Singapore Airlines reroutes back to Malaysia 28 Jun 2019 The $8 bln carrier is deepening ties with its struggling Kuala Lumpur rival, from code-sharing to maintenance. It may be a precursor to merging again nearly 50 years after the two split. Reuniting would benefit both, but politics and regulation will be hard to navigate.
Bayer takes small steps to placate shareholders 27 Jun 2019 The German drugs and seeds group has hired an expert adviser for its litigation over weed killer Roundup. That boosts the chances of a swift settlement. Yet, if boss Werner Baumann can’t revive Bayer’s lowly valuation and challenged business, pressure to break it up will grow.
Creepy data practices go beyond Silicon Valley 26 Jun 2019 A U.S. Senate plan requires big tech firms like Facebook to disclose the value of user information. Large merchants such as Walmart are included; financial firms like JPMorgan aren’t. Yet they all monetize data in ways not clear to consumers. There’s a case for widening the net.
Could Taylor Swift be a strategic American asset? 25 Jun 2019 The answer is obvious to her devoted fans. But they don’t get to decide. If Vivendi’s sale of a stake in $30 bln-plus Universal Music attracts China’s Tencent, the deal may need CFIUS approval. And President Trump could easily muster a reason, however thin, to shake it off.
Tech’s finance push is disrupting regulators too 25 Jun 2019 Innovations like Facebook’s proposed digital currency challenge established banking rules. New arrivals are hard to pin down, weaken existing players, and invert the risks and rewards of competition. A joined-up global response is necessary - but will be hard to agree.
Bristol-Myers drug sale tests $74 bln Celgene deal 24 Jun 2019 U.S. trustbusters have butted in once again, forcing the divestiture of a lucrative treatment. Bristol-Myers could have off-loaded its own nascent drug. Instead it may be hoping for a big price. That would support the idea that Celgene was undervalued, but it’s a riskier path.
Empire State forces U.S. climate progress 21 Jun 2019 New York is mandating net-zero emissions by 2050. That means laggard companies will have to move faster towards renewable energy. More intense investor activism should follow, especially if like-minded states generating more than half America’s $20 trillion GDP join the push.
Big Tech warrants Bank of England’s open eyes 21 Jun 2019 The central bank may let technology firms deposit funds alongside regular lenders as Governor Mark Carney seeks to keep up with rapid shifts in finance. Lower costs and more competition are broadly positive. Large groups like Facebook, however, deserve a more cautious embrace.
UK tax havens’ new look has old problem 20 Jun 2019 Jersey, Guernsey and the Isle of Man will consider publishing the real owners of companies registered there by 2023 – in line with the European Union. Great. Yet illicit money will linger in the tax havens if any new system is policed as poorly as in Britain.
Nordic banks’ soft regulators invite U.S. wrath 19 Jun 2019 Shares in Danske and Swedbank have fallen sharply due to concerns about American probes into money laundering. A $900 million fine by Dutch regulators helped ING escape U.S. ire for similar breaches. Laws limiting penalties in Scandinavia mean banks there may not be so lucky.
Central banks can only nudge towards greener world 18 Jun 2019 The Bank of France boss says climate change may end up being a stagflationary shock. That’s a good reason for rate-setters convening in Portugal to care about global warming. But meddling too much may imperil their independence. It’s up to governments to make a real difference.
Silicon Valley struggles to crack the D.C. code 13 Jun 2019 Alphabet is the latest big tech firm to revamp its Washington lobbying. Google’s parent is also spending more, doling out $22 mln last year. Facebook and others are doing the same. Until they show they are engineering change within, their effort to sway outsiders will fall flat.
Trump gives China’s homegrown tech goal a boost 13 Jun 2019 Beijing’s move to grant 5G telecom licences early is a show of trade war bravura, given the foreign inputs required. Much of its industrial policy, though, has been about encouraging long-term self-sufficiency. Washington’s assault on equipment-maker Huawei now leaves no choice.
Boeing order drought compounds 737 MAX woes 12 Jun 2019 Airlines have turned stingy this year, ordering fewer planes from the $200 bln aerospace giant and 100 bln euro rival Airbus. Boeing already faces a long delay getting its grounded jet back in the air. A weakening aviation market is the last thing the company and its owners need.
India hurts itself with clumsy Big Four blitz 11 Jun 2019 After punishing PwC and EY, New Delhi wants a five-year audit ban on Deloitte and KPMG’s affiliate for alleged failings at shadow bank IL&FS. The process hardly reflects the good governance India is pushing. And it’s unclear local firms can handle all the international business.
UK frozen fund exposes regulator’s limitations 10 Jun 2019 The week after a prominent money manager suspended withdrawals, the head of the UK financial watchdog said rules on illiquid assets in investment funds may need a rethink. Given EU laws limit his room for manoeuvre, Andrew Bailey may not be able to deliver major changes.
Viewsroom: Hong Kong’s scary extradition idea 6 Jun 2019 The territory's government, under pressure from Beijing, is trying to ram through a rule change that would allow suspects to be transferred to mainland courts. Foreign executives have cause to be worried. Plus: Steve Bannon wants to ban Chinese IPOs from New York.
Beijing needs to pick a bank bailout message 5 Jun 2019 Regulators downplayed their decision to take over troubled Baoshang Bank, just as another small lender with over $100 bln in assets said auditor EY quit. Officials can rescue banks, or not, but history shows they need to be clear about their reasoning when markets are anxious.
Chinese vocational school IPO taps job anxiety 5 Jun 2019 China East Education has raised $625 mln in Hong Kong, valuing it at $3.1 bln. Beijing’s push to retrain millions of laid-off workers could boost its bottom line, but the market is fragmented, and earnings are volatile. This price implies very optimistic growth expectations.
Beijing tries the patience of Tiananmen’s children 4 Jun 2019 After crushing student protests in 1989, the government promised prosperity in exchange for compliance. Wages have soared, but so has inequality. Now President Xi is calling on youth to shoulder bad debts and trade war costs. Their disaffection is as big a risk as revolution.