Rules of the road crystallizing for Chinese M&A 9 Jul 2018 Trade tensions and nationalism have tripped up transactions involving chipmakers Broadcom, Qualcomm and NXP, among others. Even as Beijing and Washington spar, though, dealmakers are adapting by scanning different regions or accepting smaller stakes and tougher conditions.
Steven Cohen finds limit of UK regulatory lenience 6 Jul 2018 Britain’s market watchdog has deemed the hedge fund manager not “fit and proper”, making it harder for him to operate in Europe. The tough stance is admirable, especially when London is at risk from Brexit. There are some standards regulators won’t ease to stay competitive.
Weed wafts gently into investors’ portfolios 6 Jul 2018 Investors are warming to the devil’s lettuce. The action is mostly in Canada, which has over $25 bln of listed cannabis stocks, and rising volumes of M&A. But the U.S. is positioned to provide the metaphorical pickaxes, and big consumer brands will be watching for legal changes.
Trump gives his team too long a leash 5 Jul 2018 Scott Pruitt, who has resigned from the U.S. environmental watchdog, had the president’s support for months despite a rash of ethics scandals. His departure shows there are limits, but others facing questions, like commerce tsar Wilbur Ross, needn’t worry yet: the bar is high.
UK’s M&A referee owes Sky investors a late winner 5 Jul 2018 Disney’s sweetened offer for Fox does not extend to the UK pay-TV group’s other shareholders. Britain’s Takeover Panel could fix that by requiring the Magic Kingdom to pay up if its takeover of Rupert Murdoch’s empire succeeds. Unusual circumstances justify the intervention.
Singapore makes Uber unlikely techlash test case 5 Jul 2018 City-state regulators say the ride-app’s merger with $6 bln Grab curbs competition. They want drivers freed up and prices held steady, but also threaten to undo the deal unless consumers are happy with the fixes. The hard line may be a small sign of what’s to come for Big Tech.
Chinese tension whips up a new chip super-cycle 5 Jul 2018 Micron suffered a fresh setback after a rival said a mainland court banned the $60 bln company from selling some circuitry in the country. Even as booming demand pushes prices up, legal battles and China’s quest for homegrown tech amid trade strains are reshaping the industry.
Danske cash gusher faces regulatory blockage 4 Jul 2018 The Danish lender may have helped launder 53 billion Danish crowns ($8 bln) in its Estonian business. The group’s healthy balance sheet helps, but a fine of 8 billion crowns or more could take the bank’s leverage ratio down to 4 percent, and risk generous shareholder distributions.
WhatsApp hits limits of technology in India plight 4 Jul 2018 Just as the Facebook-owned messaging app pushes into payments in its biggest market, it has been warned by New Delhi about false information linked to mob killings. The service’s encryption means new code will be of little help. WhatsApp requires a different sort of innovation.
1MDB trial is just start of Malaysian war on graft 4 Jul 2018 Former Premier Najib Razak has been charged in connection with the $6 bln scandal. The swift action is commendable. Deeper change is needed to reassure investors, though. That means measures like forcing politicians to declare assets, and regulating party funding.
Take Lloyds’ PPI nonchalance with a pinch of salt 3 Jul 2018 A legal ruling implies UK banks may have to repay commission on missold loan insurance. Despite paying 18 bln pounds on wider PPI claims, Lloyds is only modestly adjusting its provisions. That would be encouraging if it didn’t have a track record of goofing its estimates.
Glencore’s Washington risks are starting to add up 3 Jul 2018 The resources giant’s shares fell 12 pct after the U.S. asked for details of anti-corruption compliance in Nigeria, Congo and Venezuela. Glencore’s geographies mean this is always a danger. But a June settlement with U.S-sanctioned Dan Gertler won’t have endeared it to Uncle Sam.
U.S. veto on China Mobile could grow wider 3 Jul 2018 The Trump administration wants to deny the $180 bln carrier’s longstanding bid to offer overseas calls from America. The financial impact will be negligible. But this could herald a broader U.S. campaign to weaken Beijing’s control over Chinese people and companies abroad.
Tech backlash grows in Silicon Valley’s back yard 2 Jul 2018 California will force internet companies like Google to give consumers more control over their information and stop it being sold to third parties. The law is narrow but the Golden State is often a litmus test for legislation that takes hold nationwide.
Fed lets Goldman, Morgan Stanley off lightly 29 Jun 2018 Neither firm can boost buybacks or dividends after their leverage ratio fell below the stress-test minimum. A one-time hit from last year’s tax changes caused it. But Amex, JPMorgan and others handled that smoothly. The two Wall Street banks are lucky the Fed didn’t flunk them.
Xiaomi humble IPO pie still good enough to eat 29 Jun 2018 The Chinese smartphone maker priced its Hong Kong float at the bottom end of a marketed range, valuing it at $54 bln. This isn’t a failure, and investors who believe in the company will like the discount. Missteps by executives and bankers offer lessons for those next in line.
Australia’s ban on Huawei would be a costly call 29 Jun 2018 Having passed a law on foreign meddling in its politics, Canberra now looks set to block the Chinese telecom giant from working on its next-generation mobile network. There are valid concerns. But a ban carries costs: pricier 5G, and worsening ties with its best export customer.
Failed exam suggests deeper U.S. cuts at Deutsche 28 Jun 2018 The German lender was the only bank to flunk the Fed’s annual stress test, adding to its U.S. regulatory woes. Given compliance costs, the result could force new boss Christian Sewing to shrink the bank’s American presence even further. Wall Street titans will strut higher still.
Wall St feels little of Trump’s deregulatory love 28 Jun 2018 Lobbyists for the likes of Goldman Sachs and JPMorgan want watchdogs to reduce a capital surcharge, arguing it’s superfluous. The Fed wants to give it more weight. It’s another example of how smaller banks benefit most from the president’s pledges to roll back post-crisis rules.
Derivatives spat is bad omen for UK-EU regulation 27 Jun 2018 The Bank of England wants European authorities to provide assurance that contracts worth 100 trillion pounds will be valid after Brexit. The EU’s watchdog says banks must prepare for the worst. Playing politics with financial stability bodes ill for future regulatory cooperation.