June, 2018

• 6 June

  Brexit Britain has noxious new cloud on horizon

  

  The sun has finally brought Britain’s shoppers out of their post-Christmas gloom – a relief of sorts for those who worry about the damage that Brexit might inflict on the country’s economy. But while I’ve argued before that the despondency has been overdone, the recent spike in gasoline prices does leave cause for concern. Still, to stick with the sunshine ...

  Read More »
• 6 June

  Alibaba incubates a health risk for global investors

  Jack Ma just sowed the seed of another decacorn – a startup worth more than $10 billion – on the Hong Kong stock exchange. Largely ignored by analysts, Alibaba Group Holding Ltd.’s health unit suddenly woke from a long hibernation last month, soaring 58 percent in two weeks to reach a market value of $8.7 billion. Most of the rally ...

  Read More »
• 6 June

  Volatility trading may be a crisis in the making

  

  Like postmodern literature that eschews conventional plot, narrative, and characters, financial markets have become increasingly abstract and remote. Volatility trading offers a good example of why this is so dangerous. In February, Goldman Sachs Group Inc. reportedly made $200 million in profit on a single day from volatility trading. Anticipating increases, Goldman purchased volatility then sold it profitably to investors ...

  Read More »
• 6 June

  Boeing is putting a $30bn deal to the test

  

  Heads, Boeing Co. wins. Tails, aerospace suppliers lose. The planemaker recently announced the latest step in its push to grab more of its suppliers’ rich profit margins for itself. Boeing will partner with Safran SA to develop and service auxiliary power units, which are used to start the main engine and provide power to aircraft while on the ground. If ...

  Read More »
• 6 June

  Facebook never learns from its own mistakes

  

  The worst thing about the latest revelation involving Facebook Inc. and its questionable stewardship of people’s personal information is that the company has again shown that it never learns from its own mistakes. In an article published late on Sunday, the New York Times reported that dozens of hardware companies such as BlackBerry Ltd. and Apple Inc. had far more ...

  Read More »
• 6 June

  Trade hopes sustain risk-on mood; ECB sinks bonds

  

  Bloomberg Trade hopes and the end of easy money were the twin themes in trading on Wednesday, with stocks extending gains and bonds falling as this week’s risk-on mood endured. US equity futures climbed following advances across Asia on signs that major economies will step back from the brink of a trade war. More than half of companies in the ...

  Read More »
• 6 June

  Oil near $65 as OPEC fears weigh against US stockpile drop

  

  Bloomberg Oil traded near $65 a barrel as an industry report showing a drop in American crude stockpiles countered fears about a potential OPEC supply boost. Futures in New York fell 0.7 percent, following a 1.2 percent advance on Tuesday. The American Petroleum Institute was said to report nationwide crude inventories declined by over 2 million barrels last week. Meanwhile, ...

  Read More »
• 6 June

  India joins emerging markets in pulling interest rate trigger

  

  Bloomberg India’s central bank raised its benchmark interest rate for the first time since 2014 to curb rising price pressures and calm financial markets as policy tightening in the US rattles emerging markets. All six members of the Monetary Policy Committee voted to increase the repurchase rate to 6.25 percent from 6 percent, the Reserve Bank of India said in ...

  Read More »
• 6 June

  Credit Suisse to pay $47mn to resolve US probe on Asia hiring

  

  Bloomberg Credit Suisse Group AG agreed to pay a $47 million penalty to the US Department of Justice to end a probe into whether it hired employees in Asia in exchange for government contracts and other favors. Credit Suisse’s Hong Kong unit reached a non-prosecution agreement with the DOJ regarding its recruitment practices in Asia between 2007 and 2013, according ...

  Read More »
• 6 June

  Circle seeks to become licensed bank, trading venue

  

  Bloomberg Circle Internet Financial Ltd., one of the world’s most valuable cryptocurrency platforms, is looking to make a big leap into the highly regulated realm of US banks and brokerages. The venture, partly backed by Goldman Sachs Group Inc., plans to seek a federal banking license to provide more services to customers. It also intends to pursue registration as a ...

  Read More »