February, 2020

• 3 February

  Trump’s impeachment trial has more utility than futility

  

  When the Senate acquits the president, he will launch a vindication tour proclaiming that his prosecution was persecution that validated his coveted victim status: Crybaby conservatism’s leader has been tormented by unhinged elites. The entire impeachment episode might boost his reelection chances, but only slightly, because voters who are undecided about him are thin on the ground. Nevertheless, there is ...

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• 3 February

  China is prepared to fight last virus

  

  China has a bigger and more sophisticated toolbox to combat any economic slowdown from the coronavirus than in 2003, when it battled the Sars pandemic. The challenge now is a worsening backdrop both domestically and abroad, and how both hamper the effectiveness of Beijing’s response. It’s hard to be precise about the damage given the situation is still unfolding. Bloomberg ...

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• 3 February

  Aston’s new boss races away with a cool $46m

  The maker of Aston Martin sportscars is finally moving to remedy a botched initial public offering that gave it neither the money nor the investors it needed. January 31 brought a cash injection, a new shareholder and a shift in strategy. Crisis measures never come cheap and the rescue comes with many strings attached. Aston Martin Lagonda Global Holdings Plc, ...

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• 3 February

  Amazon’s retail business has a secret weapon

  Another blowout quarter for Amazon.com Inc. earnings spurred a 10% jump in its shares in post-market trading, pushing the retail giant’s value past $1 trillion. To gauge just how powerful Amazon.com Inc. truly is, though, look beyond its market cap, top-line sales or membership revenue and look at the so-called Amazon Tax. This is how much the company gets from ...

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• 3 February

  Amazon HQ2 and Foxconn should never happen again

  

  There have been two prominent instances in recent years of governments offering huge monetary incentives in exchange for an office or factory. Both have turned out badly. The first was former Wisconsin Governor Scott Walker’s $4.5 billion package to win a factory from Taiwanese electronics manufacturer Foxconn. The factory never made economic sense and — to no one’s surprise — ...

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• 3 February

  Nomura can focus on a bigger prize

  

  Nomura Holdings Inc.’s overseas operations are at last solidly in the black after years of flip-flopping between expansion and retrenchment. After a fourth straight quarterly profit, the Japanese brokerage is primed for its biggest international test: building a wealth management business in China. This time, it has a real chance of success. Last week, Nomura reported net income of $524 ...

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• 3 February

  This $1.6 trillion fund says short selling is wrong

  

  Japan’s Government Pension Investment Fund (GPIF) been a trailblazer in promoting the need to incorporate environmental, social and governance issues into the day-to-day job of portfolio construction. With $1.6 trillion under management, it has a lot of firepower in the investing world. So its recent stand against short selling, judging the practice to be incompatible with its role as the ...

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• 3 February

  Stocks in China slide; US equity futures advance

  

  Bloomberg US equity futures rose and European stocks fluctuated following steep losses at the end of last week and as investors digested the latest developments in the coronavirus outbreak. Shares plunged in China as markets there reopened after a long holiday. Contracts on the three main American equity indexes all advanced in the wake of previous declines. Gains in technology ...

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• 3 February

  India’s tax rates cloud prospects of insurers

  

  Bloomberg India’s steps in the budget to end some exemptions given for tax planning and the removal of a dividend-distribution tax for companies will weigh on the earnings prospects of insurers. The lower tax rates under the alternative tax slabs will only apply to those forgoing exemptions, which include investments in certain insurance products. Insurers will be taxed on dividend ...

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• 3 February

  Bitcoin spikes to October highs as China stocks dip

  Bloomberg Cryptocurrencies briefly jumped amid chaotic trading in Asia after China’s stock markets reopened to steep losses following an extended holiday shutdown. Bitcoin surged to $9,608, the highest since October, shortly after markets opened at 9:30 am in Hong Kong, before giving back most of those gains less than half an hour later. The wider Bloomberg Galaxy Crypto Index tracking ...

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