Tag Archives: markets

The Willy Sutton Objection

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Facebook has joined with Epic Games in the latter’s lawsuit against Apple over how to charge—and who gets to make the charge—for apps installed on Apple’s iPhones. Facebook is doing so to further its feud with Apple over Apple’s decision to give iPhone users tools with which to protect their private information.

Facebook isn’t alone in the beef.

Apple has said starting early next year its iOS 14 operating system will give iPhone and iPad users the option to no longer share personal information that many developers rely on to tailor ads. When users open an app, they will see a message asking permission to track what other apps and websites they visit, their location, and other behaviors.
Apple’s plan has drawn criticism from a range of businesses and trade groups…saying that Apple’s plan was anticompetitive.

Because people moving to protect their private information from snooping and private enterprises moving to protect their products from being used as tools for the snooping is somehow anticompetitive.

It’s an objection that Willy Sutton would have loved: how anticompetitive of those banks to obstruct his business model?

Wrong Resolution

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Recall that Huawei Technologies Co’s Deputy Chair and CFO Meng Wanzhou is facing US criminal wire and bank fraud charges related to her alleged violations of US sanctions on Iran, which she did on Huawei’s behalf. She’s in the middle of extradition proceedings in Canada en route to getting her here.

Now there’s a resolution in the works: DoJ officials are talking about a “deferred prosecution agreement,” in which Meng would admit her wrongdoing in those cases and then be allowed to return to the People’s Republic of China directly from Canada.

This is the wrong resolution. The case should be resolved by bringing her into the US and letting a trial court resolve the matter.

More EU Bad Faith

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Finance operations, a key industry for Great Britain but not so much for the European Union, is being excluded from existing Brexit transition negotiations. That much is on the Brits as well as the EU, but the EU is abusing the mutual error.

In anticipation,

European regulators have demanded banks base certain operations currently conducted in London in the EU post-Brexit. … The EU last week committed to rules governing derivatives that will prevent London-based traders at EU banks from continuing business seamlessly after Brexit is completed on New Year’s Eve.

Derivatives trading is a significant fraction of the Brits’ financial industry, and the new rules prevent even London-based branches of EU banks from trading with UK-regulated firms unless those transactions occur in other jurisdictions recognized by both sides.

As Tim Cant, a London-based Partner at Ashurst Group, notes,

This is part of a wider strategy of moving finance into the EU[.]

It’s also part of the EU’s wider strategy of punishing Great Britain for its effrontery and of warning the more uppity remaining member nations to not even think about doing such a dastardly thing as leaving their Betters in Brussels.

Time to Buy

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Ex-President Barack Obama (D), he of the open contempt for ordinary Americans, us bitter Bible- and gun-clinging denizens of flyover country (i.e., the vasty expanse of America that lies between the western coast and the northeastern coast), is at it again.

Former President Barack Obama, in his latest memoir, criticized Americans for liking “cheap gas and big cars” more than they care about “the environment”—even during a catastrophic event like the 2010 Deepwater Horizon oil spill.

And

…many American voters for decades had “bought into the idea that government was the problem and that business always knew better….”

That last is fully vindicated by the arrogant Know Better attitude of Obama and his ilk, who insist that Government is the only solution, and us petty voters need to sit down, shut up, and do what we’re told.

It’s true enough that business is imperfect and often screws up. However, even with that, it’s axiomatic that business always knows better than Government.

With Obama spouting off again, it looks like it’s time to go out and buy a Humvee and a muscle car or two.

The Business of Business and the Wuhan Virus

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Another precinct is passing in its results.

After scrambling to hoard cash in the spring, some large US companies that halted their dividend payments are reversing their decision, a sign that their leaders believe the worst of the crisis is behind them.

Mark Zandi, Chief Economist at Moody’s Analytics:

The resumption of corporate dividend payments is an encouraging sign that executives believe that the pandemic will soon be behind us.

And

[Kohl’s r]evenue fell 14%, compared with a 23% drop in the previous quarter. Kohl’s said it would resume its dividend in the first half of 2021.

And

Retailer TJX Cos said last week that it would resume its dividend, but at a 13% higher rate than it last paid in March, citing its cash flow and $10.6 billion in cash on its balance sheet. The company has reopened most of the TJ Maxx, Marshalls, and HomeGoods stores it had closed in the spring.
“We are very bullish on the longer-term outlook because that feels significantly better than it did at the beginning of [the third quarter] when we didn’t know where all of this was heading,” CEO Ernie Herrman said on a conference call.

Those are just a few of the myriad illustrative examples that aggregate into the trend. It’s time the bureaucrats in our governments, at all levels of jurisdiction, stopped abusing their authority and stopped their panicky responses to the Wuhan Virus situation.

Full stop.