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The emerging market lender delivered its customary strong growth in the first half, with income up 9 percent. The worry is that continued expansion comes at the expense of ever-higher bad debts. But StanChart is also benefiting as European rivals retreat from Asia.
India's power vacuum needs to be filled
You couldn’t make this up. As the country suffered from the largest blackout in history, the government promoted the power minister and replaced him with a part time substitute. Delhi badly needs to turn the economy around, but it suffers from a gigantic leadership deficit.
U.S. banks loath to kick even soft crisis drug
Community banks are pushing to extend a crisis program under which the FDIC insures $1.5 trln of deposits without limit. Yet the program helps concentrate risk, distorts funding costs and brings outsized benefits to bigger banks like JPMorgan. There’s every reason to let it die.
Facebook costs UBS some of its new friends
The Swiss bank worsened an already tough quarter by losing 350 mln Swiss francs on the social network’s IPO. UBS has boosted its capital and is once again attracting wealthy clients. But the risk of further nasty surprises in its investment bank casts a shadow over its recovery.
Take hope from India's power and water failures
Forget trivial reforms like FDI in aviation. What India needs most is improvements in chronically mismanaged infrastructure. But change is hard when the systems are working, even badly. So a huge power outage and yet another unnecessary crop shortage could prove a blessing.
Vivendi may be out of pocket on EMI by salving EU
The French group’s Universal Music arm could sell over a quarter of its British target’s business to appease European trustbusters. Yet Vivendi still must pay 90 pct of the $1.9 bln purchase price. Lost profit and synergies could cost it much more than if the EU nixed the deal.
HSBC held back by developed-world headaches
The bank’s earnings are strong enough to absorb a $2 billion charge for mis-selling in the UK and money-laundering in the U.S. After HSBC’s sub-prime woes, it’s another reputational stain. Yet the setback will only reinforce the bank’s strategic shift to emerging markets.
FEATURED VIDEO
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Breakingviews: StanChart's debts a worryAug. 1 - Standard Chartered's customary strong growth in the first half may be coming at the expense of ever-higher bad debts, says Reuters Breakingviews' Peter Thal Larsen.Video
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Breakingviews: EMI deal’s sour noteJuly 31 - Antony Currie and Jeffrey Goldfarb discuss why Vivendi could be financially better off if EU regulators nixed its $1.9 bln acquisition of British rival EMI.Video
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