FINANCIAL NEWS

Peugeot Sees Opel as Key Link for Re-Entry to U.S. Market

WALL STREET JOURNAL - US. BUSINESS NEWS - Thu, 01/18/2018 - 19:43
Peugeot is using its purchase of GM’s German unit to lay the engineering groundwork to make its global product lineup capable of meeting U.S.-market standards.
Categories: FINANCIAL NEWS

Deutsche Bank in 'third phase' of turnaround plan, CEO says

AMERICAN BANKER - Thu, 01/18/2018 - 19:40
Deutsche Bank's John Cryan on Thursday defended his strategy for Germany's largest lender, saying its turnaround has entered a "third phase" in which growth should finally be restored.
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Entente kept cordiale as May and Macron test relationship

FINANCIAL TIMES - Thu, 01/18/2018 - 19:36
Franco-British summit skirts Brexit to focus on shared interests
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Merger costs eat into PacWest's 4Q profits

AMERICAN BANKER - Thu, 01/18/2018 - 19:08
The Los Angeles company said earnings fell 2% in the quarter as strong loan growth was offset by costs tied to its acquisition of CU Bancorp as well as a loss on the sale of a securities portfolio.
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Luggage limbo: Bags still missing after JFK airport woes

AP Business - Thu, 01/18/2018 - 19:02
NEW YORK (AP) -- Newlywed Ziad Dallal and his wife arrived home in New York, with wedding keepsakes in their bags, to find John F. Kennedy International Airport paralyzed by winter weather woes that canceled flights, froze equipment and separated thousands of passengers from their luggage....
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Morgan Stanley hails turning point for returns

FINANCIAL TIMES - Thu, 01/18/2018 - 18:29
Gorman signals acquisition appetite as bank’s market value overtakes Goldman Sachs
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Fed’s Dudley backs review of 2% inflation target

FINANCIAL TIMES - Thu, 01/18/2018 - 18:29
Policymaker joins ranks of those calling for look at tools to fight next recession
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Drugmaker Raises U.S. Price of Muscular-Dystrophy Treatment

WALL STREET JOURNAL - US. BUSINESS NEWS - Thu, 01/18/2018 - 18:14
PTC Therapeutics Inc. this month increased the list price of its muscular-dystrophy treatment by about 9%, to more than $65,000 annually for a common dosage.
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EU official: Greece closing in on end of bailout years

AP Business - Thu, 01/18/2018 - 18:09
BRUSSELS (AP) -- A senior EU official says Greece is close to passing its next bailout review, putting the country within reach of ending its eight-year rescue program that saved it from bankruptcy but required hugely painful austerity cuts....
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Amazon narrows shortlist for second HQ to 20 regions

FINANCIAL TIMES - Thu, 01/18/2018 - 18:05
Tech group whittles down field of 238 amid fierce competition across North America
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China births fall despite relaxation of one-child policy

FINANCIAL TIMES - Thu, 01/18/2018 - 17:54
Economists warn that declining birth rate threatens country’s development
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Amazon narrows list to 20 for its second headquarters

AP Business - Thu, 01/18/2018 - 17:44
NEW YORK (AP) -- Amazon has narrowed its hunt for a second headquarters to 20 locations, concentrated among cities in the U.S. East and Midwest. Toronto made the list as well, keeping the company's international options open....
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Mulvaney requests no funding for consumer agency in 2Q

AP Business - Thu, 01/18/2018 - 17:28
NEW YORK (AP) -- The Trump-appointed acting director of the federal government's consumer watchdog agency requested zero dollars of funding for its second-quarter budget, saying he intends to first spend down the agency's rainy day fund....
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Amazon narrows list to 20 for its second headquarters

AP Business - Thu, 01/18/2018 - 16:58
NEW YORK (AP) -- Amazon has narrowed its hunt for a second headquarters to 20 locations, concentrated among cities in the U.S. East and Midwest. Toronto made the list as well, keeping the company's international options open....
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The World Bank’s “ease of doing business” report faces tricky questions

THE ECONOMIST - Thu, 01/18/2018 - 16:48

HOW many days does it take to correct a misleading newspaper interview? Four, in the case of Paul Romer, the World Bank’s chief economist. On January 12th a surprising article in the Wall Street Journal alleged that one of the bank’s signature reports—on the ease of doing business around the world—may have been tainted by the political motivations of bank staff. The story was based on an interview with Mr Romer, who pointed out that Chile’s ranking in the yearly report had dropped sharply during the presidency of Michelle Bachelet, a left-leaning politician who took office for the second time in 2014. Chile sank so heavily not because doing business had become harder, but because the bank had repeatedly changed its method of assessment.

That method mostly entails answering measurable questions, such as how many days does it take to start a business, register a property or file taxes. The answers determine a country’s score (known as its “distance to...Continue reading

Categories: FINANCIAL NEWS

The French government experiments with venture capitalism

THE ECONOMIST - Thu, 01/18/2018 - 16:48

Don’t be coy, carp about the food

AS A boy, Antoine Hubert used to catch butterflies. These days, the agro-engineer has eyes only for meal worms. In a demonstration factory near Dole in eastern France, he shows how trayfuls of plump, half-grown worms are fed, left to grow in a darkened dormitory, and then—after two months—slaughtered and cleaned with a blast of steam. A machine divides the resulting mush into oil and protein powder.

Around 70% of a worm is protein, making it ideal for animal feed. Demand is soaring, notably at fish and shrimp farms. Mr Hubert predicts aquaculture businesses will need 70m tons of feed annually in ten years’ time, up from 40m now. The global market for animal feed, he reckons, is already worth €500bn ($610bn).

Ynsect, his firm, thus expects to grow once it opens a new factory this year. He dreams of annual output exceeding 1m tonnes, hinting at a hunger for scale often left unsatisfied in a French entrepreneur: local...Continue reading

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Why driverless cars may mean jams tomorrow

THE ECONOMIST - Thu, 01/18/2018 - 16:48

THE most distractingly unrealistic feature of most science fiction—by some margin—is how the great soaring cities of the future never seem to struggle with traffic. Whatever dystopias lie ahead, futurists seem confident we can sort out congestion. If hope that technology will fix traffic springs eternal, history suggests something different. Transport innovation, from railways to cars, reshaped cities and drove economic advance. But it also brought crowded commutes. Now, as tech firms and carmakers aim to roll out fleets of driverless cars, it is worth asking: might this time be different? Alas, artificial intelligence (AI) is unlikely to succeed where steel rails and internal-combustion engines failed.

More’s the pity. In America alone, traffic congestion brings economic losses estimated in the hundreds of billions of dollars each year. Such costs will rise unless existing transport systems receive badly needed investment. For example, fixing New York’s beleaguered, overcrowded subway will...Continue reading

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Our Big Mac index shows fundamentals now matter more in currency markets

THE ECONOMIST - Thu, 01/18/2018 - 16:48

IT IS usually considered quaint to predict foreign-exchange movements by reference to whether currencies are dear or cheap. Metrics such as The Economist’s Big Mac index, a lighthearted guide to exchange rates, hint at how far currency values are out of whack. But they are often driven further out of kilter by capital flows, by fear and greed, by the interventions of policymakers, and so on.

Since our last look at the index in July, cheap currencies have narrowed the valuation gap against the dollar—almost completely in case of the Canadian dollar (see chart). Fundamentals, such as fair value, seem (at last) to have greater sway in the foreign-exchange market.

The index is based on the idea of purchasing-power parity, which says exchange rates should move towards the level that would make the price of a basket of goods the same in different countries. Our basket contains only one item, but it is found in around 120 countries: a Big Mac hamburger. If the local cost of...Continue reading

Categories: FINANCIAL NEWS

Why the oil price is so high

THE ECONOMIST - Thu, 01/18/2018 - 16:48

PERHAPS the most vexing thing for those watching the oil industry is not the whipsawing price of a barrel. It is the constant updating of theories to explain what lies behind it. In March 2014, when the price of a barrel of Brent crude was in three figures, the then boss of Chevron, an oil giant, observed that the scarcity of cheap oil meant “$100 per barrel is becoming the new $20”. Two years later, when the oil price slumped below $28, the talk was of a global oil glut caused by the furious efforts of the OPEC cartel to regain market share. Now that oil prices have tested $70, analysts are again scratching their heads.

In “1984”, George Orwell coined the term “doublethink”, the ability to believe two contradictory things. Oil analysis seems to require similar cognitive gymnastics. Three big questions arise. First, why has the oil price more than doubled in the space of two years, against all expectation? Second, why has this surge been met with cheers from global stockmarkets and not...Continue reading

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