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.
Insider-trading cops get early Christmas present 6 Dec 2016 The U.S. Supreme Court has ruled that the government does not always need to prove defendants know tippers benefit from the information they hand over. That reverses an earlier ruling - and gives disheartened prosecutors extra leeway to go after suspected trading miscreants.
Mexican oil drowns out Trump bluster 6 Dec 2016 Despite withstanding months of attacks by the U.S. president-elect, the country found eager investors for its drilling rights. That's helpful amid a looming trade war. Deals with BHP, Chevron and others could boost Mexico's laggard crude output by almost half in a decade.
E.ON brinkmanship gets rewarded in court 6 Dec 2016 Germany’s constitutional court has ruled in the troubled utility’s favour over an 8 bln euro compensation claim following the government’s U-turn on nuclear power. A payout should ease E.ON’s balance sheet headache and vindicate its decision to delay a much-needed capital hike.
Singapore stresses under a wealth of worries 6 Dec 2016 Morale is lousy in the city-state. The trade-reliant nation is heading for a recession and China is flexing its muscles. Singapore's strategic direction and its outsize influence on the global stage are both in question. There are no easy fixes to restore the Lion City's roar.
“Irrational exuberance” gets a new lease on life 5 Dec 2016 After Alan Greenspan coined the phrase exactly 20 years ago, it took three years before the tech bubble burst. Markets are spirited again, by low rates and Trump. As the Fed acts and the president-elect pushes his policies, asset values may face a quicker reckoning this time.
Dakota pipeline defeat fast becoming wistful memory 5 Dec 2016 The Obama administration nixed a key permit for an Energy Transfer oil plan after an uproar by Native Americans and activists. President-elect Trump's love of fossil fuels, including $1.5 trln worth on tribal lands, augurs a tougher fight against pollution and climate change.
Brexit Supreme Court case is a sideshow 5 Dec 2016 The UK's top court may force the government to give parliament a say on triggering Brexit. Yet this wouldn't necessarily change Prime Minister Theresa May's plans much. Two related legal matters - including whether the exit process is reversible - might provide firmer resistance.
Financial startups may soon storm gate 2 Dec 2016 New ventures like SoFi and Betterment could become banks under a new charter regime. The OCC's plan initially may please established lenders by leveling the regulatory field. It also, however, should help upstarts breach the industry's last line of defense: cheaper funding.
S&P’s sleight of hand is South Africa’s gain 2 Dec 2016 The credit ratings firm has downgraded the sub-Saharan state's local currency bonds but spared its foreign debt. This allows South Africa to escape junk status for the time being. Almost as important, there's no excuse now for firing respected finance minister Pravin Gordhan.
Trump’s AC activism more hot air than cold jobs 1 Dec 2016 The president-elect is touting a deal to keep over 1,000 jobs at heating and aircon maker Carrier in Indiana, after blasting a planned move to Mexico during his campaign. It's a partial win that cost a state subsidy. Trump will milk the PR, but as policy it won't easily scale.
Viewsroom: Is Trump’s dealmaking already working? 1 Dec 2016 The president-elect brought in a rare bipartisan player as Treasury secretary, Steven Mnuchin and saved 1,000 jobs in Indiana. But bigger economic challenges await. And he has yet to solve his business conflicts. Elsewhere, Dallas' pension woes put a $4 trln industry on notice.
Mnuchin’s first job: get own finances in order 30 Nov 2016 Trump's choice for Treasury has made millions on Wall Street. Unlike his boss, Steven Mnuchin will have to produce his tax returns to win congressional approval, a step that has tripped up past nominees. Mnuchin's wealth and potential use of tax loopholes could be problematic.
Trump puts GOP’s competing loyalties in play 30 Nov 2016 The president-elect's inconsistent comments about his business conflicts have spurred Democratic lawmakers to propose ways to rein them in. But Republicans will control Washington. Failure to tackle any issues could stymie policy goals like tax reform and spook markets.
Trump Treasury chief an illogically logical pick 30 Nov 2016 Steven Mnuchin's Wall Street past will rankle Democrats. But unlike many on the president-elect's team, he's neither an ideologue nor a populist – and well qualified for the job. He's also bipartisan and relatively reserved. His nomination bodes well for fiscal policy.
Corporate Clinton backers revert to drawing board 29 Nov 2016 Senior executives from Blackstone to Facebook may have been willing to serve in a Democrat-led White House. Now they're stuck in their jobs as President-elect Donald Trump fills his Cabinet. That means seeking a new exit path or ways to placate presumed successors.
UK takes timid tilt at corporate governance piñata 29 Nov 2016 The government has singled out executive pay, board representation and unlisted firm oversight for reform. Scandals like BHS make it reasonable to do so. But the need for UK firms to remain competitive post-Brexit perhaps explains why the proposals aren't very adventurous.
Long-term investors will be tested by Trump 29 Nov 2016 U.S. stocks have surged since Election Day as hopes grow for lower taxes, faster growth and reduced regulation. Trump keeps chipping away at institutions that underpin capitalism, however, by questioning the vote count and the Constitution. It'll take resolve to hang tight in markets.
Protectionism is key threat to China’s M&A boom 29 Nov 2016 Beijing could clamp down on overseas takeovers as it seeks to slow capital outflows and state firms splurging on non-core businesses. But mooted restrictions would not have stopped most of 2016's big deals. A larger headache will be Western countries raising the drawbridge.
Rally in Singaporean bank shares has overshot 29 Nov 2016 DBS, OCBC and UOB have joined a global sector upturn on hopes that rising interest rates and a steeper yield curve will boost profits. By historical standards, the city's banks still look cheap. But the lenders are badly exposed as bad debt risks rise across the region.