NEW YORK (Reuters Breakingviews) - Supply chains may become more diverse or shorter, tech companies with few hard assets will continue to thrive, and the transition away from fossil fuels will present opportunities. Taimur Hyat, COO of $1.4 trln asset manager PGIM, looks to the future with Richard Beales.
LONDON (Reuters Breakingviews) - It turns out preventing Covid-19 is a bigger deal for markets and the global economy than the drawn-out election of a new U.S. president. News that a vaccine in the works from Pfizer and BioNTech may be over 90% effective gave stocks and government bond yields an injection of adrenalin on Monday. The prospect of a return to normality is a potent market stimulant.
LONDON (Reuters Breakingviews) - Jay Powell’s job is probably safe whoever wins the U.S. presidential election. The chair of the Federal Reserve is going to stick with ultra-easy monetary policy in the coming years. That will make it easy for either Donald Trump or Joe Biden to nominate him for a second term.
LONDON (Reuters Breakingviews) - U.S. President Donald Trump said in Thursday’s presidential debate that the stock market would crash if his challenger Joe Biden is elected next week. History suggests otherwise. The commander in chief of the United States might matter for a few smallish sectors, but more powerful factors, like global upheaval, have far greater effect. So a portfolio overhaul is in order regardless of who wins.
NEW YORK (Reuters Breakingviews) - The revolving door from Wall Street to Washington might soon slam shut. If Joe Biden wins November’s U.S. presidential election, some Democrats want him to eschew finance folks when staffing key roles. Some people who could add value, like BlackRock boss Larry Fink, would fail such a tough purity test.
NEW YORK (Reuters Breakingviews) - Shareholder democracy is a nebulous concept. With Palantir Technologies, though, it’s a non-issue: there isn’t any. The data-analytics company is setting a starting-point valuation of about $20 billion for its direct listing next week. Would-be shareholders need to square their own assessments with the near certainty they will be ignored.
NEW YORK (Reuters Breakingviews) - Government U-turns don’t come much bigger. Popular fury forced the abandonment of hypothetical calculations of likely grades for the UK’s national A-level exams this week. The decision is a reminder that even well-intentioned algorithms make many harmful mistakes.
NEW YORK (Reuters Breakingviews) - Breaking records can be good – but not when they’re for economic disintegration. U.S. GDP crashed at a 33% annualized pace in the three months to June, the Bureau of Economic Analysis said on Thursday. At least the trajectory of America’s economic output is a known unknown: The current quarter is less bad. How much so is anyone’s guess, though. And the Federal Reserve – and especially Congress – can shift the outcome.
NEW YORK (Reuters Breakingviews) - The office is not dead, though hot-desking may be. The elevator needs a rethink. And don’t rule out the shopping mall. Brookfield Asset Management’s chief executive made these and other predictions for the post-pandemic global economy in a recent chat with Breakingviews editors.
NEW YORK (Reuters Breakingviews) - It’s a force in myriad global markets. It’s the default source for governments needing advice on the biggest financial questions. Its sprawl means that sometimes it seems to be on both sides of certain dealings. That’s Goldman Sachs, before and during the financial crisis of 2008-2009. It also describes another company today: investment manager BlackRock.