Japan’s chat app IPO is more Twitter than WeChat 1 Jul 2016 Messaging platform Line is going public with a valuation of up to $6.6 bln. Like Chinese rival WeChat, it has lured millions with games and virtual stickers. Yet its user base has stopped growing. Like Twitter, it must now try to squeeze more revenue out of those people.
Asian amnesties point to wealth of tax worries 1 Jul 2016 Authorities in India and Indonesia are doubling down on efforts to persuade citizens to declare their assets. The schemes in both countries are very different but could provide a welcome boost to tax revenues. New global rules could also help governments reap a big windfall.
Mondelez can stomach a richer bid for Hershey 30 Jun 2016 The confectioner rejected a lowball offer from Cadbury's parent. Mondelez could pay $26 bln without hurting its shareholders or incurring excessive debt. The jubilant reaction from investors to the initial bid may tempt CEO Irene Rosenfeld to sweeten the terms of her offer.
Guest view: Changing the definition of growth 30 Jun 2016 It's time to reconsider the all-consuming focus on GDP to concentrate on what underpins development, argues David Cruickshank of Deloitte. Measuring social progress can help countries identify and improve the factors upon which economic stability and prosperity depend.
EU’s Italy bailout more political than prudential 30 Jun 2016 The EU has approved Italy's request for funding guarantees to avoid a bank collapse. They won't be used, and don't fill banks' capital holes. But the aid may help Prime Minister Matteo Renzi show he can do deals in Brussels – thus boosting his chances in October's vital referendum.
Hershey makes tempting but sticky takeover target 30 Jun 2016 The $25 bln confectioner belongs with Mondelez's Cadbury. CEO Irene Rosenfeld may sniff sweet opportunity as the charitable trust that blocked past Hershey bids is roiled by scandal, and rival Kraft Heinz is still digesting its mega-deal. But it won't come cheaply.
Lions Gate-Starz mashup is classic Malone 30 Jun 2016 The media mogul's fingerprints are all over the "Hunger Games" studio's $4.4 bln deal to buy the pay-TV operator: a complex structure, new non-voting stock and more influence for John Malone at Lions Gate. Starz shareholders, receiving a lowish premium, shouldn't be surprised.
Puerto Rico law just first step in fiscal fix 30 Jun 2016 The U.S. Senate late on Wednesday passed a framework for the territory to restructure some $70 bln of debt. Puerto Rico, however, also faces an economic crunch and a healthcare crisis. Giving it a version of the Chapter 9 bankruptcy process is only chapter 1 in its rehab.
Once-touted Rio Olympics may leave sour hangover 30 Jun 2016 The Brazilian city won the 2016 Games when ex-President Lula was in his pomp, trying to brand his country as a rising world power. That's now history. A scramble will get venues ready and visitors will enjoy the hosts' fabled warmth. But that won't hide the grim national decline.
UniCredit plucks direction out of disorder 30 Jun 2016 The Italian bank named Jean-Pierre Mustier as chief executive, much faster than expected. The potential mess from the UK vote to leave the EU means it is not a good time to be rudderless. Mustier is internationally respected, and unlikely to shirk tough decisions.
BoJo exit is small net positive amid UK shambles 30 Jun 2016 Boris Johnson’s decision not to run as Tory leader adds to Britain’s political chaos. The next UK prime minister will most likely be EU-exit advocate Michael Gove or reluctant Remainer Theresa May. A Brexit U-turn now looks less likely - but the process could be more cordial.
Goldman’s BHS faux pas is cost of doing business 30 Jun 2016 The investment bank admitted its reputation was not enhanced advising retail magnate Philip Green on the sale of the now-bust UK retailer. Indeed it wasn’t. But courting the rich and colourful is just another kind of trade. Sometimes it brings revenue, sometimes it brings costs.
Believe bonds not stocks on Brexit damage 30 Jun 2016 Stocks have rebounded after the referendum, suggesting Britain’s prospects aren’t too grim. Yet falling gilt yields point to bleaker outcomes. In the absence of hard economic data, a post-vote slump in consumer morale supports the pessimistic thesis.
Britain’s best course of EU action is inaction 30 Jun 2016 It would be silly to push the button on leaving the European Union before Italy’s referendum in October or French and German elections in 2017. By then the UK will have more leverage, and voters a better idea what leaving looks like. Investors could be in for a dull interregnum.
BBMG deal firms up China’s sloppy cement industry 30 Jun 2016 The Beijing-based building materials group is injecting $2 bln of assets into Jidong Cement and taking control of its weaker rival's parent company. This and other big deals are helping rationalise China's glutted industry – even if M&A is often neither quick nor straightforward.
Stress-test failures a warning for European banks 29 Jun 2016 Deutsche and Santander again botched the Fed's exams. It's embarrassing, though more surprising for the German lender. The problem for Europe's financial giants is they have to set up U.S. holding companies by July 1 – bringing more of them into a process as alien as baseball.
Rough ride ahead for the descendants of Mad Men 29 Jun 2016 A damning report backed by P&G and other brand advertisers combined with a potential pullback in marketing during uncertain times spells trouble for big agencies. With revenue per employee slowing at stalwarts like WPP, job cuts on Madison Avenue look inevitable.
Post-Brexit generation war can still be avoided 24 Jun 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.
Monsanto’s bid defense withers on the vine 29 Jun 2016 The U.S. seedmaker’s disappointing third-quarter performance makes it hard to see how Monsanto can lure chemical group Bayer into sweetening an already frothy $62 bln offer. The suitor may be willing to look past a cyclical dip, but its negotiating position now looks stronger.
CIBC in sensible, if 5 years late, U.S. bank deal 29 Jun 2016 The C$4.9 bln acquisition of Chicago's PrivateBancorp will reduce CIBC's exposure to the vicissitudes of Canadian energy and concentrated real-estate lending. It's strategically smart, but at more than twice book, expensive. Not long ago, it would've cost CIBC a third as much.
GE’s 50 billion reasons not to be a SIFI 29 Jun 2016 That's the dollar amount of market cap the U.S. conglomerate has added since it said it would wind down the finance arm that watchdogs said posed a systemic financial risk. Relative to the market and rivals, the gain is bigger still. Complacent mega-bank shareholders, take note.
Trump’s new strategy: label Clinton a Republican 29 Jun 2016 The White House hopeful blasted trade deals with Mexico and Japan. He also accused his Democratic rival of supporting pacts that hurt American workers. That puts her more in line with the GOP. It's a way for Trump to woo voters on the other side of the fence who back Bernie Sanders.
Adidas enlists House Kardashian in siege of Nike 29 Jun 2016 The German sportswear maker signed up hip-hop superstar Kanye West in a partnership just after Nike announced weak quarterly results. Adidas still lags its swoosh-logoed rival in market share and profitability. Adding Mr. Kim Kardashian to its ranks may help close the gap.
Hadas: Britain picks the wrong time to play games 29 Jun 2016 After the vote to leave the EU, politicians on both sides have taken pride in abdicating their responsibility. It comes not from respect for democracy, but for another British tradition: treating things as a game. Young people lost this round, but may even the score in future.
Dixons Carphone’s strong year offers weak comfort 29 Jun 2016 The British electrical goods and phone seller said like-for-like sales grew 5 percent last year. Its pro-Remain boss says leaving the EU may not be disastrous. The company does look strong relative to rivals like Darty, but the outlook for consumer spending is hugely uncertain.
Italy first to exploit EU’s new-found weakness 29 Jun 2016 Rome is pushing for a suspension of Brussels' state aid rules to help it bail out its banks, reports say. If Italy doesn't get some slack, its struggles could upend the euro zone. The risk is a weakened EU acquiesces to a host of carve-outs that compromise the single market.
Mark Carney needs wooing, not whipping 29 Jun 2016 The BoE chief's pre-vote warnings of the risks of an EU exit made him a target for leaver ire. But with both main political parties in turmoil, Carney is a rare stabilising force. The priority is pressing him to stay beyond his tentative 2018 departure date, not pushing him out.
Abu Dhabi fund merger papers over Malaysia problem 29 Jun 2016 State investor IPIC has sparked multiple controversies and is now locked in a dispute with Malaysia's 1MDB. Combining it with local peer Mubadala should lead to better governance. Creating a new $135 bln vehicle also helps the emirate scrub out the stain of past missteps.
In-market M&A goes off-script in Japan 29 Jun 2016 Combining with a local peer shouldn't be too hard. Not so with Japanese refiners Idemitsu and Showa. Idemitsu's top backer thinks the group, which is close to Iran, should avoid Saudi-backed Showa. The concerns look overblown – and waiting a year to air them is downright bizarre.
Breakdown: Solving Asia’s other bad debt problem 30 Jun 2016 It's not just China: soured loans are clogging up Indian lenders too. Though a cleanup is underway, the worry is that the departure of central bank chief Raghuram Rajan will delay it. But Prime Minister Narendra Modi needs to fix the banks to fulfil a pledge to create jobs.