Law

UK’s dirty-money defences tinker at the edges

29 May 2019

The sybaritic shopping habits of the subject of one of Britain’s new unexplained wealth orders make spicy reading. But the UK is not using all its tools to stop the acquisition of UK assets by illicit funds. The hefty economic contribution from the money is one reason why.

Popular Modi puts Indian resistance to the test

24 May 2019

Prime Minister Narendra Modi has been re-elected despite concerns he strong-arms the central bank, judiciary, and media. Voters seem unfussed about checks and balances - a global trend. But if he pushes them too hard, India’s democratic institutions will struggle to hold up.

Corporate clout on the line in Hong Kong fight

22 May 2019

From Washington to Wan Chai, executives are loudly protesting the city’s plan to allow extradition to mainland China. The business community often gets its way in the financial hub. Losing in this standoff would signify a turning point in Hong Kong for more reasons than one.

Apple monopoly ruling is small slice of humble pie

13 May 2019

A group of iPhone owners is free to sue Tim Cook’s company over their claim it charges too-high prices for apps in its store, the top U.S. court has ruled. A lawsuit could still take years. Even so, small defeats like this can add up. There are many ways to peel an Apple.

Deutsche Bank chair faces shareholder reckoning

29 April 2019

Failed merger talks with Commerzbank are another blot on Paul Achleitner’s seven-year tenure at the German lender. A vote against Bayer bosses suggests investors are becoming more vocal. With his own May 23 judgment day looming, Achleitner has a tough job arguing for continuity.

Holding: Comic sues, but joke’s on copyright law

23 April 2019

Heard the one about the writer who says talk-show host Conan O’Brien stole his schtick? It’s the latest case of creative types, from Radiohead to Oracle, refusing to share clever but derivative ideas. Excessive legal protections that stifle innovation are no laughing matter.

T-Mobile and Sprint can bear antitrust pain

16 April 2019

The telecom firms have yet to convince U.S. officials over their $88 bln merger. They may have to make cuts, like selling T-Mobile’s prepaid unit or spectrum. Bigger rivals Verizon and AT&T are already diversifying. Unless trustbusters get draconian, combining is the best bet.

Apple and Qualcomm face up to mutual need

16 April 2019

The smartphone maker and chips firm ended a two-year fight over royalties, with a cash payment to Qualcomm and a licensing agreement. Apple can’t risk being stuck with second-rate chips, and Qualcomm has huge revenue at stake. At first blush, both sides benefit from the truce.

UniCredit outperforms U.S. sanctions-hit benchmark

16 April 2019

Italy’s biggest bank by assets is paying $1.3 bln to settle a U.S. probe, and its German arm will enter a guilty plea. That’s a similar slap to previous European bank settlements. But with the fine less than UniCredit provisioned for, it will actually boost the bank’s capital.

Zambia case puts corporate ethics guff on notice

11 April 2019

Britain’s Supreme Court says Vedanta can be sued in London for pollution offences in the African state. Multinationals have tended to trumpet corporate social responsibility at head office, while ignoring sins at subsidiary level. Whatever the case’s outcome, that will change.

Roundup crisis could snarl Bayer in activist weeds

29 March 2019

The chemicals maker has lost 40 bln euros in value since U.S. juries said its glyphosate herbicide causes cancer. With science on Bayer’s side, delaying any settlement makes sense. But the longer the German group’s shares remain low, the more vulnerable it looks to interlopers.

Swedbank CEO exit still leaves iceberg of problems

28 March 2019

The Swedish lender has dismissed CEO Birgitte Bonnesen shortly before its annual meeting. That was almost inevitable given allegations that the lender was involved in money laundering in the Baltics. The problem for investors is that the scandal will last longer than her tenure.

Wirecard’s relief surge has gone too far

26 March 2019

The 15 billion euro payment group’s shares rose more than a quarter after a review found no evidence of any misconduct that would have a material financial impact. Its valuation is now uncomfortably close to sector stalwarts Visa and Mastercard. A bigger discount is merited.

Hong Kong fumbles its China extradition fix

21 March 2019

The city may exclude white-collar crimes from a mooted deal to exchange suspects with the mainland, to assuage the business community’s concerns. Unfortunately, such an awkward compromise would only confirm the tension between the financial hub’s needs and Beijing’s ambitions.

Legal woes poison Bayer’s prospects

20 March 2019

The German chemical group’s shares fell another 12 pct after a second U.S. jury said its Roundup weed killer causes cancer. Its value is down $34 bln since August and investors reckon its crop sciences unit is worthless. With thousands of cases pending, even that may be generous.

China’s hasty investment law garbles the message

15 March 2019

Lawmakers have passed new rules affecting foreign firms from BASF to BMW, fast-tracking reforms to ease U.S. trade tensions. The result, though, seems awkwardly vague, drawn up with little outside input. That suggests the aim is a diplomatic win: real change will take longer.

Raiffeisen is stalked by spectre of Danske

5 March 2019

Shares in the Austrian lender and two Dutch banks fell after media reports of money-laundering allegations. The former is the hardest hit since investors think the latter have stronger defences. Fears of a Danske-style U.S. probe mean they are in no mood to defer judgment.

Arrests give investors new reason to avoid Russia

26 February 2019

Sanctions imposed on some well-connected oligarchs have already spooked foreign money managers. The detention of Baring Vostok executives including founder Michael Calvey highlights domestic dangers. Less capital will be willing to navigate the risks.

Khashoggi is ghost at Milken’s Abu Dhabi confab

15 February 2019

Financiers at the billionaire’s annual Gulf shindig adopted a Trumpian shrug over Saudi agents’ murder of the dissident journalist. Lucrative forthcoming Aramco deals and White House support for the regime explain why. But the issues raised by Khashoggi’s death still linger.

Cannabis brings out mellow side of U.S. politics

13 February 2019

It’s one of the few issues on which most Americans agree, and a revived proposal to let banks serve state-sanctioned marijuana producers has a chance of becoming law. Fully legal weed remains a long way off – but that is something few in the industry actually want.