Cold snap chills prospects of U.S. coal subsidies 9 Jan 2018 The federal energy regulator nixed Energy Secretary Rick Perry’s proposal to prop up nuclear and coal power. Instead grid operators will be asked how to improve energy reliability. That’s more logical, especially after bad weather showed no fuel source is immune from disruption.
Saving Carillion will cost banks and investors 9 Jan 2018 The troubled building services group is due to meet creditors to lay out a plan to avoid financial doom. That will require it to write off almost half its 925 mln pounds of debt. Though shareholders may put up some cash, banks will be forced to take the biggest hit.
Tech backlash catches up to Apple 8 Jan 2018 Jana Partners and pension giant CalSTRS want the company to give parents better controls over their kids’ iPhones. It’s an unusual issue for an activist, and apps from Facebook and Snap would make better targets. But focusing on Apple shows how much technology has lost its halo.
Beijing will allow a local government default 5 Jan 2018 Despite a long campaign to rein in rampant off-balance sheet borrowing by cash-strapped regional authorities, the practice remains pervasive. Next year officials will tolerate the once-unthinkable: a bond default. That will rattle fixed-income investors onshore and off.
Investors will only curb CEO pay if forced 4 Jan 2018 The bosses of top UK companies have on average taken a pay cut, according to a new report. Fears of a political backlash made investors more apt to vote against chunky remuneration packages. The restraint may be fleeting unless a weakened government can keep up the pressure.
Germany will follow money in EU top jobs carve-up 4 Jan 2018 Jockeying to replace the region’s most powerful people, including European Central Bank boss Mario Draghi, will begin in earnest in 2018. Proposed new posts like a euro zone finance minister complicate the contest. Berlin will prefer control of purse strings to interest rates.
Didi provides glimpse into its global playbook 4 Jan 2018 In its first big step abroad, the Chinese ride-hailing powerhouse is paying $600 mln for control of Brazilian peer 99. The buddy-up first and buy later approach could mean Grab, Lyft or Ola will be next. It also suggests Didi-backer SoftBank may have a master plan, after all.
EU’s market big bang offers clear pain, fuzzy gain 3 Jan 2018 Reforms bundled in the MiFID II directive aim to make finance fairer and safer. Rules that put a price on bank research and force trading out of opaque venues will cost over 2 bln euros to implement. Yet some exchanges face delays. In a global market, loopholes may also open up.
Ant’s U.S. march may require China-like steps 3 Jan 2018 Jack Ma's payments business will have to rethink its global strategy after its MoneyGram deal was vetoed. Even an alliance is at risk if rival Euronet bids anew. Instead, just as U.S. companies have bought small stakes in China, Ant could do the same with Western Union or PayPal.
China’s small-fry banks will start merging in 2018 3 Jan 2018 Squeezed by tighter money, cooling property and anxious regulators, the country’s 4,399 lenders will begin to consolidate. Some deals will boost efficiency; others will force crummy assets into healthier banks. For foreign buyers, the challenge is telling which is which.
Ant’s MoneyGram fail becomes America First symbol 2 Jan 2018 Jack Ma’s financial offshoot has scrapped its $1.2 bln purchase of the U.S. cash-transfer company. The Alibaba boss made nice with Donald Trump early on, but his pledge to spark 1 mln American jobs wasn’t enough to get the deal past a new, and bipartisan, prickliness with China.
Deals a better bet for drug giants than R&D 2 Jan 2018 Last year, U.S. regulators approved the most new therapies since 1996. Yet the return on research outlays for big firms, barely topping 3 pct according to Deloitte, is inadequate and falling. More focused, smaller firms are winning scientifically – and their owners financially.
Fewer fines are upside of bank compliance drive 2 Jan 2018 The UK’s Financial Conduct Authority collected 230 million pounds in penalties in 2017. Though that’s a big increase on 2016, the haul was skewed by a record fine for Deutsche Bank. It suggests hefty spending on tightening up controls is finally delivering some benefits.
Our 2018 predictions on Reuters TV 31 Dec 2017 From the CEOs who should run for U.S. president, to the banks that ought to be sizing up mergers, our writers give their take on the coming year in a series of Reuters video reports.
Viewsroom: Investors target sexual misconduct 29 Dec 2017 Companies that sweep settlements for bad behavior under the carpet will feel shareholder ire in 2018, Breakingviews predicts. Plus, Apple will float past the EU’s roving eye, splintering political parties are a ticking U.S. time bomb and bank bosses may hang up their hats.
Wells Fargo boss will vault over bank’s woes 28 Dec 2017 Tim Sloan will contend for banking’s comeback award in 2018. He struggled in his first year to contain fallout from the lender’s fake-accounts fiasco, but he’s cleaning up the company and, crucially, its culture. That should get investors, regulators and customers back onside.
Bank clients will learn the value of data in 2018 28 Dec 2017 New EU regulations will force lenders to share account information with competitors - subject to savers’ consent. Up to two-fifths of banks’ revenue could be at stake. New entrants will need to overcome privacy concerns. Even so, customers will discover what their data is worth.
China will pull private capital into state orbit 27 Dec 2017 Beijing's mixed-ownership policy push will see private firms fed shares in government-owned enterprises like oil giant CNPC. Further blurring lines between public interest and profit won't do much for efficiency, but buyers will get insurance against political risk.
Xi’s tighter grip will tax Chinese real estate 26 Dec 2017 The president will sideline traditional policy shops, in particular the Ministry of Finance, and assign policymaking to opaque smaller groups. That will accelerate some reforms, in particular the long-discussed national property tax, which could squeeze the housing market.
Bank compliance-cost explosion will abate in 2018 22 Dec 2017 Next year watchdogs will finalise big set-piece regimes for capital levels and investor protection. For banks from JPMorgan to HSBC, rampant growth in spending on due diligence, reporting and the like will level off. That in turn should be positive for lending margins.