BREAKINGVIEWS

Trump debate win could torpedo Mexican peso

26 September 2016

The currency is near a historic low. Mexico has other problems, but the polling gains of the Republican U.S. presidential candidate – who has denigrated immigrants and trade relationships – have helped weaken the peso 9 pct in three weeks. Monday's debate may deal another blow.

U.S. presidential debate has clear winner: TV

26 September 2016

The first of three formal wars of words between Hillary Clinton and Donald Trump is expected at attract some 100 mln viewers. A Super Bowl-sized audience would set a record. With Facebook, Twitter and Snapchat looming, broadcasters can use every big live event they can find.

Stress-test shakeup squeezes big banks again

26 September 2016

The largest U.S. financial institutions would be required to carry a larger capital cushion as part of new changes to the annual exams. That might shrink investor payouts. Smaller lenders, meanwhile, get relief. The Fed seems to be on a steady mission to cut banks down to size.

HSBC CEO role calls for a superbanker

26 September 2016

The sprawling $150 bln bank has its work cut out to replace CEO Stuart Gulliver. The job requires a multitasker who can manage huge workforces, is compliance savvy, an expert in finance, and has the knack of being able to appear in several places almost at once.

CBOE hits multiple buttons with $3.2 bln BATS deal

26 September 2016

The Chicago-based options exchange is paying over the odds for the NYSE competitor: the value of expected synergies falls short of covering the deal premium. But BATS' technology is a plus for CBOE, and bulking up in equities in a consolidating industry adds extra strategic heft.

Pfizer’s pricey non-split may only defer problem

26 September 2016

After years of study costing $600 mln, the drugmaker says it won't break itself up. Boss Ian Read always seemed keener on acquisitions. It's true the process helped close a conglomerate discount. But Pfizer's sprawl and tendency to overpay means the gap may soon reappear.

Dubai could create its own demographic dividend

26 September 2016

The emirate has weathered low oil prices, but an unbalanced workforce means it is missing an economic opportunity. Only one in 23 active workers is a local, official data suggests. If Dubai can't turn citizens into workers, it might as well turn skilled workers into citizens.

“Hard Brexit” less bad than hard uncertainty

26 September 2016

London’s financiers are fretting that the UK may advocate a clean break with the EU. That would hurt the City, but at least banks could plan to move elsewhere. For now, the problem is that the final result could still be benign - so there’s a big risk of jumping the gun.

RWE gives masterclass in financial alchemy

26 September 2016

The troubled German utility is listing a minority stake in its healthy parts - grids, renewables and retail. Nothing will change much operationally. Yet the company hopes the spun-off part, Innogy, will have twice RWE's market cap. If that sounds illogical, that's because it is.

Japan has most to lose from global trade backlash

26 September 2016

The country is begging America to ratify the TPP trade pact and urging Britain to handle Brexit carefully. The desperate pleas reflect Japan's outsized reliance on international trade. TPP also helps Prime Minister Shinzo Abe shake up the domestic economy, especially in farming.

Asian cull makes Goldman Sachs look rattled

26 September 2016

The Wall Street bank is laying off nearly a third of its Asian investment bankers. Lumpy deal flow, fierce competition and low fees are endemic in Asia, but Goldman's pullback suggests the scandal over Malaysia's 1MDB may have also dampened its appetite for risk.

Brazil’s energy future may fly under Canadian flag

23 September 2016

State-controlled Petrobras is selling its natural gas pipelines to help pay down debt. Investors from China and Singapore will back the $5.2 bln acquisition led by Toronto-based Brookfield. The clever structure and the buyer's deep pockets could augur more deals between the two.

Facebook blunder may stem online TV tide

23 September 2016

The $370 bln social network for two years erroneously inflated how long users were watching videos. It's an embarrassing mistake that should give advertisers a stronger negotiating position with Facebook. It also could prompt a recalibration of media strategies and budgets.