Russia’s Igor Sechin has hinted that the Kremlin is willing to cut an oil deal with OPEC. The head of Rosneft believes 1 million barrels per day of cuts shared with the cartel could revive prices. For struggling members like Venezuela it might be just in the nick of time.
The German lender’s shares have jumped after reports it could buy back debt amid a wider market rout. The actual amount CEO John Cryan could raise is limited. As with ex-boss Josef Ackermann’s attempt to reject ECB liquidity in 2012, the boast is what counts.
Cheap oil and collapsing freight rates hit the Danish conglomerate even harder than expected. A $2.6 bln writedown on oil assets and a dismal year-end sent 2015 net profit down 82 pct. A bleak outlook suggests Maersk’s dividend, and its valuation, may be unsustainable.
The maker of 10,000-euro handbags warned it may miss its sales target this year. Hermes has some of the best revenue growth of the large luxury labels, and a stock market rating to match. With rival LVMH strengthening and the sector’s high-end softening, its lead may narrow.
Bad practices led to CEO departures at Blackstone-backed mall owner Brixmor and HR software unicorn Zenefits. It’s a useful reminder of a Depression-era observation that good times mask bad behavior, but hard times expose it. These examples may be just a taste of what’s to come.
Jose Antonio Gonzalez is a Harvard-educated economist who knows cost cutting and pensions. Making him CEO, rather than an industry veteran, points to the nature of the Mexican giant’s deep-seated woes. Because it’s more than just an oil company, it’s also less than one.
The Italian bank beat 2015 net profit forecasts, and boss Federico Ghizzoni is making progress on a plan to cut costs and boost revenue. Yet UniCredit still looks undercapitalised. It’s a bad time to be a bank, let alone one whose strategy rests on suddenly less-clear growth.
The failure of Vonovia’s hostile bid for Deutsche Wohnen spares investors a long legal battle. The bidder comes away empty handed with at least 42 mln euros of costs. Wohnen’s defence involved a pricey acquisition. It’s time for German real estate to become boring again.
Market turbulence has led investors to snap up safe German bonds, yet the cost of insuring against a Teutonic default is up. Blame a rout in Deutsche Bank shares. Until Europe’s banking union is complete, governments are the ultimate backstop if big lenders get into trouble.
The White House’s 2017 budget includes another fee on $50 bln plus institutions. That follows Congress’s decision to tap banks and the Federal Reserve to pay for highway spending. Big Finance’s political capital is shrinking, making it harder to fend off future fiscal raids.
Canadian utility Fortis would need some $230 million a year in cost savings or other gains to justify the $1.7 bln premium it’s paying for U.S.-based ITC. The strategic sense in the acquisition doesn’t include obvious synergies. That makes a return for Fortis investors look dim.
The New York area chain warned it may go bust just three years after its IPO. While smaller than rivals like Whole Foods, Fairway’s losses and over-ambitious expansion serve as a reminder of the industry’s challenges. It can’t help Albertsons’ plans for a big stock market debut.
An independent run by the media mogul and former mayor would be well-capitalized by his own personal fortune. Solid financial backing has not, however, been a good indicator of success for Jeb Bush, Hillary Clinton and others. This race is dulling the power of money in politics.