Sharp’s rescue choices centre on a Japanese fudge 6 Jan 2016 The ailing electronics group is at once a big debtor, a major employer, and a flag-bearer for cutting-edge Japanese technology. So neither a foreign takeover nor bankruptcy protection would be easy routes to take. A messy state-backed salvage deal remains the likeliest outcome.
New World’s new $2.8 bln buyout looks a lot safer 6 Jan 2016 Hong Kong property tycoon Cheng Yu-tung is trying again to buy out his China unit. At up to $2.8 bln, the new offer is worth more than before. It also avoids the archaic rules that killed his 2014 bid. The city’s moguls appear ever-more determined to clean up their houses.
Soros aura brings rare $4.5 bln hedge-fund startup 5 Jan 2016 Scott Bessent, the famed investor’s ex-CIO, has raised one of the biggest totals ever for his firm, Key Square. That’s remarkable in an era of subpar hedgie returns, even if $2 bln comes from Bessent’s former boss. It’s also evidence of the lasting power of industry pioneers.
Gene-editing IPO tests DNA of investors 5 Jan 2016 New disease-fighting techniques have captured the imagination of the medical community. A planned stock sale by Editas, backed by Google and Bill Gates, will see if financing follows. Though the market could be huge, patents are being challenged and therapies seem a decade away.
Cox: How gun control is like zero interest rates 5 Jan 2016 A White House order to require more dealers selling their wares at gun shows to conduct background checks has kicked off the third firearms bubble of Obama’s presidency. As in previous booms, bringing forward future demand stores up trouble down the road for the weapons trade.
Managerial competence makes the difference in 2016 5 Jan 2016 Markets are getting choppier. Capital is becoming more expensive in the world’s largest economy. Globalization is taking big knocks. Economic growth is middling. Good managers will distinguish winners from losers as much as valuable assets do from lousy liabilities.
Sainsbury’s non-food foray smacks of desperation 5 Jan 2016 The UK supermarket has disclosed an approach for underperforming Home Retail Group. At around 1.1 bln stg it might prove a bargain acquisition, and Sainsbury’s grocery business faces acute price pressure. But homewares and electricals could just add trolley-loads of risk.
Sweden ignores Swiss lesson on FX intervention 5 Jan 2016 The Swedish central bank is talking about intervening to curb the inflation-dampening strength of the crown. Its own history and the experience of Switzerland, which spectacularly abandoned attempts to cap its currency almost exactly a year ago, augur failure.
Wanda’s Hollywood ambitions show legendary savvy 5 Jan 2016 The Chinese entertainment group is adding the U.S. studio behind “Jurassic World” to a portfolio that includes a Spanish soccer team and Ironman races. Buying Legendary Entertainment should help fill seats in its cinemas globally – and perhaps even bolster China’s soft power.
VW’s U.S. lawsuit shows reboot is only half done 5 Jan 2016 A strongly worded government complaint has undermined Volkswagen’s progress in tackling its emissions scandal. U.S. laws are tougher than in Europe, and the German carmaker’s lobbying clout there is smaller. VW needs drastic steps to win goodwill.
Next’s best shopping days could be behind it 5 Jan 2016 Shares of Next have almost doubled since 2013 as the UK clothes shop has grown sales and refused to join the price-cutting game. Pre-Christmas sales rose just 0.4 pct, partly because of the warm winter. Yet things are set to get tougher for Next even if the weather returns to normal.
French telcos’ next call: sweet-talking consumers 5 Jan 2016 Orange and Bouygues are eyeing a tie-up that would give the French telecoms operators half the market. The state’s 23 pct stake in Orange makes the deal more likely to succeed, unless the EU intervenes. The key may be convincing customers of the long-term benefits.
Facebook’s free internet faces big test in India 5 Jan 2016 Mark Zuckerberg is fighting hard to save his plan to offer a free mobile web service to the country’s poor. If India shuts it down, other developing nations may follow. It’s another case where the social network founder’s apparently noble goals have sparked a furious backlash.
Empty shops add to Hong Kong’s economic headache 5 Jan 2016 A dearth of mainland tourists is hammering high-end retailers. Though the sector’s economic contribution is fairly small, the slide hurts a city already confronting toppy house prices, rising U.S. rates and China’s slowdown. At least Hong Kong has shored up its financial system.
GM CEO gets wrong reward for do-over year 4 Jan 2016 Mary Barra is adding the chairman’s job. She boosted margins and steered the Detroit automaker through an ignition-switch fiasco that marred her first 12 months. But she had help. Giving her both roles is bad governance. And GM’s history shows a need for more oversight, not less.
Lost decade demands Viacom get with the programs 4 Jan 2016 The MTV owner’s shares have barely budged since it split from CBS 10 years ago. In that time, boss Philippe Dauman oversaw some $21 bln in stock buybacks, more than Viacom’s current $17 bln market value. It’ll take greater creativity to rejuvenate Sumner Redstone’s networks.
Healthcare M&A will wear down in 2016 4 Jan 2016 Obamacare and tax avoidance spurred over $550 bln of U.S. deals in 2015. That’s three times more than the previous record. With the obvious combinations already struck, acquisitive companies hurting and trustbusters sharpening their pencils, a repeat will be challenging.
Technology can help banks do a hard reset on costs 4 Jan 2016 U.S. lenders face slow growth, barely rising interest rates and a likely jump in bad loans. They ought to pinch a few ideas from the financial-technology crowd. That could make banks far more efficient - and do wonders for the sector’s mediocre returns.
Rail feud could set Italy on good governance track 4 Jan 2016 Minority shareholders in STS think Hitachi is offering them less than it effectively paid for a 40 pct stake from Finmeccanica. A decision from regulator Consob could shed light. A vote in favour of small investors would suggest Italian governance is changing for the better.
GM’s $500 mln Lyft stake hedges against tech’s rise 4 Jan 2016 The bet gets the U.S. carmaker a way into the growing ride-hailing industry and another partner for developing autonomous vehicles. The deal taps into potential changes in car ownership and usage, and even employment – all threats to the traditional business of building vehicles.
Saudi-Iran standoff magnifies upside risk for oil 4 Jan 2016 The kingdom has cut off diplomatic relations with Iran, suggesting it will continue a strategy of pursuing low oil prices to cripple the weak Iranian economy. An escalation, though, could threaten the one-fifth of world oil supplies that travels through the Strait of Hormuz.
China’s new year market volatility is overdue 4 Jan 2016 Falling shares triggered new “circuit breakers” on their first day of operation. The yuan is at its weakest since April 2011. Growing signs of an economic slowdown are feeding the jitters. But the turmoil is also a delayed reaction to previous flawed efforts to prop up markets.
Dixon: EU enters brave new world of bank bail-ins 4 Jan 2016 Europe has wasted too much taxpayers’ money rescuing failing lenders. So it is right to try to get investors to help foot the bill in future. But the tough new regime carries political risks which could make the rumpus caused by recent bail-ins in Italy and Portugal look minor.
Luxury slowdown could delay Gucci revamp 4 Jan 2016 The Italian brand is heading into year eight of its makeover. With a sluggish China dragging down personal luxury sales growth to 2 percent, parent Kering has picked a difficult time to bring in new bosses. Resuscitating its most important label could take longer than expected.
Asian bankers will shift from deals to distress 4 Jan 2016 Cheap credit helped drive Asia’s merger boom. As growth slows and debt becomes more expensive, bankers are limbering up for a wave of restructurings. The work can be lucrative, but arranging corporate burials requires a very different set of skills than presiding over marriages.
Breakingviews predicts a rock’n’roll 2016 4 Jan 2016 For some economies and businesses, the year could be a stairway to heaven. For others, it may turn into a highway to hell. From the U.S. election to Britain’s possible exit from the EU, upheaval at Volkswagen and much more, we offer smart financial ideas for the 2016 playbook.