Smarting Aussie lenders brace for Banking 2.0 30 Nov 2018 Commonwealth Bank of Australia and other top institutions have been battered by an inquiry that has wiped some $39 bln off their market value in 2018. As nine months of theatrics wind down, investors can expect five major changes, including tighter credit and tougher punishments.
India is hit hardest by Asia’s $4 trln water risk 30 Nov 2018 That’s how much GDP is at stake if the region doesn’t better manage the 10 Himalayas-fed rivers its economic hubs rely on. China appears to be steering a good course. But India isn’t fixing the governance mess exposed by rising water stress. That threatens economic growth.
Viewsroom: Climate risk is investing opportunity 29 Nov 2018 Experts reckon unrestrained global warming will lop 10 pct off U.S. GDP by 2100. California’s wildfires prove it’s already having disastrous effects. But investors and companies alike can be part of the solution. Plus, Carlos Ghosn’s arrest leaves three carmakers in disarray.
China’s gene-edited babies cry out to regulators 29 Nov 2018 A scientist says he genetically altered human embryos to protect them from HIV, sparking a firestorm. Clearer guidelines are needed, but sweeping restrictions could stifle biotech innovation. The Chinese research community’s weak self-discipline is another problem.
Horlicks buyer may face big fat problem in India 29 Nov 2018 Unilever is a leading suitor for GlaxoSmithKline’s local $3 bln “nutrition” business, which includes the 145-year-old malted milk drink. As obesity and malnourishment climb up the national agenda, however, sugary Horlicks could lose its healthy image and limit its shelf life.
Guest view: Trade war is popular, not populist 29 Nov 2018 President Trump's deployment of tariffs against China is an economically sound attempt to rebalance a distorted relationship, Asia hedge fund manager Stewart Paterson argues. Concerns about inflation's impact on U.S. consumers are overblown; it's Wall Street that should worry.
Tiffany stumbles in luxury game of catch 28 Nov 2018 The luxury jewelry store reported a surprise slowdown in sales driven by all-important Chinese tourists. They’re still buying, just doing so at home. Currency changes and tariffs are partly to blame. Rivals have tripped by chasing tourist flows, but Tiffany is right to resist that urge.
Hadas: How to stop radical CEOs from going rogue 28 Nov 2018 Renault and then Nissan hired Carlos Ghosn to subvert conventions. But the will to transgress is hard to keep within boundaries. Companies have four defences against talented but errant bosses: bureaucracy, conscience, boards and punishments. All of them can be strengthened.
L’Occitane buyout could be a fragrant option 28 Nov 2018 The $3 bln, Provence-inspired skincare brand may have attracted private equity interest. A costly expansion has hurt the group controlled by boss Reinold Geiger, but a clean balance sheet, prospects in China and an unglamorous share price suggest an alluring makeover candidate.
China’s too-big-to-fail rules go the right way 28 Nov 2018 Regulators have published new guidelines for supervising key banks, insurers and brokers. Of course, Beijing owns most big banks and failures are rare. But indicating who should be saved means others may be allowed to sink: that's a step towards liberalising a $40 trln industry.
Goldman Sachs could wind up paying twice for 1MDB 28 Nov 2018 Abu Dhabi’s sovereign fund is now suing the investment bank for its role in the Malaysian scandal. Damages being sought could exceed Goldman's average net profit of $5.4 bln. U.S. authorities may want a piece, too. The longer this drags out, the worse the financial fallout looks.
Crypto disruptors want a hug from Wall St 27 Nov 2018 Enthusiasts snapped up bitcoin and its digital imitators believing they would replace financial intermediaries. But an 80 pct price collapse has dampened the revolutionary fervor. Now the likes of NYSE and Fidelity can’t come soon enough with futures, ETFs and custody services.
Jack Ma and Xi Jinping: dubious comrades in arms 27 Nov 2018 State media outed the founder of $400 bln Alibaba as a Communist Party member. Implied support from China’s most famous capitalist helps President Xi’s efforts to meddle in tech. Recent Ma comments suggest he isn’t exactly on board. This turns up the heat on simmering tension.
Singapore offers lessons in corporate succession 27 Nov 2018 The Lion City’s ruling party has set in motion a careful handover, identifying the man who will eventually become premier. Boardrooms, against which the island gauges itself, can learn from the planning. Both, however, would benefit from more diversity to prepare for shocks.
New global bank cop faces political stress test 26 Nov 2018 Fed Vice Chair Randal Quarles is a strong choice to lead the Financial Stability Board but the Basel-based body faces many challenges. A divided U.S. Congress is fighting about whether to be tough or soft on Wall Street. Brexit and other forces will also test cross-border unity.
Dolce & Gabbana’s Chinese outfit proves reversible 26 Nov 2018 Like many others, the Italian fashion house has cashed in on the mainland’s ambitious urbanites. A disastrously insensitive ad campaign, though, has led to social-media outrage and widespread boycotts. It’s a prime example of how fast the same savvy shoppers can unravel a brand.
Tencent Music will sound out global IPO market 26 Nov 2018 China's answer to Spotify may push on with a $2 bln New York listing in December. It’s a bad time of year to sell new equity and Tencent has already once delayed its plans. With no obvious need for funds, a subdued deal would confirm that the window for big IPOs is closing fast.
Taiwan’s poll upset can ease China tensions 26 Nov 2018 Voters battered President Tsai Ing-wen and her independence-leaning party in local elections, despite strong economic growth. The opposition is already reaching out to Beijing. That may augur a welcome period of calmer cross-strait relations, just as trade war storms strike.
How Nissan could get the upper hand with Renault 23 Nov 2018 After ousting Chairman Carlos Ghosn, the Japanese carmaker wants more say in an unequal alliance. Given the partnership’s lopsided governance, Nissan’s best bet would be to snap up shares in Renault, neutralising its controlling stake. Ghosn’s exit makes a hostile raid easier.
Michelangelo deal is work of abstract art 23 Nov 2018 Chinese waste hauler Yulong Eco-Materials has decided to become an owner of paintings and gems instead. It’s paying $75 mln for the Italian master’s “Crucifixion” after it bought a $50 mln sapphire. Bringing art investing to public markets is a risky form of creative destruction.