BREAKINGVIEWS

Trump’s Paris accord call will be anticlimactic

26 May 2017

Even if the president pulls the U.S. out of the 2015 agreement, the impact should be limited. Cities, states, companies, investors and other countries will keep the anti-climate-warming momentum going. The bigger hit will be to America’s soft power and, potentially, its economy.

Jared Kushner conflicts hang on White House wall

26 May 2017

Donald Trump's son-in-law is under FBI scrutiny over Russian contacts. He and Ivanka Trump also didn't disclose their art collection. And the Kushner family used Jared's name to drum up Chinese business. The entanglements undercut his role in the administration, and its agenda.

Ravenous investors wolf down fintech IPO scraps

26 May 2017

Financial software group Alfa Financial is floating in the biggest UK offering this year by company value. The pricing looked rich to start with, but investors have since bid it up even higher. Blame a general lack of big listings of late, especially for the fintech-enthused.

UK Labour Party’s soft Brexit would still be hard

26 May 2017

The opposition is gaining in polls ahead of Britain’s June 8 vote. Leader Jeremy Corbyn is more pro-immigration than Tory Theresa May. Yet he is less pro-EU than he looks, and is less likely to be business-friendly – which could allow European negotiators to be tougher.

China puts currency market forces on notice

26 May 2017

It may tweak the way the yuan is priced each day, effectively giving policymakers more control over its value. In reality, the daily price-fixing is only a small part of how China manages its currency. It’s another step back from reform and suggests mounting economic worries.

Where to put Europe’s bank regulator? Try Bulgaria

26 May 2017

Brussels has invited member states to bid to host the European Banking Authority when its current host, Britain, quits the EU. The EBA hasn’t exactly dazzled in its handling of bank stress tests. But it could be a decent trophy for a non-euro country that feels unloved by the bloc.

ChemChina creates new strain of LBO funding

26 May 2017

The chemicals giant is refinancing the debt backing its $44 bln purchase of Switzerland’s Syngenta. This involves less equity than a typical leveraged buyout, and $18 bln of perpetual bonds sold to three Chinese entities. This is M&A finance cross-bred with government policy.

Condom boom and two-child policy make odd couple

26 May 2017

A Chinese drugmaker and a buyout firm are buying the world's No. 2 condom-maker for $600 mln. The rich price could pay off, as Chinese couples invest more in safer sex. But this also highlights the difficulties Beijing faces in convincing the middle class to have more children.

Fox pokes sleeping advertising bear

25 May 2017

Cars.com, Peloton and others yanked commercials from Sean Hannity's popular prime-time show as he pushes a fake conspiracy theory. Brands also have targeted Bill O’Reilly and YouTube of late. Madison Avenue may slowly be transforming from a passive investor to a more activist one.

Retailers’ upturn is a false bill of goods

25 May 2017

Sears laid out a rare profit, Abercrombie & Fitch sold more surfer-inspired apparel than expected and Best Buy got a jolt from electronics sales. While that's encouraging, Tiffany’s quarterly slump is a reminder the industry remains under pressure. The only certainty is more volatility.

French telecoms merit a Macron premium

25 May 2017

The new president has indicated he might sell some of France’s corporate shareholdings. A 23 pct stake in telco Orange looks a logical selloff candidate, which could spark domestic market consolidation. That would give peers like Bouygues, SFR and Iliad a boost as well.

FX market might benefit from statement of obvious

25 May 2017

New guidelines for the $5 trln-a-day currency trading market exhort participants to behave ethically and fairly. That will hardly deter miscreants. Still, the code has a good stab at clarifying grey areas and avoids creating exploitable loopholes. Best of all, it will evolve.

Post-election Merkel might change her spots

25 May 2017

Angela Merkel may have the option to pick the right-of-centre FDP as her new coalition partner in September, polls suggest. The FDP advocates low taxes, fiscal discipline and a euro zone without Greece. That could be an obstacle to euro reform, or a grand bargain with France.