China’s pension move into stocks is overdue 1 Dec 2016 China is moving to invest $290 billion worth of public pension funds in financial markets including stocks. That won't spark a rally, but will increase healthy institutional ownership. Given shortfalls, long-term returns from volatile Chinese stocks are preferable to deposits.
Japan has long road to black-belt in governance 1 Dec 2016 The country is the darling of Asia's corporate governance scene after a push to make firms better-run and more profitable. But progress is slow – and the easiest steps came first. To be a real governance ninja requires stronger boards, bolder bosses and more shareholder scrutiny.
Mnuchin’s first job: get own finances in order 30 Nov 2016 Trump's choice for Treasury has made millions on Wall Street. Unlike his boss, Steven Mnuchin will have to produce his tax returns to win congressional approval, a step that has tripped up past nominees. Mnuchin's wealth and potential use of tax loopholes could be problematic.
Cyber Monday confidence overshadows Black Friday 30 Nov 2016 Five days of U.S. holiday e-commerce totaled nearly $13 bln, up 15 pct from last year. That matches a surge in consumer optimism coinciding with Donald Trump's election win. It mostly didn't rub off on bricks-and-mortar sales, though. Traditional retailers need new ideas.
Trump puts GOP’s competing loyalties in play 30 Nov 2016 The president-elect's inconsistent comments about his business conflicts have spurred Democratic lawmakers to propose ways to rein them in. But Republicans will control Washington. Failure to tackle any issues could stymie policy goals like tax reform and spook markets.
OPEC resolve is strong enough to turbo-charge oil 30 Nov 2016 The cartel’s deal to cut crude output for the first time since 2008 ends its two-year-old policy of putting market share before higher prices. This may be self-defeating if shale production rebounds. But OPEC unity is convincing enough for oil to extend and sustain gains.
Trump Treasury chief an illogically logical pick 30 Nov 2016 Steven Mnuchin's Wall Street past will rankle Democrats. But unlike many on the president-elect's team, he's neither an ideologue nor a populist – and well qualified for the job. He's also bipartisan and relatively reserved. His nomination bodes well for fiscal policy.
Dollar strength spells more U.S. bond weakness 30 Nov 2016 As emerging market currencies wilt against a resurgent greenback, countries like India are dipping into their war chests to sell dollars. More may have to follow suit. Sooner or later, this will involve selling Treasuries. It’s more bad news for the battered U.S. bond market.
Linde’s workers hold key to $66 bln Praxair merger 30 Nov 2016 The US gas producer wants to breathe fresh air into a union with its German rival. Linde's prior demands for a share of top jobs and locations appear fixable, but its powerful workers may require generous guarantees. Such concessions could undermine the deal's financial benefits.
UK stress test sorts banks into good, bad and ugly 30 Nov 2016 HSBC and Lloyds comfortably passed the Bank of England's annual exam, Barclays and StanChart did relatively poorly, and RBS effectively failed. The consolation is that the exercise was quite tough. And the miscreants are already addressing their capital issues.
Chinese selfie IPO only works in certain light 30 Nov 2016 Meitu wants a valuation up to $5.2 bln in its Hong Kong listing. Its user base is growing, thanks to features like virtual makeup and skin whitening. But most of its sales comes from selling smartphones. Mainland investors might buy the hype but the look doesn't travel so well.
MBK takes a $1.3 bln wide swing at golf in Japan 30 Nov 2016 The South Korean buyout firm has bid for golf-course operator Accordia. This business was a good post-bubble investment for Goldman Sachs, and then a disappointing one for public investors. A full price now makes it hard to see MBK teeing up a high return.
Corporate Clinton backers revert to drawing board 29 Nov 2016 Senior executives from Blackstone to Facebook may have been willing to serve in a Democrat-led White House. Now they're stuck in their jobs as President-elect Donald Trump fills his Cabinet. That means seeking a new exit path or ways to placate presumed successors.
Tiffany’s new sparkle dulled by rising global risk 29 Nov 2016 The jewelry retailer eked out its first quarterly top-line increase since 2014. But forex rates distorted overseas sales. And Tiffany is worryingly exposed to the vagaries of a Trump presidency, from its flagship store's proximity to his NYC home to his trade policy with China.
UK takes timid tilt at corporate governance piñata 29 Nov 2016 The government has singled out executive pay, board representation and unlisted firm oversight for reform. Scandals like BHS make it reasonable to do so. But the need for UK firms to remain competitive post-Brexit perhaps explains why the proposals aren't very adventurous.
Hadas: Castro’s mourners show distress of the left 29 Nov 2016 The Cuban strongman's death would have passed almost unnoticed, if he had not been the last communist revolutionary idealist standing. He is unlikely to have successors on the left, which has been ideologically exhausted by success. The nationalist right is another matter.
Long-term investors will be tested by Trump 29 Nov 2016 U.S. stocks have surged since Election Day as hopes grow for lower taxes, faster growth and reduced regulation. Trump keeps chipping away at institutions that underpin capitalism, however, by questioning the vote count and the Constitution. It'll take resolve to hang tight in markets.
OPEC would be unwise to rely on demand to lift oil 29 Nov 2016 Saudi Arabia has suggested higher global demand may boost oil prices regardless of whether the cartel strikes a deal on Nov. 30 to cut output. That's optimistic. Banking on stronger world growth to soak up excess supply is a dicey strategy when protectionism risks are growing.
Italian assets too sanguine on referendum risks 29 Nov 2016 Bruised Italian markets are clawing back some losses even though Prime Minister Matteo Renzi risks losing a constitutional referendum. Rejection would usher in a period of weak government. The rebound is premature and shows markets' struggle to prepare for extreme outcomes.
Tesla teaches car rivals to love each other 29 Nov 2016 Competitors like Elon Musk's company are shifting big automakers into a more cooperative gear. Four arch-rivals have teamed up to build charging infrastructure for electric cars in Europe. Though collaboration keeps costs down, trustbusters need to keep their eyes on the road.
Zimbabwe’s new quasi-currency fails the smell test 29 Nov 2016 The sub-Saharan state is issuing dollar-backed "bond notes" as a means of payment. It's an attempt to ease the huge trade deficit which is sucking hard currency out of Zimbabwe. But it requires citizens to trust the central bank responsible for the country’s hyperinflation.
Protectionism is key threat to China’s M&A boom 29 Nov 2016 Beijing could clamp down on overseas takeovers as it seeks to slow capital outflows and state firms splurging on non-core businesses. But mooted restrictions would not have stopped most of 2016's big deals. A larger headache will be Western countries raising the drawbridge.
Samsung sets cautious tone with activist fund 29 Nov 2016 The $224 bln giant says it will consider using a holding company structure, a measured but welcome response to Elliott Management's restructuring proposals. Plans to boost dividends and buy back more stock also show the group is serious about improving shareholder relations.
Rally in Singaporean bank shares has overshot 29 Nov 2016 DBS, OCBC and UOB have joined a global sector upturn on hopes that rising interest rates and a steeper yield curve will boost profits. By historical standards, the city's banks still look cheap. But the lenders are badly exposed as bad debt risks rise across the region.
Consultant Cognizant gets some useful free advice 28 Nov 2016 Pushy hedge fund Elliott wants the $35 bln IT services provider to buy back stock and pay a dividend. As Cognizant's revenue has grown over 100-fold since 1999, its margins have been curiously stable. Focusing more on efficiency and returning capital to investors are good tips.
Dallas pension fiasco lights up broader problems 28 Nov 2016 Investment losses and a bank-like run prompted the police and fire workers fund to ask the city for a $1.1 bln bailout. Some of its woes are unique, but it was chasing unrealistic returns in a low-rate world. That's a problem for the entire $4 trln U.S. public pension system.
Trump can make or break global growth hopes 28 Nov 2016 Tax cuts and more spending in the United States could help lift world growth to 3.6 pct by 2018, the OECD reckons. But President-elect Donald Trump could reverse the boost with protectionist policies. The rosy scenario rests on shaky assumptions about international cooperation.
Brexit transition headache has EEA painkiller fix 28 Nov 2016 UK courts could rule that Britain can stay part of the European Economic Area when it quits the EU. If so, ongoing single market access could numb Brexit's impact. If lawmakers also pledged to quit the EEA in, say, 2025, the more rational Brexiteers might even support it.
Time Inc owners could yet thank Bronfman 28 Nov 2016 The $1.4 bln magazine group reportedly rejected a bid from the former Seagram heir. A 30 pct premium sounds decent for an indebted publisher with falling sales, and selling shareholders needn't fret about Bronfman's poor record. Time's bosses are on notice to find a better offer.
Aberdeen gives grim blueprint for manager survival 28 Nov 2016 The UK group faces pressure from passive funds and zealous regulators. Its emerging markets focus makes it vulnerable to a protectionist Trump presidency. Chief Executive Martin Gilbert's prescription - more deals and less cost – is inevitable for the sector as a whole.