Corporate Governance

China sows confusion with two central bank bosses

26 Mar 2018

The head of the banking and insurance regulator may also become party chief at the People’s Bank of China. Guo Shuqing would outrank new Governor Yi Gang, making for an awkward combination. Guo might be the more effective reformer, but his brash style could unsettle markets.

Facebook crisis could bust digital-ad duopoly

23 Mar 2018

Advertisers may pull money from the social network, which together with Google sucked up 84 pct of digital ad spending in 2017. That cash is likely to stay with data-rich platforms rather than older media. Amazon could benefit if CEO Jeff Bezos can avoid raising antitrust fears.

Basel tweak gives global banks another helping hand

22 Mar 2018

Global regulators have proposed relaxing the amount of capital banks must hold against some forms of market risk. If implemented, the changes would further shrink the 28 bln euro shortfall big lenders face under new rules. After a decade of tightening, watchdogs are easing up.

Illicit money is Europe bank stability blind spot

22 Mar 2018

U.S. authorities arrested the head of a Maltese bank for violating Iran sanctions, prompting calls for it to lose its licence. Similar issues triggered the recent folding of a Latvian bank. Without power to fight financial misconduct, euro zone regulators can’t keep banks safe.

Zuckerberg is making a worrying passel of enemies

19 Mar 2018

The alleged exploitation of 50 mln Facebook profiles by political consultant Cambridge Analytica compounds the $540 bln social network's woes, as it contends with other backlashes. U.S. and UK legislators want to hear from founder Mark Zuckerberg now. He may be in over his head.

Hadas: Businesses need to cut back on half-truths

14 Mar 2018

In the age of digital activism, propaganda’s dire power corrupts politics and divides society. Companies too often join in, pushing agendas with scant regard for the full truth. That’s bad for the world. And if politicians respond by attacking corporations, earnings will suffer.

ING pay fiasco confirms banking’s utility status

13 Mar 2018

The Dutch lender has withdrawn a 50 percent salary hike for its CEO following a public outcry. Political opprobrium stems from past state support for banks. The inevitable consequence is that bosses become glorified civil servants. Directors and shareholders take a back seat.

UK directors group offers lesson in bad management

9 Mar 2018

The chair of the Institute of Directors is temporarily stepping down after a draft report that contained conduct allegations against her was leaked before she had a chance to defend herself. That will harm the credibility of a group which lobbies for better corporate governance.

Asia’s boardrooms require critical mass of women

8 Mar 2018

One fifth of firms in Hong Kong's Hang Seng Index have all-male boards but appointments of women are rising. The next task is to ensure they are present in sufficient numbers for companies to reap the full rewards of diversity. The multiplier effect applies to girl power too.

Chinese bidders find new way to collar their prey

8 Mar 2018

Geely’s boss used an “equity collar” to amass a $9 bln stake in automaker Daimler fast, and without much hard currency. HNA has done something similar at Deutsche Bank and Swiss travel retailer Dufry. Other Chinese firms could use derivatives to make their money go further.

China’s softening on bad loans looks complacent

7 Mar 2018

The regulator is easing buffers required for problem loans, according to media reports. This is another incremental move to relieve struggling lenders and borrowers amid a shadow banking squeeze. That’s good for them, but Beijing appears too relaxed about bank balance sheets.

China’s economic targets invite promise fatigue

5 Mar 2018

More money and more credit, less tax and red tape, plus the same old 6.5 pct growth target: Beijing’s key economic conference opened with cautious tweaks to last year's playbook. Chinese promises in Davos that reform will "exceed foreign expectations" look thin already.

RBS is a step away from ending its lost decade

23 Feb 2018

The state-owned UK lender made its first after-tax profit in 10 years. A 4 pct rise in revenue and falling costs moves boss Ross McEwan closer to his return on tangible equity target. Settling U.S. charges over mortgage securities is the last hurdle to restarting dividends.

Latvia exposes euro zone’s money-laundering holes

20 Feb 2018

The U.S. has accused the country’s third-largest bank of busting North Korean sanctions. This triggered outflows and an ECB payment freeze. Euro members Malta and Cyprus have also faced criticism for poor oversight. The bloc needs to rethink the policing of its weakest links.

French state is handbrake on Renault’s valuation

16 Feb 2018

Despite revenue rising 15 pct last year and a cost-saving alliance with Japan’s Nissan, the carmaker trades at a discount to rivals. Selling more cars and boosting margins will help, but the French government’s 15 pct stake is the main obstacle to CEO Carlos Ghosn boosting value.

Tyson dual shares turn water reform into a washout

8 Feb 2018

An undemocratic ownership structure has allowed the largest U.S. meat producer to ignore investors’ overwhelming call to manage pollutants better. Complying would save the $27 bln company money and show that even the governance-challenged can set a decent environmental standard.

Tesco pay showdown contains a wider warning

8 Feb 2018

A claim that female shop workers should get the same wage as male warehouse staff could cost the UK grocer up to 4 billion pounds. It’s a lesser-known twist on equal pay. While retailers Asda and Sainsbury’s face similar legal challenges, all sectors may be exposed.

Chinese tech is missing a download from investors

30 Jan 2018

Baidu, JD and other U.S.-listed firms routinely skip annual general meetings, taking advantage of a lenient setup for companies legally based in the Caymans. Depriving shareholders of this standard way to raise concerns with bosses and vote on directors is a serious red flag.

Super-voting stock returns a split-ticket

26 Jan 2018

Senior officials from Credit Suisse, BlackRock, Bain Capital and PCCW Media squared off about Hong Kong moving to open the door to dual-class share structures. It'll invite more listings, they told a Breakingviews Predictions event, but the implications are many and varied.

City’s #MeToo moment is tipping point and catalyst

25 Jan 2018

The charity behind a men-only London dinner where female hostesses were groped has closed down. The scale of justified public censure means such events have no future. But the furore may also give new impetus to appoint more women to boards and redress gender pay inequality.