India pharma deal suggests Fosun is an M&A junkie 29 Jul 2016 The Chinese conglomerate's drug unit is buying India's Gland Pharma for up to $1.3 bln. Shortages should boost prices of injectable drugs in the U.S., a key market for the KKR-backed group. Either way, Fosun's latest deal binge jars with its promise to cut debt.
Trump Inc rapidly turning from virtue to vice 28 Jul 2016 Real-estate success helped him win the GOP nomination, but there's growing scrutiny of his record. Fellow New York mogul Mike Bloomberg led the charge at the Democratic convention. Trump's long trail of slippery business dealings will make his policy proposals harder to stand up.
UK banks can take heart from May’s radio silence 28 Jul 2016 The UK prime minister has so far avoided references to the financial sector. The silence may herald industry taxes to plug Brexit-linked revenue losses. But it might not, and UK lenders have less to fear on capital demands, structural separation and interest rates.
Cox: Banking ghosts haunt Clinton in Philadelphia 28 Jul 2016 Long before Donald Trump upended politics by excoriating the establishment, Andrew Jackson attacked a pillar of the City of Brotherly Love: the Second Bank. It got him re-elected and firmly established the Democratic Party, whose candidate is now threatened by a similar campaign.
Japan’s $265 bln spree is deliberately puffed up 28 Jul 2016 Prime Minister Shinzo Abe is touting a huge stimulus package to revitalize his "Abenomics" project. Actual new state spending will be far less. Still, the eye-catching total is designed to boost confidence, shore up his political support, and prod the Bank of Japan into action.
China’s bank watchdog is pushing on a balloon 28 Jul 2016 Regulators may restrict smaller lenders from the riskier parts of the $3.5 trln market for wealth management products. That would protect savers and limit the hazards caused by repackaging loans as short-term investments. Banks will probably just search for new loopholes, though.
TPP trade deal morphs into crude economic symbol 27 Jul 2016 Democrats are making the pact a bigger issue at their convention than even Republicans did at theirs. Team Clinton has been pushed to voice opposition. Specific ideas on how to fix TPP, however, are in short supply. The uproar also overlooks a real issue for workers: technology.
Europe gets pragmatic with budget delinquents 27 Jul 2016 The European Commission doesn’t want to fine Spain and Portugal for flouting EU budget rules. That may look toothless, but piling on fines when both are struggling to cut their deficits doesn’t make much sense and risks political backlash.
Barnier’s Brexit gig better than it looks for UK 27 Jul 2016 Brussels' ex-financial services tsar is to lead EU talks over Britain's exit. Michel Barnier has at times raised British hackles, but he largely treated the City of London fairly. Arbitration won't be smooth, but the identity of the negotiator could have been worse.
Fast is the enemy of good in UK trade talks 27 Jul 2016 Britain is eager to sign up willing free-trade partners for when it detaches from the EU. China, a dab hand at drawing up lopsided pacts, could be a quick win for Theresa May's government. The risk is that the United Kingdom ends up with a deal that binds rather than benefits.
Hillary Clinton’s 1 pct dilemma gets more awkward 26 Jul 2016 Progressive Senators Sanders and Warren kicked off the Democratic convention blasting the rich. With inequality atop the party platform, they expect Clinton to rein in millionaires. They are her biggest donors, however, meaning she'll be forced to ignore them at her coronation.
UK slaps capitalism in its “unacceptable” face 25 Jul 2016 Lawmakers angry at retailer BHS's collapse are mulling further regulation to protect jobs and pensions. The fiasco epitomises what Prime Minister Theresa May decries as "anything goes" business. It takes UK corporate life into interesting - and potentially painful - moral areas.
Carlyle’s dentist bond is full of cavities 25 Jul 2016 The private equity firm's bond for a British dentist chain sets new precedent in loose debt covenants. The UK vote to leave the EU has not tamed investors' animal spirits. With central banks promising ever looser policy, it's easy for issuers to extract generous terms.
Clinton and Kaine become globalization’s defenders 22 Jul 2016 The Democratic presidential candidate selected Virginia Senator Tim Kaine as her running mate. The former governor is a moderate who backed trade deals in the past. Their first task will be to win over liberals who supported Bernie Sanders and are being courted by Donald Trump.
Chancellor: Inequality breeds outbreak of populism 23 Jul 2016 The rich have enjoyed most of the fruits of globalisation, just as they did in 19th-century America. Unless politicians can enact benign policies to rectify the widening gap between the have-somes and have-lots, more unpleasant alternatives will loom on the horizon.
Review: Trump foretold his own grander artifice 22 Jul 2016 Despite recent misgivings by its ghostwriter, "Art of the Deal" is a useful volume to revisit as the Republican convention points to the November election. The blustery façade even in 1987 masked a dearth of substance. Potemkin showmanship was, and is, Trump's greatest skill.
Portugal’s three bad B’s: banks, budget, Brexit 22 Jul 2016 Lisbon’s banks are saddled with bad loans, and need capital. The government is caught between Brussels’ fiscal rules and a weak coalition. And the UK vote to leave the EU may hurt already grim growth. The three B’s may imperil Portugal’s BBB rating, and blow up its bond yields.
Republican donors reach for yield beyond Trump 21 Jul 2016 Wealthy hedge-fund bosses like Paul Singer and other Wall Street financiers wasted millions betting on candidates who lost to the real-estate mogul. Rather than back the GOP nominee, they're giving to congressional races instead. The risk-adjusted return could be higher.
Oil rebound poses new challenges for U.S. shale 21 Jul 2016 Crude prices have recovered 70 pct since February, and oil-services giant Halliburton expects drilling activity to pick up. Shale producers will face rising costs as output improves. They also need to tend to stretched balance sheets. It won't be a smooth ride up from the bottom.
Trump’s environment scorn affronts business sense 20 Jul 2016 The U.S. presidential nominee says he'd protect jobs by ditching the Paris climate accord, nixing energy regulations and favoring farmers over fish in California's non-existent drought. Such jibes neglect both the facts and the likely economic benefits of battling climate change.