Fiat Chrysler Automobiles (FCA) sold Magneti Marelli to KKR for $7.1 billion on Wednesday. The deal will combine two giant car component companies to form the seventh largest automotive parts supplier in the world, with almost 200 facilities across the globe. The newly formed automotive parts supplier may intend to catch the high wind of […]
Netflix Acquires Another $2 Billion in Debt
Streaming giant Netflix announced on Monday October 22nd that it is planning to take on an additional $2 billion in debt. Netflix plans to use the money for “general corporate purchases,” for the development of original programming, and for the acquisition of more licensed titles in order to fill out its library and keep competitors at […]
Not-So-Free Trade
President Donald Trump successfully negotiated the United States-Mexico-Canada Agreement (“USMCA”) on October 1, 2018. For a large segment of American workers, the deal appears to be better than its predecessor, the North American Free Trade Agreement (“NAFTA”). But, we should be clear about what these treaties are. USMCA is not a “free trade agreement.” A […]
Mid-Range Tesla Model 3 on the Way
Tesla investors surely have the right to cringe at any headline about Elon Musk’s tweets. After all, Musk’s erratic tweets have resulted in an SEC investigation, volatile stock prices, and a defamation suit by a Thai cave rescuer. However, Musk’s recent tweet that Tesla will offer a mid-range Model 3 may be an encouraging sign […]
Financial Incentive or Implicit Discrimination?
While performing a regular review of its lending practices, Citigroup found that some of its minority borrowers were not receiving earned discounts under a program that provides a break on mortgage rates to customers with large deposits in banks. This “break” acts as a stimulus for customers to expand their business relationships with banks by […]
Short-Term Rental Restrictions: Why and How?
Airbnb faces yet another restriction proposal in Washington DC, the likes of which is paralleled only by New York City and San Francisco. The bill, which went to a preliminary vote on October 16, would bar short-term rentals on secondary homes and place a 90 day restriction on rentals of primary residences when the owner […]
No Taxation without Profit Maximization: The Potential for Proposition C to Disincentivize Corporate Social Responsibility
When it comes to facilitating corporate social responsibility, should businesses be required to contribute to local problems or should decisions about contribution be left to industry leaders discretion? That is the question facing San Francisco voters November 6th. Proposition C, a measure put together by a local non-profit, would effectively double the city’s budget to […]
India’s New Data Localization Regulation Imposes Challenge on Payment Vendors
An order enacted by the Reserve Bank of India (RBI) regarding data localization went into effect on October 15, 2018. This order allows authorities to have “unfettered access” to data, giving them the power to supervise all payment data happening in India. Under the order, all payment system operators must store “full end-to-end transaction details” […]
Stock Slump Threatens Favorite Presidential Bragging Point…Albeit Too Little, Too Late
Stocks dropped significantly these past two weeks, as market indices recorded major losses. The S&P 500 is down over 5% in October and at the time of this writing recorded its 12th consecutive loss over 14 days. In addition to the imminent threat of rising interest rates and market volatility abroad, the President’s ongoing trade […]
EU Approves Microsoft Acquisition of GitHub
On October 19th, the EU Commission approved Microsoft’s $7.5 billion acquisition of GitHub, a leading software development platform based in San Francisco. GitHub is a source repository that enables software developers to host and review code, manage projects, and create software. Since Microsoft’s announcement of the GitHub deal back in June, two major concerns surrounded […]