Small step for some is giant leap for Uzbekistan 14 Dec 2016 The landlocked central Asian country has poor human rights and low foreign investment. But new President Shavkat Mirziyoyev has made encouraging changes, like restoring air links with Tajikistan and scrapping visas for some foreigners. There is far to go, but it’s a start.
Tech needs to speak the president-elect’s code 13 Dec 2016 Most major Silicon Valley CEOs have heeded the call to Trump Tower. They may be expecting a browbeating, a deal for tax cuts – or both. Their real task, though, is to convince a hostile audience that they – and open societies – create wealth, jobs, security and power.
Even if Yellen remains, Trump can reshape Fed 13 Dec 2016 The governors of the U.S. central bank are gathering for the last markets meeting of this year. The chair plans to stay until 2018. But with two vacancies out of seven and the potential for more to quit, the next president has a chance to tip the political balance of the group.
Basel set to fill bank capital holes – with fudge 13 Dec 2016 Global standard setters could allow lenders to hold less capital against assets than previously flagged. It's a predictable compromise to help the worst affected European banks, while heeding U.S. calls for more uniformity. Banks will be pleased; hairshirt supervisors less so.
Brexit transition may ease not remove uncertainty 13 Dec 2016 UK Chancellor Philip Hammond sensibly wants banks to have continued access to Europe's single market after Britain's departure to protect financial stability. That would give them longer to make alternative plans - but also risks prolonging doubts about the final arrangements.
Radical Modi could leave a trail of destruction 13 Dec 2016 New Delhi is scrambling to show its banknote recall was worthwhile, after cash flooded back faster than expected. Premier Narendra Modi's pursuit of illicit wealth is well intentioned. But aggressive tactics endanger everything from central bank credibility to fiscal discipline.
Tillerson would take more bad than good to State 12 Dec 2016 The Exxon CEO's dealmaking means he's already a diplomat of sorts. So he would be fine with the basics of foreign affairs and Donald Trump's apparent "America-first" policy. But his ties to Vladimir Putin and his cronies would make him an inflammatory pick, even with Republicans.
Iran needs friends beyond Boeing 12 Dec 2016 The U.S. aircraft-maker's order for $16.6 bln of planes may force U.S. President-elect Donald Trump to choose between jobs and his tough stance on the Islamic Republic. Iran is in a weak position. It can help itself a bit, starting by rebuilding bridges with near neighbours.
Italy’s next PM is a Five Star gift for populists 12 Dec 2016 Paolo Gentiloni has to fix the banks, sort out voting rules and steer the country to elections. A replacement for Matteo Renzi is better than a vacuum. But given the new leader is from the same party, doing too good a job might just hand power to the populist 5-Star Movement.
Michael Jordan scores a nominal win in China court 9 Dec 2016 The U.S. basketball legend and brand powerhouse has won the rights to his Chinese name in the mainland's highest court. It's a welcome victory for trademark owners, but it won't put more money in His Airness's pockets, or do much to deter other Chinese brand thieves.
Viewsroom: What’s at stake in Trump vs. China? 9 Dec 2016 The U.S. president-elect upended decades of diplomacy by taking a call from Taiwan's leader. But some U.S. companies will welcome his stance. And China has much to lose from any escalation. Also: Italy PM Renzi gets his marching orders. And there's no easy move to monetize chess.
Trump’s stock sales earn at best a “hold” rating 9 Dec 2016 He says he unloaded his portfolio to avoid conflicts of interest. The June decision also coincided with a cash crunch for his campaign, meaning it may have been a pair trade that paid off. Trump's commitment to ethics will be clearer if he divests his main business holdings.
Fintech’s transformation into banking draws closer 9 Dec 2016 UK regulators are mulling tougher rules for crowdfunding firms that would require greater risk disclosure and wind-down plans. Stricter regulation is good for investors. Yet it also means more loan-based platforms might follow peer-to-peer group Zopa in seeking a banking licence.
Abe is biggest winner from Japan’s GDP overhaul 9 Dec 2016 Adopting UN standards makes the economy look 6 pct bigger. That does nothing to boost growth, dynamism, or inflation. But it does make Premier Shinzo Abe's goal of building a $5.2 trln economy more achievable. It also highlights how Japan is underplaying its research prowess.
Cox: Public company capitalism meets its match 8 Dec 2016 Donald Trump is challenging the ideals that have guided U.S. capital markets and corporate behavior for a generation. If it forces boards to reconsider the broader impact of their actions it may be a good thing. More likely, it will usher in an age of cronyism and quid pro quos.
Draghi’s market first-aid kit ready for 2017 8 Dec 2016 The ECB boss is extending the central bank’s asset buying until the end of next year but will unexpectedly reduce purchases from April. It may sound muddled. In fact, these and other changes give Draghi more scope to support markets throughout a politically fraught year.
China gets a good cop as Trump’s primary emissary 8 Dec 2016 The president-elect mollified Beijing with his ambassador pick. The selection of Iowa Governor Terry Branstad, who has personal connections with Xi Jinping, calms waters troubled by Trump's tough talk. As other hardliners are brought in, Branstad will need to pack a surfboard.
Average Chinese Zhou is not an FX outflow threat 8 Dec 2016 China's FX reserves fell $69 bln in November as corporate capital flows out of China. Some worry ordinary Chinese will be next, mobbing banks to convert yuan to dollars when their quota resets in January. Officials need not over-react. Zhou is happy with his yuan in the bank.
China regulator has healthy fear of goblin raids 8 Dec 2016 The country's top stock regulator startled investors by ranting against "barbarians" and "goblins". It's not just superstition: he's worried about insurers using premiums to fund corporate raids. Plenty of Chinese boardrooms could use a shake-up, but not by ghoulish speculators.
Trump’s grain of truth makes biotechs vulnerable 7 Dec 2016 The U.S. president-elect said he dislikes what has happened to drug prices, and pharma stocks slumped. Hillary Clinton's views once carried similar weight. That's because the jabs are justified. Investors know there's too little innovation and too much reliance on raising prices.