Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
The massive market transformation this month that some on Wall Street called a "once in a decade opportunity" might have just been a one-off technical move because of taxes.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
CNBC did a deep dive through the most recent Wall Street research to find stocks that analysts say are underappreciated.Marketsread more
Shares of MasterCard are up 46% this year, and 1120% since 2011, getting a boost from the strong U.S. consumer.Investingread more
CNBC sat in on an "empathy training" at Amazon PillPack's Somerville offices, which is part of new hire orientation.Technologyread more
Trade with China is the 'big unknown' for the Federal Reserve as it decides how best to support the U.S. economy, says Council on Foreign Relations Director of International...Futures Nowread more
Lobbying experts said the visit is likely an attempt to be in lawmakers' ears as they consider legislation that would impact Facebook.Technologyread more
Yardeni Research's Edward Yardeni believes the U.S. economy is picking up steam.Trading Nationread more
Iran's audacious drone and cruise missile attack on Saudi Arabia's oil producing facilities has provided a critical test yet for the Trump administration's foreign policy. A...Politicsread more
Britain's biggest privatization in years was blighted by a fear of failure and poor advice from state-appointed banks, a committee of lawmakers said on Friday following an inquiry into the 2 billion pound sale of Royal Mail.
Britain sold a 60 percent stake in the postal service at 330 pence per share last October after a politically charged debate which pitted the coalition government against Royal Mail's heavily unionized workforce and the opposition Labour party.
The stock quickly rose by as much as 87 percent, prompting criticism that the price had been set too low and the government had botched the deal. The price has since fallen back, but at 473p per share remains above where it was sold.
"We believe that fear of failure and poor quality advice led to a significant underestimate of the demand for Royal Mail shares," said Adrian Bailey, the Labour chairman of the cross-party parliamentary committee which scrutinized the deal.
Some of the concerns echo those expressed earlier this year by spending watchdog the National Audit Office, which said the 500-year-old state postal operator was sold off too cheaply.
Ministers have staunchly defended the government's handling of the sell-off, which followed three failed attempts by previous administrations to privatize Royal Mail, saying they were cautious to reduce the risk of the launch being a flop in the face of possible strike action at the postal firm.
"The committee's views on the share price are based entirely on hindsight and ignore that we were selling 600 million shares – they found no evidence that the department or its advisers missed vital information prior to sale," a business department spokeswoman said in response to the lawmakers' report.
However on Thursday the government launched a review of the bookbuilding process used to collect orders for shares in such sell-offs. Over the next six years, ministers want to raise 20 billion pounds from the sale of public assets such as stakes in the Eurostar rail link, Royal Bank of Scotland and Lloyds.
Labour said the committee's report backed up their argument that the sale had been mishandled, and that the review of the privatization process was effectively an admission from the government that it had sold the firm too cheaply.
It had previously seized upon the flotation, and the quick profits made by big banks and City investors, to reinforce one of its central arguments ahead of next year's general election - that Conservative Prime Minister David Cameron's government is out of touch with ordinary voters.
The committee report's criticism focused on the actions of the government, its independent adviser Lazard, and the two banks it hired to lead the sale of shares, UBS and Goldman Sachs.
The committee said the bookbuilding process had been carried out by the advisers in a way that meant investors did not have to reveal the maximum price they would be prepared to pay for the shares. As a result, taxpayers had missed out, they said.
While it found no evidence of impropriety by the advisers, the report criticized the fact that a separate asset management unit of Lazard had been among those granted preferential status in the allocation of shares. It also highlighted that UBS and Goldman Sachs would earn fees from trading Royal Mail shares on behalf of preferred investors, many of whom were their clients.
"It is clear to us that any perception of financial advantage must be removed from the privatization process," the report said
"Therefore we recommend that the department give serious consideration to excluding any company involved in the selection of preferred investors, as a preferred investor."
Lazard, UBS and Goldman Sachs declined to comment.
The report also said that the government had put too much emphasis on the risk of strikes by Royal Mail staff, resulting in a share price that was too low. It criticised the decision not to raise the price once it became clear demand was high.