Ex-Im revives just as it’s least useful 19 Dec 2017 A Senate committee rejected the nomination of Scott Garrett, a vocal critic, to lead the bank. It’s a sign that Ex-Im is bouncing back from its nadir in 2015. But with the economy roaring and tax cuts coming, the result may be mostly a small stimulus for big firms like Boeing.
C-suite is corporate America’s big sex scandal 19 Dec 2017 Females hold fewer than a quarter of senior executive titles, new research finds. And it’s getting worse. The tsunami of harassment exposés makes the paucity of women in leading positions even more egregious. Without change at the top, it’ll be hard to fix the broader situation.
U.S. political doomsday will hurt economic growth 19 Dec 2017 Republican and Democratic parties will splinter ahead of the 2018 election, marginalizing moderates. More firebrand politicians increases the chances of trade wars, a U.S. debt default and government shutdowns that harm the economy. Compromisers won’t be there to stop them.
South Africa’s turnaround will come only slowly 19 Dec 2017 The dominant ANC's choice of Cyril Ramaphosa to lead the party hints at an end to rampant corruption and economic decline. Yet reform - and even his election as president in 2019 - could be endangered by infighting. And promises of stimulus could jar with needed fiscal rigour.
U.S. will miss out on infrastructure again in 2018 18 Dec 2017 From air-traffic control to roads to schools, the White House says it’s a priority but focuses its energy elsewhere. Tax policy might boost private capital, yet other barriers lurk. And as the GOP squeezes the budget, the feds will have less to spend. It adds up to more gridlock.
Chile reinforces Latin American pro-business pivot 18 Dec 2017 Billionaire Sebastian Piñera won the copper-rich nation's presidential election with a stronger showing than expected. That will lend succor to like-minded leaders in Argentina, Brazil and Peru for whom fiscal discipline is proving a long slog and graft allegations a danger.
Trump’s China diagnosis falls short of a remedy 18 Dec 2017 The U.S. president is casting Beijing’s economic prowess as a national security threat. It may signal coming tariffs related to intellectual property and other issues. Yet aides say they also need China's help on North Korea. Increasing tensions just makes that more difficult.
Bond vigilantes will grab power from central banks 18 Dec 2017 Governments’ net debt issuance in 2018 is set to outstrip central bank buying for the first time in four years. That gives investors a welcome chance to hold profligates to account. Bond markets may, however, be prone to over-reaction as they rediscover their rusty powers of discernment.
Modi’s shrunken home-state win may slow reform 18 Dec 2017 The Indian premier’s BJP won in Gujarat, but with a reduced margin. That could signal a tougher-than-expected fight in the 2019 general election and prompt Narendra Modi to put his bigger, more disruptive initiatives on the back-burner for now in favour of more populist policies.
HNA may have to check out of some big deals 18 Dec 2017 A bond buyback meant to shore up confidence was quickly offset by a bank alleging “temporary liquidity difficulties”. HNA says this is not the case. Even so, rethinking an attachment to trophy assets such as stakes in Hilton and Deutsche Bank could help calm the market’s nerves.
Viewsroom: A Fox in the Mouse House 15 Dec 2017 Disney’s $66 bln deal for the bulk of Rupert Murdoch’s entertainment empire is a reaction to the rapid rise of streaming-content providers like Netflix, and lets CEO Bob Iger delay retirement again. Elsewhere: the Democrats win in Alabama, and Chinese bike-sharing rides towards M&A.
Latam’s turn from populism will be put to the test 15 Dec 2017 Demagogues of right and left will test the region's recent embrace of pro-business pragmatism in 2018. Presidential elections in Mexico and Brazil will feature firebrands keen to exploit voter anger at corrupt elites and lawlessness. The center, if it holds, will emerge stronger.
Holding: Roy Moore loss could be Wall Street gain 15 Dec 2017 The GOP candidate’s flop put Democrats near a Senate majority able to block Trump's Supreme Court picks. That may prompt Justice Kennedy to bow out for a more conservative successor. Business benefits when the court leans right, making it a potential winner of Tuesday’s vote.
People vs. companies tax bill shafts U.S. expats 14 Dec 2017 Businesses are awash in riches in the Republican plan. Besides cutting the corporate rate, GOP lawmakers want to impose taxes based on where income is earned. But some 9 mln Americans working overseas won’t get that benefit. It’s another instance of corporations trumping humans.
Portugal beats Italy in bond market pecking order 15 Dec 2017 The country that needed a bailout in 2011 can borrow for less than its larger peer. Investors’ preference for Portuguese debt reflects its more vibrant economy, and messy Italian politics. Lisbon can keep outshining Rome, so long as lax bond markets don’t encourage bad habits.
Dual-class Hong Kong will double-cross Wall Street 15 Dec 2017 To compete with New York for tech IPOs, the Asian financial centre's exchange is set to host companies with super-voting stock. Investment bankers will be degraded as much as investors. They stand to be paid less for the same deals and can expect to share fees more widely.
Review: Why Brexit will ultimately please nobody 15 Dec 2017 Britons voted to leave the EU for myriad and conflicting reasons, according to “Brexit and British Politics”. It’s hard to see a settlement that addresses them all. The risk is that voters see Brexit as another betrayal by politicians, fuelling the disaffection that caused it.
Japan’s creative pay push contains mismatch flaw 15 Dec 2017 A fresh tax-rate cut rate gives employers an incentive to raise worker wages and invest in factories. The link recognises the folly of trusting companies to use a windfall to spread the wealth. One big hitch in the plan is that the corporate cost will far outlast the benefit.
Sunac lays foundation for better balance sheet 15 Dec 2017 The highly-indebted Chinese property developer is raising $1 bln by selling discounted shares. Following a nearly 400 percent rise in the stock price, it's a good time to tap the market for cash. Given Chairman Sun Hongbin's deal history, he probably will need to do so again.
Which CEO will make a move for the White House? 14 Dec 2017 Disney's Bob Iger may be off the list now, but other corporate chiefs can consider parlaying their careers into politics thanks to Trump. Think Starbucks’ Howard Schultz or Facebook’s Sheryl Sandberg. But shareholder approval isn't the same as voter awareness of business stardom.