December, 2019

• 16 December

  Electrolux warns of hit from factory overhaul

  

  Bloomberg Electrolux AB, the Swedish maker of Frigidaire appliances, said it will incur a bigger-than-expected financial hit from merging fridge-and-freezer factories in the US amid delivery disruptions. The upgrade, combined with destocking at a key US customer and accounting adjustments, will shave $70 million off fourth-quarter operating income compared with a previous estimate of $25 million, according to a statement ...

  Read More »
• 16 December

  Euro zone’s private sector stagnant

  

  Bloomberg The euro zone’s private sector is barely growing as 2019 draws to a close, rounding off a year that has seen factories battered by trade uncertainties. IHS Markit’s Composite Purchasing Managers’ Index (PMI) stayed at 50.6 in December, slightly lower than economist estimates of 50.7. The reading signals fourth-quarter output will be the weakest since the region exited a ...

  Read More »
• 16 December

  FirstGroup to sell school bus, transit units in US

  

  Bloomberg FirstGroup Plc, under pressure from activist investors, is exploring options including a possible disposal of its North American school bus and transit divisions, extending a breakup strategy that already encompasses a planned sale of the iconic Greyhound brand. The Aberdeen, Scotland-based group has appointed Rothschild to help advise on the sale of its First Bus and First Transit divisions, ...

  Read More »
• 16 December

  BMW-Daimler ride-hailing venture steps up Uber challenge

  

  Bloomberg FreeNow, the ride-hailing venture owned by Daimler AG and BMW AG, expects to double revenue this year and next in a fresh challenge to Uber Inc in Europe and Latin America. FreeNow’s so-called gross merchandise volume, which mirrors revenue, is forecast to reach about 2.4 billion euros ($2.7 billion) in 2019, Chief Executive Officer Marc Berg said in an ...

  Read More »
• 16 December

  Wage stagnation in the US – myth and reality

  

  One of the perplexing economic questions these days is why wage growth has been so slow despite the longest economic expansion in US history (now in its 11th year). By conventional wisdom, tight labour markets should be raising wages much faster than is occurring. The logic is simple. With low unemployment, workers can quit their jobs and find something better. ...

  Read More »
• 16 December

  Lagarde opens a new era at the ECB

  

  Christine Lagarde started her first press conference as president of the European Central Bank (ECB) by warning that she was different from her predecessor, Mario Draghi. It took reporters just a few minutes to realize that she was indeed. Lagarde is ushering in an era of democratic central banking at the ECB, or so she wants you to believe. But ...

  Read More »
• 16 December

  Texas power market reaps wind and solar benefits

  The Texas power market is a gamble. Generators seeking the occasional windfall from price spikes weigh the odds on temperature, wind-speed, the economy and, crucially, how much capacity their rivals are starting up or shutting down. Regarding the latter, they get some guidance from the state grid operator every six months in the form of projections of how much power ...

  Read More »
• 16 December

  Manufacturer stocks may not get lift from trade deal

  Markets are cheering trade progress between the US and China. It’s important to note that a trade deal isn’t a cure-all — especially for manufacturers. President Donald Trump reportedly signed off on an initial trade deal with China that will delay proposed tariffs on some $160 billion of largely consumer goods set to take effect on December 15. The deal ...

  Read More »
• 16 December

  India is abandoning its founding principles

  

  For 70 years, India has struggled to remain a secular state. In spite of its people being overwhelmingly Hindu, it chose not to distinguish between its citizens — or putative citizens — on the basis of their religion. That principle was what its founding fathers fought for, and what for decades led it to proudly distinguish itself from Pakistan, born ...

  Read More »
• 16 December

  United’s frequent-flier programme finally gets some game theory

  

  The big news of United Airlines was that the company’s longtime chief executive officer, Oscar Munoz, will step down in May. But many of the company’s most loyal customers were focused on a different transition: On December 4, United made the most substantial changes to its frequent-flier upgrade program in years. Flight upgrades are mostly a problem of the 1% ...

  Read More »