Elliott renews totemic siege of Dutch boardrooms 7 Jul 2017 The U.S. hedge fund has launched a new legal bid to dismiss Akzo Nobel chair Antony Burgmans. The move may not revive the Dutch group’s sale to PPG that Elliott wants. Yet after defeat in a separate case, it shows activist investors haven’t given up on the Netherlands just yet.
SoundCloud flags music’s lopsided digital revival 7 Jul 2017 The German streaming service is cutting 40 percent of staff, according to reports, after Spotify shelved a possible purchase last year. With most of the returns from the industry’s digital renaissance going to labels, streamers have yet to prove they have an independent future.
India’s bond market deserves a good whipping 7 Jul 2017 The securities regulator is cracking down on the fast-growing corporate bond market. With a large chunk of new issues coming from firms in dubious financial health with too generous ratings, it is a good time to force companies and rating agencies alike to raise their standards.
Samsung rides the semiconductor cycle to new peak 7 Jul 2017 The South Korean firm expects a record quarterly operating profit of $12 bln, thanks to soaring demand for memory chips. Rivals are boosting supply, and prices will probably fall. Still, Samsung's size and diversity will help it handle the sector's inevitable boom and bust.
Konica Minolta deal helps develop clearer picture 6 Jul 2017 The Japanese company that abandoned cameras for copiers a decade ago is now putting its focus squarely on medical diagnostics. An up-to-$1 bln acquisition of Ambry Genetics alone won't assure Konica Minolta's future. It is, however, an affordable way to start changing its DNA.
Viewsroom: How China changed Hong Kong 6 Jul 2017 It’s 20 years since the British handed the island and adjacent territory back to the mainland. Breakingviews’ Asia columnists explain how Hong Kong’s economy and society have changed and ask whether this once-dominant regional financial center can regain some of its lost luster.
Jana’s EQT breakup pitch is short of fuel 6 Jul 2017 The activist fund reckons cutting the natural gas company in two rather than buying Rice Energy would boost its value by up to 50 pct. It’s coy with the details, though, and rivals’ multiples imply a far smaller gain. Without more information, Jana’s idea may sputter to a halt.
Victoria’s Secret catches investors gawking 6 Jul 2017 The intimate-apparel chain badly missed expectations for June sales, prompting the loss of some $2 bln from its parent company's market value. Disappearing shoppers is all too common a refrain these days, and far beyond L Brands. There's no excuse for being sanguine about retail.
White House freed for business conflicts as usual 6 Jul 2017 America's ethics chief is resigning after months of clashes with Donald Trump. Walter Shaub regularly called out the president's corporate holdings and rebuked his deputies for unseemly behavior. Without even official public shaming, U.S. esteem and influence may slip again.
Japan and EU find solace in Trump trade rejection 6 Jul 2017 Last year both were focused on negotiations with the United States. But the U.S. president’s protectionist stance prompted them to revive long-standing talks. Though the “political agreement” is far from complete, it’s a sign that trade liberalisation can still happen.
John Malone papers over QVC woes with HSN purchase 6 Jul 2017 Liberty Interactive is taking full control of the home-shopping channel in a $2.1 bln deal. Merging two cable vendors makes sense, and investors should end up with something more valuable than a tracking stock. But a complex share swap alone won’t solve deeper retail challenges.
Blueprint for UK finance free trade has many holes 6 Jul 2017 Brexit need not mean an end to open markets in financial services, chief watchdog Andrew Bailey says. His pragmatic vision would, however, require Britain to accept future EU rules and legal oversight. Even if UK politicians agree, European ones have reasons to dissent.
ABF deserves more credit for retail flair 6 Jul 2017 Primark clothing stores, which generate half of group operating profit, are faring better than expected. Market share is rising even though the chain shuns online sales and is offering fewer discounts. That kind of retail flair bodes well for ABF’s valuation.
EasyJet’s McCall has choice of turbulence at ITV 6 Jul 2017 The airline boss is tipped to pilot the UK broadcaster, according to a newspaper. A digitally savvy outsider would be useful at a company that faces slowing ad revenue and costly content wars. But steering an incumbent rather than a disruptor will be more challenging.
Beijing spreads tension with Tomorrow selloff 6 Jul 2017 Authorities are compelling Tomorrow Holdings, owned by a missing Chinese billionaire, to sell insurance and banking units, Reuters says. It is not clear if this is about politics, crime or systemic risk. Still, it is a worrying template for other conglomerates also under scrutiny.
SoftBank’s stalled Indian sale defies logic 6 Jul 2017 Indian e-commerce firm Snapdeal rejected a $850 mln bid from rival Flipkart. That's well below a peak valuation of $6.5 bln, so backers like the Japanese firm will suffer. But buyers are scarce, and the price will only go down. Holding out for a unicorn-style $1 bln is a mistake.
Volvo’s electric shift gives Tesla a shock 5 Jul 2017 The Sweden-based carmaker will phase out gasoline-powered vehicles starting in 2019. It has less than 1 percent of the global market but its plan challenges Elon Musk’s growth ambitions, especially in China, where Volvo owner Geely is based. The road to the future may be bumpy.
Exchange Podcast: Bill Emmott 5 Jul 2017 The system of political and economic openness built after World War Two is under threat, Bill Emmott argues in his new book "The Fate of the West." He joins us to discuss globalization, populism and why there's still cause for optimism about the future of liberal democracies.
JPMorgan puts UK corporate broking in right place 5 Jul 2017 Jamie Dimon may face awkward questions from British clients after his bank almost bid for one of them, Worldpay. But the potential benefit of buying the online-payments firm easily outweighs the dubious value of giving free advice in the hope of winning lucrative business later.
Vantiv sets punchy price on Worldpay 5 Jul 2017 Buying Britain’s biggest payments processor for nearly $10 billion only makes sense if the cost savings and revenue opportunities are big enough. While neither side has come up with any synergy estimates yet, some charitable assumptions are needed to make the sums add up.
Hadas: Currency flexibility is overrated 5 Jul 2017 The pound’s post-referendum drop has done little to enhance Britain’s balance of payments. No surprise there – in developed economies, exchange rates are a relatively minor factor in trade relations. Fixed currencies have more benefits than costs, as the resurgent euro shows.
Retail click jobs can brace only so many bricks 5 Jul 2017 The next decade threatens to doom U.S. workers at the likes of Macy's, Staples and Foot Locker. E-commerce should offset a good portion of the losses. Even assuming a healthy 40 pct increase in such roles, though, a Breakingviews analysis suggests some 600,000 jobs may vanish.
Danone could be next serving for hungry activists 5 Jul 2017 Low margins and poor investor returns mean the French maker of Activia yoghurt is a logical target. While an earlier campaign by U.S. activist Nelson Peltz had modest success, Third Point’s new stake in Nestlé and President Macron’s pro-business agenda argue for a fresh look.
Italy’s final bank bailout not as bad as it looks 5 Jul 2017 Taxpayers pumping 5.4 bln euros into Banca Monte dei Paschi di Siena is a backward step for dealing with troubled European lenders. However, junior creditors and employees are probably getting a worse deal than if they had avoided the bailout. And the state could make a profit.
Ocado has a delivery problem to fix 5 Jul 2017 The UK online grocer’s pre-tax profit fell in the first half and net debt is rising. Its big dream of selling cutting-edge technology to other retailers generates less than 10 percent of revenue. Rapid delivery is imperative at a time when Amazon is prowling the aisles.
Beijing’s reversal on credit scores is ominous 5 Jul 2017 China's central bank no longer wants to let private outfits like Alibaba assess consumer creditworthiness, Reuters says. That’s doubly unwelcome. Borrowers need better credit scoring. And this will concentrate even more power in the state’s Orwellian “social credit” system.
Tencent’s e-books require some Hollywood stardust 5 Jul 2017 The tech giant’s publishing arm may raise up to $800 mln in a Hong Kong listing. Catering to bookworms isn’t very lucrative, even if more readers are paying for electronic literature. The real payoff will lie in turning stories into blockbuster films, video games and merchandise.
Activists are helpful reagent at Huntsman-Clariant 4 Jul 2017 Hedge funds with a combined 7.2 percent stake in Swiss chemicals maker Clariant want to stop it merging with U.S. peer Huntsman. They have a good case – and the market had already marked the deal as a dud. It will be hard to salvage in a way that pleases investors on both sides.
Tencent is no match against Beijing’s bureaucrats 4 Jul 2017 Government criticism levelled at the gaming giant's lucrative but addictive mobile hit wiped $14 bln off its market value. Tencent is moving to placate Beijing by limiting game time for kids. But if regulators crack down further on popular titles, appeasement could be costly.
Qatar’s squabbles turn its gas sour for investors 4 Jul 2017 The world’s largest exporter of liquefied natural gas has revealed plans to increase output by almost a third. World demand for the fuel is growing but so are supplies. Doha’s dispute with its Gulf neighbours makes its new expansion projects less appealing for risk-shy capitalists.