January, 2020

• 6 January

  Shanghai-London connect was always a pipe dream

  It’s always easier to put up a barrier on an empty road than a busy highway. That’s worth remembering in light of recent reports that China has temporarily suspended cross-border listings between the Shanghai and London stock exchanges. The halt is a response to the UK’s stance on pro-democracy protests in Hong Kong, Bloomberg News reported, citing a person familiar ...

  Read More »
• 6 January

  Say final goodbye to banking as we know it

  So is China readying its own Bitcoin? Banish the thought. It’s far bigger than that. Yes, just like any other cryptocurrency — or for that matter, cigarettes in prisoners-of-war camps — the upcoming digital yuan will be “tokenised” money. But the similarity ends there. The crypto yuan, which may be on offer as soon as 2020, will be fully backed ...

  Read More »
• 6 January

  The EU is no match for financial crime gangs

  

  Europe’s reputation on financial crime took another battering in 2019. Several of the region’s biggest lenders, including ABN Amro Bank NV and Swedbank AB, were tarred by allegations that they let criminals move around their cash unhindered, a reminder that Danske Bank A/S’s mammoth money-laundering failings weren’t isolated. At least the scale of the problem isn’t going unnoticed. Politicians and ...

  Read More »
• 6 January

  Central banks are the biggest risk to economy in 2020

  

  The US economic recovery that began in June 2009 is now in its 127th month, which is a record. Even more impressive is that for the first time since the signing of the Declaration of Independence in 1776, the US just completed the first calendar decade without even one day of a recession. There are a few key reasons why ...

  Read More »
• 6 January

  Twitter begs users to target themselves for ads

  

  A few weeks ago, Twitter gave users an early holiday present in the form of “Topics,” a feature that lets them subscribe to feeds on a given subject. As the company explained it, the feature reduces the need for users to track down accounts to follow; rather, “the conversation will come to you.” Although Topics sound like it might be ...

  Read More »
• 6 January

  China pledges to ‘win’ battle against rising financial risks

  

  Bloomberg China pledged to step up measures to shore up its troubled banks and small businesses while continuing a crackdown on shadow banking and property speculation, in a difficult balancing act that risks exacerbating a build up in bad debt at its traditional lenders. As concerns mount over the state of China’s $45 trillion financial system, the nation’s central bank ...

  Read More »
• 6 January

  Pound surges hoping BOE will hold rates

  

  Bloomberg The pound rebounded from its new year hangover, on speculation the Bank of England could avoid an imminent cut to interest rates following a post-election economic boost. Sterling advanced against all major peers and halted its losing streak since the start of 2020, after the UK’s services sector unexpectedly showed signs of strengthening. This may ease pressure on the ...

  Read More »
• 6 January

  ‘Economy can’t promise Trump win’

  

  Bloomberg Investors should be careful about assuming that strong US economic conditions guarantee that president Donald Trump will win another term in November, Morgan Stanley strategists warned. “The most common misconception among investors we talk to is that solid economic growth assures the president’s re-election,” strategists at the Wall Street bank including Michael Zezas wrote in a note on Monday. ...

  Read More »
• 6 January

  Little Asian market impact from Iran tensions: UBS

  

  Bloomberg Escalating friction between the US and Iran will likely have limited impact on Asian stock markets, according to UBS Global Wealth Management and JPMorgan Asset Management. Following the US airstrike that killed Iran’s top military commander Qassem Soleimani last week, Iran said it will no longer abide by any limits on its enrichment of uranium and Iraq’s parliament voted ...

  Read More »
• 6 January

  HSBC walks tricky political tightrope between HK, Beijing

  

  Bloomberg The two bronze lion statues standing guard over HSBC Holdings Plc’s main offices in Hong Kong still bear the marks of an attack by protesters, who last week daubed them with red and black paint, setting at least one ablaze. Graffiti declared that HSBC had been dyed the red of China. HSBC has vowed to restore the iconic lions ...

  Read More »