January, 2019

• 20 January

  In China, prudence is a virtue ‘for now’

  

  If this is prudence, let’s have more of it. The People’s Bank of China’s (PBOC) bit-by-bit approach to spurring growth is letting fiscal policy take a welcome turn at the wheel. It also amplifies a trend seen in other major economies, where central banks are carrying less of a burden relative to the past decade. The message was on vivid ...

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• 20 January

  Indonesia’s unicorn charge makes the rupiah tremble

  

  Indonesia’s booming e-commerce industry is churning out unicorns such as Tokopedia PT and Bukalapak.com. It’s also creating a headache for the government and the rupiah. Authorities are trying to capitalise on this fast-growing cash cow by taxing e-commerce transactions. Starting April, online retailers will need to collect, deposit and report income and value-added taxes. Small and medium-size businesses must pay ...

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• 20 January

  Traders indulge in some wishful Brexit thinking

  The UK Parliament has inflicted the biggest-ever defeat on a sitting government in the country’s modern history. It has pretty much shredded the only deal agreed by Brussels and London for a Brexit on amicable terms. The deadline of Article 50 (the two-year withdrawal process) draws near, and there’s still no solution beyond the dread prospect of the UK automatically ...

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• 20 January

  If all vehicles go electric, that’s just a first step

  

  Many of the headlines coming out of Detroit during the North American International Auto Show will be about electric vehicles – from new electric concept vehicles from Nissan and Infiniti to an emerging partnership between Ford and VW on electric and autonomous vehicles. By all means, environmentalists and others should celebrate progress in bringing more EVs to market. But they ...

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• 20 January

  For a GE executive, $63mn isn’t enough

  

  For every step General Electric Co. takes towards overhauling its culture, it seems to take a step back. The troubled industrial conglomerate announced that UBS Group analyst Steven Winoker would become the head of its investor relations team. Winoker will replace Todd Ernst, who joined only six months ago from Raytheon Co. This change was needed; GE’s communications with investors ...

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• 20 January

  Netflix’s simplicity gives it a competitive edge

  

  I’m cautious about Netflix Inc.’s financial health and the wisdom of its investors as the company finances its growth by spending on investors’ dimes. Netflix, though, has underappreciated advantages over the growing number of Netflix wannabes. That’s not to say Netflix will ‘win’ against the competition from Walt Disney Apple Inc., AT&T Inc.’s Time Warner and others. As people spend ...

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• 20 January

  Euro is here to stay as Brexit serves as warning to defectors

  

  Bloomberg The euro will live for at least another two decades after financial crises since the start forced governments to strengthen its foundations, according to economists surveyed by Bloomberg. But as the currency celebrates its 20th birthday this year, most respondents warn against complacency — particularly after populist political campaigns across the region publicly toyed with the idea of exiting ...

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• 20 January

  Italian stocks shrug off investor concern

  

  Bloomberg The government is feuding, the budget numbers don’t add up, questions are swirling around banks. But Italy’s stock market is on a roll. The FTSE MIB benchmark has risen 7.6 percent this year, the best performer among major European markets, helped by gains at oil services company Saipem SpA as well as from recently added member Juventus Football Club ...

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• 20 January

  PG&E crisis: Banks face $760mn exposure to municipal bonds

  

  Bloomberg The impending bankruptcy of PG&E Corp is threatening to foist large liabilities on five banks that have agreed to act as buyers of last resort for more than $760 million of bonds that the teetering utility issued through California government agencies. The company’s announcement that it plans to seek protection from creditors triggered a surge of selling by owners ...

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• 20 January

  Bank Indonesia leaves interest rates on hold

  

  Bloomberg Indonesia’s central bank left its benchmark interest rate unchanged for a second month, while keeping the door open for more policy action if needed. After hiking by 175 basis points since May, Bank Indonesia kept its seven-day reverse repurchase rate at 6 percent, as predicted by all 26 economists surveyed by Bloomberg. Governor Perry Warjiyo said the rate was ...

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