The two banks are most at risk if U.S. regulators force foreign lenders to hold more capital. But if Barclays and Deutsche restructured their businesses into subsidiaries, they might be allowed to shift cheaper capital from their HQs. Credit Suisse’s revamp provides a blueprint.
The UK general insurer’s CEO has quit and its shares have tanked after a third profit warning. The chairman is reviewing RSA’s empire and could sell units to shore up the capital position. But a piecemeal sale of crown jewels like Scandinavia would create its own problems.
The new-look Barclays will stop sponsoring London’s cycle hire scheme. But there must be lots of promising potential replacements for the team at City Hall to consider. Breakingviews imagines a memo to Mayor Boris Johnson.
The country is first to legalize marijuana trade, with production from co-ops, sales to locals only and prices fixed. Relaxing such restrictions, however, could really spark up the economy. The Dutch did well from cannabis tourism, but agribusiness could be the winner in Uruguay.
The Ukrainian president rejected a deal with the EU for fear harsh conditions would deprive him of victory in the 2015 elections. With no sign of an end to demonstrations against his turn to Russia, his days in power are numbered. He’d better stick with Europe.
A former Morgan Stanley banker must repay Hong Kong investors $3 million in illegal trading gains. The ruling is another warning for would-be insider traders. But few cases are quite so clear-cut. Investors hoping for a rush of future compensation payments will be disappointed.
In its closely watched industry outlook, the $400 bln gorilla sees natural gas usage surging 65 pct by 2040 and a bigger jump in shale oil. If right, that would support Exxon’s costly acquisition of XTO four years ago. Even then, however, the deal might not stack up financially.
The Dutch cable firm is in bid talks with Liberty Global, already a big shareholder. Liberty is prudent and patient, and could seek creeping control via a low offer. But synergies would suffer. And there is value in moving quickly: brilliant debt markets won’t last forever.
President Mario Draghi seemed to contradict ECB executive board member Peter Praet by hinting he’s not about to demand capital against euro zone banks’ sovereign debt. Investors can expect more mixed messages. It’s hard to gee up lending while trying to become a tough regulator.