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Regulation

Europe tests limits of net neutrality benefits

23 April 2018

Countries like Britain and the Netherlands are taking a strict approach to rules on treating internet traffic equally whereas the United States may roll them back. If opponents of net neutrality are right, Europeans will end up with less investment in networks and worse services.

Takeda pushes its globetrotting ambitions too far

23 April 2018

The Japanese drugmaker led by a French CEO added cash to a slightly sweeter $60 bln bid for Irish rival Shire. Takeda's target is cheap, but the big premium will be hard to justify. The deal also would flood the market with shares and ratchet up debt. It's all a big stretch.

Regulatory reprieve adds tonic to Barclays revival

20 April 2018

After a year-long probe, British watchdogs plan to fine boss Jes Staley for trying to unmask a whistleblower. The verdict keeps Staley in his job and avoids awkward questions for the regulators and for Barclays’ board. Staley can now focus on turning around the investment bank.

First blood won’t be last in Aussie bank showdown

20 April 2018

The boss of wealth manager AMP quit Friday, as a public inquiry into the financial sector Down Under heats up. The Royal Commission has heard horror stories about lies, dud advice, and lenders charging the dead. Craig Meller’s scalp may not be the only one hung on the gate.

Beijing sets off careless Wanda fire sale

19 April 2018

Officials pushed the developer to shed assets to pay down debt, forcing it to scramble to stave off default. Buyers of its properties got discounts that let them book billions in quick profit. In retrospect, Beijing’s meddling looks more hapless than prudent.

Wall Street’s word is its bond excuses

18 April 2018

BofA, Citi and JPMorgan booked less revenue from debt sales in the first three months. Activity was down, but banks’ talk about the impact of tax cuts and such was just a way of saying clients didn’t hire them. That left Goldman the surprise leader for a second straight quarter.

Hadas: Knowledge is better shared than patented

18 April 2018

China is moving towards stronger protection of intellectual property. Trump’s prodding may speed up the pace. But hoarding knowledge is getting harder and less worthwhile, especially in developing countries. A global “Republic of Technology” may eventually replace patent wars.

KPMG woes force South Africa to consider Big Three

18 April 2018

The audit firm’s future in the country is in doubt after it was sacked by the government – its biggest client – following the second scandal in under a year. Regulators have long worried about losing one of the Big Four global firms. South Africa provides a reluctant test case.

China/Russia oil hug can dodge Huarong curveball

18 April 2018

Beijing is investigating the state-run asset manager’s chair for graft, in a copy of its probe into private group CEFC. That complicates Huarong’s support for CEFC’s acquisition of a stake in Rosneft. Yet given these are de facto state players, the deal should still survive.

China backlash could unravel 5G network effect

18 April 2018

Huawei's retreat and ZTE being cut off from U.S. vendors will slow telecom infrastructure development in both America and China. And given how instrumental the two companies are to 5G technology and the power of supply chains, the whole global rollout is likely to be impeded.

L&G’s gender revolt has revealingly low bar

17 April 2018

The 983 bln pound asset manager will vote against chairs at UK companies if boards have too few women. It’s a laudable move. But the 25 pct threshold looks low, and traps groups as big as Barclays or London Stock Exchange. Diversity in British boardrooms has a long way to go.

Tesla in pole position to win U.S.-China trade war

17 April 2018

Beijing has set deadlines to lift JV rules for foreign automakers. Ford and Daimler will be pleased, but Elon Musk's embattled $50 bln electric-car maker should benefit most. Freed to enter the biggest market without having to share technology, Tesla's risky strategy may pay off.

China’s two-track money policy hangs over economy

17 April 2018

Even as GDP grew 6.8 pct, industrial activity looks cooler, auguring a softer government line on bad debt. Higher official interest rates are being offset by short-term injections that keep the real cost of cash down. That could weaken the yuan and stir up more trade trouble.

Qualcomm’s future stuck on slow boat to China

16 April 2018

The chipmaker’s strategy depends heavily on closing its $44 bln NXP deal. A possible trade war leaves Chinese regulators in no mood to approve the U.S. company’s purchase, though. Qualcomm does have one bright spot: its long-running spat with Apple may be coming to a head.

Russia’s banks could once more be its airbag

16 April 2018

The Kremlin has already authorised short-term liquidity to metals group Rusal. If the U.S. sanctions net gets cast wider, Moscow could use its control of the big Russian banks to prop up stricken companies. After all, that’s what it did when things last got dicey in 2014.

Ailing Indian hospitals warrant healthy bid action

16 April 2018

Buyout firm TPG is backing one of three rival offers valuing scandal-hit Fortis at up to $1.3 bln. Private services are in demand with rising incomes and an increase in lifestyle diseases set against New Delhi's failure to provide decent healthcare. Medical tourism helps, too.

Singapore ruling gives Uber deal yellow light

16 April 2018

Regulators have tapped the brakes on Southeast Asia's ride-hailing mega-merger. They won’t halt a deal with rival Grab but have limited data-sharing and driver exclusivity contracts, at least while they review. That’s an amber signal, and a sign of potholes ahead.

IAG picks good time to ride Norwegian jet stream

12 April 2018

The owner of British Airways may bid for budget carrier Norwegian Air Shuttle. The target’s plan to disrupt transatlantic travel is taking off, but its finances are stretched, and rival bidders may struggle to match an offer from IAG. Investors shouldn’t bet on too big a premium.

Toys R Us Asia deal will be far from child’s play

12 April 2018

The bankrupt retailer has drawn bids of over $1 bln for its Asian operations. The unit is growing in China and Southeast Asia but its biggest market is Japan, where the number of kids is shrinking. Any buyer will also need a clear idea of how to handle the threat from e-commerce.