Chinese investors up the ante in online games 1 Aug 2016 Gaming outfit Shanghai Giant, Alibaba boss Jack Ma, and partners are buying Israel's Playtika for $4.4 bln. This looks pricier than Tencent's recent purchase of the firm behind Clash of Clans. Plus, casino-style games are even more at risk of being overtaken by the latest hit.
Fosun’s deleveraging story strains credibility 1 Aug 2016 The Chinese conglomerate plans to offload up to $6 bln of assets by end-2017 to shore up its credit rating. Yet it has just unveiled new deals worth one quarter of that. Fosun is saying one thing and doing another. It may also find it easier to buy trinkets than to sell them.
EU bank stress test has no failure but some losers 29 Jul 2016 Nine lenders failed to sustain capital ratios above 7.5 pct in the Europe-wide exercise. The likes of Commerzbank, UniCredit, and Barclays won't necessarily need more capital as there was no official pass or fail. But their investors shouldn't bank on higher dividends soon.
NextEra deal marks beginning of end of TXU saga 29 Jul 2016 The power producer is buying the bankrupt giant's stake in transmission group Oncor, valued at $18.4 bln. The $45 bln LBO of TXU, now Energy Future, hit trouble soon after its 2007 completion. Most creditors will have to be satisfied with a slice of the former TXU's other assets.
Oil recovery proves slippery for Exxon and Chevron 29 Jul 2016 The U.S. majors, between them valued at more than $550 bln, posted messy second-quarter results despite rising crude prices. Looking through the noise, falling supply should help establish a steady recovery into 2017. Turning a supertanker isn't easy, however.
Trump shaping up to be political TV apprentice 29 Jul 2016 The Democratic convention has been drawing more viewers than the Republican one. Ratings matter to reality-star Donald Trump, and so the results could factor in the race. Controversy may only go so far with election audiences before they want to see serious policy programs.
Review: Iran cyber hack opened a Pandora’s box 29 Jul 2016 The documentary "Zero Days" takes a thriller-style look at the unprecedented attack on the country's nuclear facilities using the Stuxnet virus. It shows the lack of norms in this new kind of war. What’s left unexplored is how companies have become fair game in cyber battles.
UBS and Barclays face long road to nowhere 29 Jul 2016 Both the Swiss and UK banks reported second-quarter earnings that beat forecasts. But UBS said tough market conditions could persist, while the effect of the UK's Brexit vote on Barclays is as yet unclear. Their valuations reflect the likelihood that returns are stuck in a rut.
EU bank tests are more mess than stress 29 Jul 2016 A gauge of the biggest 51 lenders’ capital adequacy is imminent. There’s no pass or fail, and political considerations will prevent it having too painful an impact. The more regulators participate in such charades, the more their credibility is undermined.
MPS rescuer might just rescue Italy 29 Jul 2016 The Italian lender has picked eight banks for a 5 bln euro rights issue over another rescue deal fronted by ex-banker Corrado Passera. EU stress tests show Monte dei Paschi's capital is weak. But investor support may signal the beginning of the end of Italy's bank crisis.
Greece will prove if IMF mea culpa is genuine 29 Jul 2016 The international lender's handling of the Greek 2010 bailout is censured by an internal report. Some of the critique is dated and IMF boss Christine Lagarde says lessons were already learnt. The litmus test will be how trenchantly she insists on new debt relief for the country.
Theresa May may have saved EDF from itself 29 Jul 2016 The state-owned French utility’s 12 bln pound investment in nuclear reactors at Hinkley Point could unravel after the UK’s new prime minister initiated a surprise review of the high-risk, high-cost project. Pulling the plug would do UK taxpayers and EDF shareholders a big favour.
BOJ does bare minimum for Abenomics reboot 29 Jul 2016 Japan's central bank added just $26 billion of equity funds to its annual asset-buying binge. That is about as little as it could do without disappointing markets or Prime Minster Shinzo Abe. The BOJ is running low on options and probably wants to keep some powder dry.
Clinton, Trump share pitch to middle class voters 29 Jul 2016 The former U.S. secretary of state accepted the Democratic presidential nomination. She empathized with workers who feel left behind in the economic recovery. Trump is also wooing those people. This campaign offers stark choices but the kinds of supporters they need are the same.
Baidu’s ad recovery is a work in progress 29 Jul 2016 Earnings at China's top search engine fell by over a third in the second quarter after a crackdown on healthcare advertising. Baidu says the setback is temporary and margins will recover. But other parts of its search business are vulnerable too. Investors may be too sanguine.
India pharma deal suggests Fosun is an M&A junkie 29 Jul 2016 The Chinese conglomerate's drug unit is buying India's Gland Pharma for up to $1.3 bln. Shortages should boost prices of injectable drugs in the U.S., a key market for the KKR-backed group. Either way, Fosun's latest deal binge jars with its promise to cut debt.
Healthcare M&A rocked by seemingly unbreakable deal 28 Jul 2016 Several industry mergers have fallen foul of tax rules and antitrust concerns. Yet Abbott's $5.8 bln bid for Alere has so far resisted the diagnostics firm's restatements, product recalls and subpoenas over Medicare billing and overseas sales. It's a deal that needs to die.
Alphabet may need to crank up spinoff machine 28 Jul 2016 Google's parent delivered another solid quarter thanks to its search and digital-advertising ubiquity. Such success may make outsiders wary of cooperating with the $525 bln firm's many side projects. Carving these out may be the answer, as it did with the maker of Pokemon GO.
Investors swipe left on Lazard’s profile 28 Jul 2016 Although the $4 bln advisory firm run by Ken Jacobs had a less alluring second quarter than boutique rivals Evercore and Greenhill, a good-looking deal pipeline should make it a match. Instead, Lazard's valuation multiple is at the bottom of the heap. It deserves another look.
Trump Inc rapidly turning from virtue to vice 28 Jul 2016 Real-estate success helped him win the GOP nomination, but there's growing scrutiny of his record. Fellow New York mogul Mike Bloomberg led the charge at the Democratic convention. Trump's long trail of slippery business dealings will make his policy proposals harder to stand up.
Oracle-NetSuite deal may be sweetest for Ellison 28 Jul 2016 The business-software company is paying $9.3 bln, a whopping 44 pct premium, for a cloud-computing company effectively controlled by the Oracle CEO. The deal makes strategic sense, but Ellison looks to be once again cashing in on a side investment at Oracle's expense.
Carrefour’s edge on Tesco is no French paradox 28 Jul 2016 The Gallic retailer’s first-half revenue grew 2.9 percent, and it has better sales and profit margins than Tesco. That’s not surprising: the UK has strong price deflation and Carrefour had a head start in battling the discounters. Yet Tesco’s online nous may narrow the gap.
Agnellis temper dodgy governance with good manners 28 Jul 2016 The Italian family is moving its holding company, Exor, to the Netherlands and attaching new shares that will reward long-term holders like themselves with 10 times newbies' voting power. Investors at least get a say - a chance to weigh the changes against a strong track record.
UK banks can take heart from May’s radio silence 28 Jul 2016 The UK prime minister has so far avoided references to the financial sector. The silence may herald industry taxes to plug Brexit-linked revenue losses. But it might not, and UK lenders have less to fear on capital demands, structural separation and interest rates.
Ford is first U.S. car maker to lose traction 28 Jul 2016 The $55 bln Motown manufacturer delivered a disappointing second-quarter report, with the United States, China and Brexit all figuring. It's a contrast to GM, which zoomed past forecasts. But investors were already pricing in a slowdown. That may limit the share-price fallout.
Cox: Banking ghosts haunt Clinton in Philadelphia 28 Jul 2016 Long before Donald Trump upended politics by excoriating the establishment, Andrew Jackson attacked a pillar of the City of Brotherly Love: the Second Bank. It got him re-elected and firmly established the Democratic Party, whose candidate is now threatened by a similar campaign.
Dixon: Stock markets too sanguine about Brexit 28 Jul 2016 Investors think the UK will settle easily into a new deal with the European Union. More likely there will be cabinet wrangles, tortuous negotiations with the EU, and an unsatisfactory conclusion.
Shell takes disappointing knock post-BG 28 Jul 2016 The oil firm’s latest results are worse than lacklustre compared with rival Total. All divisions are hurting. Sagging oil prices and weak refining margins as well as a bunch of one-offs are blamed. Shell says it’s transitional, but this is hardly the best start to life with BG.
Rolls-Royce has more kerosene in the tank 28 Jul 2016 First-half results at the British engine maker were bad, but not as bad as feared. With cost cuts on track and full-year guidance confirmed, boss Warren East is getting a grip. The stock is already trading on a lofty multiple, but can go further if earnings recover.
Credit Suisse closes in on ‘hockey-stick’ recovery 28 Jul 2016 Boss Tidjane Thiam's view of the Swiss bank's restructuring as a steep drop before a leg-up may be taking shape. Asia was weak, but Credit Suisse boosted capital in the second quarter and took in a net $11.5 bln of private bank assets. Thiam is moving on from a torrid start.