Qatar quarrel shows limit of its sovereign wealth 6 Jun 2017 The emirate’s $300 bln-plus fund has snapped up landmark buildings and stakes in companies like Barclays and Rosneft. The spree was meant to generate returns and diplomatic clout. But Qatar’s largesse has produced few allies to help it face down its more powerful neighbours.
Roche faces hard climb back from cancer setback 6 Jun 2017 A trial showed combining a new drug with the Swiss group’s Herceptin gave only a slight benefit to patients. That will make it harder to protect the blockbuster’s $7 bln of revenue from generic competitors. Roche could buy back shares, or rival drugmakers. Neither is cheap.
Earnings will be late dessert for Delivery Hero 6 Jun 2017 The Berlin-based food delivery startup is prepping a listing valuing it at around 4.5 bln euros. The loss-making group needs to double sales by 2019 to achieve the same valuation as rivals like Just Eat. Its fat war chest should help. But investors are in for a low-profit diet.
No one told India’s banks about fee collusion 6 Jun 2017 The OECD is bashing bankers from Wall Street to China for high IPO fees. Meanwhile, advisers may pocket just one rupee for selling up to $2.3 bln of State Bank of India shares. It’s not much better working for private issuers but at least the overall fee pot is rising.
China can remake North Korea in its own image 6 Jun 2017 Beijing's influence over Pyongyang gets weaker daily, but it resists U.S. pressure to get tough. The alternative is for the People’s Republic to intervene and rebuild the Hermit Kingdom along its own economic model. It may be the best of a range of unattractive options.
Buffalo Wild Wings is recipe for CEO nervousness 5 Jun 2017 Marcato got three nominees elected and forced longtime boss Sally Smith to quit – the activist's original goal. That makes the other directors look oblivious to the omens before Friday's vote. Other leaders of companies under pressure can expect dwindling board loyalty.
Trump air-traffic plan flies with rare substance 5 Jun 2017 That's because it's based on Canada's model, years of debate and a 2016 House bill. Updated tech is overdue and the non-profit structure would cut out government without risking a private-sector windfall. Yet it's still no easy win, underlining the challenge for vaguer policies.
Fear of no choice helps Amazon’s cloud rivals 5 Jun 2017 The online giant's web-services division has monopoly-like features – size makes it operationally and financially more efficient. Yet Jeff Bezos’ firm won’t walk away with all the spoils. Customers are worried about being locked in, and that will keep competitors in business.
UK cyberspace crackdown faces reality checks 5 Jun 2017 Prime Minister Theresa May pledged new curbs on extremist propaganda and communications via YouTube, WhatsApp and the like following attacks in London and Manchester. Such promises can be good politics, but to actually happen they must make technological and economic sense.
New Irish leader is more like Renzi than Macron 5 Jun 2017 Leo Varadkar will be Ireland’s youngest prime minister, prompting comparisons with France’s Emmanuel Macron. Parallels with Italy’s former PM Matteo Renzi are more apt. His government is weak, and he could be at odds with Europe on Ireland’s chief challenges of Brexit and taxes.
Attacks on UK add tension to “strong and stable” 5 Jun 2017 Murders by militants in London and Manchester come at a time when Britain is already badly split on economic, geographic and demographic lines. Such atrocities show why Prime Minister Theresa May’s pledge of firmer government resonates, but also why it will be so hard to deliver.
Saudi-Qatar rift is old theme with Trumpian twist 5 Jun 2017 After the U.S. president’s whistlestop visit, the kingdom has turned on its gas-rich neighbour. Saudi has long suspected Qatar of supporting terrorism and sidling up to Iran. Deep fractures in a region that pumps a fifth of the world’s oil could spill over into markets.
Shawbrook Bank bidders bet that slower is better 5 Jun 2017 Buyout firms Pollen Street Capital and BC Partners have raised their offer for the UK challenger bank to 868 mln pounds. The price looks low given management’s aggressive growth targets. But past troubles mean scrapping those goals might be the whole point.
HNA slowdown makes financial and political sense 5 Jun 2017 The Chinese conglomerate plans less M&A this year, after spending tens of billions of dollars on everything from aircraft leasing to a stake in Deutsche Bank. That should let managers get a handle on their vastly expanded empire. It’s a good time to adopt a lower profile, too.
Spat exposes Alibaba’s dependence on shared data 5 Jun 2017 The e-commerce giant has resolved an information-sharing dispute with delivery partner SF Holding for now. But the squabble shows the risk uncooperative partners pose to Jack Ma's plan to use cloud technology and AI in shopping, logistics and finance. Expect more tiffs to come.
Chinese school IPOs require some serious homework 5 Jun 2017 Several school groups are going public in Hong Kong and New York. Catering to an emerging middle class that is obsessed with education sounds like a first-class idea. Given the legal grey areas in private education, however, prospective investors will need to swot up.
Most of U.S. economic might keeps faith with Paris 2 Jun 2017 Cities and states representing 60 pct of the nation’s GDP have pledged to support the climate accord despite Donald Trump’s withdrawal. They have a big say over local energy policies. Their stance can sustain a shift to a low-carbon economy despite the president’s cold shoulder.
Blackstone sells China some unlikely trophy assets 2 Jun 2017 The buyout firm is cashing in on an appetite for logistics by selling Logicor to CIC for 12.3 bln euros. A European e-commerce boom and shortage of property is driving up valuations and rents. Prime warehouses now have better yields than a luxury store in London’s Mayfair.
Blue Apron offers tasty food, nauseating numbers 2 Jun 2017 The meal-kit delivery firm that's going public serves up delicious meals and sales growth. But look closely at the ingredients. New-customer acquisition costs are surging, they're ordering less and competition is fierce. Like Groupon, the product is fine, the stock best avoided.
Hadas: Climate not real loser from Trump tantrum 2 Jun 2017 The decision to quit the Paris climate-change accord won’t have a big effect on either global warming or the fight against it. What is truly dangerous is the U.S. president’s frontal attack on the still underdeveloped system of global governance. A vigorous defence is now vital.
Review: Tragedy makes Facebook a better place 2 Jun 2017 COO Sheryl Sandberg’s "Option B," a moving exploration of grief, emerged from the death of her husband. Top executives rarely reveal so much. She has also changed Facebook's policies. More so than "Lean in," Sandberg's new book sets her up as the $450 bln firm's best ambassador.
Tight U.S. job market tests White House thinking 2 Jun 2017 Employers added 138,000 jobs in May, below projections. Unemployment is so low that a slowdown was inevitable. One problem now is supply, with baby boomers retiring. Boosting immigration and encouraging more women to work would help. Trump's policies so far act against both.
Mark Carney’s inflation fight hits close to home 2 Jun 2017 Bank of England support staff are threatening to strike over a sub-inflation pay rise. Across the UK economy, rising prices are squeezing incomes. This hits the least well-off the hardest. But it would be hard for the BoE governor to undermine his efforts to keep prices in check.
Linde-Praxair back Big Gas, investors don’t yet 2 Jun 2017 Both gas-makers’ boards have approved their $74 bln transatlantic merger. Even Linde’s sceptical worker representatives backed down. Yet shareholders aren’t pricing in the benefits of the tie-up. They may be partly right, but at least neither side is putting cash on the table.
Buyout mega-funds: bigger and hopefully boring 2 Jun 2017 Large buyout war chests are back, as seen by CVC and KKR’s multibillion-dollar pools. Mega-funds promise respectable returns, but with less risk than smaller peers. Or at least, they have done lately. With cash to splash and valuations high, the challenge is to remain unracy.
Top U.S. CEOs revolt against reality TV version 2 Jun 2017 Donald Trump’s rejection of the Paris climate pact drew swift opposition from corporate bosses, including those of GE and Goldman. The Tesla and Disney chiefs quit his advisory council. Losing business support this early bodes poorly for the administration’s economic promises.
Chinese biotech IPO deserves potent price 2 Jun 2017 WuXi Biologics could raise over $500 mln in a hot Hong Kong debut. A value of up to 30 times 2018 earnings sounds high, especially given a novel business model. But earnings are soaring and the local bourse lacks exciting drug firms. Growth and scarcity is a powerful formula.
Art world upstart sprays tech fortune on canvas 2 Jun 2017 Japan's Yusaku Maezawa is building a collection of Basquiats and other masterpieces. The soaring value of his fashion portal vividly illustrates how investors are enchanted by the tech industry’s fast growth and fat margins. It also means he can afford to paint the town red.
Viewsroom: Donald Trump can’t melt Paris accord 1 Jun 2017 The president is pulling America out of the climate pact signed by 195 countries in 2015. But the continued commitment from cities, companies, investors and other states will limit the damage. Meanwhile Goldman Sachs steps into a Venezuelan mess. Plus: advertisers as activists.
Packaged-food firms rush to same M&A recipe 1 Jun 2017 Conagra is interested in buying $8 bln Pinnacle Foods, and both are eyeing Reckitt Benckiser’s North American food unit. Stagnating sales are pushing firms to bulk up in search of greater profits. With everyone looking to buy, selling is likely to generate the tastiest results.