Hong Kong is stage for Tesla’s next power surge 22 Dec 2016 Though it's congested and boasts limited green credentials, the city's residents snap up thousands of Elon Musk's slick electric cars. The tax breaks that make them affordable are up for review. But 2017's cheaper Tesla could show the world how to switch on subsidy-free success.
Biggest financial merger of 2017: SEC and CFTC 21 Dec 2016 Donald Trump has vowed to cut the red tape in Washington. America's labyrinth of financial regulators makes a fecund target. But crunching the two main market watchdogs, due to their heavy entrenchment in Congress, will take all of the president-elect's negotiating skills.
Deals from latest M&A boom will disappoint in 2017 21 Dec 2016 With corporate matchmaking proceeding apace, but slowing from its recent peak, investors are starting to calculate whether one plus one actually made three. More than half of mergers don't live up to promises. Three from the 2014 crop offer a guide to the letdowns of the future.
South African debt will be downgraded before Zuma 21 Dec 2016 After legal and political setbacks, the country’s president is more vulnerable than ever. Yet Jacob Zuma’s power base makes removing him difficult. The longer he clings to office, the bigger the chance that South Africa loses its investment-grade credit rating in 2017.
Breakdown: Fintech steps towards maturity 21 Dec 2016 Blockchain, robo advice and other technologies once hyped as the most disruptive to finance will take a back seat in 2017. The payments battle will step up a gear. Alternative lenders will hunt for deposits. And resurgent earnings may give U.S. banks a timely war chest.
Asia’s pollution problem is choking off talent 21 Dec 2016 Poisonous air has caused major disruption in recent weeks in China and India. Public awareness of the pollution problem is growing too. Employers will need to factor in a fatter premium in 2017 if they want to attract and retain the best brains in dynamic but dirty markets.
Globalization backlash misses real danger: robots 20 Dec 2016 Voters are rewarding nativist politicians. But campaign promises to bring back manufacturing jobs will fail to deliver. That's because the bogeyman is automation, not open borders. Fighting past wars will render governments flat-footed in tackling current challenges.
Uber may encounter rough IPO ride 20 Dec 2016 The ride-hailing service led by Travis Kalanick has spent the past several years racking up impressive growth. Uber also has raised at least $15 bln easily, in the process inflating its value to some $68 bln on paper. That could make the next round, publicly in 2017, tougher.
Gulf bank mergers will solve an oily problem 20 Dec 2016 Three Qatari banks have become the latest in the region to explore merging. They won't be the last. Exposure to volatile crude and hard-up state owners could trigger more consolidation of the sector in 2017. Governments will exit their charges - and ease their budgetary holes.
Mega-merger market set for last gasp 20 Dec 2016 Cheap debt and falling hurdle rates will keep bosses on the hunt. Border-spanning acquisitions are harder to square with trustbusters, however, and big targets less affordable as an M&A cycle ends. That makes space for smaller deals, which in any case tend to create more value.
U.S.-China currency war will be symbolic at best 20 Dec 2016 Donald Trump has promised to declare the People’s Republic a currency manipulator. The label means little, though, and the yuan is probably overvalued. The best case is that the U.S. president-elect declares victory and moves on. The risk is that hardliners in Beijing react.
Trump governance carries Chinese characteristics 19 Dec 2016 The U.S. President and his counterpart in Beijing have a surprising amount in common. Like Xi Jinping, the tycoon is eager to pump up growth, disdains free speech and wants to restore his nation to former glory. Here are some other parallels to watch for in Trump's first year.
Italy will find itself in market crosshairs again 19 Dec 2016 With rates rising, countries with high debt and fragile growth are vulnerable. Italy's political weakness makes tough choices on reform or spending cuts even harder. Even though the European Central Bank will keep buying government bonds in 2017, investors' nerves will be tested.
Japan and Abe can profit from the Donald Trump era 19 Dec 2016 The quixotic behavior of the president-elect is worrying for a country reliant on globalisation and America's regional policeman role. But it could also boost the Japanese leader's political standing. A stronger global economy and weaker yen will enrich Japan Inc's prospects too.
3G will take another bite of Corporate America 15 Dec 2016 The Brazilian investors behind AB InBev and Kraft Heinz look poised for another mega-deal in 2017. After a failed bid for Hershey, Mondelez makes for a hefty, attractive $66 bln target. Kellogg and General Mills could also be tempting if the Oreo maker proves too big to digest.
Exxon’s new boss will confront the end of empire 13 Dec 2016 Rex Tillerson's selection as U.S. secretary of state clears the way for Darren Woods to take charge of the $380 bln oil giant amid falling reserves. With Saudi Aramco prepping an IPO and rival Shell coming up fast, Exxon's days as Big Oil's unparalleled heavyweight are numbered.
China will show Trump more carrot than stick 9 Dec 2016 The People's Republic likes to test out new U.S. presidents. Its response to the TV tycoon’s early tantrums, however, hints at a more measured approach. China will try to avoid provoking Trump on currency and military issues, but take a harder line on investment and trade.
SoftBank’s U.S. swoop could net Symantec or Splunk 8 Dec 2016 The Japanese conglomerate is amassing a $100 bln war chest with Saudi backing, and is committing half that much to America. Masayoshi Son can make huge bets on emerging tech firms. Listed targets could include Symantec for cyber security, Splunk for big data, or even Twitter.
Long-term investors will be tested by Trump 29 Nov 2016 U.S. stocks have surged since Election Day as hopes grow for lower taxes, faster growth and reduced regulation. Trump keeps chipping away at institutions that underpin capitalism, however, by questioning the vote count and the Constitution. It'll take resolve to hang tight in markets.
Tesla teaches car rivals to love each other 29 Nov 2016 Competitors like Elon Musk's company are shifting big automakers into a more cooperative gear. Four arch-rivals have teamed up to build charging infrastructure for electric cars in Europe. Though collaboration keeps costs down, trustbusters need to keep their eyes on the road.