Wells Fargo punching bag has no more stuffing 12 Mar 2019 Tim Sloan is the first big bank boss to face the wrath of a Democrat-led financial services panel. His inquisitors failed to land a blow, and focused on well-trodden issues. At this rate, financial CEOs summoned to give account have little to fear but inconvenience.
Boeing needs to think faster than its watchdog 12 Mar 2019 Europeans joined others in suspending flights of the 737 MAX 8 after two crashes, and two U.S. senators called on the FAA to follow suit. The company’s stock lost another 7 pct. Rather than waiting for its regulator, Boeing could get ahead of the crisis by grounding the plane.
Chinese stock xenophobia is a problem for MSCI 11 Mar 2019 After expanding the weight of A-shares in its benchmarks, the index provider had to drop a popular tech stock thanks to policies capping foreign shareholdings. If it happens too often, MSCI indexes will be less representative of demand. It’s a bad look for China’s market opening.
Review: Gig-economy firms tread precarious path 8 Mar 2019 The likes of Uber tapped casualised labour to become global giants. They have created a “precariat” class of workers, open to exploitation and abuse. Colin Crouch’s “Will the Gig Economy Prevail?” offers a manifesto for a benign alternative, but underplays technological shifts.
China’s housing unicorns are financial engineers 8 Mar 2019 A fundraising values flat-leasing startup Danke at $2 bln. Like rivals, it raises cash for expansion by taking out loans in tenants' names, rather than charge monthly rents. Owners, renters and banks are exposed if Danke flops. The practice is likely to overstay its welcome.
SEC throws sand in ESG investors’ wheels 5 Mar 2019 It’s not just CEOs who are irked by investors’ call for more disclosure over environmental, social and governance risk. A top official from the U.S. securities regulator said that such proposals waste the agency’s time. Pension funds pushing for change have a long march ahead.
Raiffeisen is stalked by spectre of Danske 5 Mar 2019 Shares in the Austrian lender and two Dutch banks fell after media reports of money-laundering allegations. The former is the hardest hit since investors think the latter have stronger defences. Fears of a Danske-style U.S. probe mean they are in no mood to defer judgment.
Deutsche Bank’s opaque asset punt trolls regulator 1 Mar 2019 The lender’s pile of hard-to-value assets grew by 3 bln euros last year, despite the European Central Bank’s plan to scrutinise them more closely. The increase jars with boss Christian Sewing’s vision of a simpler bank – and does little to ease Deutsche’s elevated funding costs.
Europe is better off policing than banning Huawei 1 Mar 2019 The Chinese supplier dominated this year’s telecom gathering in Barcelona. U.S. officials want the EU to follow their lead by banning Huawei, while the company denied its kit has security “back doors”. An industry proposal for Europe-wide testing seems a sensible compromise.
Stricken Hanergy drops investors into black hole 1 Mar 2019 The solar company wants shareholders to swap frozen shares for stock in a vehicle which may or may not relist in China. Hanergy might well be ejected from the Hong Kong exchange before trading resumes, denying them an alternative. This raw deal would set a terrible precedent.
Tech giants get glimpse of watchdog’s M&A bazooka 27 Feb 2019 The U.S. FTC is creating a body to police anticompetitive behavior in Silicon Valley, and isn’t ruling out the possibility of breakups. While unwinding mergers would be extraordinary, the mere threat would be a useful weapon as the agency investigates Facebook’s privacy breaches.
Musk might just talk himself into a Tesla buyout 26 Feb 2019 The electric-car maker’s CEO and the SEC are in battle again over a recent tweet. At worst, the watchdog could force him out. But what then? Tesla’s stock would tumble, putting the firm in play – and potentially letting Musk revive the takeover idea that first got him in trouble.
Tesla board should brace for Elon Musk impact 26 Feb 2019 The electric-car maker's CEO mocked the SEC after it asked a court to hold him in contempt for a production targets tweet. His flouting of rules and accuracy has become a serious liability. It’s time for directors to plan an emergency route in case Musk's power completely drains.
Chinese shares deserve more room to run 26 Feb 2019 Cooling trade tensions helped push the 2019 rally in the benchmark mainland index to 24 pct. Easier credit and support from President Xi Jinping have been even bigger factors. Regulators are starting to worry as leverage grows. A clampdown, however, would do more harm than good.
Only next crash will test HK bank chief’s legacy 22 Feb 2019 Norman Chan, head of the Hong Kong Monetary Authority, plans to retire. Supervision was a bigger focus than traditional monetary policy during his decade in office, using controls such as mortgage curbs to limit a housing boom. Only a downturn will determine whether that worked.
Franco-German industry push sullies EU principles 21 Feb 2019 The two biggest euro zone countries want to limit the European Commission’s antitrust powers, and subsidise strategic sectors. Their fear of Chinese dominance is fair. Yet the reforms may help governments to prop up national champions, and undermine the bloc’s single market.
Centrica starts to radiate bid target status 21 Feb 2019 The UK’s biggest energy supplier slumped after warning of a hit from a state price cap. Centrica is a random mix of retail customers, nuclear, gas and new tech. But its halving in value since 2017 offers a way for utility wannabes like oil majors to quickly bulk up.
EU banks keep stepping on old landmines 20 Feb 2019 A French court fined UBS a record $5.1 bln for helping clients evade taxes in the past, while Swedbank faces allegations about old dodgy transactions linked to Danske Bank’s money-laundering scandal. European lenders seem unable to avoid the damage from past compliance bungles.
Walmart is smallest loser in UK supermarket salvo 20 Feb 2019 British regulators released a damning view on the 7.3 bln pound tie-up of Sainsbury’s and Asda, owned by the U.S. group. The pair need a plan to fend off German discounters. But the verdict limits M&A options. Asda’s global clout helps. Sainsbury’s looks set for further decline.
BHP sets judicious pace for big diggers 19 Feb 2019 Two fires and a runaway train smudged first-half profit at the world's largest miner. BHP cut debt to below its target and said it is eyeing $9 bln in free cash in the year to June, at current commodity prices. But CEO Andrew Mackenzie kept the tone cautious and spending flat.