A teachable moment in for-profit education 15 Dec 2016 DeVry is paying $100 mln to settle fraud accusations under a crackdown by the Obama administration. For-profit colleges can expect looser oversight when the founder of Trump U. takes office. DeVry's post-election stock surge suggests investors are discounting regulatory risk.
Viewsroom: Can Big Oil’s man be diplomat-in-chief? 15 Dec 2016 Exxon CEO Rex Tillerson, Donald Trump's pick for secretary of state, is well versed in international dealmaking. But he's too close to Russia even for some Senate Republicans. Meanwhile, Goldman Sachs shuffles the top ranks and Wells Fargo's regulatory hubris comes back to bite.
Cox: Taiwan deserves better than Trump’s drive-by 15 Dec 2016 In the days since the U.S. president-elect trashed protocol and spoke to President Tsai, it has become apparent that Asia's shining example of vibrant democracy got taken for a ride. A flicker of pride can't offset being played as a pawn in Trump's antagonistic approach to China.
New president may force hawkishness on 2017 Fed 14 Dec 2016 The central bank nudged interest rates up again after a year's pause. Janet Yellen and colleagues previously sounded cautious but that was before the Trump bump. If bond yields, inflation and stock prices continue to rise, the Fed will be under pressure to make quicker increases.
Brazil’s Temer puts country on knife’s edge 14 Dec 2016 The unpopular leader has won a key victory, securing constitutional reform to cap public spending for the next 20 years. That's necessary but insufficient if he is to fix Latin America's largest economy. Pension reform will be harder, though, and a corruption probe spells danger.
Small step for some is giant leap for Uzbekistan 14 Dec 2016 The landlocked central Asian country has poor human rights and low foreign investment. But new President Shavkat Mirziyoyev has made encouraging changes, like restoring air links with Tajikistan and scrapping visas for some foreigners. There is far to go, but it’s a start.
Even if Yellen remains, Trump can reshape Fed 13 Dec 2016 The governors of the U.S. central bank are gathering for the last markets meeting of this year. The chair plans to stay until 2018. But with two vacancies out of seven and the potential for more to quit, the next president has a chance to tip the political balance of the group.
Brexit transition may ease not remove uncertainty 13 Dec 2016 UK Chancellor Philip Hammond sensibly wants banks to have continued access to Europe's single market after Britain's departure to protect financial stability. That would give them longer to make alternative plans - but also risks prolonging doubts about the final arrangements.
UniCredit’s bankers should avoid 2012-style panic 13 Dec 2016 The Italian bank's 13 bln euro cash call is almost double its capital raising five years ago, which nearly imploded. The current one also takes place in the teeth of domestic political upheaval. Yet today's UniCredit is healthier. Underwriters needn't end up holding the baby.
UniCredit detox is key moment in Italy bank reboot 13 Dec 2016 A cost cull, bad debt purge and mega-cash call mean the country's biggest bank merits a much higher valuation. The risk is that investors see smaller Italian peers as weak in comparison. Yet with the top two banks solid and MPS being sorted, cleaning them up is less daunting.
Tillerson would take more bad than good to State 12 Dec 2016 The Exxon CEO's dealmaking means he's already a diplomat of sorts. So he would be fine with the basics of foreign affairs and Donald Trump's apparent "America-first" policy. But his ties to Vladimir Putin and his cronies would make him an inflammatory pick, even with Republicans.
Viewsroom: What’s at stake in Trump vs. China? 9 Dec 2016 The U.S. president-elect upended decades of diplomacy by taking a call from Taiwan's leader. But some U.S. companies will welcome his stance. And China has much to lose from any escalation. Also: Italy PM Renzi gets his marching orders. And there's no easy move to monetize chess.
Trump’s stock sales earn at best a “hold” rating 9 Dec 2016 He says he unloaded his portfolio to avoid conflicts of interest. The June decision also coincided with a cash crunch for his campaign, meaning it may have been a pair trade that paid off. Trump's commitment to ethics will be clearer if he divests his main business holdings.
Fintech’s transformation into banking draws closer 9 Dec 2016 UK regulators are mulling tougher rules for crowdfunding firms that would require greater risk disclosure and wind-down plans. Stricter regulation is good for investors. Yet it also means more loan-based platforms might follow peer-to-peer group Zopa in seeking a banking licence.
Cox: Public company capitalism meets its match 8 Dec 2016 Donald Trump is challenging the ideals that have guided U.S. capital markets and corporate behavior for a generation. If it forces boards to reconsider the broader impact of their actions it may be a good thing. More likely, it will usher in an age of cronyism and quid pro quos.
China gets a good cop as Trump’s primary emissary 8 Dec 2016 The president-elect mollified Beijing with his ambassador pick. The selection of Iowa Governor Terry Branstad, who has personal connections with Xi Jinping, calms waters troubled by Trump's tough talk. As other hardliners are brought in, Branstad will need to pack a surfboard.
National Grid picks happy moment to let off gas 8 Dec 2016 China and Qatar are among buyers of a 61 pct stake in the utility’s UK gas distribution unit. The 3.6 bln pound deal matches a seller that does not need the cash and buyers content with low-yielding assets. Yet prices in infrastructure acquisitions may be nearing a peak.
UniCredit Polish exit tinged by seller’s remorse 8 Dec 2016 The Italian lender will sell a third of Bank Pekao to two Polish state-controlled entities. UniCredit needs capital, may share the upside via a sale of equity-linked paper, and Warsaw's hatred of foreign capital is a spur. Still, at 1.4 times book it's cheap versus some peers.
China regulator has healthy fear of goblin raids 8 Dec 2016 The country's top stock regulator startled investors by ranting against "barbarians" and "goblins". It's not just superstition: he's worried about insurers using premiums to fund corporate raids. Plenty of Chinese boardrooms could use a shake-up, but not by ghoulish speculators.
Antitrust probe will hasten Mad Men decline 7 Dec 2016 The U.S. Justice Department is investigating whether advertising firms rigged bids in the $5 bln commercials industry. The business is already under pressure from Facebook and Google and their own clients. The whiff of more malfeasance is further evidence the model is broken.