The Week in Business: Even Billionaires Can’t Buy Debate Skills
Wall Street Buys Main Street
Morgan Stanley is buying E-Trade, the discount brokerage firm that allows regular people — i.e., those without tons of money — to buy and sell financial assets online. The deal would give Morgan Stanley access to a new customer base known as the “mass affluent”: people who have some savings to invest, but are not rich enough to buy into hedge funds or pay for a Wall Street money manager (Morgan Stanley’s traditional bread and butter). The $13 billion takeover is the biggest by a major American bank since the 2008 financial crisis.
What’s Next? (Feb. 23-29)
Tighter Borders After Brexit
Now that Brexit has finally happened, Parliament can focus on other things — like keeping certain types of immigrants out of Britain. Starting next year, the government will restrict visas for workers who can’t speak English or meet specific salary minimums. The new rule is part of Prime Minister Boris Johnson’s promise to “take back” control of the country’s borders and reduce its economy’s dependence on cheap migrant labor. But it isn’t unfriendly to all foreigners — high-skilled workers (engineers, scientists, those with advanced degrees) are welcome. Still, many business owners are worried that the law will hurt them because they rely on employees who don’t meet its requirements. Another concern: The regulation disproportionately affects female immigrants, particularly those in low-paying jobs like nursing and senior care.
Banding Together
Employees at the crowdfunding platform Kickstarter have voted to unionize — a groundbreaking step in Silicon Valley, which has been notably unfriendly to organized labor. Google, for instance, tried to prevent workers from discussing their labor rights, hired a consulting firm that specializes in blocking unions and fired several employees who pushed back. (The company says the employees were let go for other reasons.) Kickstarter is one of the first tech companies of its size and visibility where employees overcame those obstacles, and their next steps will be watched closely by other workers who hope to follow suit — as well as higher-ups seeking to stop them.
Coronavirus Rages On
Over a month into the coronavirus outbreak, businesses are starting to see more widespread fallout as governments impose stricter measures to contain it. Apple cut its sales expectations for the quarter, citing the virus’s impact on factories and stores. (In China, many people are afraid — or forbidden — to go out and shop, and deliveries are stuck in limbo.) Meanwhile, Amazon is stockpiling more Chinese products in the United States, a departure from its usual strategy of keeping inventory lean, in case the virus gets worse and disrupts trade further. The stock market, however, didn’t seem too bothered by news of more quarantines this past week.
Article source: https://www.nytimes.com/2020/02/23/business/this-week-in-business-debate-michael-bloomberg.html