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Top Financial Stories 2017

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At this time of year I ask myself what were the biggest stories of the past twelve months in business/financial news. 

Of course, I choose the ones I do largely because they illustrate an important theme, and in the list below I'll spell out and boldface the theme. Yet the theme itself isn't the story.

Here are the twelve stories, by month, that especially caught my attention and that in retrospect I recommend to yours. 

1. January. Immigration. Well, of course. But I want to highlight a different aspect of the immigration question than the one that has caught the most attention. In the early days of the new year, Reuters appears to have heard from sources that the President elect (as he then was) was in talks with hi-tech employers about the possible overhaul of the H1B visa system. At the end of the month, word leaks out that the now President, Donald Trump, is moving in the opposite direction from what those employers presumably had hoped. This will be very clear by March.

2. February. Economics of crude oil. The future, if any, of the DAPL in the US is a hotly contested issue -- among other places, in Vatican City. By month's end, though, it does appear that the pipeline will be completed.

3. March.  Brexit. Prime Minister Theresa May formally initiates the process of the UK's withdrawal from the European Union. The debate in the UK is now over "hard" versus "soft" versions of Brexit, both versus a Goldilocks "just right" Brexit that everyone wants to promise.

4.  April. Economics of coal. In a surprise move representing the influence of climate change concerns, most of the energy utilities in Europe agree that they will phase out the use of coal, bringing no new coal-fired plants on line after 2020. [On June 1, the US President would dramatically announce a withdrawal of the US from the Paris Accord, in keeping with his own pro-coal campaign of last year.]

5. May. The Rise of China. The People's Republic of China moves on both the fiscal and the diplomatic fronts to advance the cause of an updated Silk Road, tying its commerce to that of the Middle East and Europe.

6. June. Law & Economics of pharmacology.  On June 12 the US Supreme Court allows Novartis to sell a copycat version of an Amgen product in move that may enhance competition in a wide range of medicines.

7. July. Sukuk (Shariah compliant bonds) controversy.  Dana Gas, of the UAE, is trying to get away with declaring sukuk bonds invalid. London court issues a split ruling on some preliminary matters, will hold a full hearing in September. The battle would drag on until November, and Dana Gas would eventually lose.

8. August. Ecology & Policy. President Temer's critics in Brazil have long contended that he has put Amazonia up for sale to the cattle and agricultural interests. Now they may add the mining and minerals interests to those of his corruptors. Temer issued a decree abolishing an ecological preserve, Renca.

9. September. Law & Economics of health insurance.The Republicans in Congress, with the (intermittent) assistance of the Republican President, tried and failed repeatedly in July to keep a campaign pledge and repeal Obamacare. They left the issue to lie fallow through August, then gave it a final 'college try' in September. To no avail.  As of this writing, Obamacare remains the law of the land.

10 October. Terrorism and its financiers. The US Supreme Court heard arguments in the case of Jesner v. Arab Bank. Involves the use by private parties of a very old US statute to bring a lawsuit against an institution allegedly funneling payments to the families of "martyrs" who have blown themselves up in Allah's cause. Of course the martyrs take others (including kinfolk of the plaintiffs) with them.

11. November. Artificial Intelligence. Samsung, the Korean electronics giant, announced the creation of an AI research center, part of its restructuring to "quickly respond to market changes."

12.  December. Tax law enforcement. Yes, I know that a big new bill became law this month. But I have my mind on something else here. Tax enforcement. The US Supreme Court hears arguments in a case that may draw limits to prosecutions of the felony of obstructing the administration of the tax code. 

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