Lula may wind up masterminding a pro-market Brazil 14 Sep 2016 Prosecutors have accused the country's ex-president of being the chief architect of a graft scheme at state oil giant Petrobras. If proven, it'd be a major blow to his Workers' Party and end chances for Lula to return to power. It also could embolden agents for change in Brazil.
Telecoms and Brussels connect, for once 14 Sep 2016 The EU’s proposed new telecom rules will encourage investment in superfast broadband and coordinate spectrum auctions. The likes of WhatsApp will be subjected to tighter rules, though nothing they can’t handle. The snag is that it may take years for the rules to take effect.
Global bond rout gives Draghi a reprieve 14 Sep 2016 The rise in yields as prices fall makes more German debt eligible for ECB purchases, under its own arcane rules. President Mario Draghi is still, though, running out of bonds to buy. Canny market timing is a poor substitute for a real solution: Germany could simply borrow more.
CNPC $15 bln swap breathes life into dead listings 14 Sep 2016 The Chinese energy giant is busy injecting assets into listed units. That stops precious shell companies from going to waste and will shed light on its closely held financial and engineering businesses. Real reform will depend on the quality of investors that buy new shares.
Asia puts the comedy into equity capital markets 14 Sep 2016 An Indian bank recently botched a $1 bln capital raise. China is forcing an $8 bln bank listing down the market's throat. And a $70 mln firm in Jakarta thinks it can somehow raise $2.3 bln. The region badly needs more equity funding but the process can be rough around the edges.
India lays foundation for a fintech revolution 14 Sep 2016 A new payments platform, tied to biometric identity data, will hasten the move to a cashless economy. The open system sets India's fintech infrastructure apart from China or the U.S. That's great news for consumers and entrepreneurs, less so for big banks and mobile wallet firms.
Income rise weakens Trump case for radical reform 13 Sep 2016 U.S. census data showed household income jumped in 2015 while poverty dropped, the first sign of recovery in the metric to show up since 2007. Evidence that Obama's programs are working will help Hillary Clinton's pitch for incremental change against Trump's radical economic populism.
Globalisation needs better cheerleaders 13 Sep 2016 Free trade and capital flows are often blamed for disadvantaging workers in the West. A new study suggests they have not all fared as poorly as many believe, and that domestic policies can make a difference. Still, statistics and studies alone won’t shake globalisation’s bad rap.
Fed governor’s rate view helps her Treasury pitch 13 Sep 2016 Lael Brainard struck a dovish note on interest rates ahead of the central bank’s next meeting. She’s also a leading candidate to be Treasury secretary in a Clinton administration. Her soothing words could help mollify progressives suspicious of her past role in trade deals.
Chancellor: No hyperinflation, just Weimar malaise 13 Sep 2016 Central-bank money printing hasn't produced the spiralling prices that plagued the Weimar Republic. It has, though, delivered some of the social disquiet of 1920s Germany. Policymakers urging more extreme monetary actions need to exercise caution lest they get what they wish for.
Postal bank’s $8 bln IPO scrapes through the door 13 Sep 2016 Postal Savings Bank of China is roughly worth its trailing book value at the middle of the price range. SOE listings can't pass at a discount. But that's where rivals with higher returns trade. The bank's safer lending profile, and anchor investors, should stop logic taking hold.
Renesas programs model outbound Japan deal 13 Sep 2016 The world's No. 3 chipmaker has agreed to buy U.S. peer Intersil for $3.2 bln. Unusually for a Japanese buyer, Renesas has large, clear synergy targets. These are mostly based on higher sales but if achieved, would more than cover the deal's near-$1 bln premium.
Viewsroom: Trump immigration plan deports $1 trln 12 Sep 2016 The iPhone 7 may seem like an underwhelming upgrade, but it sets the company up well for the rise of augmented reality. Donald Trump's plans to curb visas and send illegal immigrants home defy economic logic. And scandal-prone VW takes its truck ambitions stateside.
Samsung’s handset fires singe its brand 12 Sep 2016 The tech giant is speeding up a recall of Galaxy Note 7 phones, after reports of fires and explosions, while airlines have banned in-air use. Samsung shares have fallen sharply. The immediate financial hit looks manageable but the reputational damage could be worse.
Zika fear effect can create Asian contagion 12 Sep 2016 The virus is taking hold in Singapore and countries around the finance hub. The SARS crisis showed how changes in human behaviour can hurt growth more than an epidemic. Zika's grim effect on babies also adds a fear factor. Asia can ill-afford to see visitors stay away.
Ex-M&A banker brings Wall Street excesses to D.C. 9 Sep 2016 Former BofA rainmaker Stefan Selig has been criticized for lax oversight and out-of-order expenses costing taxpayers tens of thousands of dollars during his stint at the U.S. Commerce Department. His staff were often the cause. But as at banks, cultural problems start at the top.
Private equity could regret scaling Capitol Hill 9 Sep 2016 Buyout firms have successfully promoted legislation to roll back disclosures required under Dodd-Frank even as they settle cases over misleading investors. If the bill passes, however, there's a risk of repercussions. Washington critics may redouble efforts against the industry.
Britain’s grammar school plan gets 5 out of 10 9 Sep 2016 Reintroducing selective schools won't necessarily fix the UK's two big problems: too-high inequality and too-low productivity. It fits, though, with an emerging trend of the state picking winners. Whether that works depends on the success of safeguards to protect the losers.
Indian bank’s failed capital hike misses open goal 9 Sep 2016 Investors are keen on the country's private sector lenders. But Yes Bank has been forced to shelve a $1 bln deal. It was pushy on price and careless in execution, talking up the issue on TV and leaving it in the market too long. It's a masterclass in how not to raise capital.
Wells Fargo stoops to Wall Street’s level 8 Sep 2016 The U.S. lender led by John Stumpf has undertaken one of the biggest purges of bad bankers. It fired some 5,300 employees for opening 2 mln fake customer accounts that just led to $190 mln in fines. Failure of culture, incentives and accountability isn't limited to high finance.