Trump tariff chaos shoots America in its own foot 1 Mar 2018 The president is to impose sweeping import duties on steel and aluminum, citing national-security concerns – though details are scant. It’ll help domestic steelmakers. But the move ignored some U.S. agencies and could deliver a blow to vital allies like Canada and South Korea.
Coin-offering boom carries seeds of its own demise 1 Mar 2018 The SEC is cracking down on initial coin offerings with subpoenas, the Wall Street Journal reported. Tighter scrutiny is welcome given the billions being raised. With hundreds of ventures in the pipeline and many business plans sketchy, the odds of success get longer by the day.
Net neutrality allies may lose battles but win war 28 Feb 2018 Senate Democrats and state AGs are waging a campaign against a Trump administration decision not to require internet service providers treat content equally. It’s an uphill legal climb. But firing up congressional and public opinion might nudge ISPs to follow the rules anyway.
India lacks ingredients for next leg of growth 28 Feb 2018 The economy expanded 7.2 pct in the fourth quarter as it continued to recover from Premier Modi’s shock therapy. Even stronger growth would require healthy banks. A massive fraud makes this harder to believe in, and a fresh embrace of protectionism will be another drag.
Stability the only threat to Sberbank’s dominance 28 Feb 2018 Russia’s biggest bank reported a 24 pct return on equity in 2017. A financial crisis and looser central bank allowed the state-controlled lender to cut deposit rates. Sberbank’s pricing power means it it trades at a chunky 1.7 times book value. But fat margins may face a squeeze.
Georgia gives Amazon one great reason to stay away 27 Feb 2018 The Peach State's Lt. Governor hoisted a big red flag for the e-commerce giant. By lobbying to remove tax breaks for Delta Air Lines, a punishment for withdrawing discounts for NRA members, he makes Georgia an untrustworthy partner – and a poor choice for Amazon’s new HQ.
Powell buys wiggle room with political savvy 27 Feb 2018 The new Fed chair deftly handled his first congressional testimony since taking office, giving few indications he is itching to tighten faster. If anything, his political nous and a friendly Republican majority might give the central bank more room to run the U.S. economy hot.
Poste Italiane tries to catch some Amazon sparkle 27 Feb 2018 The mailing incumbent is targeting a 60 pct EBIT jump to 1.8 bln euros by 2022. Its loss-making delivery business is a drag on the lucrative financial segment, but parcel shipments should rise as Italy catches up with a global e-commerce boom. If Amazon grows, Poste can follow.
European tech tax grab risks U.S. backlash 27 Feb 2018 The EU may tax groups like Google 5 pct of sales based on where users are located. It’s an unsubtle solution to a real problem. But after recent U.S. reforms intended to keep profit at home, the two are reaching for the same slice of pie. The danger is a harmful tax tit-for-tat.
Indonesia lays bare green-bond growing pains 27 Feb 2018 The country's $1.25 billion fundraising is hard to square with its palm-oil and coal exports. Issuers with the least eco-conscious credentials, though, are also important to lure onto the bandwagon with financial incentives. It's the various shades of green that are awkward.
Corbyn turns soft Brexit into hard politics 26 Feb 2018 The Labour leader says Britain should stay in a customs union when it leaves the EU. Though his Brexit vision is fuzzy, it may appeal to voters and galvanise a parliamentary challenge to embattled Prime Minister Theresa May. UK political instability looks set to step up a gear.
Latvian bank failure raises 8 bln euro question 26 Feb 2018 That’s the amount foreigners have deposited in the Baltic nation’s lenders. Now ABLV, the third-largest bank, is being wound up following U.S. money-laundering charges. The cost to Latvian taxpayers is limited. Containing the fallout for the overall banking system will be harder.
Xi’s open-ended rule bodes ill for governance 26 Feb 2018 China is set to scrap presidential term limits, meaning Xi Jinping could serve as leader for life. For foreign execs and investors, the further consolidation of power means less predictable policymaking. It also raises the risk of bad decisions taken in an information vacuum.
South African bond rally has further to go 22 Feb 2018 The republic’s first budget under President Cyril Ramaphosa hiked taxes, an encouraging sign of fiscal rigour. South Africa still has to tackle its structural problems and avoid a junking of its debt. But with reform momentum gathering pace, its debt still looks attractive.
Too-big-to-fail rules are too sound to scrap 21 Feb 2018 A long-awaited U.S. report on resolving big financial institutions recommends beefing up the bankruptcy code while keeping the door open to government intervention in emergencies. It’s possible to quibble with the details, but the big-picture proposals strike a sensible balance.
JPMorgan finally dresses the part 21 Feb 2018 Building a new New York headquarters may sound like exuberance on the part of boss Jamie Dimon. But the bank needs space and can afford it, and the city could gain too. Since JPMorgan is outperforming rivals with newer digs, it’s not just a case of keeping up with the Blankfeins.
GKN is wrong target for Corbyn’s M&A meddling 21 Feb 2018 The UK opposition leader criticised Melrose’s $10 bln hostile offer for the British engineer and threatened to block more deals. There’s a case for giving targets more protection. But the fight between two UK-listed international groups shows the folly of trying to pick winners.
Hadas: Put stock markets in their modest place 21 Feb 2018 Share price movements garner headlines and excite politicians, but not for good reasons. Equity markets play a minor and easily replaceable role in funding investment, and the effect of current values on wealth is almost entirely psychological. They deserve less attention.
Thrift can steer Lloyds to profitable banality 21 Feb 2018 The UK lender wants to be simple and safe. Boss António Horta-Osório’s new plan needs conduct charges, which grew by a fifth last year, to abate, and the economy to behave. Still, even if revenues stay flat, earnings can roughly double by 2020 if he hits cost targets.
Manila sleepwalks towards inflationary trouble 21 Feb 2018 Price rises are accelerating in the Philippines, as strong demand, a weak peso and new taxes boost living costs. The central bank risks falling behind the curve. Inaction could raise bond yields, slam stock values and further dent Asia’s worst-performing currency.