June, 2016

• 30 June

  UK bonds celebrate as spread to US widens to 15-yr high

    Bloomberg U.K. bonds are closing the first half with a 12 percent gain, more than double what Treasuries have returned, on concern Britain’s decision to leave the European Union will drive the nation into recession. The extra yield 10-year Treasuries offer over same-maturity gilts widened to 57 basis points Wednesday, the biggest difference since December 2000. Yields plunged globally ...

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• 30 June

  LSE-Deutsche Boerse deal logic raises hackles

    Bloomberg The odds of Deutsche Boerse AG successfully taking over London Stock Exchange Group Plc is just 26 percent after the U.K.’s vote to leave the European Union raised questions about the deal’s logic. That’s according to the average estimate of 25 event-driven desks, equity analysts and fund managers surveyed by Bloomberg News. A common market calculation based on ...

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• 30 June

  Britain’s motown bites the European hand that helped it prosper

  

    Bloomberg Christopher Shepherd helped build a Nissan Motor Co. factory in Sunderland, England, that thrives on the U.K.’s membership in the European Union. Last week, in the EU referendum, he cast a ballot to quit. Shepherd, a 73-year-old retired construction worker, was joined by 61 percent of the electorate in Sunderland, making the gritty city in England’s Northeast a ...

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• 30 June

  How will ASEAN react to S China sea verdict ?

  

  In a service to all South China Sea watchers, the Permanent Court of Arbitration (PCA) announced that its award in Philippines v. China will be announced on July 12. For the outgoing Aquino administration in the Philippines–the initiator of the arbitration–the award has come a little too late. But, for Rodrigo Duterte, the Philippines’ new president, who’s sent mixed signals ...

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• 30 June

  The real trade challenge for Taiwan and Tsai Ing-wen

  

    Michael Reilly SPECIAL TO EMIRATES BUSINESS Taiwan’s trade figures with China should not make comfortable reading for any Taiwanese legislator or policymaker. True, between 2008 and 2015, China’s imports from Taiwan increased by almost 40 percent, vindication, presumably, in Kuomintang (KMT) eyes of Ma Ying-jeou’s cross-straits policy. But that growth pales into near insignificance against the 300 percent plus ...

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• 30 June

  The Turkish-Russian rapprochement

  Catherine Putz SPECIAL TO EMIRATES BUSINESS After seven months of stalled relations–barbed comments and sanctions–Russia and Turkey may be moving toward a rapprochement. On Monday, according to the Russians, Turkish President Recep Tayyip Erdogan sent a letter “in which the Turkish President expressed his desire to settle the situation concerning the downing of a Russian military aircraft.” In the letter, ...

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• 30 June

  Japan’s industrial output dives in knock to recovery

  

    Tokyo / AFP Japanese industrial production dived in May for the first time in three months, official data showed on Thursday, in a worrying sign for the already fragile economy. Factory output dropped 2.3 percent in May from a month earlier, much worse than the average 0.2 percent drop expected by economists, according to Bloomberg News. The weak figures come ...

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• 30 June

  New boss for ailing Malaysia Airlines

  

    Kuala Lumpur / AFP Malaysia Airlines, which has been struggling since twin disasters in 2014, has appointed a new CEO following the resignation of a troubleshooter brought in to turn around the ailing carrier. Peter Bellew, currently the airline’s chief operating officer and a former director of flight operations at Ryanair, will take over effective Friday. “His appointment will ensure ...

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• 30 June

  China investors turn to sovereign debt amid company defaults

    Beijing / Bloomberg There’s about to be a flight to quality in China’s bond market. Fourteen of 22 respondents in a Bloomberg survey of investors and analysts said they are most interested in buying securities issued by the government and policy banks in the next quarter, compared with just four of 19 in a similar poll three months ago. ...

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• 30 June

  Netflix to strengthen original series, films in and from Asia

  

    Seoul / AP Netflix plans to expand its Asian offerings to its subscribers around the world by tapping more creators in Asia. Netflix chiefs said on Thursday that the US streaming service company is looking at many projects throughout Asia, including original series by Asian creators. Netflix invested in South Korean filmmaker Bong Joon-ho’s upcoming movie “Okja,” its first Korean ...

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