Mnuchin has his work cut out on art of persuasion 19 Jan 2017 The U.S. Treasury nominee was grilled at a Senate hearing about using offshore havens and his chairmanship of a bank that Democrats called a foreclosure machine. He parried critics well enough on the day but to sell a tax overhaul to lawmakers will demand a much stronger pitch.
Wilbur Ross helpfully plays Trump trade translator 18 Jan 2017 The commerce secretary nominee played down the possibility of a trade war. Instead, Ross, a billionaire investor, focused on practices like steel dumping by China. That's the broadly preferred path in Congress. NAFTA talks will reveal if everyone is speaking the same language.
Trump nominee spreads insider-trading disease 17 Jan 2017 Tom Price, who has been tapped to be health and human services secretary, is raising new conflicts-of-interest concerns. He bought shares in Zimmer Biomet and other companies while working on bills affecting them. It reflects badly on him, the president-elect and Congress.
Britain’s Brexit cliff: how big is the drop? 16 Jan 2017 As Theresa May prepares to reveal details of the UK’s post-EU objectives, the risk of a clean break in 2019 has risen. Such an outcome is suboptimal. But Britain’s negotiating position is far from hopeless, and the scale of the pain from “hard Brexit” can be overstated.
Samsung arrest spells trouble for Korea’s chaebol 16 Jan 2017 Prosecutors are seeking an arrest warrant for heir Jay Y. Lee. It could disrupt a long-running succession plan for South Korea's biggest group. By rattling a conglomerate that drives national fortunes, Seoul raises hopes that real corporate reform could come thick and fast.
Trump’s Treasury man is Exhibit A for tax reform 13 Jan 2017 Steve Mnuchin plans to unload over $90 mln of investments to avoid conflicts of interest. Like many rich folks, the hedge-fund boss owns a dizzying array of assets, including art, in a web of trusts and partnerships. At least that means he knows how pervasive the loopholes are.
Hadas: The new autocratic economics is still fuzzy 12 Jan 2017 Muscular leaders have diverging concerns. Oil-dependent Putin does little to promote Russian growth. China’s Xi puts expansion above financial stability, while Turkey’s Erdogan risks the economy for political strength. The common factor is state control, greased with corruption.
Accounting tweaks could spark bank bond panic 2.0 12 Jan 2017 In 2016, fears Deutsche Bank's junior bonds would switch into equity caused market turmoil. Now, new solvency rules will force lenders to take bigger and faster losses in a downturn. If that pushes the debt near trigger points, it could spook investors all over again.
Beijing lobs trade grenade into Trump’s court 11 Jan 2017 China is imposing punitive tariffs on imports of a U.S. animal feed just days before the president-elect takes office. Trump has already talked tough about taxing imports from the Middle Kingdom. Retaliation risks escalating into a trade war that neither side would win.
Tillerson misses chance to overcome Putin problem 11 Jan 2017 A U.S. Senate hearing mostly made the nominee for secretary of state look like a model candidate. Mealy-mouthed answers on sanctions against Russia, though, and his concern for their impact on businesses, betrayed his decades at Exxon. It's a flashpoint even for some Republicans.
Beware cracks in Trump’s infrastructure plan 11 Jan 2017 Two of the president-elect's advisers have drafted a superficially appealing outline, but tax credits involved are giveaways to businesses and investors. The assumptions are fanciful, too. While new ideas are welcome, spurring $1 trln of funding demands a bigger government role.
Czech currency cap will go way of the Swiss 11 Jan 2017 A peg tethering the crown to the euro has served its purpose by fending off deflation and nurturing growth. It's now becoming a magnet for speculative flows. As Switzerland showed policymakers two years ago, it's best to ditch doomed currency caps sooner than later.
Britain’s true income gap is between young and old 11 Jan 2017 Labour Party leader Jeremy Corbyn's clumsy plans to rein in executive pay overlook an inconvenient fact: UK income inequality has fallen. Since the crisis retirees have done better than workers, though. Tackling the tensions caused by this divide makes a better political target.
Ma’s job offer to Trump is no Chinese peace pipe 11 Jan 2017 Alibaba founder Jack Ma met with the U.S. president-elect and pledged to create 1 mln jobs. Trump, well-pleased with this tribute, says he and the Chinese e-commerce tycoon will do "great things" together. There is less to both statements than meets the eye.
Trump enforcer hearing leaves Wall Street no wiser 10 Jan 2017 U.S. senators grilled attorney-general pick Jeff Sessions on immigration, civil rights and the president-elect. Controversial M&A like AT&T's $85 bln takeover of Time Warner and insider-trading issues were largely ignored. The financial world will just have to read the tea leaves.
India’s next big experiment could be basic income 10 Jan 2017 A direct cash transfer to citizens could replace a plethora of subsidies and benefits. That would reduce corruption and waste, especially if the handout only goes to the poor. But identifying the worthy will be tough, even with India’s impressive biometric identity database.
Trump boardroom fails early due-diligence test 9 Jan 2017 Nine of the president-elect's cabinet picks face a Senate grilling this week. The likes of former Exxon boss Rex Tillerson and billionaire Wilbur Ross were chosen for their investment nous. Conflicts of interest and missing financial disclosures, however, can be bad for business.
Anglo-U.S. trade exposed to specialness deficit 9 Jan 2017 The UK’s “special relationship” with America gets more crucial as it moves towards a clean break with Europe. Transatlantic imports and exports are balanced – which should please President-elect Donald Trump – yet Britain has more to lose. Finance looks particularly vulnerable.
Banks whiplashed by Asia’s distrust of hot money 9 Jan 2017 Indonesia plans new rules to ensure research is "factual", after a downgrade led it to cut ties with JPMorgan. Malaysia is clamping down on currency trading. The moves only highlight Southeast Asia’s vulnerability to capital flight rather than the region's impressive growth.
Bank fine-fighting begins to have some logic 5 Jan 2017 Barclays is battling U.S. authorities over charges it mis-sold mortgage bonds. UBS has contested accusations it aided tax evasion in France. With fewer outstanding legal bills and regulators habitually levying huge penalties, lenders have more to gain from pushing back.