Lloyds dividend machine gets post-Brexit dent 28 Jul 2016 The UK bank has cut back the volume of capital it expects to generate following Britain’s vote to leave the EU. Lloyds is a less risky bank than post-2008. But it is exposed to a domestic slowdown, and its dividend story now looks less compelling.
Nigeria’s problems defy central bank fixes 28 Jul 2016 A hefty rate hike was a fair response to a slump in the naira that’s fuelling inflation. Yet this is unlikely to lure much foreign money back to Africa’s biggest economy. Its political, trade, and fiscal misfortunes are too pernicious for even yield-starved investors to overlook.
Japan’s $265 bln spree is deliberately puffed up 28 Jul 2016 Prime Minister Shinzo Abe is touting a huge stimulus package to revitalize his "Abenomics" project. Actual new state spending will be far less. Still, the eye-catching total is designed to boost confidence, shore up his political support, and prod the Bank of Japan into action.
China’s bank watchdog is pushing on a balloon 28 Jul 2016 Regulators may restrict smaller lenders from the riskier parts of the $3.5 trln market for wealth management products. That would protect savers and limit the hazards caused by repackaging loans as short-term investments. Banks will probably just search for new loopholes, though.
Mondelez owners ill served by Hershey omerta 27 Jul 2016 CEO Irene Rosenfeld refused to elaborate on the confectioner's rejected $23 bln bid for its rival. Avoiding the M&A rumor mill is fair enough. But her decision to try to gobble up Hershey represents a big strategic shift. Shareholders deserve more than a code of silence.
Facebook’s ad dominance masks Snapchat threat 27 Jul 2016 The $350 bln social network's meteoric revenue growth has displaced Yahoo and others, but its 1.5 bln-plus audience is skewing older. Meanwhile, Evan Spiegel's disappearing-messaging service is a hit with the kids. Disruptors are always in danger of being disrupted.
TPP trade deal morphs into crude economic symbol 27 Jul 2016 Democrats are making the pact a bigger issue at their convention than even Republicans did at theirs. Team Clinton has been pushed to voice opposition. Specific ideas on how to fix TPP, however, are in short supply. The uproar also overlooks a real issue for workers: technology.
StanChart’s chairman now comes in two parts 27 Jul 2016 IMF director Jose Vinals will head the UK emerging market bank’s board. Others too have hired chairmen from the public sector, but StanChart could use a seasoned banker to oversee the recovery of its commercial arm. New deputy Naguib Kheraj may have to do some heavy lifting.
Europe gets pragmatic with budget delinquents 27 Jul 2016 The European Commission doesn’t want to fine Spain and Portugal for flouting EU budget rules. That may look toothless, but piling on fines when both are struggling to cut their deficits doesn’t make much sense and risks political backlash.
Chipmakers’ $15 bln deal about power, not savings 27 Jul 2016 Analog Devices' purchase of Linear Technology combines two of the biggest firms in the profitable niche of circuitry that links analog real life with the digital world. Expected savings don't cover the nearly $3 bln premium, but increased clout with customers may bridge the gap.
Amazon drone lift-off is a mixed blessing for UK 27 Jul 2016 The online retailer got permission from the British government to test drone deliveries, while the U.S. is more cautious. Industrial use of drones could do wonders for Amazon’s spiralling costs. But safety issues and job automation mean there may be losers too.
Barnier’s Brexit gig better than it looks for UK 27 Jul 2016 Brussels' ex-financial services tsar is to lead EU talks over Britain's exit. Michel Barnier has at times raised British hackles, but he largely treated the City of London fairly. Arbitration won't be smooth, but the identity of the negotiator could have been worse.
Santander sprawl contains more ladders than snakes 27 Jul 2016 The Spanish bank is exposed to Brexit risk in the UK and a lacklustre home market. But a previous problem child, Brazil, has an improving outlook. The upshot - tolerably good returns and improving capital - make Santander's latest dividend hike just about justifiable.
Peugeot well positioned for yesterday’s car market 27 Jul 2016 Bumper half-year operating profit shows the French carmaker is cutting costs neatly. Yet a radical shakeup in the car industry means getting up to speed with fuzzier stuff like self-driving cars, electric vehicles and new mobility services. That's a big ask for smallish Peugeot.
Fast is the enemy of good in UK trade talks 27 Jul 2016 Britain is eager to sign up willing free-trade partners for when it detaches from the EU. China, a dab hand at drawing up lopsided pacts, could be a quick win for Theresa May's government. The risk is that the United Kingdom ends up with a deal that binds rather than benefits.
Telecom Italia gives investors reasons to hope 27 Jul 2016 Fierce competition, Brazil and high debt levels are problems that don't easily go away. But Telecom Italia's new chief Flavio Cattaneo has seemingly improved things by sharply cutting costs. The group still faces challenges on many fronts, but it should be a nimble competitor.
Deutsche Bank outlook can’t hide equity hike risk 27 Jul 2016 The German lender thinks litigation and stress tests could turn out better than expected. But second-quarter earnings fell 98 pct to 20 mln euros from a year ago, capital barely improved and revenue slumped. If its optimism is misplaced, a capital increase looms.
Short hit on Itochu is wake-up call for Japan 27 Jul 2016 A report by U.S. firm Glaucus poses hard questions about how the $20 bln trading house accounts for big investments in Colombia and China. Like activists before them, foreign short-sellers could help shake up a market that often looks too cosy.
Breakingviews seeks Asia columnist 27 Jul 2016 We are looking for an experienced financial commentator who is equally comfortable analysing corporate balance sheets, economic developments and market trends. This is an opportunity to help shape opinion on Asia’s most important financial stories for a global audience.
Vizio buy stars China’s latest breed of web giants 27 Jul 2016 LeEco is buying the U.S. TV-maker for $2 bln. Little known outside of China, Jia Yueting's tech group is trying to take on Netflix, Apple and Tesla all at once. The unabashed global ambitions make it different from more established Chinese giants like Alibaba and Tencent.
Jack Dorsey may want to pull a Marissa Mayer soon 26 Jul 2016 The Twitter CEO's plan to get the $13 bln social-media firm to take wing has been mostly ineffective. Revenue and user growth are slowing. Now would be a good time to find a suitor. The human news feed could find a home on the island of misfit media assets Verizon is assembling.
Apple’s muted results belie building pressure 26 Jul 2016 With little reason for customers to update their iPhones, the $520 billion firm led by Tim Cook again reported declining quarterly sales. Yet favorable forces pile up with each mediocre result - existing handsets are aging, services growing, and investor expectations falling.
Hillary Clinton’s 1 pct dilemma gets more awkward 26 Jul 2016 Progressive Senators Sanders and Warren kicked off the Democratic convention blasting the rich. With inequality atop the party platform, they expect Clinton to rein in millionaires. They are her biggest donors, however, meaning she'll be forced to ignore them at her coronation.
LVMH results showcase benefits of mixed luxury bag 26 Jul 2016 A pop in demand for champagne and cognac boosted sales of the fancy French conglomerate in the first half and offset declines at its core fashion division. As travel fears and lower demand for designer goods bite, LVMH's diversity allows it to hold its own better than rivals.
U.S. telecom giants transmit new signal on prices 26 Jul 2016 Verizon followed AT&T with news of shrinking wireless revenue. It is prompting a slowdown or end to rate discounts and smartphone subsidies, including from smaller Sprint. A fresh focus on the bottom line may cheer investors but also attract the attention of regulators.
Daimler’s European answer to Uber gains momentum 26 Jul 2016 The German carmaker is merging its ride-hailing app Mytaxi with UK-based rival Hailo. The all-share deal creates Europe’s strongest competitor to Uber while avoiding paying the sector’s frothy multiples. For now, Daimler’s digital first-mover advantage is paying off.
Tesla velocity causes supplier spinout 26 Jul 2016 Mobileye shares plummeted up to 18 pct after it said it would stop supplying advanced cameras to Elon Musk's electric-car maker in 2018. Sales to Tesla are too small to warrant such a crash. It's a reminder that the shift to autonomous vehicles is too early for investors to call.
BP starts to catch a break 26 Jul 2016 Second-quarter results disappointed, but the oil major thinks it has covered the mammoth costs from its 2010 spill. BP has outperformed peers due to a weak pound, and CEO Bob Dudley is staying. A higher-margin pipeline eases the pain of a breakeven point below current oil prices.
Commerz capital rollercoaster goes into a dip 26 Jul 2016 The German bank’s closely watched capital ratio has fallen 50 bps to 11.5 pct. Low rates and sector-wide conduct fines are affecting the models that determine its solvency. At a time when banks are struggling to make money, well-meaning regulation acts as a further drag.
Vivendi has upper hand in Italian cable tangle 26 Jul 2016 Mediaset says the French group run by Vincent Bollore wants out of a deal to buy its pay-TV unit. Vivendi says the two disagree over numbers. Vivendi's hard-nosed approach may reflect its stronger negotiating leverage. Still, it's bold for a serial acquirer to renege on a deal.