Trump-friendly trade reform is a hard ask 1 Oct 2018 A trio of international bodies want to tackle some of the U.S. president’s gripes with the WTO and enable more side deals. Yet the proposals do little to bridge differences between Beijing and Washington that threaten the trading system. They also face big headwinds on services.
Data is new beat for transatlantic antitrust cops 28 Sep 2018 The U.S. DOJ’s Makan Delrahim and the EU’s Margrethe Vestager worry concentrations of personal information may be used to stifle competition. She has been the tougher so far, but the shared focus could hurt tech giants like Facebook and Alphabet that depend on data for profit.
Musk suit could uncover Tesla’s true value 27 Sep 2018 The U.S. securities regulator wants Elon Musk removed as CEO and director, saying he lied about a plan to take the $53 bln electric-car maker private. His exit would leave Tesla much depleted, but also more rationally valued – if it can motor past a looming liquidity crunch.
U.S. for once hits right note with Petrobras fine 27 Sep 2018 America’s foreign corruption laws often spark outrage about overreach. But penalizing the Brazilian state energy group $850 mln is a judicious result. It shows companies with ADSs will be held to account. And it mainly rewards Brazil’s authorities, which get 80 pct of the money.
Climate change stress tests omit the stress 27 Sep 2018 More companies are releasing guidance on how their balance sheets might cope with a decarbonised world. Unfortunately, disclosures are thin on detail and political apathy gives boards cover to do little. Time to turn voluntary exercises into more exacting and mandatory reviews.
BMW justifies carmakers’ slow lane valuation 25 Sep 2018 Investors fled the sector this year on trade-war fears and new emission rules. At around six times earnings, Europe’s automakers were starting to look cheap. The German group’s profit warning, however, is a reminder of carmakers’ limitless capacity to generate bad news.
India’s financial turmoil augurs a reckoning 25 Sep 2018 Infrastructure lender IL&FS has helped trigger market mayhem, prompting regulators to step in to try to calm investors. The boss of India’s largest bank says this isn’t a “Lehman moment”. Maybe, but the amount of bad debt and short-term funding are worrisome.
Drug watchdog’s Brexit spat is bad omen for London 25 Sep 2018 The European Medicines Agency is embroiled in a legal fight to scrap a lease on its UK headquarters. Its argument, that Brexit was an unforeseeable event, looks weak. But even if the regulator loses the case, its actions offer a grim prognosis for London office property.
Sky battle may end in awkward media giant impasse 19 Sep 2018 A sealed-bid auction could decide whether Comcast or Disney takes control of the UK broadcaster. The winner will almost certainly overpay. If the cable giant triumphs, the Magic Kingdom might keep its 39 pct stake. That would make the fierce rivals uneasy joint venture partners.
Banks give China’s web lenders a second life 19 Sep 2018 Investors are fleeing the country's $200 bln peer-to-peer lending sector, as Beijing steps up its crackdown. The squeeze has pushed many outfits like LexinFintech to seek more funding from banks. Margins will suffer, but it's a small price to pay for growth.
Cannabis stocks have whiff of 2006 14 Sep 2018 A weed ETF has doubled in price in just over a year, while a Canadian producer has been targeted by an activist because its stock “only” trades at eight times EBITDA. Demand is real and legalization is coming. But online gaming’s sharp correction 12 years ago offers a warning.
Regulator’s exit throws Italy fresh market test 14 Sep 2018 The head of the country’s financial watchdog resigned after ruling parties criticised his continuing ties with the European Commission. Mario Nava was appointed by the previous government. His replacement will face a challenge to dispel doubts of political meddling.
EU arms media with a pea-shooter for Google fight 12 Sep 2018 Brussels’ proposals would make it easier for publishers to charge tech groups for using their articles. But given Google and Facebook hold all the market power, the plan would make little difference. Digital dominance calls for antitrust remedies rather than ineffective fiddling.
Beijing’s confused tax message will strain growth 12 Sep 2018 A fiscal shake-up is set to slash personal taxes and leave China's workers with nearly $50 bln more to spend. Companies, though, may need to start paying a lot more social charges, raising their costs. That has left officials scrambling to avoid a fall in corporate investment.
Banks belatedly realise money laundering is bad 11 Sep 2018 ING’s finance director will leave after the bank’s illicit fund failings incurred a 775 million euro hit from Dutch prosecutors. In the past, miscreants have got away with paying fines. Now shareholders are pushing the issue as well as politicians, accountability is improving.
Didi falls way behind Uber on road to IPO 11 Sep 2018 Both burn heaps of cash, but new figures reveal that the $56 bln Chinese app pockets just two cents of every rider dollar. For $72 bln Uber, the roughly equal sum after subsidies is 23 cents. Differences are getting clearer even if neither looks ready to ride onto public markets.
Foreign carmakers are caught in a China drive-by 7 Sep 2018 Beijing wants to slash excess auto production at a time when Nissan, Toyota and others hope to expand. Draft rules could cut as much as a third of capacity in the world’s largest car market. Official feuding over the issue too could prove a speed bump, even for global giants.
UK power price caps will give banks jitters 6 Sep 2018 Britain’s energy regulator has put a ceiling on default energy bills. While Ofgem’s plan won’t hurt utilities as much as feared, the precedent is important. Domestic banks can only hope politicians fail to spot that their business models similarly rely on consumers’ apathy.
Norway’s anti-plastics push has firm foundations 6 Sep 2018 Oslo’s $1 trillion wealth fund wants its investments to flag what they’re doing on ocean pollution. As a recent spat over oil and gas holdings shows, political meddling means good intentions don’t always translate into action. That should be less of a problem this time around.
Time breathes life into America’s mortgage zombies 5 Sep 2018 It’s 10 years since Washington took over Fannie Mae and Freddie Mac, injecting $187 bln to render them undead. Reforms have not touched the supposedly temporary fix. A functioning home-loan market, revenue for the Treasury and inertia suggest taxpayers may be stuck with them.