Singapore eyes last trick in the book to win IPOs 24 Aug 2016 The city-state is moving closer to introducing dual-class shares. A growing sense of desperation about a moribund market for new listings has reduced opposition to such a move. The risks of giving up the high ground on shareholder democracy are likely to outweigh any rewards.
Tesla’s big ambitions leave investors standing 23 Aug 2016 CEO Elon Musk now calls his firm a "sustainable energy company." But shareholders were unimpressed by his plan to buy SolarCity. They also switched off after Tuesday's unveiling of a new battery. The fact is, Tesla is trying to mass-produce cars. Anything else is a distraction.
Buyout firms get taste of own double-dip medicine 23 Aug 2016 Leon Black's Apollo will fork over $53 mln to settle SEC accusations it misled fund investors about some of its many fees. Uncovering such industry-wide practices also has helped limited partners push back on what they pay private-equity shops. It's about time the roles reversed.
Auto-parts makers tune up self-driving bandwagon 23 Aug 2016 Delphi and Mobileye are joining forces to develop an autonomous vehicle system by 2019. They'll spread the costs and reach more customers than the rash of ventures initiated by everyone from GM to Google to Uber. That should make this JV a solid entry in a crowded race.
Clinton charity donors make the case for wind-down 23 Aug 2016 The would-be first family plans to reduce ties to their foundation if Hillary Clinton wins the White House. With energy firms and banks like Citi and UBS donating this year, shuttering the non-profit is the best remedy for assuaging any appearance of unsavory influence peddling.
Best Buy managing to turn showroom into business 23 Aug 2016 The $13 bln electronics retailer's quarterly results were nearly a mirror image of a year ago, but buffed by share buybacks. Underneath the hood, the share of online sales is steadily growing. Amazon's still an existential threat, but Best Buy is figuring out how to hold its own.
Fund managers take long view by scrapping bonuses 23 Aug 2016 Star investor Neil Woodford is paying his staff fixed salaries, while former trade body head Daniel Godfrey is launching a trust on the same principle. Fund costs won't necessarily fall. But a bonus system can prompt unhelpful short-termism while ratcheting up overheads.
Big hand points to volatility for Swiss watches 23 Aug 2016 Exports to the UK grew 13.4 pct in July as the weak pound brought bargain-hunting tourists. But globally, shipments continued to slump. Falling, lumpy demand and increasingly mobile customers mean there is little for luxury brands like Swatch and Richemont to set their watch by.
China SOE merger is tiny step dressed as a big one 23 Aug 2016 Construction giants Sinoma and CNBM are being crunched together, following similar mergers in moribund sectors like steel and shipping. It’s unlikely to create job cuts and closures on the scale an investor might want, but streamlining the bureaucracy could generate small gains.
Intersil would be a high-octane deal for Renesas 23 Aug 2016 Buying the U.S. chipmaker would better position Renesas for the rise of the smart car. But a mooted $3 bln price tag for the power management specialist sounds high, even if Intersil is half-way through a turnaround. Renesas is steering itself towards a lacklustre return.
Microfinance leaves India’s banks in the dust 23 Aug 2016 After the near-collapse of the industry six years ago, small lenders to the poor are back and growing fast. A tight regulatory leash, low bad loan ratios, and high returns make microfinance a more attractive investment proposition than the country’s ailing state banks.
Williams gets the board fight it deserves 22 Aug 2016 A pushy investor who just quit as a director at the $21 bln U.S. pipeline operator is back with a whole new slate. Because of a deadline, however, the nominees are stand-ins until real candidates can be found. The year of M&A helter-skelter makes this new madness somehow fitting.
BBVA bonus cap a helpful check on fintech fever 22 Aug 2016 The Spanish bank has asked European lawmakers to let it pay technologists whatever variable compensation it deems fit. A rule limiting bonuses to twice base salaries makes more sense for traders than coders. But it could prevent BBVA veering from innovation lust into overpaying.
Fed is losing friends on both sides of the aisle 22 Aug 2016 The progressive Fed Up group says the U.S. central bank is beholden to Wall Street. It wants more transparency and an end to dividends for banks. The Fed is already under pressure from conservatives. Now Democrats, too, may turn against Chair Janet Yellen and her colleagues.
More marriages of convenience (stores) on the way 22 Aug 2016 Canada's Couche-Tard is paying $4.4 bln for U.S. gas-mart owner CST Brands. That's steep, but the cost savings cover the 42 pct premium. It's another savvy deal from a Quebecois giant that has racked up an 800 percent-plus return for shareholders over the last decade.
Pfizer bets $14 bln it knows better than market 22 Aug 2016 The drug giant is paying a 120 pct premium for Medivation. It's a good fit and the biotech's cancer blockbuster is a rare gem. The whopping premium suggests Pfizer sees something others missed. But a heated auction and back-of-the-envelope math hint that the buyer is overpaying.
Britain’s haul: 27 gold medals and a wooden spoon 22 Aug 2016 China underwhelmed in the Olympic medals table, while the tiny UK excelled. That’s a poor guide to more important competitions. Though Britain still has soft power, its value as a role model is on the wane. China no longer needs gold medals to secure its place on the podium.
Qatar’s investment strategy due a strategic pivot 22 Aug 2016 The gas-rich sheikhdom's big investments - banks, real estate and car makers - have not all worked out. Qatar should instead buy stakes in the end-users of its gas. With commodity prices low, defensive holdings in sectors you know make more sense than bets in ones you don't.
ChemChina’s Syngenta joy has a downside 22 Aug 2016 U.S. regulators okayed the Chinese chemical group’s $43 bln bid for its Swiss peer, and only limited spin-offs may be required. With no synergies, ChemChina needs the skills it acquires to be compelling. The fact it was waved through raises the risk they may not be.
China opens door further to yield tourists 22 Aug 2016 China's $7.5 trln bond market is already fairly open to foreigners. But a looming "bond connect" would bring in extra buyers who don't want to set up shop on the mainland. Relatively juicy yields will be a big lure. The downsides are corporate opacity and limited volatility.
Rajan reforms can thrive with India’s new RBI boss 22 Aug 2016 Urjit Patel is a safe choice to lead the central bank. The deputy governor was a key architect of reforms introduced by outgoing head Raghuram Rajan. To earn the same level of acclaim, Patel must see these through and ratchet up the fight against bad debts.
Gawker assets are bit-players in Univision future 19 Aug 2016 The Spanish-language broadcaster paid $135 mln for sites that draw Anglophone enthusiasts for gadgets, sports and so on, shunning the gossip blog whose privacy breach bankrupted the media group. But Univision's exit from a $14 bln buyout in 2007 still depends on its core market.
Pipeline rebuff could stir activist hornets’ nest 19 Aug 2016 Williams, fresh off a failed merger with Energy Transfer, recently ignored larger rival Enterprise Products' approach about an $80 bln tie-up. The company's silence may prompt two pushy investors who joined a board exodus in June to lobby again to oust CEO Alan Armstrong.
Viacom saga is Wall Street’s new hit show 19 Aug 2016 Ousting CEO Philippe Dauman paves the way for owner Sumner Redstone to try to revive the ailing cable-TV business. That could include investing in content and even selling part or all of Viacom. Investment bankers will be lining up outside its Times Square HQ for a seat.
Traders can learn more from biology than history 19 Aug 2016 Nick Leeson is to teach would-be traders online, drawing on his headline role in Barings Bank's 1995 collapse. The former derivatives dealer has something to impart about risk management and market psychology. But controlling one's hormones is also a big part of making a profit.
ITV could take lead role in takeover drama 17 Aug 2016 The largest British free-to-air TV group is chasing Peppa Pig-owner Entertainment One. But ITV could become a target itself. A more than 25 pct drop in its share price and the weak pound make it vulnerable to opportunistic bids from European rivals like RTL.
Saudi building bust may demolish prince’s reforms 17 Aug 2016 Low oil prices have left thousands of foreign construction workers stranded without pay, and some building companies in financial trouble. Saudi is trying to diversify away from oil, make economic reforms and avoid disrupting the social order. It’s not easy to do all three.
Don’t be duped by Europe’s dazzling dividends 19 Aug 2016 Company payouts are higher than normal relative to share prices. That is usually a signal to buy stocks, especially given ultra-low bond yields. But dividends are far loftier than may be sustainable when compared with expected earnings. Their siren call is better ignored.
Mongolia’s hangover needs more than IMF medicine 19 Aug 2016 The nomad state hiked interest rates to 15 pct to defend a plunging currency. An IMF rescue seems likely, and the new government has shown it is willing to take the pain needed. Longer-term, the real cure for its economic ills will be to woo nervous foreign investors back.
Review: The limits of predicting China’s demise 19 Aug 2016 The country's prospects are bleak, David Shambaugh argues in "China's Future". His critique of the Communist Party's political flaws goes far deeper than most forecasts of economic collapse. Yet foretelling doom at some indeterminate point in the future still has limited value.