NEW YORK (Reuters Breakingviews) - General Electric is getting a harsh lesson in the cost of credibility. A man who warned about Bernie Madoff’s Ponzi scheme claims the conglomerate is hiding $38 billion in losses with false accounting. The company run by Larry Culp strongly denies it, but its history of opaque reports and belated write-offs put it on weak ground. The stock’s more than 10% drop implies investors give the claims only partial credence – for now.
NEW YORK (Reuters Breakingviews) - A U.S. recession warning from financial markets has Donald Trump’s fingerprints all over it. A key bond market metric turned negative for the first time since 2007 on Wednesday, sending stocks tumbling. Other economic indicators in the United States and abroad are deteriorating. The common thread linking these is the president’s trade war.
NEW YORK (Reuters Breakingviews) - Donald Trump has reverted to a more traditional approach with his latest nominees to the Federal Reserve’s board. Judy Shelton is a maverick with her liking of the gold standard, yet her business background might usefully add to the policy debate. And she’s paired with Christopher Waller, an insider at the central bank’s St. Louis operation.
NEW YORK (Reuters Breakingviews) - Lyft is likely to take some gas out of Uber Technologies' initial public offering. The smaller ride-hailing app beat revenue estimates in the first quarterly results since its listing, and burned less cash. But its rate of growth is slowing, making profit an ever-more distant goal.
NEW YORK (Reuters Breakingviews) - American workers are paying the price for keeping the economic recovery going. U.S. job creation accelerated in April, trimming the unemployment rate to a 50-year low of 3.6 percent. Yet wage growth remains modest and other data suggest slack in the labor market.
NEW YORK (Reuters Breakingviews) - For a man who promised to surround himself “only with the best and most serious people,” Donald Trump has often delivered otherwise, and seen his administration racked by turmoil and ethical criticism. One exception has been the Federal Reserve, where the president has filled vacancies with a string of well-regarded experts, including Chairman Jay Powell.
［ニューヨーク／ロンドン １１日 ロイター BREAKINGVIEWS］ - この半年間でボーイングの新型機７３７ＭＡＸ８で２度目となる墜落事故が起きたことを受け、同社株は１１日に急落した。投資家の反応は、事故による短期的な財務面の影響を恐らく過大視しているが、もっと大きな長期的脅威を反映しているのかもしれない。
NEW YORK (Reuters Breakingviews) - Boeing may need to ground its own aircraft. Europeans joined the Chinese and others in suspending flights of the 737 Max 8 after two crashes in recent months, and two U.S. senators called on the Federal Aviation Administration to follow suit. Boeing’s stock lost a further 6 percent, lopping off $14 billion or so of market value, on Tuesday. Rather than waiting for its regulator, the company could get ahead of the crisis.
NEW YORK (Reuters Breakingviews) - John Bogle, the founder of Vanguard who died on Wednesday, defined value in more ways than one. He turned the once-heretical idea of tracking the broad stock market into the dominant form of investing. Instead of pursuing personal riches, he spread the ethos of low-cost fund management, saving investors untold billions and building the mutually owned firm into a $5 trillion juggernaut.
NEW YORK (Reuters Breakingviews) - After all the hype, blockchain is due for a breakthrough in 2019. Banks and companies are gradually applying versions of the distributed-ledger technology associated with bitcoin to tasks like settlement. Demonstrating blockchain’s utility, though, will say little about the value of cryptocurrencies themselves.