The Corporate Confidence of the AT&T-Time Warner Deal

On Oct 22, AT&T said it planned to acquire Time Warner for $85.4 billion — the biggest deal of the year. On Oct 21, British American Tobacco offered $47 billion for the portion of Reynolds American that it does not already own. And this week, the chip maker Qualcomm is expected to make a $37 billion offer for the rival company NXP Semiconductors. Such megadeals are often postponed during times of political or economic uncertainty. Yet at what feels to many like a tumultuous moment for the global economy, many corporate titans apparently see smooth sailing ahead.

The most imminent economic concern may be the outcome of the race for the White House. Though Donald Trump has positioned himself as a successful businessman, economists have warned of market upheavals if he is elected. But with Hillary Clinton’s lead over Trump wide and still growing with less than three weeks until Election Day, chief executives appear to be betting that the race is all but over. But while corporate executives are monitoring a laundry list of political and economic risks, no single factor appears to be a major cause for concern. Instead, there is a growing sense that the combination of slow but steady economic growth, rapid technological innovation and an uncertain geopolitical landscape is here to stay for some time, or what business leaders call “the new normal.”