South Korea can offer roadmap to cashless Asia 2 Dec 2016 The country wants to go coinless by 2020. That sounds achievable. Electronic payments are already commonplace in one of the most wired nations in the world. It’s the latest currency experiment in the region that offers valuable lessons for a continent hooked on cash.
Review: China’s doomed anti-corruption campaign 2 Dec 2016 Tales of Chinese officials enriching themselves are so prevalent they no longer astonish. President Xi Jinping's anti-corruption campaign has penalised bad behaviour. But in "China's Crony Capitalism", Minxin Pei argues that state ownership makes any sustained crackdown futile.
U.S. housing revival remains under construction 1 Dec 2016 Home prices just surpassed their 2006 peak, boosted by more buyers amid tight supply. Further gains could be tough – or slow. Rising interest rates and privatizing the government agencies that back mortgages, as Trump's Treasury nominee wants to do, could impede affordability.
Viewsroom: Is Trump’s dealmaking already working? 1 Dec 2016 The president-elect brought in a rare bipartisan player as Treasury secretary, Steven Mnuchin and saved 1,000 jobs in Indiana. But bigger economic challenges await. And he has yet to solve his business conflicts. Elsewhere, Dallas' pension woes put a $4 trln industry on notice.
Europe’s long weekend presents a triple threat 1 Dec 2016 In the space of just 48 hours Italy's premier will face a make-or-break referendum, Austria could elect a far-right president, and Greek debt talks will reach a head. All three have the potential to revive the centrifugal forces that could send Europe spinning out of control.
Mnuchin’s first job: get own finances in order 30 Nov 2016 Trump's choice for Treasury has made millions on Wall Street. Unlike his boss, Steven Mnuchin will have to produce his tax returns to win congressional approval, a step that has tripped up past nominees. Mnuchin's wealth and potential use of tax loopholes could be problematic.
Trump puts GOP’s competing loyalties in play 30 Nov 2016 The president-elect's inconsistent comments about his business conflicts have spurred Democratic lawmakers to propose ways to rein them in. But Republicans will control Washington. Failure to tackle any issues could stymie policy goals like tax reform and spook markets.
OPEC resolve is strong enough to turbo-charge oil 30 Nov 2016 The cartel’s deal to cut crude output for the first time since 2008 ends its two-year-old policy of putting market share before higher prices. This may be self-defeating if shale production rebounds. But OPEC unity is convincing enough for oil to extend and sustain gains.
Dollar strength spells more U.S. bond weakness 30 Nov 2016 As emerging market currencies wilt against a resurgent greenback, countries like India are dipping into their war chests to sell dollars. More may have to follow suit. Sooner or later, this will involve selling Treasuries. It’s more bad news for the battered U.S. bond market.
Chinese selfie IPO only works in certain light 30 Nov 2016 Meitu wants a valuation up to $5.2 bln in its Hong Kong listing. Its user base is growing, thanks to features like virtual makeup and skin whitening. But most of its sales comes from selling smartphones. Mainland investors might buy the hype but the look doesn't travel so well.
MBK takes a $1.3 bln wide swing at golf in Japan 30 Nov 2016 The South Korean buyout firm has bid for golf-course operator Accordia. This business was a good post-bubble investment for Goldman Sachs, and then a disappointing one for public investors. A full price now makes it hard to see MBK teeing up a high return.
Corporate Clinton backers revert to drawing board 29 Nov 2016 Senior executives from Blackstone to Facebook may have been willing to serve in a Democrat-led White House. Now they're stuck in their jobs as President-elect Donald Trump fills his Cabinet. That means seeking a new exit path or ways to placate presumed successors.
UK takes timid tilt at corporate governance piñata 29 Nov 2016 The government has singled out executive pay, board representation and unlisted firm oversight for reform. Scandals like BHS make it reasonable to do so. But the need for UK firms to remain competitive post-Brexit perhaps explains why the proposals aren't very adventurous.
Hadas: Castro’s mourners show distress of the left 29 Nov 2016 The Cuban strongman's death would have passed almost unnoticed, if he had not been the last communist revolutionary idealist standing. He is unlikely to have successors on the left, which has been ideologically exhausted by success. The nationalist right is another matter.
Long-term investors will be tested by Trump 29 Nov 2016 U.S. stocks have surged since Election Day as hopes grow for lower taxes, faster growth and reduced regulation. Trump keeps chipping away at institutions that underpin capitalism, however, by questioning the vote count and the Constitution. It'll take resolve to hang tight in markets.
OPEC would be unwise to rely on demand to lift oil 29 Nov 2016 Saudi Arabia has suggested higher global demand may boost oil prices regardless of whether the cartel strikes a deal on Nov. 30 to cut output. That's optimistic. Banking on stronger world growth to soak up excess supply is a dicey strategy when protectionism risks are growing.
Italian assets too sanguine on referendum risks 29 Nov 2016 Bruised Italian markets are clawing back some losses even though Prime Minister Matteo Renzi risks losing a constitutional referendum. Rejection would usher in a period of weak government. The rebound is premature and shows markets' struggle to prepare for extreme outcomes.
Zimbabwe’s new quasi-currency fails the smell test 29 Nov 2016 The sub-Saharan state is issuing dollar-backed "bond notes" as a means of payment. It's an attempt to ease the huge trade deficit which is sucking hard currency out of Zimbabwe. But it requires citizens to trust the central bank responsible for the country’s hyperinflation.
Trump can make or break global growth hopes 28 Nov 2016 Tax cuts and more spending in the United States could help lift world growth to 3.6 pct by 2018, the OECD reckons. But President-elect Donald Trump could reverse the boost with protectionist policies. The rosy scenario rests on shaky assumptions about international cooperation.
Brexit transition headache has EEA painkiller fix 28 Nov 2016 UK courts could rule that Britain can stay part of the European Economic Area when it quits the EU. If so, ongoing single market access could numb Brexit's impact. If lawmakers also pledged to quit the EEA in, say, 2025, the more rational Brexiteers might even support it.