What is Goldman Sachs up to? The bank has been behaving strangely this week. When Michael Lewis unveiled his book Flash Boys: A Wall Street Revolt , in which he alleged the equity market is “rigged” by high-frequency traders, the bank discreetly lent him support. Then it emerged that Goldman is leaving the New York Stock Exchange floor, selling Spear, Leeds & Kellogg, a broker it bought for $6.5bn in 2000.
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Altering prices is a delicate art. When Pixar was a hardware maker in the 1980s, for instance, it realised it was charging too much for its computers. Yet a price cut failed to dispel its reputation for hawking excessively pricey kit. “The first impression stuck,” recalls Pixar co-founder Ed Catmull in his informative new book, Creativity, Inc.
But this does not mean that it is impossible to raise or lower prices successfully. The decision by Amazon to increase the price of its Prime delivery service in the US last month could be a case in point.
Pricing strategy consultant Rafi Mohammed has praised the way Amazon went about increasing the annual Prime charge from $79 to $99. Read more
Leo Strine – comforter of the corporate executive? (AP Photo/Richard Drew)
Has shareholder democracy in the US gone too far? The very idea seems risible to Europe-based corporate governance advocates, myself included, who have watched American investor rights advance in a good direction, but at a snail’s pace. But those making the case now for limiting investor powers have a strong, prominent, and eloquent ally in Leo Strine, Delaware’s chief justice. His latest Columbia Law Review article, ostensibly arguing for a pragmatic version of investor democracy, is a must-read. Read more
If you can avoid it, never get into a position where Sergio Marchionne can force you to play poker. That applies literally, as Fiat executives who fly on its (rented) corporate jet know, and metaphorically, as other companies have discovered in the past decade.
Usually limited to geeky product launches such as iPhones or high-street fashion collaborations, such as H&M’s tie-up with Karl Lagerfeld, the cronut queuers are inspired by similar motivations.
There are bonders who come to meet people who share their cake interests. And then there is the trophy value of being caught in the media and buzz. Even a humble cronut has bragging rights attached to it: “All day I waited for the flaky donut confection,” queuers will tell their children one day. Read more
Sales of George Orwell’s Nineteen Eighty-Four have risen since Edward Snowden revealed how the National Security Agency of the US gains access to telephone records and data from technology companies. So far, if people do not exactly love Big Brother, they are prepared to accept some invasion of their privacy in return for security.
There are various ways for prosecutors to put pressure on people, and one is to let them know they are being investigated – and then wait.
Steve Cohen of SAC Capital, the embattled hedge fund, is finding out how tough Preet Bharara, federal attorney for the southern district of New York, can play. Mr Bharara is taking his time in assembling a case against SAC for alleged insider trading. Read more