Considered View

SEC failure puts U.S. cyber security on back foot

21 September 2017READY SOON

Unlike the Equifax hack, the breach into the watchdog’s systems doesn’t put people’s data at risk. But the SEC buried its belated disclosure of the attack in a broader statement on cyber issues. It sets a terrible example on transparency for the publicly traded firms it oversees.

China can afford to shrug off credit downgrades

21 September 2017READY SOON

S&P just dinged the sovereign rating. Banks have been marked down too. Worries about rising debt are justified, but the market’s non-reaction shows how differently China’s economy is wired. State control and plentiful savings mean Beijing will escape most of the usual fallout.

What Carney can learn from Yellen

21 September 2017

Fed Chair Janet Yellen showed rate-setters can shock markets even when they stick to the script. That’s a lesson for the Bank of England’s Mark Carney, who has talked up a rate rise this year. Like her, he may have to hike without having solved a host of economic puzzles.

UniCredit has narrow lead in Commerzbank M&A fight

21 September 2017

The Italian bank wants to buy the 14 bln euro lender. BNP Paribas is also a reported partner. A deal makes sense: the target is cheap, and Germany needs to sell a stake. UniCredit’s scale gives it an edge, but Berlin may favour the French bank, or a domestic peer like Deutsche.

Agarwal’s Anglo wager is risky way to plot breakup

21 September 2017

The Indian billionaire is doubling down. Paying as much as 1.5 billion pounds to raise his stake in the UK-listed miner to 20 pct may be a way of trying to force a breakup. But unpredictable commodities prices and South Africa’s volatile politics could scupper any such plans.

CRH deal cements its U.S. infrastructure bet

21 September 2017

The building materials company is buying Kansas-based Ash Grove for $3.5 bln including debt. It’s a full price for a group which likes to buy cheap. Despite doubts over President Trump’s pledge to rebuild highways and bridges, pushing into its key market makes sense for CRH.

Tencent heats up fintech fight with CICC stake

21 September 2017

The Chinese tech giant is taking a 5 pct stake in the investment bank. Tencent has already cut deeply into Alibaba's share of electronic payments. This will help Tencent grow in wealth management – and chip away at its archrival’s dominance of online money-market funds.

AIA’s new boss gets a good deal in Australia

21 September 2017

New CEO Ng Keng Hooi is buying local life insurance units from the scandal-hit CBA. The move shores up AIA in an important market. Growth at the targets has been lacklustre. But a headline price of $3 bln implies a slim premium, with potential to grow sales and cut costs.

HTC tethers itself to a new virtual reality

21 September 2017

The ailing Taiwanese firm will sell part of its handset unit to Google for $1 billion. This will free up HTC to focus more on its risky but promising VR business, where it is winning market share. Deeper ties with the U.S giant might also help fend off rivals Sony and Facebook.

Fed balance-sheet runoff could rock fiscal boat

20 September 2017

The U.S. central bank will start shrinking its $4.5 trln bond portfolio next month. The timing is risky, with lawmakers set to spar over government funding and the debt ceiling. Fed downsizing will also cut the $92 bln it sent to Treasury last year, adding to budget pressures.