Kushner brings conflicts not aptitude to new role 27 Mar 2017 Donald Trump wants his son-in-law to harness business nous to make Washington work better. Jared Kushner was AWOL during last week’s healthcare fiasco and his family may be seeking Chinese cash to bail out its property business. His record offers little that government needs.
Return on equity is fair game for bank regulators 27 Mar 2017 The Bank of England's next stress test will assess if lenders’ earnings exceed their cost of equity. That might sound like statist meddling, or doing investors’ job for them. But as a way to stop banks taking silly risks to offset low rates, it makes sense.
German voters deal early blow to upstart Schulz 27 Mar 2017 The small state of Saarland backed Chancellor Angela Merkel’s CDU, while the SPD, led by the charismatic Martin Schulz, did less well than expected. Voters may tire of Merkel after 12 years, but seem inclined to prefer her stable, predictable government over the alternative.
Hong Kong’s first female chief starts from behind 27 Mar 2017 Unloved new leader Carrie Lam faces a steep climb. Growth is slow; social divides are deep. Loosening the purse strings might win a few hearts. Her real test will be preserving the rule of law, but she's unlikely to stand up to the pro-Beijing faction she owes her job to.
Chinese broker offers investors a fair IPO trade 27 Mar 2017 Guotai Junan Securities is selling Hong Kong stock at a 25 pct markdown versus its mainland shares. That should be enough to entice buyers to the $2.1 bln offer. Investors would purchase one of China's strongest brokers, and at a bigger discount than the wider sector.
Trump’s dealmaking falls sick – for now 24 Mar 2017 Republicans in Congress wouldn’t support an alternative, so Obamacare will live on. Efforts to undermine it will continue. Meanwhile, medical costs still outpace inflation. Unless that changes, the choice between squeezing costs and rationing care will remain on lawmakers’ minds.
Guest view: The $1 trln trade deal anyone can love 24 Mar 2017 Even as NAFTA, TPP and other global accords come under siege, one WTO agreement was quietly just put into force. It'll help countries and companies big and small save money by getting goods across borders quicker, says Andrew Wilson, who runs a Chamber of Commerce affiliate.
Markets would miss Japan’s reformer-in-chief 24 Mar 2017 Investors are relaxed about a scandal involving Premier Shinzo Abe's wife. But the episode underscores a vulnerability. Abe's grand economic overhaul has broad support - but it is called "Abenomics" for a reason. A weaker leader would struggle to keep up the momentum.
China’s offshore bond revival could be brief 24 Mar 2017 Companies are rushing to sell dollar bonds overseas, aided by a new ability to issue onshore guarantees. Yield-hungry foreign investors are keen. But as liquidity tightens and rates rise, expect more defaults. Those pledges could prove unreliable if things go wrong.
Wall Street insider risks further polarizing SEC 23 Mar 2017 Attorney Jay Clayton, Trump’s pick to lead the agency, will have to sit out decisions on Goldman Sachs and other clients. That increases the prospect of tie votes that can block or diminish enforcement. Deadlock also promises to exacerbate the agency’s politicization.
Co-op bail-in would set bank creditors on edge 23 Mar 2017 The Co-operative Bank needs capital again, and markets are fretting over the risk of a resolution. Given Co-op’s ongoing losses, the Bank of England could justify one. The risk is investors think that even banks with respectable capital ratios aren’t safe from regulators.
Trump’s immigration policies may put Canada first 22 Mar 2017 The U.S. president praised his neighbor’s merit-based entry system for foreigners. But administration restrictions on H-1B visas may deter high-skilled workers and their employers. That could send tech and engineering talent north to friendlier hosts, hurting American firms.
Markets can ease Bank of England inflation dilemma 21 Mar 2017 Prices rose 2.3 pct in February, surpassing the central bank’s target for the first time since 2013. Market rates and sterling rose. This tightening in monetary conditions might allow Governor Mark Carney to defer a hike in official rates until the economic outlook is clearer.
Brexit could weaken Britain’s puny productivity 21 Mar 2017 As in most developed countries, UK companies are struggling to produce more with the same workers. Exporters and foreign-owned firms are the notable exceptions. If leaving the European Union squeezes trade and shrinks foreign investment, living standards will suffer.
France’s Macron passes first of three big tests 21 Mar 2017 The independent presidential hopeful was, according to a poll, the most convincing candidate in a debate where he had the most to lose. His next challenge is to win the election. Even if he does, legislative ballots will decide whether the ex-banker can deliver promised reforms.
Tussle over Fed deputy suggests wider policy rift 20 Mar 2017 A clash between presidential economic adviser Gary Cohn and Treasury’s Steven Mnuchin is delaying the naming of a vice chair of supervision. Mnuchin’s refusal to reject protectionism at the G20 suggests a deeper split over trade. Goldman alums don’t guarantee policy coherence.
Holding: Supreme Court may show Trump who’s boss 20 Mar 2017 Currently pro-business, it could back White House moves to cut regulation and union fees. The tribunal has been ruling against presidents more often, however, a new study shows. That means even if Neil Gorsuch gets a robe, The Donald may lose on close cases like immigration.
China-Hong Kong “bond connect” has dual benefits 20 Mar 2017 Beijing is firming up plans to let mainland and Hong Kong investors trade in each other's debt markets. The tie-up will make it easier to get Chinese bonds into world indexes. It should also boost trading and push up prices in the territory's fixed income market.
Stars align for Vietnam’s privatisation push 20 Mar 2017 Hanoi's desire to tame the budget deficit and boost efficiency bodes well for the sale of state assets, including big brewers. A buoyant stock market helps. But in the rush to secure fat listing valuations, Vietnam risks driving away the foreign buyers it needs.
Corona Capital, March 17: Boeing, AB InBev, Retail 17 Mar 2020 Breakingviews has launched a daily column covering pandemic-related insights that you might have missed. Throughout the day, we’ll bring you shorter-than-usual views with the same financial savvy on companies, economies and capital markets during this important unfolding story.