Biotech IPO rejuvenates Hong Kong market 13 Jun 2017 Shares of WuXi Biologics, the city's biggest listing this year, popped as much as 39 pct on their debut. High earnings growth and a lack of exciting IPOs led to strong demand for the $511 mln deal. This is good news for a bourse keen to attract a new breed of entrepreneurs.
Modi’s India can ride out giant tax reform 13 Jun 2017 The nation is ill-prepared for the July 1 rollout of a fiddly new goods and services tax. Yet Premier Modi’s recent money experiment shows India can handle significant disruption. And for all its flaws, the tax overhaul will smooth the way to more efficient, less corrupt economy.
White House woes provide ironic spur for Congress 12 Jun 2017 Behind the administration’s toxic headlines, GOP senators are quietly working on Obamacare repeal. Lawmakers need a win before the summer recess, and looming budget battles, to keep President Trump’s economic agenda alive. The Russia probe serves as both distraction and impetus.
Tech selloff lumps apples with oranges 12 Jun 2017 Shares in technology giants including Apple, Facebook and Amazon have suddenly tumbled. Given their rapid ascent this year, a correction always seemed likely. Still, such sector-wide moves obscure huge differences in different companies’ earning power and cash reserves.
5-Star stumble is Italy’s opportunity 12 Jun 2017 The anti-establishment 5-Star Movement was trounced in local elections. It’s hard to extrapolate to the national vote, but the result suggests support for the group has peaked. That could encourage mainstream parties to capitalise on Italy’s recovery and call early elections.
British parties all gain if they share Brexit pain 12 Jun 2017 The Conservative party’s loss of a majority weakens its hand in talks with the EU. Bringing Jeremy Corbyn’s Labour into talks could strengthen it, and cut the chance of a chaotic exit. The opposition may prefer to see its rivals implode, but Corbyn would get blamed for the mess.
Northern Ireland pact bad for peace and UK voters 12 Jun 2017 British Prime Minister Theresa May's attempt to form a government with Northern Ireland's DUP could come at a high price. True, the party is pro-Brexit and wants to avoid a UK breakup. But taxpayers can expect greater fiscal transfers and more friction in the restive region.
MSCI’s China index inclusion risks liquid headache 12 Jun 2017 The index provider will decide this month whether to add yuan-denominated shares to key benchmarks. Scandals and trading halts at Hong Kong-listed mainland firms have made passive fund managers' jobs difficult already. Bringing in onshore tickers could complicate things further.
Macron’s reform mandate is shakier than it looks 11 Jun 2017 French President Emmanuel Macron's year-old party is on track to secure a big parliamentary majority after topping the first round of voting. He can present the stunning achievement as a ringing endorsement of his economic reform proposals. Low turnout suggests otherwise.
Competing Dodd-Frank visions make rollback uncertain 9 Jun 2017 The U.S. House voted to undo post-crisis financial rules. The Senate has a tamer view that rejects gutting the consumer protection agency and resolution powers, and overhauling capital standards. A deal requires compromise. That’s not a forte of bill sponsor Jeb Hensarling.
Trump officially becomes Indian IT business risk 9 Jun 2017 The $21 bln outsourcer Wipro named the U.S. president high up in a list of risk factors for investors. It's the first strong warning in print, and it hammers home the particular vulnerability of Wipro's industry to Western protectionism – and the shortage of options to counter it.
Snapchat populism is new political battleground 9 Jun 2017 Millennial-friendly Labour leader Jeremy Corbyn hit the party’s highest vote share since 2001. It may be partly an anti-Brexit backlash from a pro-EU age group. Yet what looks like a swerve away from populism may just be the beginning of a new kind of grievance pandering.
Europe risks overindulging in Brexit schadenfreude 9 Jun 2017 The election leaves Brussels without a stable partner in Brexit talks. Yet EU leaders should be pleased that voters did not reward Theresa May’s immigration views, or unite behind a hard exit. Sticking to a tight timeframe and big bill could squander chances of a compromise.
Sterling post-election blues will be slow to lift 9 Jun 2017 A hung parliament has hit the currency hardest of all UK assets. The saving grace is that a brutal exit from the European Union and a second Scottish independence referendum may now be a little less likely. But neither is a good enough reason to stock up on pounds anytime soon.
Qatar’s weak link in Saudi stand-off: people 9 Jun 2017 The sheikhdom has the money and resources required to withstand a cold war with its neighbours. Its economy depends on foreign expatriates, though, who account for more than three-quarters of the population. Preventing a demographic drain is the best reason to agree to a truce.
Theresa May falls victim to anti-incumbent wave 9 Jun 2017 The Prime Minister’s Conservative Party has lost its majority in Britain’s general election. Even if it hangs on, the gamble of seeking a big mandate has failed. The lack of a clear result shows Britain’s political landscape – and its relationship with the EU – remains fluid.
Comey callout of Trump lies hurts dealmaking hopes 8 Jun 2017 The former FBI director said the U.S. president lied on several occasions. He also illustrated Trump’s knack for self-sabotage. Markets were cheered that the testimony didn’t produce a knockout blow, but the credibility hit will further hobble the administration’s economic plans.
Spanish bank rescue poses several big questions 8 Jun 2017 Seizing Banco Popular and selling it to Santander averted a panic without a bailout. But it’s not clear how regulators calculated the hole on the lender’s balance sheet, or why they previously deemed it solvent. Investors need answers to have faith in Europe’s resolution regime.
Macron has chance to make France a better investor 8 Jun 2017 President Emmanuel Macron wants to use some of the shares the state owns to finance an innovation fund. That’s tinkering at the margin. The Republic is too activist a shareholder in some cases, too passive in others. Better to fix clearer goals for a totally revamped portfolio.
Hong Kong draws short straw at hedge-fund jamboree 8 Jun 2017 Hedgies floated ideas from Sony to Indian DIY at the Sohn Hong Kong fundraiser. But when it came to the host city, two of the three pitches were short-selling takedowns. Dozens of HK shares sold off beforehand, on fears they could be targets. That is an indictment of the market.