Bill Miller drifts from investment industry at sea 11 Aug 2016 The renowned money manager once captained both a $21 bln fund with stellar returns and a yacht named for Thomas More's Utopia. He's leaving Legg Mason after 35 years with a humbler record. Low rates, index funds and robo-advisers have made the business far harder to navigate.
Clinton’s economic remedies miss Trump’s diagnosis 11 Aug 2016 The Democratic presidential nominee assailed her rival's proposals, saying they only would help the rich. That's true, but Trump also has accurately zeroed in on the muted level of business investment that has been slowing growth. Clinton's plan mostly overlooks the problem.
China backlash bandwagon rolls over Li Ka-shing 11 Aug 2016 Australia may block an $8 bln power grid sell-off on security grounds, since both bidders had ties to China. But the Hong Kong tycoon is very different from Beijing-owned State Grid. After recent snubs in Britain and Canada, the climate for Chinese investment is souring rapidly.
Samsung’s next leader faces two big challenges 11 Aug 2016 Heir apparent Jay Y. Lee is up against public mistrust and political uncertainty as he reshapes South Korea's top conglomerate. Fundamental questions of future growth also loom over the empire founded by his grandfather. How Lee navigates the two issues will determine his legacy.
Team Trump: six degrees of legal separation 9 Aug 2016 Many of the rich businessmen and investors advising the GOP nominee on economic policy also are linked to his past lawsuits. Most of the cases were settled or dismissed. There's a "Team of Rivals" element to the group, but it mostly exposes Trump's litigious and mercurial nature.
Megadeal gets India’s insurers set for public life 9 Aug 2016 A fiddly merger between two foreign-backed players will create India's largest private insurer, and give the $10 bln group a public listing. Others are queuing to IPO. Stock markets will help fund growth – and end state dominance of a sector that does not yet reach enough people.
Trumponomics favors pin-stripes over blue collars 8 Aug 2016 The GOP presidential nominee is calling for corporate tax cuts and a halt on regulations to boost U.S. growth. Billionaire investors on his new economic team helped craft the plan. For a candidate supposedly championing the working class, Trump has a soft spot for the 1 pct.
U.S. jobs lend some certainty in uncertain world 5 Aug 2016 Another robust showing, with 255,000 positions created in July even as the labor market is becoming tight, should allay concerns about a recent weak GDP report. Corporate investment may be subdued as the U.S. election approaches, but overall the economy is gaining strength.
Review: Big Data’s all-too-human failings 5 Aug 2016 An ex-hedge fund quant exposes flaws in how information is used to assess everything from creditworthiness to policing tactics. Programmed biases and a lack of feedback are among the concerns behind the clever and apt title of Cathy O'Neil's book: "Weapons of Math Destruction."
Economic models compete for Olympic gold 4 Aug 2016 The Goldman Sachs forecast is in: the United States will win the most medals in Rio, with China next and Brazil outside the top 10. Breakingviews put Russia second and predicts a much better result for the host nation. It's all games, but macro factors do drive sporting prowess.
UK’s new bank crutch betrays post-Brexit jitters 4 Aug 2016 The Bank of England's Term Funding Scheme is a reasonable attempt to make UK lenders pass on now-cheaper funding. The bigger their loan book, the cheaper their borrowing. But opting not to restrict cheap funds to specific sectors reveals how concerned the BoE is about a slowdown.
Chancellor: Rates sow seeds for greater inequality 4 Aug 2016 Unorthodox monetary policy may have stopped a depression forming after the Lehman Brothers bust but it has had adverse distributional effects. If central bankers continue pushing the cost of money lower, they risk further undermining the social order on which capitalism rests.
SAF-Holland lacks firepower in truck bidding war 4 Aug 2016 The truck parts maker’s $490 million offer for Swedish peer Haldex was trumped by Germany’s ZF Friedrichshafen, which offered just 6 percent more. SAF is already stretching itself and will struggle to outbid a much bigger rival that has the target’s support.
SoftBank takes maverick option on financing 4 Aug 2016 Selling $10 bln of hybrid bonds would build on SoftBank's cachet with retail investors. It could also help keep headline debt levels in check after the $32 bln bid for ARM. But this is hard to square with boss Masayoshi Son's belief that he knows better than rating agencies.
Note to D.C.: Jack-hammer away on infrastructure 3 Aug 2016 With interest rates at record lows, there's growing support on the campaign trail for rebuilding U.S. roads and bridges. Donald Trump called for at least doubling the $275 bln in spending proposed by Hillary Clinton. To grow jobs, wages and GDP, it's a policy deserving of a deal.
Tax overhaul boosts Modi’s reform credentials 3 Aug 2016 India is set to pass a bill paving a path to a long-awaited goods and services tax. Exemptions will dilute the potential boost to growth. But the bill is evidence that the prime minister can compromise to get things done. That bodes well for a long wish list of other reforms.
China’s draconian IPO rules squeeze foreign banks 3 Aug 2016 Local media say the securities watchdog may seize licences from brokerages that don't properly audit firms that come to market. Other recent rules leave underwriters exposed to botched listings. That might help cut the IPO backlog. It also further sidelines foreign banks.
Cox: Trump’s taxes underscore bizarre campaign 2 Aug 2016 The GOP candidate is being goaded reality-TV style by Warren Buffett and Mark Cuban to disclose his IRS returns. At stake isn't just whether he paid enough as with Mitt Romney. Rather, Trump's billionaire bona fides are in question despite an election pegged on income inequality.
Regions will shore up China’s smaller banks 2 Aug 2016 Risk is mounting at midsized lenders, and capital buffers are eroding. Beijing wants to rein the upstarts in, but provinces need regional financial champions to keep lending. As Industrial Bank raises nearly $4bln from backers in Fujian, expect others to follow suit.
Uber can take fight for rest of Asia up a gear 2 Aug 2016 After folding its China unit into rival Didi, the ride-hailing app can compete harder elsewhere in Asia. It is less far behind India's Ola and Grab in Southeast Asia. Uber must balance the conflicts this could create with Didi with the need to show global growth.