Law

U.S. buyback surge will incinerate wealth in 2018

28 Dec 2017

Companies will get a windfall from Republican tax cuts and repatriated profits. The White House claims the money will spur jobs and wages, but a similar Bush policy mostly fueled share repurchases. If GE’s experience is any guide, the largesse will burn value on a grand scale.

Britain will take the high road out of the EU

22 Dec 2017

Leaving the European Union will hurt manufacturing and financial services and make the government more willing to explore controversial ideas to help the economy. Legalising cannabis would help employment, lift tax revenues and reduce law enforcement costs.

Cox: Is Wall Street more democratic than America?

20 Dec 2017

Taxpayers in the most productive U.S. states would be forgiven for asking the question after the way Congress treated them with a slapdash tax bill skewed to corporations, not people. The big risk is that while capitalism becomes more representative, America goes the other way.

How to know if America’s big tax bet pays off

20 Dec 2017

Republican lawmakers have passed revised tax cuts that give even more breaks to companies and the wealthy. They are banking on those benefits trickling down to average workers. It could come back to haunt them. Breakingviews notes a few ways to measure the policy’s success.

Latam’s turn from populism will be put to the test

15 Dec 2017

Demagogues of right and left will test the region's recent embrace of pro-business pragmatism in 2018. Presidential elections in Mexico and Brazil will feature firebrands keen to exploit voter anger at corrupt elites and lawlessness. The center, if it holds, will emerge stronger.

Holding: Roy Moore loss could be Wall Street gain

15 Dec 2017

The GOP candidate’s flop put Democrats near a Senate majority able to block Trump's Supreme Court picks. That may prompt Justice Kennedy to bow out for a more conservative successor. Business benefits when the court leans right, making it a potential winner of Tuesday’s vote.

U.S. hands HSBC CEO perfect going-away gift

11 Dec 2017

The end of a five-year agreement over money-laundering lapses removes the threat of authorities yanking the bank’s U.S. licence. HSBC devoted 8 pct of its operating expenses to compliance last year. Though those costs will stay, departing boss Stuart Gulliver can leave on a high.

The Exchange: Marcus Ruiz Evans

8 Dec 2017

The president of Yes California leads a campaign arguing that the Golden State should become an independent country – an idea increasingly referred to as Calexit. He explains why secession would be good for the state’s economy and how he’ll get the rest of the nation to buy in.

Holding: Bet on Supreme Court to lift gambling ban

1 Dec 2017

New Jersey’s suit to legalize sports wagers makes financial policy sense, but the constitutional argument is stronger. Limits on the feds’ power mean states do their own thing on everything from pot to guns. A court already inclined that way is likely to extend it to betting.

Hammond struggles in Brexit straitjacket

22 Nov 2017

The UK budget contained giveaways to homebuyers and the health service, funded by asset sales and accounting fiddles. But bleak growth forecasts limited Chancellor Philip Hammond’s generosity. Weak productivity growth will add to the economic pain of leaving the European Union.

Berlusconi’s court fight has become a sideshow

22 Nov 2017

The Italian ex-premier, excluded from office in 2013 after sex parties and the euro zone crisis, is challenging the ban in Europe’s human rights court. A verdict before a spring election is unlikely, but for better or worse Berlusconi doesn’t need one to be a political kingmaker.

DOJ warns dealmakers that a new sheriff is in town

16 Nov 2017

Antitrust chief Makan Delrahim isn’t a fan of behavioral remedies like the ones Comcast made to buy NBC. In his first major policy speech, he said he prefers divestitures to address competition issues. AT&T’s bid for Time Warner wasn’t cited, but he’s clearly ready for a fight.

Congressional contortions raise risks to tax cuts

15 Nov 2017

The Senate is complicating tax reform by proposing to repeal a key part of Obamacare. Cuts in personal rates would also be temporary while corporate breaks would be permanent. The moves would help meet deficit rules but alienate key lawmakers - and give critics more ammunition.

Private equity deserves U.S. tax hit, not startups

14 Nov 2017

Tech firms are understandably upset over a Senate plan to tax stock options when vested. It would raise $13 bln over 10 years. Ending a loophole on investment profit for buyout barons would bring in more. It’s a better target for Republicans already accused of favoring the rich.

Holding: Corporate America loves its bad Boies

10 Nov 2017

The lawyer David Boies may have helped disgraced mogul Harvey Weinstein try to hide his abuses, but don’t expect more than a shrug from the business world. In a realm that prizes results, the defender of the likes of ex-AIG boss Hank Greenberg will remain the go-to consigliere.

U.S. tax reform heading for desperate compromise

9 Nov 2017

Senate Republicans want to delay a corporate rate cut, preserve the estate tax and fully repeal state and local deductions. It sets them at odds with House colleagues and could derail the effort. A GOP frantic for a policy win, though, means major concessions are likely.

Apple has deciding vote in Broadcom-Qualcomm deal

9 Nov 2017

A dispute over iPhone royalties left U.S. chipmaker Qualcomm vulnerable to rival Broadcom’s opportunistic $105 bln bid. Settling could preserve its independence. The question is whether Apple thinks a bigger Broadcom would be slavishly devoted, or even surlier.

Yahoo ex-boss shows everyone’s in dark on hacks

8 Nov 2017

Marissa Mayer told senators she still doesn’t know who was behind a 2013 data theft affecting 3 bln users. Equifax’s CEO said the same of a breach involving 145 mln consumers. And Congress struggles to draft cyber rules. Amid such cluelessness, the epidemic can only get worse.

Congressional stick may beat Trump’s China bombast

7 Nov 2017

The president has talked tough about punishing the nation’s largest trading partner, but mostly avoided measures like tariffs. Now some U.S. lawmakers want to make it hard to buy American companies. Such bipartisan legislation poses a bigger risk to Beijing than the White House.

Offshore secrecy succumbs to diminishing returns

6 Nov 2017

A new dump of leaked documents shows opaque structures in low-tax centres such as Bermuda remain popular. But regulation that sheds light on such deals is getting tighter, while technology makes leaks more likely. The cost of hiding money offshore will continue to rise.