The intervention in Ukraine is bad for Russia’s own economy and will do further harm to emerging economies as they struggle with reduced capital inflows and weak exports. Investors are shifting to developed markets, increasing the risks there.
Ratcheting up his Herbalife campaign, the uppity investor says the company broke Beijing’s pyramid scheme rules. Twitchy authorities may agree, but the country accounts for only a small portion of revenue. It’s hard to see just how China could help push Herbalife’s stock to zero.
Motown’s plan for restructuring $18 bln of debt envisions paying equity holders – i.e. ordinary Detroiters – at the expense of secured creditors. This shareholder-friendly approach might save the city, and make Judge Rhodes a hometown hero. But markets may yet exact a price.
Probes into possible currency market manipulation will speed up industry change. The shift to electronic trading will be accelerated, squeezing banks’ trading profits. And with traders cagier about sharing juicy titbits on flows, exchange rates may start to move differently.
The single-horned stallions have made the leap from legend to run free through Silicon Valley, New York, London and the plains of Israel. The term unicorn is now used to describe the most successful startups. In a different and unintended sense, the trope couldn’t be more apt.
Debt levels have grown, but not nearly as much as chains of interconnected borrowers and lenders. Poor capital allocation has encouraged companies and individuals to step in where banks don’t. Longer chains could magnify the effects of a default and turn confidence to chaos.
The Breakingviews Abenomics Index inched higher in January. But manufacturing stumbled, and the trade deficit zoomed, suggesting anaemic demand both at home and abroad. With wages subdued and sales taxes about to rise, the economy may need a fresh dose of monetary easing.