September, 2019

• 22 September

  Ultra-low rates are no panacea for the stocks

  

  September is not even finished and already the S&P 500 Index is up 20% for the year. This is a remarkable achievement, given that earnings growth has stalled and the bond market is pricing in almost a 40% chance of a recession over the next 12 months. That just shows the degree to which lower interest rates have supported stocks. ...

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• 22 September

  Spain and the art of compromise

  

  For those who think that the luckiest country is the one with no government, Spain must be some sort of model. Spaniards will go to the polls on November 10 for the fourth time in four years after the country’s political parties failed to compromise on a workable majority. With Madrid’s star in the ascendancy in the European Union, and ...

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• 22 September

  Deutsche Bank faces yet more awkward questions

  For the umpteenth time, Deutsche Bank AG is ensnared in an alleged regulatory blunder. Except this time, the stakes are greater than its own integrity: Confidence in its regulator, the European Central Bank, is on the line too. The ECB is considering whether to probe Germany’s biggest bank for trading in its riskiest debt without the regulator’s approval, according to ...

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• 22 September

  Britain’s rail debacle is a cautionary tale

  To anyone who has followed the decade-long saga of Britain’s ambitious high-speed-rail project, known as HS2, the recent news that it’s at least five years behind schedule and 20 billion pounds ($25 billion) over budget shouldn’t come as a surprise. It should serve as a cautionary tale for policy makers dreaming of big projects at public expense. Understand at the ...

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• 22 September

  Europeans want the EU to act like a superpower

  

  Ursula von der Leyen, the European Commission president-elect, has promised to run a “geopolitical Commission” in the next five years. A recent study by the European Council on Foreign Relations, the international think tank, shows that this is what Europeans want, too — but von der Leyen’s vision of the European Union’s global role isn’t necessarily aligned with theirs. Von ...

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• 22 September

  While the Federal Reserve has no ‘guts,’ PBOC is on steroids

  

  It’s debatable whether the Federal Reserve has sense, vision or “guts.” But one thing is certain: The US central bank has become a weakling. The People’s Bank of China (PBOC), on the other hand, is loaded with technocrats on steroids. The Fed’s prestige took a hit. Its most powerful regional reserve bank somehow botched a critical market rescue operation – ...

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• 22 September

  Boomers are crushing millennials. Read all about it!

  

  As a case study in the workings of modern democracy, the handling of Social Security by successive presidents and Congress over recent decades is a deeply disturbing exercise. The facts are not in dispute. Congress and the White House have agreed to benefits for retirees and the disabled that are woefully underfunded. Rather than bring the programs into balance — ...

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• 22 September

  Walmart chief steps forward as archetype of ‘new-age CEO’

  

  Bloomberg Walmart Inc’s Doug McMillon just took over as the chief spokesman for Corporate America, and he’s not wasting any time taking action. The Walmart chief executive said the retailer will stop selling e-cigarettes in its more than 5,300 US locations, displaying a tendency towards action that the company has typically lacked. The announcement supports the emerging narrative that Walmart’s ...

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• 22 September

  Rolls-Royce faces delays to fix Trent 1000 engine issues

  

  Bloomberg Rolls-Royce Plc will incur additional delays in fixing problems with its Trent 1000 aircraft engine, hampering efforts to get grounded Boeing Co 787 Dreamliners back in the air. The challenge of replacing engine components with less-than-expected durability will delay the return of normal service until the second quarter of next year, the company said in a statement. Rolls-Royce shares ...

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• 22 September

  Avenatti-Nike extortion case not about Donald Trump feud

  

  Bloomberg US prosecutors ridiculed celebrity lawyer Michael Avenatti’s claim that he was charged with trying to extort millions of dollars from Nike Inc as payback for his feud with President Donald Trump, calling the allegation a “fantastic notion” based on hyperbole and insinuation. Avenatti asked a judge in August to throw out the case, claiming it was a vindictive prosecution ...

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