U.S. Bancorp sails haplessly into political storm 3 Jan 2022 The lender’s $8 bln purchase of MUFG Union Bank wouldn’t have troubled regulators unduly a year ago. But Democrats want to get tough, and the Republican chair of the FDIC has quit in protest. The politicization of Wall Street cops may slow M&A, but it may not help consumers much.
Chinese offshore IPO clarification looks ominous 28 Dec 2021 China’s state economic planner joins the ranks of watchdogs who can block overseas flotations, demanding firms in sensitive sectors hold foreign ownership below 30%. More red tape will further gum up the pipeline, and the rules are worrying for currently listed companies too.
Mammoth re-engineering project begins: Germany 28 Dec 2021 Its manufacturing-led, carbon intensive economy is ill-suited to the 21st century. Chancellor Olaf Scholz and firms like Volkswagen will spend more on green and digital investment. The trick will be to plough on despite short-term supply chain problems and rising labour costs.
Italy will miss Mario Draghi’s premiership 23 Dec 2021 The ex-ECB boss may swap his prime minister role for that of president. A political version of a CEO-turned-chairman, Draghi could still steer affairs and reassure markets of Rome’s EU faith. But he would have less clout to push reform just as elections lead to stormier politics.
Viewsroom: Some of our 2022 predictions, Part One 23 Dec 2021 Look for an end to the cult of revenue and another milestone for Microsoft. As net-zero efforts falter, investors ready a Plan B. Riyadh becomes strangely appealing. The World Cup pays dividends for the Gulf. And chips become Taiwan’s green calling card. Our columnists explain.
Brace for a $600 bln Chinese escape from New York 22 Dec 2021 Mainland-based companies with U.S. listings face regulatory fire from both Beijing and Washington. Retreats are accelerating, as ride-hailing outfit Didi joins the exodus mere months after its $4 bln IPO. Hong Kong offers one clear route, but there will be a wave of buyouts too.
Rishi Sunak picks bad time to play Scrooge 21 Dec 2021 Britain’s finance minister has offered 1 bln pounds to companies hit by the new Omicron variant. The package looks meagre compared to his previous offerings and France’s support measures. Given the UK is raising rates, Sunak could have deployed a bit more fiscal firepower.
Riyadh will flip from No-Go to FOMO for business 21 Dec 2021 Lifestyle reasons mean bosses have long preferred Dubai to the Saudi capital as a Gulf HQ. A mix of the kingdom’s financial promise and government strong-arming means that could start to change. The city’s social scene is already slowly making it less of a punishment posting.
Turkey’s lira prop-up plan is dangerous 21 Dec 2021 President Tayyip Erdogan is guaranteeing deposits against local currency drops. It’s tacit admission Turkey’s banks aren’t immune to fallout from his odd views on inflation and interest rates. Details are fuzzy but putting taxpayers on the hook for the lira is asking for trouble.
The Exchange: Australian Treasurer Josh Frydenberg 21 Dec 2021 With an election looming early next year, the Liberal Party’s deputy leader discusses everything from booster shots to Big Tech, climate change to China, immigration to inflation, and more. He tells Jeffrey Goldfarb how his country can overcome the many economic challenges ahead.
Davos delay will stoke gabfest demand 20 Dec 2021 January’s Swiss conflab is off, for the second year running. In 2021, Zoom calls and rival events like COP26 raised the risk Davos could lose its relevance. In 2022, enough bankers were looking forward to the slopes to imply that a summer event will still get takers.
Xi’s 2022 GDP target will be moment of truth 20 Dec 2021 One of the Chinese president’s signature policy initiatives was to curb property-related risks. That implies slower but higher quality growth: 4% or so in 2022. Outside advisers are pushing for more. The final economic decision will signal the extent of Xi Jinping’s power.
Aussie climate ambition will restart at ballot box 20 Dec 2021 The $1.4 trln economy has all it needs to be an energy-transition leader, except a proactive government. The 2022 election will change that, making independent, global warming-savvy candidates the kingmakers. Stronger policy also will be lucrative for domestic and export markets.
Scarce U.S. workers can be found on Etsy 17 Dec 2021 Millions of Americans ditched their jobs and became self-employed in the pandemic, with about 20% in retail. Outlets like crafts-seller site Etsy benefited. But businesses are strained and competing to pay for workers. Resolutions – like increasing immigration – only help so much.
TSMC can fix Taiwan’s stalled green transition 17 Dec 2021 Referendums on a nuclear power plant and a fossil-gas terminal spotlight the island’s 20% renewables target. Bureaucracy and red tape, though, have held up wind and solar projects. The local chipmaking champion’s voracious appetite for cleaner power offers a much-needed spark.
Shanghai’s tech board gets welcome IPO flop 16 Dec 2021 The biggest listing on the overheated STAR market this year bombed as shares of biotech giant BeiGene fell 16% on their debut. That finally adds risk to a once-safe bet on triple-digit first-day pops. Regulators fretting about the speculative stock mania can relax a bit.
China’s metaverse will be a tiny place 16 Dec 2021 Stocks in local companies associated with digital worlds blew up in 2021. The country’s video-games industry, tech expertise and masses of disaffected youth make it an ideal place to push the bleeding edge of virtual reality. That’s precisely why Beijing is squashing it.
Billionaire Drahi plays the long game at BT 14 Dec 2021 The Franco-Israeli tycoon has upped his stake in the UK telco to 18%. The government would almost certainly nix a full bid, especially with BT’s fibre-optic rollout hitting top speed. But with operators across Europe falling into private hands, Drahi can afford to sit and wait.
U.S. blacklist puts China AI into local mode 14 Dec 2021 Artificial intelligence startup SenseTime is delaying its $800 mln Hong Kong IPO after the mid-deal shock of Washington’s investment ban. Foreign backers can be mostly replaced by mainland money. But the boycott ends the sector’s global ambitions and accelerates tech decoupling.
Rio Tinto Mongolian hardball ends up looking soft 13 Dec 2021 The $105 bln miner has offered to write off a $2.3 bln loan to Ulaanbaatar linked to the Oyu Tolgoi copper project. Boss Jakob Stausholm is giving up billions of dollars in interest. But holding firm risked the company being chucked off a project that could bring in a lot more.