Currency

UK economy will share Theresa May’s pain

13 Nov 2017

The Prime Minister is facing growing challenges to her leadership from the ruling party’s pro- and anti-EU factions. Political disarray increases the risks that leaving the European Union will do serious economic harm. A softer Brexit is growing harder to deliver.

Goldman imports Chinese money to lift U.S. trade

9 Nov 2017

The investment bank unveiled a plan to invest $5 bln in American manufacturers with Beijing sovereign fund CIC. In effect, pricey capital generated from trade deficits will go to help the heartland export to China. It's a rich idea to present an anti-globalist U.S. president.

Abe best off keeping Trump out of economic rough

3 Nov 2017

The Japanese premier has established an uncommonly good rapport with his U.S. counterpart. At their upcoming meetings, including on the golf course, Shinzo Abe would be well-served focusing on North Korea. Trade and currency matters only risk creating a momentum-slowing wedge.

ICOs validate old-school “follow the money” mantra

19 Oct 2017

One of the biggest so-called initial coin offerings to date, $230 mln for what are known as tezzies, has led to a spat between its architects and a Swiss foundation that controls the digital cash. Where crowd-funding and crypto-currencies meet IPOs, traditional motivations apply.

Sliding peso flashes warning sign over Philippines

6 Oct 2017

The peso’s slide to 11-year lows reflects concerns about President Rodrigo Duterte’s priorities. His brutal drug war, erratic leadership and vague economic plans could send Asia’s worst-performing currency even lower as Manila’s balance sheet deteriorates and inflation rises.

Crypto-currencies’ strength becomes their weakness

29 Sep 2017

Freedom from regulation was the big draw of bitcoin, ether and the like. But exchanges established to trade them often lack basic controls on identity, fraud, tech and even volume. Without fixes, digital currencies will stay on the financial fringe, prone to crime and bubbles.

Crypto-currencies can’t salvage hedge-fund junkies

27 Sep 2017

One-time star manager Mike Novogratz is pinning a comeback on digital coins. Their volatility is alluring when tranquil markets are depressing industry returns. But as the former Fortress executive knows, that can be a trap. He was burned by a bad Swiss franc bet two years ago.

Trump’s new Democrat friends put China on notice

26 Sep 2017

The U.S. president touted his common ground with congressional minority leaders Chuck Schumer and Nancy Pelosi when it comes to Beijing. They talk tougher on currency manipulation and trade than some in the White House. Their chumminess could put more economic pressure on China.

Hadas: Crypto-currencies presage new monetary era

21 Sep 2017

No, bitcoin and its peers won’t become an electronic version of the gold standard. Rather, the speculation surrounding them indicates a financial system out of control. If the frenzy ends in a crash, it’s a chance to revive the old idea of a centrally controlled money supply.

What Carney can learn from Yellen

21 Sep 2017

Fed Chair Janet Yellen showed rate-setters can shock markets even when they stick to the script. That’s a lesson for the Bank of England’s Mark Carney, who has talked up a rate rise this year. Like her, he may have to hike without having solved a host of economic puzzles.

Asia bulls gather to enjoy a justified gloat

15 Sep 2017

Record numbers assembled at CLSA's investor forum in Hong Kong, where the Chinese-backed brokerage made the case for Asia. Soaring markets make the region an easy sell; even guest Steve Bannon sounded impressed. The risks are that China stumbles, or America gets its act together.

Thai baht races ahead of economic upgrades

12 Sep 2017

The Thai currency is near 28-month highs, buoyed by a growing current-account surplus, a weak dollar and attractive yields. But Thailand’s military rulers are doing little to improve the real economy. Asia’s best-performing currency could fall foul of economic gravity.

Beijing prepares to stand yuan policy on head

11 Sep 2017

Having spent years fighting off capital outflows, China is getting worried about inflows into a runaway yuan. Excessive currency strength could hurt exports and complicate deleveraging. Capping the rally without confusing the market will be quite a trick.

Review: Bank of England’s present echoes in past

8 Sep 2017

The Old Lady has evolved from government lender to modern central bank, but familiar themes recur in David Kynaston’s vivid history. Arguments over independence, monetary policy, bank bailouts and the City of London’s future are as timeworn as the institution itself.

Draghi and Carney’s FX headaches have similar cure

6 Sep 2017

ECB chief Mario Draghi has too little inflation while the Bank of England’s Mark Carney has too much. Currency moves are compounding the problem for both central bankers. Their best hope of fighting unwanted shifts is to convince traders that policy will adapt to such swings.

Uzbek currency is experiment in controlled chaos

6 Sep 2017

The central Asian country has slashed the value of its currency by half. Such moves can hurt consumers and banks and trigger runaway inflation, but Tashkent has levers to limit the risks. While tough tests lie ahead, this is likely to be an example of virtuous devaluation.

China sets limits on fintech disruption

6 Sep 2017

A ban on crypto-currency initial coin offerings follows a similar U.S. crackdown. Like the SEC, Chinese regulators are trying to protect consumers and head off systemic risks. Keeping state control of a financial sector being eyed by Alibaba and others may be equally important.

5-Star’s softer stance on euro is clever tactic

4 Sep 2017

The radical Italian party sees a referendum on euro membership as a last resort, one of its top lawmakers says. The apparent U-turn could help soothe markets and business before upcoming elections. There’s room to backtrack, but 5-Star is holding up and getting more nuanced.

Pyongyang turns yen into a very strange safe haven

1 Sep 2017

As Kim Jong-un’s missiles fly and Donald Trump threatens to respond, investors are taking cover in the yen. Odd choice, given Japan’s economic challenges and its awkward proximity to the action. That shows a lack of options among traders and complacency about escalating risks.

Italian markets dance anew to Berlusconi discord

23 Aug 2017

Chased out of power in 2011, Silvio Berlusconi is spooking investors with talk of a parallel currency. The ex-PM’s plans look more like posturing than policy. His own finances wouldn’t obviously benefit from Italy leaving the euro. Yet Berlusconi remains too important to ignore.