Regulation

Powell could redeem index-fund trading blot

20 October 2021

The Fed chair sold a $1 mln-plus holding last year. Owning broad market funds avoids many conflicts, but the move still looks bad amid intense scrutiny of other officials' trading and Powell's possible renomination. He could set an example by putting his assets in a blind trust.

Facebook’s new name: grandiose, banal or honest?

20 October 2021

Rebadging the social network could be a chance for Mark Zuckerberg to style Facebook as a powerful empire. Or he may simply plump for something hard to hate. A more straightforward move would be to name the whole after its most valuable part, which is now Instagram, not Facebook.

Jens Weidmann’s best replacement is another hawk

20 October 2021

The Bundesbank president has unexpectedly resigned. Weidmann criticised Mario Draghi’s bond-buying plan, and a more dovish rate-setter could help the ECB keep policy loose in tricky times. But having an articulate and critical representative also helped keep German voters happy.

Facebook name-change alone would miss the point

20 October 2021

The $959 bln social network may rename itself. The eponymous brand is both sullied and slow-growing. But it's about substance, not what it's called. Instilling greater transparency would be a more meaningful step, starting with following Alphabet’s breakout of division finances.

Airlines’ constraints send investors to the tarmac

20 October 2021

Southwest’s network melted down earlier this month with thousands of canceled flights. It in part reflects a faster recovery, thanks to a domestic focus. But a disproportionate rebound has shown up in stock prices. Now efficient airlines are butting up against self-made problems.

Evergrande vultures swoop into moral hazard

20 October 2021

The Chinese developer’s deals to sell its headquarters and property management arm may have hit political snags. Overpay and it looks like a bailout; a lowball bid invites cries of opportunism. Quick deals preserve value in a crisis. Hesitant governments hurt more than they help.

First bitcoin ETF is test for fans and watchdogs

19 October 2021

ProShares’ new U.S. fund based on bitcoin futures lacks the direct holdings enthusiasts might prefer. But it's a way to get tradable exposure without the hassle of digital wallets and such. An orderly debut could ease regulators' resistance to ETFs that buy crypto directly.

Crypto puts U.S. and El Salvador in the same boat

18 October 2021

Hispanic and Black people are top American owners of digital currencies. Discrimination and lagging access to financial services are drivers and are among the better reasons why the Central American nation turned to bitcoin. It’s a lost opportunity for traditional banks.

Capital Calls: Klarna, French vaccine, Philips

18 October 2021

Concise views on global finance: The $46 bln Swedish buy-now-pay-later company tries to outrun Britain’s financial watchdogs; Valneva’s Covid-19 shot may prove better than the UK’s home-grown version; the industrial giant sees light at the end of the supply-chain tunnel.

London’s IPO revamp gets its cautionary tale

18 October 2021

THG’s founder is giving up his golden share in the stricken online retailer, just as regulators prepare to make it easier for executives to keep control after listing. It’s a timely reminder of the benefits of “one-share-one-vote” governance. It’s not too late to turn back.

Breakdown: Buy Now, Pay Later’s bill is coming due

14 October 2021

The instalment-lending tool is reshaping how consumers buy online and could reach $300 bln by 2024. Banks are scrambling to catch up with upstarts like Klarna and Affirm, while regulators worry about unsustainable debts. Breakingviews explains why a reckoning is on its way.

Green transition needs a wider focus than oil cuts

13 October 2021

Fossil fuel investment has fallen to levels that would limit global warming to 1.5 degrees Celsius, the IEA says. Yet measures to hike green energy and curb demand are just as important, and lagging. Unless states act, high energy prices risk becoming an ongoing headache.

Star steeled for its own Crown duel with watchdogs

13 October 2021

The market knocked 25% off the Aussie casino operator’s market value after a media exposé suggested it may yet face a corporate governance crisis akin to James Packer’s. But Star is better prepared, and a pandemic proved it can weather a crisis. Investors could roll the dice.

Road to COP: Mark Carney on finance’s climate role

12 October 2021

The UN climate envoy is enlisting banks, asset managers, insurers and others in wide efforts to keep global warming to no more than 1.5 degrees. He tells Rob Cox what to expect from the industry at Glasgow, how multilateral development banks need to “up their ambition” and more.

Carrefour’s domestic shopping aisle looks bare

11 October 2021

A tie-up between the $15 bln French grocer and rival Auchan fell apart amid a valuation dispute. Concerns over competition and jobs complicate local mergers, while a failed Canadian takeover showed foreign buyers are unwelcome. Carrefour has little choice but to expand abroad.

Capital Calls: Green investors, ASOS, Renren

11 October 2021

Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.

How to fill the global tax deal’s digital holes

8 October 2021

A landmark accord backed by 136 countries offers little scope for non-U.S. governments to raise money from giants like Facebook. One fix is to give nations with big markets a larger share of tax receipts. Sharing out levies according to where revenue is generated would be ideal.

Tesla’s move to Texas further mars ESG credentials

8 October 2021

Elon Musk is relocating the electric-vehicle champion’s home base after a Covid-19 spat with California. It will put it in a state building a weak record on green energy and women’s rights. A company already hit by bad governance is giving investors more reasons to think twice.

Capital Calls: NatWest’s guilty-plea logic

7 October 2021

Concise views on global finance: The UK lender could receive a lower money-laundering fine for accepting culpability.

Newcastle bid suits Saudi more than UK soccer

7 October 2021

A consortium led by the kingdom’s Public Investment Fund may buy the northeastern club for 305 mln pounds. Saudi Arabia gets a storied team for a low price, and cheap PR. Yet having another deep-pocketed sovereign backer will further distort competition in British soccer.