June, 2018

• 2 June

  Can US afford welfare?

  About 42 million people received benefits in the 2017 fiscal year from the Supplemental Nutrition Assistance Program — still widely known as food stamps, although the paper coupons were replaced by debit cards more than a decade ago. That’s a lot of people! It’s almost 13 percent of the US population, which is down from a couple of years ago ...

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• 2 June

  Silicon Valley keeps giving founders too much power

  

  No one has learned any lessons. That’s the discouraging takeaway from a Wall Street Journal article about the nearly unchecked power held by founders of many young technology companies. The people bankrolling those companies are responsible for providing oversight, too, but don’t seem to be doing much of it. The Journal reported that two-thirds of US startups with venture-capital investors ...

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• 2 June

  China’s battery ace can run on reduced power

  

  China’s electric-car battery champion has had its wings clipped, or so it seems. Investors should breathe a sigh of relief. Contemporary Amperex Technology Ltd., which has been gearing up for an initial public offering for the past year, is now expected to raise a net 5.46 billion yuan ($853 million), less than half its target as of March. The reduction ...

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• 2 June

  Big tech firms show contempt for EU privacy rules

  

  The European Union’s General Data Protection Regulation has been in effect for less than a week. It was always clear that a vast number of companies would comply in only the most perfunctory way, at least while the law was being tested. But the big tech companies, sure to face scrutiny, were expected to show a little more rigor. Instead, ...

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• 2 June

  Modi govt to review Air India deal after its sale plan flops

  

  Bloomberg Prime Minister Narendra Modi’s government will review plans to sell Air India after his administration’s most high-profile privatisation offer ended in a whimper with no buyers showing interest in the unprofitable flag carrier. The government will make changes to the plan, if needed, Economic Affairs Secretary Subhash Chandra Garg said. As the deadline to show preliminary interest expired on ...

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• 2 June

  Sears prepares for more store closings as revenue slumps

  

  Bloomberg Sears Holdings Corp. kicked off another fiscal year with declining sales from a dwindling number of stores, and more closings are on the way. The operator of Sears and Kmart stores posted a first-quarter loss of $3.93 a diluted share. Revenue fell due to fewer stores and a 12 percent drop in comparable-store sales. The Hoffman Estates, Illinois-based retailer ...

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• 2 June

  BA suspends A380 talks in test to new Airbus sales chief

  

  Bloomberg British Airways (BA) owner IAG SA has suspended negotiations with Airbus SE over a possible deal for additional A380 superjumbos, a potential setback for the already-struggling program and Airbus’s new sales chief, according to people familiar with the matter. The carrier had been weighing an order for close to 10 of the double-deckers after Airbus managed to secure a ...

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• 2 June

  Madewell continues to help parent J. Crew stay afloat amid retail woes

  

  Bloomberg J. Crew Group Inc. has one persistent bright spot as it tries to revive its business: Madewell. The younger, more casual brand that made its mark in denim said same-store sales, a closely watched measure, skyrocketed 31 percent in the first quarter — nearly triple the 11 percent rise the previous year. Chief Executive Officer Jim Brett is trying ...

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• 2 June

  UK consumers upbeat about spending prospects

  

  Bloomberg British consumers are feeling more upbeat about their spending prospects, though they’re still worried about the economic outlook, according to GfK. An index of confidence increased by 2 points in May to minus 7, the market-research firm said in a report published on May 31, with consumers declaring themselves more optimistic about their personal financial situation. They are still ...

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• 2 June

  Deutsche Bank cut by S&P in latest blow for CEO’s revamp

  

  Bloomberg Deutsche Bank AG’s new chief executive officer, Christian Sewing, suffered a fresh setback in his efforts to reinvigorate Europe’s largest investment bank as S&P Global Ratings cut the lender’s credit rating. S&P reduced the rating by one notch to BBB+, the third-lowest investment grade, citing “significant execution risk” after several management changes and strategy updates in past years. Shares ...

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