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Saturday, 25 June 2016

Stocks and Funds

A news broadcast on a TV is pictured in front of the German share price index DAX board, at the stock exchange in Frankfurt, Germany, June 24, 2016, after Britain voted to leave the European Union in the EU BREXIT referendum.

Bank shares take a bit of a random Brexit walk

24 June 2016

Globally, they’re down about 8 pct. Local pain explains Lloyds and Bank of Ireland. Sovereign debt exposure is a problem for Intesa Sanpaolo and others. Santander has a Spanish election to worry about. The likes of BofA and SocGen, though, seem swept up in a sea of confusion.

A reveller, dressed as a unicorn, in southern England December 21, 2012.

Twilio IPO gallop suggests unicorns can run free

23 June 2016

The U.S. software firm debuted even as Brexit, interest rates and other global concerns have stalled most new listings. A 75 pct pop in the shares gave the fast-growing but unprofitable enterprise with lousy governance a $2.2 bln value. Silicon Valley’s hold on investors endures.

The Canary Wharf financial district is seen at dusk in east London, Britain November 7, 2014.

UK stocks brace for self-inflicted recession

24 June 2016

Shares in banks and homebuilders fell sharply as investors reacted to Britain’s referendum vote. As leveraged bets on the domestic economy, the selloff reflects fears of a contraction. But at least lenders are now better equipped to deal with financial turmoil than a decade ago.

People walk past a Tesco Extra store in Woolwich, southeast London, Britain.

Tesco finds chink in cheap rivals’ armour

23 June 2016

The UK grocer delivered a second consecutive quarter of like-for-like sales growth. Its new strategy? Sell low-priced produce but brand it as if it were expensive. Simple as it sounds, shoppers are duly buying more goods. Tesco is finally getting to grips with its competition.

Bids and Buyouts

A tap and meter shows zero level pressure on Druzhba oil pipeline at Hungarian oil and gas group MOL's main Duna (Danube) refinery in Szazhalombatta January 9, 2007.

Energy Transfer finds better to be lucky than bad

25 June 2016

The U.S. pipeline operator can wriggle out of its disastrous $20 bln takeover of rival Williams. A Delaware judge says a botched tax interpretation by lawyers was a genuine mistake, not part of a scheme to prevent the deal from closing. There may yet be a price to pay, however.

Henkel logo in Duesseldorf March 8, 2012.

Brexit fails to deter Henkel's lust for detergent

24 June 2016

Amid the worst market meltdown in ages, the German consumer goods giant is forking out $3.6 bln for U.S. home-care rival Sun Products. The price is rich and the timing bold. But at least today Henkel looks smart to lower its European exposure and transform its position in America.

People sunbathe on a beach of Pinheiro da Cruz August 8, 2009.

Qunar's cut-price buyout might just fly

24 June 2016

The travel agent is the latest U.S.-listed Chinese group to get a buyout proposal from back home. A 15 pct premium to a depressed stock price is hardly generous. But if major shareholder Ctrip can be persuaded to hop aboard, this deal could work.

SolarCity

Musk's clean-energy deal runs on fossil governance

22 June 2016

The entrepreneur may see possibilities from uniting Tesla and SolarCity that others are missing. They seem, though, to share little beyond big ambitions, cash outflows and stakes owned by Elon Musk. Easier to spot are similarities to a dreadful mining and oil merger from 2012.

Money and Markets

Samantha Acriche

Review: "Gray Rhino" rambles into financial lexicon

24 June 2016

A new book uses the nose-horned beasts as a metaphor for obvious threats ignored by corporate and political leaders. Myriad examples enlisted by author Michele Wucker are engaging, but the solutions come off oversimplified. The gray rhino may not keep pace with the black swan.

Nigel Farage, the leader of the United Kingdom Independence Party (UKIP), reacts at a Leave.eu party after polling stations closed in the Referendum on the European Union in London, Britain, June 24, 2016.

Lesson from Brexit: unthinkable isn't unpriceable

24 June 2016

Britain’s referendum decision is an unwelcome blow to an already fragile world economy, but the real change is that it forces companies and investors to reconsider other once-remote risks. A Donald Trump presidency or the break-up of the euro zone may deserve more consideration.

Revellers rush to the stage ahead of the performance of the Orchestra of Syrian Musicians with Damon Albarn and guests on the Pyramid stage at Worthy Farm in Somerset during the Glastonbury Festival, Britain, June 24, 2016.

Post-Brexit generation war can still be avoided

24 June 2016

Older Britons voted to leave the EU, while younger ones wanted to stay. It’s a flashpoint in a wider global story of inter-generational strife. Unless some of the wealth is diverted their way, a brain drain of justifiably cheesed-off millennials will hit economic growth.

Britain's Prime Minister David Cameron attends after a service of rememberance for Labour MP Jo Cox who was shot and stabbed to death last week outside her constituency surgery, in Westminster, London, June 20, 2016.

Cameron exit sends UK towards investability vacuum

24 June 2016

Prime Minister David Cameron says he will resign. He and his finance minister, George Osborne, stood for competent economic management and stability. Britain lacks obvious replacements who have experience as well as mass appeal. The economy and UK assets will pay the price.