Every day ROB Insight delivers exclusive analysis on breaking business news and market-moving events. Streetwise offers news and analysis on Bay Street and the world of finance. Inside the Market delivers up-to-the-minute insights on market news as it develops.
Here are our editors' picks of some of the best reads available to Globe Unlimited subscribers this week.
Name that currency
A sore point in the debate over Scottish independence has been which currency the fledgling country would use if voters return a Yes verdict in the Sept. 18 referendum. SNP Leader Alex Salmond, spearheading the campaign to secede, insists the pound would be retained. Not so, say English politicians, and even Bank of England Governor Mark Carney has weighed in to point out the complications of such an approach. One compromise would be "sterlingization," which would see Scotland unofficially adopt what would be a foreign currency as its own. But the best solution may be neither of the above, writes Ian McGugan in ROB Insight, where he lays out the case for an alternative.
A break from the hostilities
When a Canadian company becomes the target of a hostile bidder, it often means it's game over for them. Once an offer has been made, companies have a window of somewhere between 35 and 60 days to find other suitors, negotiate a better deal, or mount a vigorous campaign to convince shareholders that they're better off just saying no. Now, in a rare consensus among Canada's 13 regulators, the watchdogs have banded together to tackle the issue. In Streetwise, Boyd Erman examines why Corporate Canada has sought the changes and the measures contained in the new draft legislation.
Bricks and mortar in your portfolio
Investors have been a little REIT-shy since last year's "taper tantrum" sparked a selloff of income securities. The Fed seems poised to start raising interest rates next year, putting further pressure on the REIT sector. But those concerns are overblown, says Gordon Pape in In Inside the Market, who digs down into the detail on one Canadian REIT he likes that could be particularly rewarding for investors prepared to take on a little risk.
America's aversion to inversions
The growing number of U.S. companies seeking to redomicile abroad primarily to take advantage of lower tax rates has some American legislators crying foul and demanding changes in the law. This year alone, big names such as banana purveyor Chiquita, drug maker Abbvie, and fast-food giant Burger King have moved to "invert" by buying a smaller foreign company and then decamping the head office. The latter deal, which would see the iconic American chain relocating to (gasp!) Canada, has lit a fire under lawmakers determined to stamp the practice out. In ROB Insight, Kevin Carmichael explains the so-far ineffectual attempts to stem the tide, the political complications, and the measures disinterested experts say are needed to resolve the problem.
Rising threat on insurers' radar
A new report on the global insurance industry from 2009 to 2013 that spans 150 countries looks into the sources of major business risks. Sectors including shipping, aviation, and energy figure prominently, but one segment is provoking increasing concern in the industry. In Streetwise, Jacqueline Nelson looks at trends in traditional areas of insuring and the rising threats it is moving quickly to adapt to.
Follow the U.S. credit numbers
It's pretty reasonable to assume that growth in U.S. consumer credit would benefit retail stocks the most, so it's a bit surprising to learn that it's another sector that gets the biggest boost. A look at the performance of 10 major segments in the S&P 500 over the past decade reveals the strongest correlation lies elsewhere. In Inside the Market, Scott Barlow scours the data and looks at a few stocks that could see a considerable pop if the credit growth trend continues.