Society

Shale gas industry hopefuls face rock-hard barrier

5 Oct 2018

Fracking is about to make its debut in the UK. The practice of extracting gas from shale rock is hailed as likely to put the country on the road to fuel self-reliance. But the industry faces many obstacles, and investors should be sceptical of the scope for gushing returns.

Argentine shake-up raises risks for Macri and IMF

26 Sep 2018

A new central bank chief improves the chances of securing an increase in a $50 billion credit line with the international lender. President Macri and the IMF are gambling that a freer floating peso will spur growth, not instability. But time is running out for the bet to pay off.

Gun activists’ victory is only a warning shot

25 Sep 2018

Investors just demanded Smith & Wesson’s owner publish a report detailing how its weapons abet violent crime and what it’s doing to create safer firearms. For now they can’t do much more. Eventually, market forces are likely to achieve what shareholder activists still can’t.

Thoughts and prayers could pierce gunmakers’ armor

24 Sep 2018

A group of church leaders is taking on the maker of Smith & Wesson in a shareholder meeting, hoping to reprise their earlier success with Sturm, Ruger. This battle will be tougher, but winning isn’t really the point. More help could come from unexpected places – like Silicon Valley.

Chinese IPOs bring casino trading to New York

18 Sep 2018

U.S. markets are getting a taste of mainland volatility. News app Qutoutiao more than doubled on its first day before plunging on the second; carmaker Nio has also see-sawed. Small floats and untested models are partly to blame, but erratic behaviour will hamper future debuts.

Cannabis stocks have whiff of 2006

14 Sep 2018

A weed ETF has doubled in price in just over a year, while a Canadian producer has been targeted by an activist because its stock “only” trades at eight times EBITDA. Demand is real and legalization is coming. But online gaming’s sharp correction 12 years ago offers a warning.

Review: The mess at the heart of economic theory

14 Sep 2018

Robert Skidelsky wrote a three-volume biography of John Maynard Keynes. His new book brings a Keynesian slant on the financial crisis, its antecedents and its aftermath. He argues against fiscal austerity. Fine, but the global economy is too complex for any simple diagnosis.

Nike puts politically divisive spring in its step

4 Sep 2018

The U.S. brand is putting Colin Kaepernick, the first NFL player to kneel for the national anthem, in its revived “Just Do It” ads. Airlines, sports stores and pizza chains have wrestled with partisan issues. In the commoditized sneaker trade, it’s a risk worth taking.

Skilling could have earned stripes more usefully

31 Aug 2018

The former Enron CEO was released from prison into a halfway house. During his time behind bars, corporate malfeasance flourished but prosecutions dropped. Using high-profile arrests as a deterrent doesn’t work if prosecutors don’t catch criminals. Felons could help.

Review: Barry Cohen is a hedge-fund Frankenstein

31 Aug 2018

The protagonist of “Lake Success,” Gary Shteyngart’s new novel, comprises equal parts of financiers like Paul Singer, Howard Marks and Mike Novogratz. Running from a Valeant-like scandal, he hits the road through America’s heartland in search of his moral compass.

U.S. pension pots both half full and half empty

29 Aug 2018

Buoyant markets have helped public and corporate retirement plans boost funding to the highest levels in years. They can’t afford to relax though. Pensions are still weaker than they were before the crisis, and the bumper returns of the past five years are unlikely to continue.

Guest view: ESG ratings aren’t reliable enough

10 Aug 2018

Socially responsible investing has become a $20 trln-plus industry, but how do we know if firms are actually doing well by doing good? Shiva Rajgopal and Richard Foster pinpoint four big problems in measuring the environmental, social and governance impact of investments.

China’s #MeToo momentum has broader benefits

10 Aug 2018

Allegations of sexual misconduct levelled at tech and media executives will inspire others to speak out. If more women confront bullies and bosses, a wider push for equal treatment could creep up the agenda too. That would be a welcome shift in China’s male-dominated boardrooms.

Hadas: Higher is better for capital-gains taxes

8 Aug 2018

The Trump administration wants an inflation adjustment to reduce investors’ tax bills. Indexing makes sense, but the goal is wrongheaded. Lower taxes on gains don’t encourage investment. Higher rates on capital and lower ones on labor can reduce socially dangerous inequality.

Don’t expect tech giants to stifle Alex Jones

7 Aug 2018

Facebook, Apple, Alphabet et al have, after excessive vacillation, taken the hateful rantings of the Infowars founder off their platforms. As private companies, that’s their right. But until Jones is bankrupted for libel, he will have many other ways to spread his noxious bile.

Viewsroom: CBS’s $184 mln #MeToo challenge

2 Aug 2018

That’s what CEO Les Moonves gets if he leaves the U.S. TV network – unless fired for cause. That’s rare in corporate America. But allegations he sexually harassed women put the board on the spot. Plus: Hong Kong battles the Big Apple for IPOs. And China faces a vaccine scandal.

Hadas: The Great Moderation is due for revival

2 Aug 2018

The 2008 financial crisis showed that economic cycles are still inevitable. Or did it? Duller expectations, tamer finance and stronger regulation could make periodic declines unnecessary. Sadly, it looks like at least one more downturn will be needed to get the message across.

#MeToo is only one of CBS’s Les Moonves problems

30 Jul 2018

The media group is investigating its CEO over sexual-harassment accusations. Even without that, he was a risk. CBS has an entrenched board, is fighting unhelpfully with controlling owner Shari Redstone and faces a tricky industry-wide transition. Moonves is no longer an asset.

Review: Why governments should give away money

13 Jul 2018

Handing out cash with no strings attached is an idea that has fired up a bizarre coalition of Silicon Valley techies and development economists. It may not be the silver bullet that some boosters claim. But as a new book argues, it deserves a serious hearing.

Weed wafts gently into investors’ portfolios

6 Jul 2018

Investors are warming to the devil’s lettuce. The action is mostly in Canada, which has over $25 bln of listed cannabis stocks, and rising volumes of M&A. But the U.S. is positioned to provide the metaphorical pickaxes, and big consumer brands will be watching for legal changes.