White House friends not much help to gun industry 13 Mar 2017 Trump's victory vanquished the prospect of new firearms rules. In the upside-down world of ironmongery, that's bad for business. Gander Mountain just filed for bankruptcy, Cabela's merger with Bass Pro is imperiled and gun shares have been crushed. The bust will continue.
Second Scottish vote could still mean hard Brexit 13 Mar 2017 Sterling rose against the U.S. dollar as Scotland’s first minister called for another independence referendum. One theory is Prime Minister Theresa May will need to take a softer line on Brexit negotiations to persuade Scots to stay. But a hard divorce is still possible.
Bank of England deputy governor Hogg should resign 13 Mar 2017 Charlotte Hogg failed to inform the UK central bank that her brother works for Barclays. While a sin of omission, it’s serious for an institution that holds itself and others to a high standard. If she stays, it would hurt the bank’s reputation.
Dutch election exposes fragility of mainstream 13 Mar 2017 This week’s vote is a test of Europe’s anti-elite mood. But the focus on right-wing firebrand Geert Wilders ignores a fragmentation in support for traditional parties. That is an obstacle to forming a stable government in the Netherlands - and for decision-making in the EU.
Modi’s state poll victory will keep India moving 13 Mar 2017 A big win by Prime Minister Narendra Modi’s BJP after a disruptive currency overhaul shows Indians are willing to endure pain for progress. It gives a green light for more reforms that benefit the poor, like simpler subsidies. A major shift towards free markets is less likely.
White House disrupts Silicon Valley pecking order 10 Mar 2017 Trump's arrival has rearranged how tech firms stack up in Washington. Some have criticized the U.S. president's policies while others see opportunities to sway the new regime. The shift has legal battles between Oracle and Google, and Apple and Qualcomm spilling over into D.C.
Payroll bump a fair wind for Trump economic agenda 10 Mar 2017 Employers added a healthy 235,000 jobs in February. Wages and participation also improved. Combined with buoyant investor confidence, the first payroll report of the Trump era gives the president momentum to push his ambitious fiscal plans - if he can focus on essentials.
EU bank repairs are a race against time 10 Mar 2017 Regulators are rushing to streamline how lenders assess the riskiness of assets. An end-2018 deadline is ambitious since the review spans 68 institutions. Global Basel IV rules may also be delayed. Slippage is a headache for banks facing big changes to how they account for loans.
Aramco’s IPO merits social engineering discount 10 Mar 2017 The kingdom’s state oil group is about to launch the world’s biggest share offer. It has also just announced plans to invest $4.4 bln in a new industrial city, to create jobs for Saudis. The danger for potential investors is that white elephant subsidies trump a focus on returns.
China gets a timely economic spring in its step 10 Mar 2017 A batch of positive data sets a good tone for the economy in 2017, easing fears of capital flight and deflation. The respite may be brief. Even so, it provides some room for Beijing to step back from firefighting, allowing it to focus on deleveraging and its ambitious restructuring plans.
Park ouster frees up Seoul for the real fight 10 Mar 2017 A court decision to uphold the impeachment of South Korea's President Park Geun-hye clears the path to an election. It removes a giant distraction, giving the polarized nation a chance to find common ground on critical economic reforms and its considerable geopolitical problems.
Healthcare-plan foes may find safety in numbers 9 Mar 2017 The White House is attacking the CBO as it tots up the cost of repealing Obamacare. Republicans once touted estimates from the nonpartisan group, which has a decent track record. Early healthcare appraisals elsewhere are damning, but the legislative one will remain one to watch.
Viewsroom: Trump’s bad prescription for Obamacare 9 Mar 2017 The U.S. president and congressional Republicans’ rush to ditch the Affordable Care Act is spawning pox-plagued legislation. Meanwhile, Deutsche Bank tries to get its financial house in order. And State Street’s fund managers are pushing to get more women on corporate boards.
Guest view: SEC pick’s banking ties are an asset 9 Mar 2017 Jay Clayton's nomination to run the agency has invited criticism because of links to Wall Street by his law firm Sullivan & Cromwell. William McLucas, a former SEC enforcement chief, says history offers many examples of toughness and independence that should satisfy naysayers.
Draghi is tugged towards tricky end of ECB easing 9 Mar 2017 The European Central Bank boss sees less need for more stimulus. It’s hard to say otherwise when inflation is on target and likely to stay near there. Yet Europe’s fragile economy makes ending asset purchases a treacherous task that he will want to postpone as long as possible.
Protectionism skews emerging market risk compass 9 Mar 2017 Anti-trade rhetoric is a threat to export-dependent countries. But commodity producers such as Saudi Arabia are less vulnerable than nations that play a big role in global manufacturing, like China or Thailand. The latter look more prone to market volatility than in the past.
Britain’s tax raid on gig economy misses the mark 9 Mar 2017 The UK budget means the self-employed will hand over more of their income. That eases one problem – the fact that gig workers pay lower national insurance rates. But it leaves intact a bigger issue, the difficulty of taxing contractors that drive the gig economy.
China gives Trump cheap trade trinkets 9 Mar 2017 China looks to have fast-tracked the U.S. president's trademark applications, and its economy is going his way too. U.S. imports shot up 38 pct last month, and the yuan has firmed. There's less to the data than meets the eye, and the trademarks are trouble.
North Korea’s pressure points are hard to push 9 Mar 2017 Pyongyang's missiles and an alleged murder are vexing its few friends; China's ban on coal imports suggests a fresh desire to tame its neighbour. Old foes like the U.S. could also apply more pressure through secondary sanctions. But that may, in turn, worsen relations with China.
Hedge fund creative destruction has further to go 8 Mar 2017 Investors are trimming the number of funds they put money in, according to a bank survey. Weak performance has made investors choosier, and writing bigger tickets helps them force down fees. Yet they are still probably spread too thin. The cull in the $3 trln industry isn’t over.