April, 2019

• 21 April

  Electric-vehicle tax credit should be taken off road

  

  Some government foolishness has an educational value that compensates for its considerable cost. Consider the multibillion-dollar federal electric-vehicle tax credit, which efficiently illustrates how government can, with one act, diminish its already-negligible prestige while subtracting from America’s fairness. Sen. John Barrasso, R-Wyo., and Rep. Jason Smith, R-Mo., hope to repeal the tax credit, which probably will survive because it does ...

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• 21 April

  China’s growth story has plenty of holes

  

  As China posts yet another quarter of six percent-plus growth, analysts have been quick to brand the latest upswing as a rebound. Buoyed by this year’s double-digit stock-market gains, large flows of credit and tax cuts for consumers, Beijing is trying to sell the narrative that growth remains stable. Some official statistics seem to support that theory: Gross domestic product ...

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• 21 April

  Nestle discipline cements its lead over Unilever

  Two consumer goods giants, two first-quarter reports that exceeded analysts’ expectations. Which is better? Nestle SA and Unilever both have the same problem. They have to show they can grow, but at the same time improve profitability. To this end, both are reshaping their core portfolios. Nestle has an activist investor lurking in the background, while Unilever is at risk ...

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• 21 April

  Is Spain about to become next Italy?

  Anti-establishment parties have made real inroads in southern Europe in recent years, taking power in Italy and Greece after vowing to jettison mainstream political thinking and challenge the economic consensus in Brussels. As Spain goes to the polls this month, many are worried about the rise of Vox, an anti-immigrant, anti-feminist movement that has emerged as a genuine electoral force. ...

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• 21 April

  Where over $17 billion in shifted tariffs might land

  

  Here’s some good news for America’s flood-hit farmers: China is looking at shifting agricultural tariffs, imposed as part of its tit-for-tat trade war with President Donald Trump, to other products instead. Levies of some sort would still remain in place, people familiar with the situation told Bloomberg News, but move to non-agricultural items. That would allow Beijing to match Washington’s ...

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• 21 April

  KKR has good reasons to prefer Japan over China

  

  Japan lost its position as the world’s second-biggest economy to China awhile ago. But it’s beating out its Asian rival in one area at least: private equity. For restructuring experts such as KKR & Co. LP, whose founders recently declared Japan the company’s “highest priority” outside the US, the smaller country offers much more attractive opportunities. And the reasons are ...

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• 21 April

  Morgan Stanley’s IPO revival comes with big caveat

  

  At this point in the earnings season for big US banks, it was clear that Morgan Stanley’s figures were going to be down — the more pressing question was by how much. After all, the firm derives almost all of its revenue from market-related fees, a weak spot for competitors like Bank of America Corp. and JPMorgan Chase & Co., ...

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• 21 April

  Rate cut may not save ‘ringgit rally’ as index outflow looms

  

  Bloomberg A storm is brewing for Malaysian bonds, as the threat of an $8 billion outflow and a falling ringgit erode sentiment, even in the face of a likely interest-rate cut. The biggest rally in ringgit bonds in three years, fuelled by bets for policy easing, has ground to a halt. FTSE Russell sparked the latest — and perhaps biggest ...

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• 21 April

  US small caps at ‘crucial junctures’, says strategist

  Bloomberg Smaller US stocks may be worth watching right now for both their relative performance and their technical picture. The Russell 2000 index of small-cap stocks has fallen 1.5 percent since February 22, while the S&P 500 index, which tracks the biggest American companies, has risen 4 percent. And that difference could bode ill for the entire stock market, equity ...

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• 21 April

  Commerzbank suitors line up as merger elusive

  

  Bloomberg As merger talks between Deutsche Bank AG and Commerzbank AG appear to run into more obstacles, potential suitors are jockeying for a piece of the German banking market should government efforts to create a national champion fail. Commerzbank, the smaller of the two, is attracting the most interest, perhaps because it would be easier to digest. Dutch lender ING ...

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