BREAKINGVIEWS

Alibaba trades margins for clarity in logistics

26 September 2017READY SOON

The tech giant is paying about $800 mln to lift its stake in logistics arm Cainiao slightly to 51 pct. Keeping the unit at arm’s length had prompted SEC scrutiny. But absorbing the capital-intensive and loss-making Cainiao into the parent’s accounts will weigh on margins.

High yield earns stamp of approval for Japan Post

26 September 2017

Tokyo has sold $11 bln of stock in the postal operator, mostly to Japanese households. This sequel to a huge privatisation in 2015 owes little to the former state monopoly's growth prospects, and almost everything to its cheap valuation and unusually high dividend.

Greenhill takes painful path back to the old days

25 September 2017

The M&A boutique is piling on debt to buy back a third of its stock and may scrap the dividend. CEO Scott Bok and staff will own almost half the firm, making it more like a Wall Street partnership of yore. The move, however, is being made from a position of weakness not strength.

Sunac’s spending spree leaves no room for error

26 September 2017

Investors have rewarded the Chinese property developer’s debt-fuelled expansion. Chairman Sun Hongbin's aggressive land-grab may well pay off, especially if the sector consolidates. But as property prices cool and political risk rises, a small misstep could be life-threatening.

Macau mobster’s ICO is ideal test for watchdogs

26 September 2017READY SOON

Former gangland boss “Broken Tooth” is backing a $500 million initial coin offering, according to Hong Kong’s SCMP. The convicted money-launderer’s deal lends ammo to those calling for the suppression of new crypto-currencies. But this is a great opportunity to refine rules.

NFL fumble leaves broadcasters facing the penalty

25 September 2017

President Trump is attacking football players who don’t stand for the national anthem. But falling TV ratings are a deeper-seated problem for the sport. The likes of Disney and Fox that shelled out billions for the rights face pain. But CBS could be in for a major sack.

Retailer puts huge discount on activist overreach

25 September 2017

Two hedge funds want to oust Tuesday Morning’s Steven Becker, a fellow pushy investor who ended up as CEO. The home-furnishing chain’s stock has fallen 62 pct on his watch - a reminder that having smart financial ideas doesn’t mean activists make good corporate chieftains.

UK banks are trapped in a pincer movement

25 September 2017

The Bank of England says lenders will face higher capital requirements – and all the more so if they are vulnerable to consumer loans souring. Meanwhile the opposition Labour party wants to cap credit card interest. Investors may have to give up hopes of ever-larger dividends.

AIG deserves to be SIFI-free, with caveats

25 September 2017

Watchdogs delayed a decision on whether to remove the insurer’s status as a systemic risk. It seems justified, as AIG has halved in size since its $182 bln bailout and long ditched the unit behind its collapse. But regulators should use safeguards to avoid deregulating too far.

Italy’s 5-Star puts respectable face on radicalism

25 September 2017

The protest movement, doing well in opinion polls, has named a 31-year-old lawmaker as its leader. Luigi Di Maio’s cool appeal contrasts with founder Beppe Grillo’s vitriolic style and may win over moderate voters in 2018. But going mainstream could undermine its basic appeal.

Eminem IPO risks a Slim Shady rap

25 September 2017

An online site for buying and selling artists' royalties is floating a unit that will buy into the revenue from music catalogs, starting with the Detroit star's. The interests may be partial, though, and the revenue volatile. The financial remix sounds off-key for public markets.

Scandinavian payments buyout faces long payback

25 September 2017

Hellman & Friedman is buying Danish group Nets for $6.6 bln including debt. It’s the latest private equity firm to ride the switch to online payments. Nets has been through the buyout machine before, and faces threats. There are few easy wins in the current hot market.

ABB’s short-term value push takes $2.6 bln detour

25 September 2017

The Swiss group is shelving a $3 bln buyback programme to acquire GE’s non-core industrial solutions unit. On the surface it’s a strange move for a company that’s faced calls to simplify and boost margins. But a low price and high synergies mean ABB investors might still prosper.