Features

Green investors need to get their hands dirty

22 Jun 2022

Most money managers fight climate change by shunning stocks of polluting companies. By contrast, so-called transition funds target dirtier assets to clean them up. Though the approach brings risks, it could also deploy trillions of dollars of green capital in a smarter way.

This Chinese jobs crisis could be its worst

20 Jun 2022

Youth unemployment hit a record 18% as the national rate heads toward levels not seen since 2008. Private employers are traumatised and a strained public sector will struggle to make up the difference. Fiscal and monetary responses used previously are unlikely to work this time.

Wirecard exposed finance’s scary credulity

17 Jun 2022

The payments group collapsed in 2020 after admitting $2 bln of its cash was fake. “Money Men”, a book by the FT journalist who uncovered the scandal, describes a chaotic and unsophisticated fraud. All the more shocking that analysts, advisers, auditors and regulators were fooled.

BlackRock in charge beats nobody in charge

13 Jun 2022

The $10 trln asset manager has invited some investors to vote at annual meetings of companies held by its index funds, but only a few have taken up the offer. It’s in boss Larry Fink’s interest to get the number up. The trouble is many shareholders don’t vote even when they can.

South Korea steps up to a fearful new world

13 Jun 2022

A new pro-business president, receding Covid-19 risks and rising clout in supply chains have infused local companies with newfound confidence. Many, led by giants like Samsung, are charging abroad. The optimism should pay off, even as fresh economic and global threats loom.

Cricket rights will bowl India Inc a new line-up

10 Jun 2022

A third of teams in the sport’s premier league fit poorly with owners like Diageo. One, Reliance, wants the broadcast rights too. CVC’s entry into the club creates more uncanny parallels to a changing corporate India. The outcome of the $6 bln TV auction may spur a clean-up.

Guest view: Global hunger fight means no biofuel

6 Jun 2022

Food supplies have shifted rapidly from surplus to shortage. Sarasin’s Henry Boucher argues Western governments have a way to stop prices spiralling further. It entails prioritising food over fuel, and scrapping states’ biofuel mandates.

Fingers crossed Davos Man gets it wrong again

27 May 2022

Gloomy delegates at the Swiss conference worried about a prolonged conflict in Ukraine, Covid-19 lockdowns in China, and runaway food and energy prices. But in 2020 they failed to foresee the global pandemic. This time, an incorrect forecast might be good news for the planet.

How to stop margin calls from blowing up markets

23 May 2022

After 2008, regulators pushed derivative trades away from banks and onto clearing houses with the power to request collateral. That cut the risk of blowups, but liquidity is still scarce during panics. The fix is to boost margin during good times, reducing the need for big calls.

Review: War on digital payment fails to hit target

20 May 2022

Brett Scott’s “Cloudmoney” seeks to remind the world of the value of physical cash. It’s true that an overly automated system of money carries risks like the potential for surveillance. But the campaigner underestimates consumer demand for digital transactions.