Vodafone tops up for a fight in India 23 Sep 2016 Injecting $7 bln of cash will help the mobile giant's Indian unit compete in a mega spectrum auction and in a price war against new entrant Jio. It also suggests an IPO of the wholly owned business is off the table for now. India may become a big drag on its London-listed parent.
Trump would follow in Obama’s debt footsteps 22 Sep 2016 The Republican presidential nominee's economic plan would add $5 trln in U.S. borrowing, a new study estimates. Barack Obama tallied about $8 trln during his two terms. Adding debt for infrastructure makes more sense than for cutting taxes on the rich. Both kick the can, though.
China gets steelier about debt restructuring 22 Sep 2016 Metals trader Sinosteel has agreed a $4 bln workout. The deal is a fudge, but spreads the pain more widely than expected. Meanwhile, a smaller miner has been allowed to fail. Both episodes suggest China is getting a bit tougher about debt problems in moribund sectors.
Music industry jams to a new scapegoat groove 21 Sep 2016 Subscription services like those from Apple and Spotify helped lift U.S. spending on tunes by 8.1 pct to $3.4 bln in the first half. It's the best news in years for music makers. They always seem to find a villain, though, and this time they're beating up on Google's YouTube.
Fed “forward guidance” blows too much smoke 21 Sep 2016 The U.S. central bank again declined to raise rates, leaving what hedgie Dan Loeb called the crack cocaine of loose monetary policy in place. The Fed counts talking to the market as one of its tools. But its story has changed so much that it might do better being less chatty.
SEC is back in the fight on insider trading 21 Sep 2016 After losing against billionaire Mark Cuban and scoring only a partial win with Steve Cohen's former SAC Capital, the agency is suing Leon Cooperman and his Omega Advisors. If its hard-hitting account survives likely challenges, it'll be a fresh warning shot to hedge funds.
BOJ buys time and friends with yield-based reboot 21 Sep 2016 The Bank of Japan has ditched its money-printing goals, pledging instead to keep 10-year interest rates at zero until inflation exceeds 2 pct. The central bank’s latest overhaul means it is less likely to run short of debt to buy, and eases the financial sector’s pain.
China postal bank aptly fails to push envelope 21 Sep 2016 Postal Savings Bank is raising $7.4 bln after pricing shares in its IPO near the bottom of the range. The implied worth of the lender's equity is 0.93 times its forward book value, in line with peers. Higher costs and loan concentration means it is lucky to secure that.
Scarcity value in finance fuels bumper Indian IPO 21 Sep 2016 Indian bank ICICI is selling up to $905 mln of shares in its insurance unit. It is the country's biggest listing since 2010. A punchy valuation underscores how investors are willing to pay a premium for the handful of healthy stocks available in India's financial sector.
Stumpf digs deeper hole for Wells – and himself 20 Sep 2016 Elizabeth Warren fired the most effective broadsides at the Wells Fargo boss during a Senate grilling over alleged fake accounts. Stumpf apologized but also made excuses and hid behind his board. He didn't look like the best person to rehabilitate the bank's sullied reputation.
China’s startups have few good options left 20 Sep 2016 A slowdown in venture capital is squeezing smaller tech hopefuls. Many have flocked to the "New Third Board" but it's hard to raise new equity on this moribund over-the-counter market. Some cash-strapped groups may sell out to larger rivals, or cut costs and hope for the best.
Government bonds signal confusion, not cheer 19 Sep 2016 Yields on long-term sovereign debt have perked up across the developed world. Normally that's a sign of optimism. Yet borrowing costs remain ultra-low. The upward drift most likely reflects uncertainty about central bank policy and worries about the effects of negative rates.
Milk recovery sounds sour note for food producers 19 Sep 2016 Dairy Crest says higher cream prices could hit its margins, though it expects to meet full-year guidance. Sharp falls in milk prices over the past two years mean there are now fewer cows to go around. Yet as the cycle recovers, it's hard to pass higher costs on to consumers.
Where Berlin’s voters go, Germany may not follow 19 Sep 2016 Angela Merkel's grand coalition lost power in the city, while right-wing populists won their first seats there. But an easing refugee crisis, and western Germans' loyalty to mainstream parties, suggest that the 2017 national election will bring less of an upheaval.
Trading really is about survival of the fittest 19 Sep 2016 A new study finds trading prowess is linked to accurate detection of one's own heartbeat, a trait common in people with lower body mass indexes. Despite its limitations, the paper implies physiology has a profound role in markets, and that humans still have an edge on machines.
Aussie $7 bln port deal reveals seller’s market 19 Sep 2016 The latest privatisation Down Under sees a consortium leasing Melbourne's port for a punchy 25 times EBITDA. It underscores the huge global appetite for assets offering decades of reliable returns - and is a reminder that Australia can afford to be picky over new owners.
China’s frothy new home prices look vulnerable 19 Sep 2016 House prices are shooting upwards. August data shows even the inland backwater of Hefei city saw prices jump 40 pct yoy. There are signs of discontent, however. If authorities choose to tame this hallmark of the old economy, they have plenty of tools to battle the bubble.
Scarce bonds and bank pain limit BOJ’s next move 19 Sep 2016 The Bank of Japan faces a conundrum in its battle to revive inflation. It can’t keep buying $800 bln of bonds a year for much longer, but negative rates are deeply unpopular. This week’s big policy review might require the BOJ to make other concessions to the financial industry.
Nielsen forced to get with the program 16 Sep 2016 The $19 bln TV-ratings kingpin is finally ripping up its archaic paper diaries. Dominance in audience measurement, used to set ad prices, has allowed the company to drag its feet. Encroaching competition from the likes of Comcast and Netflix is lighting a fire under Nielsen.
Viewsroom: Wells Fargo stagecoach hits a ditch 16 Sep 2016 The bank that steered clear of the financial crisis breaks down after creating 2 mln fake accounts. New evidence undermines Donald Trump's claims few benefit from the U.S. economic recovery. And why Hanjin's corporate capsize may prompt attempts to fix to shipping-industry woes.