The bursting of the gold bubble is just the harbinger. Other asset classes are vulnerable to the U.S. central bank dialling down its money-printing programme. Safe-haven bonds are already easing. Commodities look next in line. Stocks are the best bet but they too may suffer.
Selling its final stake in lender ICBC leaves Goldman Sachs with an annual return on its investment of around 36 percent. HSBC, which just sold out of insurer Ping An after ten years, notched up a lesser 23 percent. The reason: the UK lender put strategic value before profit.
JPMorgan chairman and CEO Jamie Dimon spent months focused on preserving a title when he should have been totally dedicated to running the largest U.S. bank. The episode perfectly illustrates the common sense behind separating the chairman and CEO roles.
The tech giant followed the law, but its aggressive use of Irish subsidiaries to reduce tax payments fails the smell test. Ireland comes off as an unscrupulous tax haven, while the U.S. government looked the other way. It’s time for a new international deal on corporate taxes.
Her $1.1 bln deal to buy blogging site Tumblr bolsters the website’s firepower in the mobile arms race. It’s the latest sign that Mayer has confidence from her board and shareholders to take risks. In less than a year, she has turned Yahoo from a purple joke to part of the buzz.
The rail and bus operator is raising $1 bln to stave off a ratings downgrade. The chairman is leaving. Debt may be cheap, but too much is still a constraint. With equity markets rising, this won’t be the last over-geared firm to seek to restructure its balance sheet.
The e-commerce giant is already a big generator of investment banking revenue. Factor in a potential IPO, and for global banks Alibaba could be the biggest client to come out of China in a decade. In a weak market, the battle lines are already being drawn.