Society

Hadas: Brexit trial could go worse than expected

9 Feb 2018

Are economists biased against Brexit? If anything, their estimates, which rely on imperfect precedents, are too optimistic. Leaving the EU will impair UK growth by hitting long-term confidence, institutional strength and workforce quality – all hard to capture in a spreadsheet.

Tesco pay showdown contains a wider warning

8 Feb 2018

A claim that female shop workers should get the same wage as male warehouse staff could cost the UK grocer up to 4 billion pounds. It’s a lesser-known twist on equal pay. While retailers Asda and Sainsbury’s face similar legal challenges, all sectors may be exposed.

Equity #MeToo risk is more than a crapshoot

6 Feb 2018

Allegations like those made against founders of Guess jeans and Wynn Resorts are impossible to predict. But some industries may be more at risk of sharp, reactive share declines when claims surface. A filter might show gambling and fashion as vulnerable - but finance, too.

Wynn Resorts slide shows house can lose in new era

26 Jan 2018

Boss Steve Wynn says sexual-misconduct accusations leveled at him are “preposterous”. The $2 bln wiped off the company's shares suggests investors nonetheless fear boardroom disruption. It’s a warning to all firms that even alleged misbehavior has become a financial risk.

City’s #MeToo moment is tipping point and catalyst

25 Jan 2018

The charity behind a men-only London dinner where female hostesses were groped has closed down. The scale of justified public censure means such events have no future. But the furore may also give new impetus to appoint more women to boards and redress gender pay inequality.

Weed giants share a deserved peace pipe

24 Jan 2018

Canada’s Aurora and rival CanniMed have agreed a friendly merger after months of acrimony. CanniMed’s shareholders only get a small stake in the $6.2 bln combination, but a big uplift in value. The world’s biggest listed weedmaker is now well positioned for regulatory changes.

Davos gathering gets #MeToo balance mostly right

22 Jan 2018

This year’s summit in the Swiss ski resort is chaired entirely by women, with gender a big theme at panels and parties. But the summit's low female attendance reflects the global imbalance of power. Tighter quotas would make Davos more politically correct but less formidable.

Viewsroom: Donald Trump goes to Davos

19 Jan 2018

The U.S. president heads to the Swiss Alps confab that’s the antithesis of his “America First” ideology. He’ll have competition: keynote speaker Narendra Modi, with his “Make in India” policy. Plus: BlackRock’s Larry Fink pushes social activism. And why Ford is stalling.

Insurance M&A benefits from thin U.S. safety net

19 Jan 2018

Lincoln National is paying $1.4 bln for Liberty Mutual’s employer-based insurance business. It gives the buyer added heft in a growing field as more Americans top up life, health and disability coverage through the workplace. Cost cuts give this deal an added bit of assurance.

Tax cuts are looking like rare Trump win

19 Jan 2018

The U.S. president’s first anniversary coincides with a possible federal funding hiatus. Slashing corporate taxes last month was a GOP success and the administration now wants infrastructure investment. But the shutdown wrangling is indicative of the partisan deadlock to come.

BlackRock’s social activism stick is big and pointy

16 Jan 2018

Larry Fink’s investment firm is demanding companies make a positive contribution to society for the long term. Having $4.1 trln of passively managed assets gives a big bully pulpit. BlackRock may have self-interest at heart, but if the private sector bucks up, that’s just fine.

Facebook discovers cost of factory-farming users

12 Jan 2018

The $550 bln social network’s success harvesting ad dollars from mass-appeal content made it very profitable. The snag is that users are increasingly unhappy. Mark Zuckerberg’s return to focusing more on their welfare may limit short-run profits but should improve sustainability.

Review: “The Post” gets more relevant by the hour

12 Jan 2018

Steven Spielberg's cinematic retelling of the publication of the Pentagon Papers feels rushed at times, and the nostalgia for a bygone newspaper business is maudlin. But such flaws are easy to forgive as current events emphasize the necessity of a free – and profitable – press.

Hadas: Fiscal debts are not our children’s burden

10 Jan 2018

When this generation dirties the water, the next has to pick up the tab. Debt is different. When governments borrow from taxpayers, the children will both pay the bill and enjoy the proceeds. The real deficit dangers lurk in foreign debt and distributional distortions.

Trump will be party pooper-in-chief at Davos

10 Jan 2018

The U.S. president’s “America First” agenda is the antithesis of the Swiss conflab’s global ethos. His visit to the mountain resort may be a bid for reconciliation, or a pitch for strongman status. Either way, his presence is a stark rebuke to Davos elites who got him badly wrong.

Canada will export its pension model to U.S.

4 Jan 2018

Canada’s retirement funds are well funded and governed, run most of their money in-house, shun rosy assumptions and post good returns. As the need to lift returns increases, expect struggling U.S. public pensions to adopt at least some of their northern neighbors’ approach.

Investors will only curb CEO pay if forced

4 Jan 2018

The bosses of top UK companies have on average taken a pay cut, according to a new report. Fears of a political backlash made investors more apt to vote against chunky remuneration packages. The restraint may be fleeting unless a weakened government can keep up the pressure.

Oil bulls look to Trump rather than Iran protests

4 Jan 2018

A tightening global balance of supply and demand for crude means geopolitical shocks could push up prices. Anti-government protests in Iran seem unlikely to disrupt production. A looming U.S. decision on whether to revisit sanctions could have a bigger impact.

M&A frenzy sets scene for epic tug-of-war

3 Jan 2018

The $3.6 trln of mergers announced in 2017, including huge deals from Disney and Broadcom, sets up some chunky targets for cost cuts. That means job losses, even if buyers say not. Yet given the political climate, shareholders can’t count on the extra profit being theirs to keep.

Tech salad will come with a side of SLAW in 2018

3 Jan 2018

Spotify, Lyft, Airbnb and WeWork are all potentially going public in the coming year. None of them may ever match the scale of a FAANG or BAT. But each is disruptive in its own way, and offers investors a unique play on the future of cities, mobility, work and play. Bon appetit!