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.
Francois Fillon is test of French reform appetite 28 Nov 2016 The former prime minister's win in conservative primaries makes him a theoretical shoo-in to become president in 2017. But his economic platform is more radical than anything French voters have been willing to countenance up until now. The race will be closer than anticipated.
S&P faces Catch-22 over South Africa downgrade 28 Nov 2016 The rating agency will soon decide whether the emerging economy's debt merits junk status. President Jacob Zuma's weakening of state institutions strengthens the case. Yet a downgrade could further undermine respected Finance Minister Pravin Gordhan - making the situation worse.
Foreigners welcomed to Shenzhen innovation bubble 28 Nov 2016 The long-awaited Shenzhen-Hong Kong Stock Connect programme launches next week. China hopes to usher foreign capital into "innovative" concept stocks even as domestic interest starts to flag. Amid all the hype, investors will need to pick carefully.
A weakened free press comes at a price 25 Nov 2016 Donald Trump's antagonism toward the media keeps rising. Turkey, meanwhile, has jailed more than 140 journalists. Struggling publishers are cutting staff. Research suggests less restraint on news gathering helps GDP growth. That makes the current environment an economic threat.
U.S. asset managers in China trade firing line 25 Nov 2016 Officials emphasized the positive after the two countries' last meeting of Obama's tenure. But the coming Trump era hung over the talks. If the trade relationship deteriorates, one of Beijing's options is to close a door only recently opened into Chinese capital markets.
Review: Accounting isn’t dead, just depreciating 25 Nov 2016 Investors get just 5 pct of their information on stocks from earnings reports, say the authors of "The End of Accounting". Bean-counters struggle to get the measure of intangibles, big data and emerging markets. The authors offer some bold fixes, but there are simpler ones too.
Markets’ 1980s revival looks a flawed throwback 25 Nov 2016 The prospect of tax cuts and higher interest rates in America invite comparison with the era of Ronald Reagan and Paul Volcker. U.S. bond yields and the dollar have started soaring, as they did then. But the threat of protectionism makes history an unreliable guide to the future.
Too soon for Spain to be a role model for others 25 Nov 2016 The country's deputy prime minister thinks others see the domestic economy as a case study for its rapid recovery. GDP has risen and Madrid deserves credit. But with growth likely to slow and unemployment and a big budget deficit both problems, there's no room for complacency.
Breakdown: India’s self-inflicted cash crunch 25 Nov 2016 India has shed the mantle of the world's fastest-growing large economy with a shock move to cancel 86 pct of the currency. Premier Narendra Modi is betting the benefits of shrinking the "black economy" will outweigh the costs. If not, the political backlash may be devastating.
Aussie gamblers up the stakes in friendly takeover 25 Nov 2016 Tabcorp has grabbed 10 pct of target Tatts. The share raid is unusual midway through an agreed deal. It warns gatecrashers away from the $5 bln tie-up, and heads off talk of a Tatts breakup. But if competition approval is not forthcoming, Tabcorp will have overplayed its hand.
Britain’s productivity fund is a long shot 24 Nov 2016 As in other Western countries, output per worker is growing less quickly than before the financial crisis. There is little agreement about the reasons for the slowdown, however. That means the UK government's new 23 billion pound productivity fund is throwing darts at a board.
UK’s independent institutions face stress test 24 Nov 2016 Attacks on Britain’s official economic forecaster follow those on the judiciary and the central bank. Critiques of powerful public bodies are vital for democracy. With a growing debt and a big current account deficit, so is accepting the integrity of their judgments.
Overdue market renovations bite UK estate agents 24 Nov 2016 Letting agents’ share prices plunged as the government said it might stop tenants from being billed directly for admin fees. Agents don’t have much chance of passing those costs on to landlords. Even if the government is micromanaging, the effect will be a more efficient market.
Ctrip pays luxury fare to see more of the world 24 Nov 2016 China's top online travel agent will buy Skyscanner for $1.7 bln in its first big push overseas. The British "metasearch" engine gives Ctrip a big base of travellers who compare prices across airlines and travel agents. Reaping sizeable benefits from the deal will be a long haul.
Blackstone can solve Trump’s ethical dilemma 23 Nov 2016 The buyout firm's real-estate whiz Jon Gray was in the frame for Treasury, but his skills could be put to better use. Blackstone is one of the few able to buy Trump's huge portfolio, as it did Sam Zell's and GE's. That'd untangle the president-elect's conflicts in one fell swoop.
Brexit means UK is wise to defer budget handouts 23 Nov 2016 Leaving the European Union means lower growth and more borrowing. Dumping previous constraints enabled Chancellor Philip Hammond to invest a bit more in housing and research. Though he has wiggle room, Brexit negotiation uncertainty means there are grounds to hold back for now.
EU’s “Chapter 11” bankrupts Brexit assumptions 23 Nov 2016 Brussels wants to introduce protection for bust companies, similar to the U.S. model. British lawyers have tended to be dismissive of continental restructuring laws. If these changes go through, the UK may have to copy its neighbours to keep up. So much for sovereignty.