Revamp of the world order will have to wait 29 Jan 2024 Developing countries last week called for a rethink of global governance. While it’s possible to imagine an order more conducive to peace, justice and prosperity, the chances of creating it are slim. Better to shore up the existing multilateral system and wait for better times.
Gary Gensler crafts SEC into a mighty sandcastle 25 Jan 2024 The chief US securities watchdog has outpaced predecessors in making rules and extracting penalties from firms like Morgan Stanley and D.E. Shaw. But his aggressive approach has inflamed a wider war on regulation. Gensler’s accomplishments could yet wash away.
Take China’s easing signal with a pinch of caution 25 Jan 2024 Beijing is releasing $140 bln of liquidity at banks, trimming some lending rates, and talking up measures to boost the appeal of stocks. It is also pressing on rebalancing the world’s second largest economy. In a grand overhaul, short-term pain can only be managed to a point.
US Steel calibrates depth of trustbuster discounts 24 Jan 2024 Before Nippon prevailed, Cleveland-Cliffs fought hard to seal a deal, new documents show. Even $1.7 bln of synergy value and a chunky $1.5 bln break fee couldn’t sway the target, however. It’s a revealing portal into how competition authorities are altering merger decisions.
ADM accounting mess highlights risky exec comp 23 Jan 2024 The grain trader’s shares fell 24% after suspending its CFO amid an accounting investigation. One segment generating only 10% of profit determined a big chunk of executive bonuses. Whatever emerges, putting so much weight on small shifts in results invites problems.
On close inspection, Boeing misreads quality guide 22 Jan 2024 The embattled 737 maker is opening factories to customers and hiring more pros to scrutinize aircraft. Management guru W. Edwards Deming advised in “Out of the Crisis” to drop such crutches and focus elsewhere instead. In times of trouble, it’s best to revert to first principles.
Jack Bogle’s ghost haunts Vanguard’s crypto plans 19 Jan 2024 The asset manager’s rival BlackRock is plunging into digital currency with a bitcoin ETF that brought in over $1 bln in a week. That strategy, divergent from Vanguard, highlights the desperation to differentiate. Bogle’s former firm’s decision to shun crypto may leave it behind.
Overdraft fee reform has a big, small-bank flaw 19 Jan 2024 The US consumer watchdog’s assault against charges levied when accounts go into the red is a win for customers – but only those of the biggest banks. Small lenders are exempt, partly because of their political clout. Trouble is, they often bank the neediest bunch.
Obesity drug firms choose golden goose pricing 18 Jan 2024 Eli Lilly and Novo Nordisk can’t keep up with demand for weight loss drugs, yet they are offering big discounts to those whose insurance won’t help pay. That probably will harvest more eggs over time.
Carbon markets have a long shot at redemption 18 Jan 2024 The US hopes to raise over $200 bln using carbon credits to help emerging markets cut emissions. The idea of enabling firms to offset pollution with cuts elsewhere has long been flawed. Washington’s wager is that a lack of green cash for developing states is a bigger evil.
China’s war on corruption turns into high wire act 18 Jan 2024 Xi Jinping is declaring victory in his decade-long war on graft. He has made more progress than India and the US over the same period by some global standards. Yet the decision to double down on cleaning up the finance sector when the economy is weak could come at a heavy cost.
US Steel deal stokes fiery stakeholder standoff 17 Jan 2024 The $14 bln sale to Nippon Steel is riling workers and politicians. A rival Cleveland-Cliffs bid will attract trustbusters. Staying independent would anger shareholders and squeeze automakers. It epitomizes today’s fraught M&A, but the Japanese buyer is in the strongest position.
Spirit deal loss eases anxiety for everyone else 16 Jan 2024 A judge grounded JetBlue’s $4 bln purchase of the ultra-cheap carrier. The defeat avoided a potentially unprecedented intervention by regulators that would have clouded the industry, while affirming antitrust blowback. But Spirit’s shares halved, for good reason.
Capital Calls: Greek airport IPO 16 Jan 2024 Concise views on global finance: State-backed Athens International Airport may be able to fetch a 3 bln euro valuation in a planned February listing.
Shein’s ‘Made in China’ label clashes with IPO 15 Jan 2024 The fast-fashion retailer is seeking Beijing’s nod to go public in New York. It’s a setback for the Singapore-based company which has tried to distance itself from its Chinese roots. Whatever the decision, it’ll set an awkward precedent for peers like ByteDance’s TikTok.
The spectre of Donald Trump hangs over Davos 12 Jan 2024 The former US president is not among the 2,800 business and political leaders converging on the Swiss resort. But his possible return to power will pervade debates about Ukraine, China, and climate change. In 2016, Davos laughed off the idea of a Trump presidency. Not this time.
EU’s energy security drive may have gone too far 11 Jan 2024 The bloc’s pivot away from Russian pipeline gas has worked. But Europe’s fast-rising capacity to import the fossil fuel in liquid form will surpass its total gas needs by 2030. LNG infrastructure’s public and private backers have a stark choice: scale back, or risk writedowns.
Bitcoin ETFs only entrench one frivolous use case 10 Jan 2024 The SEC finally greenlit BlackRock, Grayscale and other funds to track the crypto price, with trading due to start this week. It’ll be easier to make – and lose – money in the volatile digital asset, but it’s no closer to being a currency, store of value or network for new apps.
Wall Street brings gun to Basel knife-fight 10 Jan 2024 JPMorgan and peers have good reason to be livid over proposed US bank rules. Some planned changes would punish them unduly, clash with existing controls, and effectively hand business to foreign rivals. With logic on their side, the risk is that banks overplay their hand.
Corporate boards have lost the war on drugs 8 Jan 2024 Some directors at the six companies run by Tesla boss Elon Musk worry his drug use will hinder business. Dabbling in narcotics is rising while testing is falling, and legalization has normalized dope use. For corporate chieftains, though, even a little may be too much.