Central banks can only nudge towards greener world 18 Jun 2019 The Bank of France boss says climate change may end up being a stagflationary shock. That’s a good reason for rate-setters convening in Portugal to care about global warming. But meddling too much may imperil their independence. It’s up to governments to make a real difference.
China infrastructure bump comes at steeper cost 18 Jun 2019 Beijing is tweaking rules to allow local authorities to step up spending on public projects, which might add 4 percentage points to infrastructure growth this year. Rule changes should let officials borrow more, but they will face a harder time generating returns.
Sweden provides a cautionary digital tale for HSBC 18 Jun 2019 Hong Kong’s new online banking licences open the UK-based titan to new challenges in a market that accounts for 30% of pre-tax profit. Scandinavian giants such as Swedbank quickly fell prey to startups. And HSBC will be up against the likes of tech-savvy Alibaba and Tencent.
UBS sets a troubling precedent in China 17 Jun 2019 The Swiss bank put economist Paul Donovan on leave after misconstrued comments triggered outrage in the mainland. Local rivals fed the unwarranted flare-up. The episode hints at new pressures for outsiders in the country; excessive subservience, however, creates bigger headaches.
Toyota uses financial heft to hedge green bets 17 Jun 2019 The $176 bln behemoth is spreading clean energy investments across pure electric cars and hybrids as well as hydrogen, partnering with rivals like Subaru to reduce costs. The company’s sheer scale makes the strategy feasible, but Nissan’s more conventional solution is a threat.
Beijing yields to Hong Kong’s financial clout 15 Jun 2019 Carrie Lam has suspended a bill that would have allowed extradition to the mainland, backing down after protests rocked the city she leads. It’s a defeat for her, and leaves egg on the central government’s face. But for China, Hong Kong’s economic utility trumps political control.
Review: Why an AI apocalypse could happen 14 Jun 2019 Elon Musk and Stephen Hawking have warned that superintelligent machines could destroy humanity. In "The AI Does Not Hate You", journalist Tom Chivers offers a terrifying primer on why they should be taken seriously. Governments and companies, though, still need convincing.
China’s UK stock debutante lacks a return ticket 14 Jun 2019 Huatai Securities is set to become the first Shanghai-listed company to offer depositary receipts in London, raising up to $1.7 bln. Its pioneer status should be good marketing for the broker. Plans by UK-listed companies to make the reverse trip, however, remain a distant dream.
Dan Loeb pushes a hidden Sony jewel into the light 14 Jun 2019 The activist behind Third Point wants the $60 bln Japanese conglomerate to spin off its chips business. It's a sensible step to simplify the sprawl, even with trade tensions and cooling tech demand today. Autonomous cars and snazzy smartphones make its long-term prospects shiny.
Adani’s coal victory Down Under is pyrrhic 14 Jun 2019 The Indian group has a green light to start digging at Australia's $1.5 bln Carmichael mine, after years of opposition. Yet prices for power station fuel are soft, and the market is oversupplied. Its billionaire owner will feel vindicated, but it's hard to see how he makes money.
Hurricane Trump may give Beijing some cover 14 Jun 2019 A torrent of rising U.S. tariffs threatens to wash out some of China’s growth. There’s far more behind the slowdown, but just as CEOs cite bad weather to obscure underlying issues, officials could use the trade war to release more stimulus or just blame Trump for missed targets.
Viewsroom: When dealmaking gets difficult 13 Jun 2019 Raytheon and United Technologies’ planned $114 bln tie-up raises questions about strategy, cost cuts and executive overreach. It’s prompted their shares to tank and activist Bill Ackman to oppose it. And Fiat Chrysler and Renault’s mooted merger has crashed. Can they salvage it?
Pulled IPO sets grim tone for Hong Kong markets 13 Jun 2019 Warehouse operator ESR shelved plans for a $1.2 bln float, a day after police and demonstrators clashed violently in the Asian financial centre. A high price was one issue, but unrest plus economic headwinds formed a perfect storm. It’s a bad sign for others in the queue.
Trump gives China’s homegrown tech goal a boost 13 Jun 2019 Beijing’s move to grant 5G telecom licences early is a show of trade war bravura, given the foreign inputs required. Much of its industrial policy, though, has been about encouraging long-term self-sufficiency. Washington’s assault on equipment-maker Huawei now leaves no choice.
China audit crackdown is a Wall Street nightmare 13 Jun 2019 U.S. Senator Marco Rubio wants to force mainland companies listed on American exchanges to submit to local oversight - or leave. The problem is real. But torching shares with a market value of roughly $1.8 trln and millions in fees is a heavy price to pay for transparency.
Hong Kong’s new protests come at a dangerous time 12 Jun 2019 Violence flared in the financial centre as police fired tear gas and rubber bullets at citizens opposing an extradition bill. Pro-democracy demonstrations in 2014 fizzled out. But this movement has broader support, and the economy is more fragile. The standoff is harder to defuse.
Hong Kong chief bets everything on a losing hand 12 Jun 2019 Carrie Lam plans to fast-track a bill allowing extradition to mainland China, in the face of street protests and strikes. The city will suffer long-term damage. For now, the cost of her battered credibility will be worthwhile policies, including much-needed housing reform.
Credit Suisse gets closer to real Alibaba trophy 12 Jun 2019 The tech giant has picked the Swiss bank, along with part-owned CICC, to lead a $20 bln Hong Kong share sale. Both have largely stayed clear of Alibaba rivals, suggesting loyalty is being rewarded. They are now positioned to contest a bigger prize: $150 bln Ant Financial’s IPO.
Iron ore complicates Australia’s growth challenge 12 Jun 2019 The rising price of the steel ingredient has yet to boost investment in mining, or wages. But it is making the local dollar more resilient to trade tensions and a rate cut. That means the economy, expanding at its slowest annual rate in a decade, is even harder to revive.
Irish central banker job glitch may be a blessing 11 Jun 2019 The government was thrilled to recruit a New Zealand Treasury official as its new governor. Now he faces an investigation about how he handled early accessing of budget information. If things go wrong, Ireland has a second chance to give Deputy Governor Sharon Donnery the job.