Macau revenue drop augurs further slowdown 2 Jul 2014 Online betting on soccer’s World Cup may have contributed to the first year-on-year drop in the enclave’s gaming revenue since 2010. Fewer high rollers and a credit card crackdown didn’t help. That’s okay as long as tourist numbers keep rising. But future growth may be bumpier.
Rakuten’s airline adventure a worry for investors 2 Jul 2014 Taking an 18 pct stake in AirAsia’s new budget carrier may be small for Japan’s $18 bln e-commerce giant. But the justification – boosting its travel website – is a stretch at best. Rakuten’s patchy investment track record is another reason to be sceptical about the new venture.
Twitter takes Wall Street brain drain to new level 1 Jul 2014 The microblogging site enticed former Goldmanite Anthony Noto to become its CFO with a $60 mln-plus signon bonus. That easily prices banks out of the battle for talent. It also poses a threat to private equity and hedge funds – where Noto was heading before Twitter chirped up.
Tax-arbitrage M&A requires a deep discount 1 Jul 2014 U.S. companies seeking to relocate by mergers were a big part of the $1.8 trln first-half deal boom. The benefits of such ill-conceived combinations will be fleeting. Tax reform is already being discussed. And the more inversions there are, the more likely the law is to change.
U.S. cooks up penalties with anti-foreign flavor 1 Jul 2014 New research shows that overseas firms like BNP Paribas do in fact pay bigger fines and plead guilty more often than U.S. companies. One reason may be that prosecutors target only the most serious cases abroad. But the gaps feed suspicions that America is playing favorites.
Rob Cox: Solving the second-class stock conundrum 1 Jul 2014 Entrepreneurs want super-voting rights to execute their vision without bother from uppity investors. “Class V” shares, with ballot power that lapses over time, would be a way to minimize this violation of democratic capitalism. A decade, say, would give founders their chance.
How merger momentum could explode past $4 trln 1 Jul 2014 With about $1.8 trln of M&A so far, 2014 is shaping up to be the biggest year since 2007. If deal volume returns to its typical proportion of global market capitalisation, it would hit $4.5 trln next year. So much activity so quickly, though, probably means more value destroyed.
BNP’s Prot should go 1 Jul 2014 The French bank has pleaded guilty to criminal wrongdoing and will pay a near-$9 bln fine to U.S. authorities. Chairman Baudouin Prot was CEO when BNP Paribas was helping clients evade U.S. sanctions. His position is untenable. In the name of accountability, he should resign.
Market gives BNP benefit of doubt on U.S. fallout 1 Jul 2014 Shares in the French lender have fallen more than 15 pct since it warned in February of U.S. action against sanctions abuses. Factor in market falls, and a near-$9 bln fine, and investors value the hit to BNP Paribas’ reputation and business at below $3 bln. That looks generous.
Private equity’s bad habit: Asian minority stakes 1 Jul 2014 Buyout firms are spending record amounts on non-controlling shareholdings in Asian public companies. History suggests such investments are fraught with risks. Pressure to deploy capital in a market short of traditional targets is driving a trend fee-paying investors dislike.
Thai junta can revive growth but debt will hurt it 1 Jul 2014 The central bank in Bangkok has turned less gloomy about short-term prospects. But before the new army government takes credit for avoiding a near-certain recession, it needs to worry about the huge credit buildup. Deleveraging in an ageing society could become a permanent drag.