto.

Who will run Murdoch’s grand newspaper spinoff?

25 Sep 2012

With a key UK regulatory judgment on BSkyB out of the way, News Corp can focus on cleaving its newspaper empire. Critically for investors, that means picking a CEO. Wall Street Journal boss Robert Thomson appears in pole position. His appointment would spark a chain reaction.

Shale gas-led U.S. boom is lesson for wary Europe

25 Sep 2012

In five years, the price of natural gas has halved in the U.S. and doubled in the UK. One result is an industrial renaissance in America. Europe could do with the economic and political benefits of plentiful gas, too. EU governments, reluctant to allow fracking, need to rethink.

iPhone 5 will live up to the hype – in time

24 Sep 2012

The 5 mln handset sales, worth some $3 bln, on debut fell well short of Wall Street’s whisper number. The figure still outpaced its predecessor’s and the iPhone 5 couldn’t meet demand. Supply-chain glitches and map-app hysteria won’t derail Apple’s chugging smartphone train.

Americans’ improved finances could help Obama

24 Sep 2012

Mitt Romney likes to ask if people feel better than four years ago. Unemployment remains a problem. But consumers have reduced debt, and a new survey suggests they feel their personal finances are in better shape. They may be happier about Obama’s tenure than Romney thinks.

Foxconn brawl reflects China’s economic challenges

24 Sep 2012

Reports of violence from one of the Apple supplier’s factories conjure up Western prison riots. That’s unfair, but 79,000 migrant workers, excess hours and dependence on a tough employer make a recipe for tension. It’s the dark side of supplying shiny gadgets to the world.

GE deal epitomizes U.S. bank regulation folly

24 Sep 2012

To free itself from the Fed’s strong grip, MetLife opted to unload $7 bln of deposits to the U.S. conglomerate. Tired of waiting for the headless FDIC’s OK, the insurer is enlisting the OCC instead. This classic arbitrage illustrates the trouble with the whole oversight regime.

Percentage-mania builds confidence in 50-50 world

24 Sep 2012

Romney’s 14.1 percent tax rate is the latest headline-grabbing hard number. It follows his 47 percent of slackers, Occupy’s unequal 1 percent, and the euro 7 percent yield-cliff, to name a few. The percentage fixation can make the world look clearer, sometimes dangerously so.

Federal Reserve running out of taboos to break

21 Sep 2012

One regional head of the U.S. central bank admitted the latest QE broadside would debase the dollar. Another said an above-target inflation rate would be tolerable. Both follow from the Fed’s war on stagnation, but actually saying so could bring domestic and foreign brickbats.

Wall Street’s newest piggy may cry all way home

21 Sep 2012

Politician Tim Pawlenty sent a stern message to financial institutions: “Get your snout out of the trough.” Bank lobbyist Tim Pawlenty will fight to make sure they keep feeding at it. The choice of an outsider suggests a fractured industry whose cause may struggle in Washington.

Real estate wave helps an IPO avoid tech wipeout

20 Sep 2012

Newly listed shares of Trulia, an online property listing service, popped by over 40 pct on their debut. That defies the dire dot-com market evidenced by the likes of Facebook and Groupon. The U.S. housing recovery is a good story but Trulia is also still hitched to the Web.

Deal lawyers deserve rewards for sound judgment

20 Sep 2012

Delaware’s top court upheld a whopping $304 mln payout to attorneys who won $2 bln from Grupo Mexico over a dodgy transaction. The company wants a fresh hearing on the fees, but judges should demur. With weak M&A lawsuits on the rise, carrots should encourage stronger ones.

Exxon picks right place at wrong time for U.S. oil

20 Sep 2012

A $1.6 bln purchase of North Dakota assets could herald more deals to come for the energy titan. The state is America’s fastest-growing producer, but its low jobless rate means oil production costs are soaring. Exxon’s renewed if belated interest in domestic crude cuts both ways.

Big scores inspire participation in sports M&A

20 Sep 2012

Billionaire Philip Anschutz is shopping an empire that includes the Stanley Cup champs, the NBA’s Lakers and David Beckham’s U.S. soccer club. After the eye-popping $2.2 bln Dodgers sale price and Manchester United’s IPO, it’s no wonder if owners get off the sidelines.