Guest view: A new blueprint for corporate tax 29 Sep 2016 Europe's complaint against Ireland and Apple reflects a problem bigger than any one company or country. The global approach to tax is past its sell-by date. A system based on revenue location, and that treats multinationals as single entities, could share the pie more fairly.
Buying Chinese bonds still bad idea, just less bad 30 Sep 2016 Foreign investors are accelerating plans to increase their holdings of Chinese bonds, a poll shows. The prospect of global index inclusion is likely to push up prices, and yields are attractive. But the fundamentals are still scrambled. This is no place to park the pension.
Li Ka-shing’s banking foray is an odd throwback 30 Sep 2016 The Hong Kong tycoon, his son, and foundations have emerged as a near-3 pct shareholder in the newly listed Postal Savings Bank of China. The indirect stake is worth $1.4 bln. Li has dabbled in banks before. But the "performance-linked notes" suggest he is treading cautiously.
Exchange: Judy Shelton 29 Sep 2016 Donald Trump has made a lot of promises to spur U.S. economic growth if he becomes president. Judy Shelton, co-director of the Sound Money Project, is one of the economists working with the GOP nominee to turn this pledge into action. She sat down with us in Washington recently to discuss her views on global finance and monetary issues.
Bold issuers test limits of yield-hungry market 29 Sep 2016 Bond investors, who only recently snapped up negative-yielding Sanofi and Henkel debt, shunned an aggressively-priced Lufthansa offering. IPOs too are showing signs that buyer power is returning and that desperation for yield hasn’t dulled asset managers' ability to scent risk.
Output deal buys OPEC time but not deliverance 28 Sep 2016 The oil cartel surprisingly agreed to cap production but has deferred agreement on which members will reduce the flow of crude. Limiting daily output to 32.5 mln barrels should support global prices for now. A lasting plan to balance supply and demand, though, may remain elusive.
Cox: Stock picking for a “Trump Victory Portfolio” 28 Sep 2016 The U.S. presidential race is tight after the first debate between the two candidates and only six weeks until the election. Investors will have bigger asset-allocation decisions to make in the event Trump wins. A new fund might start by shorting Amazon and going long Greyhound.
Italy can be bolder with its budget laxity 28 Sep 2016 Rome will delay its deficit goal next year, citing emergency factors like refugees. Brussels may quibble, but Italy needs growth, and a fiscal crunch could hurt Prime Minister Matteo Renzi's chances in a critical referendum. The leeway is too modest and fleeting to ensure either.
Iran’s upper hand in OPEC could be fleeting 28 Sep 2016 The Islamic Republic's resistance to an oil deal leaves its rival Saudi Arabia stuck with low prices. Yet that is pushing Riyadh to launch necessary economic reforms, which should make the kingdom more competitive. Iran, despite its current rapid growth, risks falling behind.
Indonesia cashes in on model tax amnesty 28 Sep 2016 Citizens have admitted hiding almost $200 bln in what is shaping up to be one of the world's more effective schemes. Success stems from low charges, credible government, and big penalties for abstainers. The global backdrop makes it a good time for other countries to strike.
U.S. election campaign wags global currency market 27 Sep 2016 Forex traders decided Hillary Clinton won the first debate. A stronger Mexican peso suggests President Trump is a bit less likely, while the safe-haven yen weakened. Further gyrations will follow. But as the Brexit referendum showed, markets are bad at predicting elections.
Shrinking China stock premium has lasting quality 27 Sep 2016 Punters from China are rushing south, causing the premium at which shares on the mainland trade to those in Hong Kong to halve to 20 pct. The long overdue rebalancing looks sustainable this time around, thanks to regulatory tolerance and changing attitudes.
India’s lenders deserve to be rich global outliers 27 Sep 2016 Lenders like HDFC are among the world's priciest, trading on price-to-book ratios up to 7 times higher than Citigroup or BNP Paribas. They are well-capitalised, earn high returns, and are growing fast. The secret is lending to people, not companies. Headwinds look limited too.
Trump debate win could torpedo Mexican peso 26 Sep 2016 The currency is near a historic low. Mexico has other problems, but the polling gains of the Republican U.S. presidential candidate – who has denigrated immigrants and trade relationships – have helped weaken the peso 9 pct in three weeks. Monday's debate may deal another blow.
U.S. presidential debate has clear winner: TV 26 Sep 2016 The first of three formal wars of words between Hillary Clinton and Donald Trump is expected at attract some 100 mln viewers. A Super Bowl-sized audience would set a record. With Facebook, Twitter and Snapchat looming, broadcasters can use every big live event they can find.
Stress-test shakeup squeezes big banks again 26 Sep 2016 The largest U.S. financial institutions would be required to carry a larger capital cushion as part of new changes to the annual exams. That might shrink investor payouts. Smaller lenders, meanwhile, get relief. The Fed seems to be on a steady mission to cut banks down to size.
Dubai could create its own demographic dividend 26 Sep 2016 The emirate has weathered low oil prices, but an unbalanced workforce means it is missing an economic opportunity. Only one in 23 active workers is a local, official data suggests. If Dubai can't turn citizens into workers, it might as well turn skilled workers into citizens.
Japan has most to lose from global trade backlash 26 Sep 2016 The country is begging America to ratify the TPP trade pact and urging Britain to handle Brexit carefully. The desperate pleas reflect Japan's outsized reliance on international trade. TPP also helps Prime Minister Shinzo Abe shake up the domestic economy, especially in farming.
Viewsroom: Apple’s driving ambition 23 Sep 2016 The iPhone maker’s desire to enter the auto market could benefit from taking a stake in Elon Musk’s Tesla. Recent actions by the BOJ may help kickstart the Japanese economy. And what it means that hedge-fund manager Leon Cooperman is fighting the SEC rather than settling.
Corbyn is global symbol not of rage but confusion 23 Sep 2016 The UK Labour Party leader, facing re-election this weekend, has split the left in two. Divisive figures like Jeremy Corbyn and Donald Trump reflect a new difficulty in identifying heroes and villains. An old foe, globalisation, is in retreat, yet perceived inequality persists.