Iceland needs euro peg like cod needs bicycle 4 Apr 2017 The North Atlantic state’s finance minister suggests fixing the crown’s value to its euro zone peer. Iceland’s economy could use cooling. But its volatility means that focusing attention on inflows – or even pegging to a more appropriate currency – makes more sense.
Asos takes costly fashion cues from Amazon 4 Apr 2017 The UK online clothes retailer has raised sales forecasts on international demand. But Asos is becoming pricier to run: six-month costs rose 38 pct, more than the group's top line. Asos is investing prudently, but a rich valuation leaves it exposed to web-based competition.
Flu exposes U.S. folly in weighing fear and risk 3 Apr 2017 Americans are 1,000 times more likely to die from this common illness than terrorism. The current, and worst, bird-flu outbreak in China means the imbalance is even higher. Washington's decision to spend so much more on homeland security than preventing disease is misguided.
Baked-in premium makes Panera a fattening morsel 3 Apr 2017 The $6.6 bln bakery chain has leavened its growth rate with new mobile ordering and delivery services, which has buyers circling. An 8 pct price jump pushed its valuation to new highs. Buying the company, like eating one of its 720-calorie pecan rolls, could produce indigestion.
Wildcatters hold hot hand in Permian land grab 3 Apr 2017 Local oil companies were early to snap up land and drill in the U.S.’s largest shale formation. Their success in producing profitably even at low prices has everyone from oil majors to Russia looking to follow suit. It will cost them dearly to enter this game of Texas Hold’em.
Apple imagines away chip supplier’s future 3 Apr 2017 Imagination Technologies lost more than 60 pct of its value after the iPhone maker said it would stop using the UK firm's technology. That may wipe out half Imagination's revenue and any hope of profit for the time being. It's a risk small suppliers run with control-freak Apple.
Dixon: Start preparing for fourth Greek bailout 3 Apr 2017 Despite a last-minute wrangle over pensions, Greece is likely to get the next chunk of the money due under its current bailout plan. But this will only buy Athens time until the middle of 2018. After that, a new programme, and more fraught negotiations, will probably be needed.
Credit Suisse raid jabs at private bank model 3 Apr 2017 The Swiss bank has stressed zero tolerance for tax evasion after authorities swooped on three offices. Credit Suisse may be scrupulous, but managing money for the wealthy brings certain recurring risks – not least because of Swiss private banks' historic pledge of utter secrecy.
Reckitt is smart to go easy on the sauce 3 Apr 2017 The UK consumer-goods group may sell the division that makes French’s mustard for around $3 bln. Cashing out would take the heat out of the company’s debt-financed $17 bln bet on Mead Johnson – even if it seems odd to sell a business that’s growing fast and highly profitable.
Linde’s erratic unions test Germany’s formula 3 Apr 2017 The gas maker's workers are challenging a $65 bln merger with Praxair they previously seemed to support. Germany's system of handing enormous power to unions works because they mostly use it wisely. In this case, pushing too hard could backfire in more ways than one.
Toshiba’s $18 bln sell-off breaks the mould 3 Apr 2017 Foreigners rarely get to buy big Japanese outfits. Even when they do, the company is either in deep trouble or at least needs some attention from a new owner. Toshiba's memory chip unit is a huge, healthy business in a concentrated market. No wonder bidders are queuing up.
Empire-building sets HNA on a risky trajectory 3 Apr 2017 The Chinese travel firm has snapped up land, hotels, leasing firms and even part of Deutsche Bank. These are just opening gambits by an outfit aspiring to own trillions of dollars in assets. Diversifying is all well and good - provided it does not end in a hard landing.
Market gain is profit drain for China phone makers 3 Apr 2017 Three smartphone brands from the People's Republic account for a fifth of global sales. But the surge comes at a cost: Huawei’s earnings were flat last year amid rising costs and intense price wars. Trying to lure high-end customers from the likes of Apple will be expensive too.