May, 2018

• 13 May

  Strategy that killed SunEdison is now beating UK stocks

  Bloomberg The business model that felled what was once the world’s biggest renewable energy company is alive and making money in Britain. Listed funds using the yieldco model are outperforming the FTSE All-Share Index on a risk-adjusted return basis, according to research from Imperial College. “Yieldco” had almost become a dirty word after SunEdison Inc.’s bankruptcy in 2016. The strategy …

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• 13 May

  Bahrain has enough foreign reserves to keep dollar peg

  Bloomberg Bahrain has enough foreign reserves to maintain its currency’s peg to the US dollar, central bank governor Rasheed Al-Maraj said, as higher oil prices help the island-kingdom ease pressure on its strained public finances. Al-Maraj, speaking in an interview in the capital Manama, said he wasn’t aware of any current talks between Bahrain and its Gulf Arab allies over …

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• 13 May

  Natural gas exports poised to gain as Iran deal dies

  Bloomberg Another darling of the Trump administration is poised to gain from the Iran deal breakup as oil surges: Natural gas exports. With the move to curb Iran’s oil output encouraging more shale drilling, prices for natural gas produced alongside crude in West Texas could crater, falling to zero some days, according to Tudor Pickering Holt & Co. Already, the …

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• 13 May

  GE to buy Alstom’s energy stakes in JVs for $3.1bn

  

  Bloomberg General Electric Co. will be required to buy Alstom SA’s stakes in three energy joint ventures for 2.59 billion euros ($3.1 billion), closing a lengthy chapter in the massive 2015 tie-up that has become a headache for the beleaguered US manufacturer. Alstom said that it will exercise its options to exit the renewable energy, grid and nuclear businesses that …

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• 13 May

  Draghi presses for euro-area fund as buffer in future crises

  

  Bloomberg European Central Bank President Mario Draghi stepped up his call for a euro-area fund to make sure countries don’t drift apart in future crises. “We need an additional fiscal instrument to maintain convergence during large shocks, without having to overburden monetary policy,” he said at a European Union event in Florence, Italy. “Its aim would be to provide an …

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• 13 May

  Mexico says ‘bank hack’ led to large cash withdrawals

  

  Bloomberg Several Mexican banks experienced large cash withdrawals in recent weeks after possible cyber attackers infiltrated some financial institutions, triggering unauthorised money transfers, the central bank said in an interview with Bloomberg. Banco de Mexico has zeroed in on five financial institutions whose external connection to the central bank’s electronic payment system was compromised, Lorenza Martinez, the central bank’s head …

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• 13 May

  Morgan Stanley spars with Deutsche Bank as derivatives trades rebound

  

  Bloomberg A legal battle is heating up over scraps of a synthetic securitisation structured before the global financial crisis, highlighting risks in derivatives trades that are proliferating again. Deutsche Bank AG and Morgan Stanley are fighting over 36 million euros ($43 million) that wasn’t repaid to junior noteholders. The deal matured in December 2016 and was designed to provide credit …

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• 13 May

  Wells Fargo growth ban won’t end until vote of Fed board

  

  Bloomberg Unprecedented growth restrictions imposed on Wells Fargo & Co. will stay in place until the Federal Reserve’s board agrees that the bank has made enough progress in fixing flaws that led to customer-abuse scandals over the past two years, Fed Chairman Jerome Powell said in a letter to Senator Elizabeth Warren. In a letter to Warren dated May 10, …

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• 13 May

  Bankers with broken English are Luxembourg’s Brexit bottleneck

  

  Bloomberg Luxembourg’s citizens can quickly impress with their language skills, switching with ease between their local tongue and German, French and English. But insurers, investment firms and banks hoping to open post-Brexit outposts in one of the European Union’s most important financial hubs may be in for a surprise. Head hunters say there simply aren’t enough candidates in and around …

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• 13 May

  What Walmart will do after buying in India, selling in UK

  

  Bloomberg The sun never sets on Walmart Inc.’s empire, thanks to its network of stores across five continents. But in the span of 10 days, chief executive Doug McMillon has begun dramatically redrawing the retailer’s map, and there’s likely more to come as it places bets to remain on top. “All of a sudden, everything is in play,” said Dave …

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