May, 2018

• 20 May

  What sanctions? Russian markets are over it

  

  The stronger dollar may have taken its toll on Turkey and Argentina but there is one notable exception to the stresses plaguing emerging markets – Russia. Investors have largely shrugged off the shock from US Treasury sanctions being imposed for the first time on specific Russian companies, notably aluminum producer United Co. Rusal. The MOEX Russia Index, the country’s benchmark, ...

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• 20 May

  Macy’s earnings show it still has some fight in it

  

  Maybe Macy’s Inc. wasn’t just coasting on the holiday spirit after all. The department store giant said comparable sales in the first quarter were up 3.9 percent over a year earlier, blowing past analyst expectations. When you include sales at departments licensed to third parties, it was even stronger, up 4.2 percent over a year earlier. That robust growth followed ...

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• 20 May

  Simplify the Volcker Rule instead of weakening it

  The Trump administration is drawing up a proposal to simplify the Volcker Rule, one of the most controversial pieces of the 2010 Dodd-Frank financial reform. This could be a desirable development, as long as it doesn’t weaken a crucial safeguard against gambling with taxpayers’ money. The Volcker Rule has a worthy goal: Limit government subsidies to financial institutions. When authorities ...

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• 20 May

  India must think twice before busting its ailing banks

  

  India seems intent on cleaning up a banking sector that’s plagued by bad loans and high-profile scams. The question is how damaging the cure will turn out to be. On May 13, federal investigators went after Usha Ananthasubramanian, currently the head of state-run Allahabad Bank, filing formal charges over her alleged involvement in a multi-billion dollar fraud involving celebrity jeweler ...

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• 20 May

  Mahathir must temper his contempt for markets

  

  Mahathir Mohamad blamed everyone except himself and his policies for his country’s entanglement in the 1997 Asian crisis. It appears two decades haven’t been enough to mellow the Malaysian leader. The 92-year-old prime minister has won an unexpected second shot at a job he retired from in 2003. But his contempt for markets is still intact. No, he hasn’t returned ...

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• 20 May

  Auditors shouldn’t have long-term relationships

  

  Following the financial meltdown of a key government contractor in the UK, Carillion Plc., legislators and professionals are discussing the breakup of the Big Four auditing firms. Such a drastic measure, however, would probably do less to increase the relevance of audits than a different change, also unpopular with auditors. Carillion’s demise caused the debate because, as the construction firm ...

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• 20 May

  Gold bulls push for exits on strong greenback, lack of fear

  

  Bloomberg The strong dollar is proving too much of a headwind for gold. Hedge funds and other large speculators pared bullish bets on bullion to the lowest in more than two years as the metal fell below $1,300 an ounce for the first time this year, spurring the biggest weekly price decline since December. Money managers headed for the exits ...

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• 20 May

  Singapore’s Apex exchange to start trading from May 25

  

  Bloomberg Chinese-backed Asia Pacific Exchange Pte (Apex) said it will start trading in Singapore from May 25, the latest foray into overseas trading venues by mainland investors. Apex will offer palm olein futures that will be dollar-denominated and physically delivered, it said in a statement. The bourse will be the third derivatives exchange in the city-state, joining venues owned by ...

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• 20 May

  Fed resists adding capital demand for biggest banks

  

  Bloomberg The Federal Reserve is facing calls within its ranks to consider activating an obscure capital buffer meant to bolster big banks against coming storms when economic conditions are sunny. But for now, those pushing to weigh the demand for billions of dollars in new capital haven’t persuaded the key agency staffers who are reviewing the decision, according to people ...

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• 20 May

  Robot Nora at Nordea wealth unit has big plans

  

  Bloomberg Clients looking for investment advice at the biggest Nordic bank have recently been introduced to a robot. Nora, the robo-adviser that Nordea Bank AB launched last month, has already been asked to start investment processes equivalent to 4 percent of the roughly 500,000 people who get savings advice from the bank each year. Nordea wants to use Nora to ...

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