China-U.S. movies can breach great wall of doubt 1 Feb 2017 A joint production starring Matt Damon has underwhelmed critics. Yet Hollywood's partnership with China will accelerate regardless. The combination of the People's Republic's booming box office and Tinseltown's movie-making expertise suggest investments will pay off eventually.
Luck, and design, help Nomura near foreign goal 1 Feb 2017 The Japanese bank is nearing an important milestone: its first annual pre-tax profit overseas since buying bits of Lehman Brothers. The success is due partly to choppy bond and forex markets. Nomura's own cost cutting also helped – and puts it on a sounder long-term footing.
Litigious U.S. president begins Supreme courtship 31 Jan 2017 Neil Gorsuch has been nominated to replace Antonin Scalia, which would restore a slim conservative majority. Other ageing justices could provide a chance to tip the balance further. Donald Trump's past and his early tests of power could mean ample time with the Supreme Court.
Apple working harder to squeeze iPhone juice 31 Jan 2017 The company sold more phones in the holiday quarter, yet profit fell. A saturating market and slowing innovation aren't helping margins. Yet Apple's size, the prospect of a new phone and the ability to sell additional services are bright spots that should keep investors on board.
Big investors need more than money to force change 31 Jan 2017 A group of fund managers with $17 trln in assets is codifying its industry's practices and laying out what shareholders expect from companies they own. It's a welcome initiative. But there's a short cut to, say, force firms to ditch dual-class stocks: get the exchanges on side.
Virtual-reality patent wars could be a real drag 31 Jan 2017 Facebook is defending its Oculus unit against claims it stole intellectual property from a rival. The complexity of virtual reality, the potential market size and the winner-take-all nature of technology give good reasons to fight. Companies would do better to focus on products.
Deutsche Bank’s UK fine has spurious specificity 31 Jan 2017 The German bank must pay less than 10 pct what it theoretically could have for making suspect Russian trades. In 2014, the regulator handed RBS a hit five times the base case. Regulatory fines lose their effect if they're too random or, as here, too lenient.
Under Armour’s founder-led approach wears thin 31 Jan 2017 The $12 bln athletic-wear maker reported its slowest top-line growth in eight years. Its CFO is also bailing out. The news wiped a quarter off the company's market value. Founder Kevin Plank's argument for keeping power through non-voting stock looks increasingly threadbare.
New Exxon CEO gets steadier start than predecessor 31 Jan 2017 Darren Woods' first earnings report was solid, aside from a rare $2 bln hit on a gas field. Crude prices are even creeping up. Ex-boss Rex Tillerson, meanwhile, awaits a nod to work for President Trump. Given what's in store, he could be forgiven nostalgia for his old job.
Trump’s attack on red tape more PR than purge 31 Jan 2017 The president reckons making federal agencies repeal two regulations for each new one will reduce business burdens. Similar UK edicts had mixed results. The vague U.S. directive, which excludes major financial rules, could sow more confusion in an already uncertain environment.
Private equity gives ageing North Sea oil new life 31 Jan 2017 Shell's $3.8 bln sale of North Sea fields to upstart Chrysaor gives a glimpse into the declining region's future. Lower prices make the remote province less appealing for energy majors but generous tax allowances offer private equity returns above 20 percent.
VW pay fiasco increases urgency of bonus revamp 31 Jan 2017 The carmaker's departing compliance chief is cashing in 12 mln euros after just one year of service. Granted, Christine Hohmann-Dennhardt's terms were set at the height of the diesel crisis. Still, her payout is symptomatic of an executive pay system in dire need of an overhaul.
Deutsche capital joy fails to offset Russian shame 31 Jan 2017 The German lender will pay only $630 mln to U.S. and UK regulators for failing to stop suspect Russian trades. Being deemed merely negligent means Deutsche Bank's weak solvency gets a leg up. But its litany of catastrophic systems errors will only cement a tarnished reputation.
H&M’s new sales target could fray quickly 31 Jan 2017 The Swedish fast-fashion chain is now targeting annual sales growth rather than how many new stores it opens. Its new goal of 10-15 percent growth is ambitious. With margins under pressure, an unexpected increase in pretax profit in the fourth quarter may be a passing fad.
Intesa-Generali may rest on regulatory swerve 31 Jan 2017 The Italian bank's interest in Generali looks like a dud, but the deal's math could be improved by a capital loophole that flatters bank investment in insurers. The ECB might balk at such fiddles. Then again, that may be Generali’s best shot at staying single.
Revised Walgreens deal full of quiet desperation 30 Jan 2017 To salvage its trustbuster-challenged acquisition of Rite Aid, the two drugstore chains agreed to sell more shops and cut the price by some $2 bln. They're settling for much less, but may have good reason more than a year on. That's if competition problems can even be solved.
Banker poaching will persist, fees be damned 30 Jan 2017 Jefferies, a unit of Leucadia National, wants to collect more than $10 mln from five advisers it lured from Credit Suisse who later reneged on the deal. The odds of enforcing the breach-of-contract clause are long. Longer still are the odds of stopping raids. Cost is almost never a deterrent on Wall Street.
Cox: Trump’s labor secretary is more about capital 30 Jan 2017 Burger-joint entrepreneur Andrew Puzder, the nominee to run the U.S. Labor Department, co-wrote a 2010 book offering a turgid - if mercifully brief - manifesto on how to get people working. But Puzder's jobs may lack the qualities the government agency was created to champion.
Duped students teach a costly moral-hazard lesson 30 Jan 2017 Obama's crackdown on for-profit colleges raised standards and shut down bad actors. A $7.3 bln lawsuit filed by ex-students of bankrupt ITT seeks federal debt forgiveness too. It underscores the high price of doling out loans without first ensuring schools can make the grade.
Trump’s stock-market rally has no clothes 30 Jan 2017 The S&P 500 is up 7 pct since the eve of his election, even after an early Monday dip. The hope is that Trump's promises of cuts in taxes and red tape will unfold without a hitch, while those that would slow trade and immigration won't happen. The weekend's chaos shows otherwise.
Immigration ban hands U.S. firms dilemma 30 Jan 2017 Tech firms, Goldman, Starbucks and others may become political targets after criticizing a temporary White House block on citizens from seven mostly Muslim countries. But silence may alienate customers and future workers, especially among younger, digitally connected generations.
Kaspersky finds fighting cybercrime leaves bruises 30 Jan 2017 The Russian group's jump in 2015 earnings shows protecting corporate clients from hacking is a growth industry. Post-U.S. election, it should be in line for a further spurt. Yet the arrest of one of its experts by Moscow suggests reputational risk is its real challenge.
Hadas: Macron might show world a healthy populism 30 Jan 2017 The French presidential candidate has assumed the popular guise of an outsider who connects with voters, promising a glorious future. But this philosopher-banker loves the EU and pro-growth reform. President Macron might offer a helpful mix of vigour, rigour and active optimism.
Vodafone dials for backup in India telco fight 30 Jan 2017 The UK-based group is discussing an all-share merger of its India business with Idea Cellular, part-owned by cement-to-retail Aditya Birla Group. Combined, they could take the fight to sector upstart Jio. Vodafone might also be better-placed for M&A back in Europe.
Atkins $4 bln merger would be fragile construction 30 Jan 2017 A mooted tie-up between the UK engineering consultancy and unlisted U.S. peer CH2M has some logic, ahead of a likely rise in infrastructure spending. Yet WS Atkins shareholders will need some persuading. CH2M's lackluster performance would make its value a bone of contention.
French elections beat Brexit for market disquiet 30 Jan 2017 The Gallic vote is worrying investors more than Britain leaving the EU. It now costs over a third more to insure against a French default than a UK one, though rating firms see little chance of either going bust. It's the scope to weaken its currency that gives Britain an edge.
Ireland is the filling in unappealing tax sandwich 30 Jan 2017 It's the big loser, in both trade and security, from the UK's exit from the EU. True, Ireland could pick up high-end investment as the UK sheds it, but even that hinges on an attractive tax rate, which is now under threat - both from its neighbour and from Donald Trump's America.
StanChart takes subtle spin in the revolving door 30 Jan 2017 New public affairs head Tracey McDermott is not the lender’s first supervisor-turned banker. Boss Bill Winters previously helped rewrite UK banking rules. While hiring former watchdogs is not ideal, the potential conflicts are less than they would be at a more UK-centric peer.
Publicis boss exit plan is bad ad for succession 27 Jan 2017 Maurice Levy is finally stepping down from running the $16 bln advertising firm, but he'll only move to the supervisory-board chairman's office. The presence of Levy, in charge for 30 years and a proven reluctant ex-CEO, risks clipping the wings of the new leader, Arthur Sadoun.
Review: Supporting character stars in Buffett film 27 Jan 2017 A new documentary about the Berkshire Hathaway billionaire is more personal than business. Buffett shares old home movies and lets down his guard a bit to talk about his parents, formative moments and other memories. The influence of his late wife Susie resonates most powerfully.