Hong Kong loses its luxury scarcity value 3 Feb 2017 Tourist arrivals from mainland China rose 3.6 pct over the New Year, and Chinese consumer spending is accelerating. If only that were enough for luxury companies who have hung their hat on the city's unique charms. Luxury isn't quite passé, but buyers have moved further afield.
Viewsroom: The cost of jingoism 2 Feb 2017 President Trump's trade-tariff threats and his temporary immigration ban risk undermining business-friendly policies like deregulation and tax cuts. Meanwhile, he has nominated a Supreme Court justice. And Under Armour takes center stage in the battle for shareholder rights.
Infrastructure builds Gary Cohn’s White House role 2 Feb 2017 The former Goldman president is drafting a plan to build roads and smart grids, which may be more doable than tax reform. His strong presence and chutzpah make him a Trump favorite. Fixing bridges and airports would solidify his leadership in economic policy over other aides.
UK breezily gives City its very own stress test 2 Feb 2017 Britain will aim for “the freest possible” trade in financial services after it leaves the EU, its White Paper says. It’s as if the sector is an immaterial contributor to the UK tax take and services surplus. The government is either foolhardy, or showing impressive sang-froid.
Holding: U.S. boards can bank on Neil Gorsuch 1 Feb 2017 President Trump's Supreme Court pick has opposed class-action suits and the power of federal agencies while rarely opining on finance. Like many justices, he may also change his views. As a solid, whip-smart conservative, though, he'll fit right in with a business-friendly court.
Saudi’s Trump friendship more about money than oil 1 Feb 2017 Riyadh may boost its investments in American energy under the new president. An abundance of shale oil and a focus on domestic supply means Saudi Arabian crude is no longer enough to secure U.S. political support in the Middle East. Its cash is still attractive, though.
India favours poor with damage-control budget 1 Feb 2017 Finance Minister Arun Jaitley is relaxing a bit on deficit reduction, while taxing the rich more to fund big outlays for the rural poor. There are few benefits for corporate India. But the budget will help to limit the political fallout from India's big currency experiment.
Trump’s attack on red tape more PR than purge 31 Jan 2017 The president reckons making federal agencies repeal two regulations for each new one will reduce business burdens. Similar UK edicts had mixed results. The vague U.S. directive, which excludes major financial rules, could sow more confusion in an already uncertain environment.
Trump’s stock-market rally has no clothes 30 Jan 2017 The S&P 500 is up 7 pct since the eve of his election, even after an early Monday dip. The hope is that Trump's promises of cuts in taxes and red tape will unfold without a hitch, while those that would slow trade and immigration won't happen. The weekend's chaos shows otherwise.
French elections beat Brexit for market disquiet 30 Jan 2017 The Gallic vote is worrying investors more than Britain leaving the EU. It now costs over a third more to insure against a French default than a UK one, though rating firms see little chance of either going bust. It's the scope to weaken its currency that gives Britain an edge.
Ireland is the filling in unappealing tax sandwich 30 Jan 2017 It's the big loser, in both trade and security, from the UK's exit from the EU. True, Ireland could pick up high-end investment as the UK sheds it, but even that hinges on an attractive tax rate, which is now under threat - both from its neighbour and from Donald Trump's America.
StanChart takes subtle spin in the revolving door 30 Jan 2017 New public affairs head Tracey McDermott is not the lender’s first supervisor-turned banker. Boss Bill Winters previously helped rewrite UK banking rules. While hiring former watchdogs is not ideal, the potential conflicts are less than they would be at a more UK-centric peer.
Trade swings in GDP highlight challenge for Trump 27 Jan 2017 The pace of U.S. economic expansion slowed in Q4 to 1.9 pct. A drop in exports had a big impact, offsetting a third-quarter boost. The president wants more outward trade, but the volatility makes his 4 pct growth target a stretch even before planned import tariffs rock the boat.
Britain’s global trade dream is second-best option 27 Jan 2017 Prime Minister Theresa May is hoping her meeting with U.S. President Donald Trump will open up a trade deal with the United States. China and others may follow. But the resulting boost to UK exports will probably be too small to replace those it risks losing by leaving the EU.
Holding: U.S. trials courting a welcome comeback 26 Jan 2017 Wells Fargo's crackdown on fake-account cases and judicial digs at in-house SEC tribunals intensify the outcry against stifling of lawsuits. Now the Supreme Court is mulling a revival of the right of workers to sue. Renewed access to judge and jury would be good for U.S. justice.
Viewsroom: Trump’s borderline tax ideas 26 Jan 2017 Two competing tariff ideas from President Trump and congressional Republicans bring merits but mostly unforeseen risks. Meanwhile, any cut in the corporate tax rate will benefit hapless Yahoo and its Asian holdings. Plus, why it pays to bet against Davos Man's thinking.
U.S. economic data in danger of taking Chinese turn 26 Jan 2017 Donald Trump and his aides often question figures like the jobless rate. Now he is in charge of agencies supplying data, like the 2016 GDP reading due on Friday. Such statistics are hard to fudge but the new regime's penchant for extreme spin puts their credibility at risk.
Trump’s Mexican standoff a lose-lose proposition 25 Jan 2017 The American president unveiled border-wall plans as Mexican officials arrived in Washington to discuss reworking NAFTA. Trump has blasted the pact as a terrible deal. Mexico says it could ditch it entirely. A better relationship is possible, but so too is an economic disaster.
Italy’s Renzi has chance to stage feeble comeback 25 Jan 2017 The country's highest court has overhauled an electoral law crafted by Matteo Renzi. The ruling allows early elections, but that will be small consolation for the former prime minister. Even if he regains power, he may have to rely on a weak coalition that will enact few reforms.
Breakdown: Border tariff vs. border-adjustment tax 25 Jan 2017 Donald Trump wants to hit firms that outsource with a simple levy on imports. GOPers in Congress have pitched a more complex idea built into a corporate-tax overhaul, which might more reliably offset the effects of lower tax rates. The plans create different winners and losers.