Singapore’s easiest days as a finance hub are over 4 Aug 2015 The city remains a gateway to Asia: great for regional HQs, settling lawsuits, and parking money. But investment banks are struggling and IPOs are scarce. From its up-and-coming neighbours to China’s new trade push, the risks that Singapore will be bypassed are mounting.
Agnellis rebalance portfolio – at a price 3 Aug 2015 The Italian family’s Exor vehicle has won the fight for PartnerRe with a $6.9 bln bid after the reinsurer’s board finally switched sides. Three months of bolshie resistance paid off, and Exor boss John Elkann is paying handsomely to diversify away from Fiat Chrysler Automobiles.
Libor verdict is key step in banks’ cultural shift 3 Aug 2015 Ex-UBS and Citi trader Tom Hayes has been sentenced to 14 years in jail for Libor-rigging. That hefty deterrent and better industry compliance reduce the likelihood of a repeat. But both will have to endure to offset the ongoing banker mentality that moneymaking trumps all.
Bradesco bulking up is good for state-heavy Brazil 3 Aug 2015 Buying HSBC’s assets will allow the nation’s No. 2 private-sector bank to more effectively challenge rival Itaú. As state-owned institutions sack workers amid falling government largesse, a stronger and more competitive financial industry could benefit the sickly $2 trln economy.
StanChart hired gun Promontory shoots self in foot 3 Aug 2015 New York regulators say the politically cozy firm whitewashed a probe of the bank and have suspended it from advising lenders. The penalty may curb conflicts and stings more than a mere fine. Maybe U.S. watchdogs will take the hint and stop waiving the consequences of misdeeds.
Challenges to U.S. carbon rules won’t save coal 3 Aug 2015 President Obama will unveil new pollution caps for power plants on the same day a big coal miner, Alpha Natural Resources, filed for bankruptcy. The limits are riling energy industry supporters, but for coal it’s economic pressures, not politics, that are causing the pain.
HSBC faces long march to unlock value 3 Aug 2015 First-half results beat forecasts and its Brazilian unit fetched a pleasing $5.2 bln. Slashing costs and shrinking the balance sheet will take years. Though HSBC shares trade below book value and yield 5.5 pct, there are few obvious catalysts for a re-rating.
Timing looks right for RBS state selldown 3 Aug 2015 Cutting its 79 pct stake in the lender would leave the UK with a paper loss, yet focusing on the exact in-price is unhelpful. Better to sell than hold on for a recovery in price that may never come. Besides, the good vibes that come from less state ownership should limit losses.
Hugo Dixon: Euro zone doesn’t need political union 3 Aug 2015 The Greek crisis has triggered renewed calls for a euro zone government, budget and parliament. But such a political union isn’t needed, desirable or achievable. Instead, the euro zone needs more market-based solutions to thrive.
Commerz revived dividend masks unfinished business 3 Aug 2015 Germany’s second-largest lender’s first dividend since 2007 suggests a return of confidence. But Commerzbank’s costs are still bloated, it does not earn its cost of capital and may even require more funds. Much more progress is needed.
Singapore could use a fresh approach to water 3 Aug 2015 The city-state built its economic success partly on carefully managing scarce H2O and reducing reliance on foreign sources. Now Singapore wants to be self-sufficient. But with the population set to double, the quest for water independence risks becoming a distracting pipe dream.
Breakdown: Taxing journey to India’s single market 3 Aug 2015 India’s boldest tax overhaul in 60 years will fall short of its early promise. Over time, however, the proposed goods and services levy could prove a huge positive for companies and consumers. It would also show Prime Minister Narendra Modi’s reform drive is intact.