Italy’s 5-Star puts respectable face on radicalism 25 Sep 2017 The protest movement, doing well in opinion polls, has named a 31-year-old lawmaker as its leader. Luigi Di Maio’s cool appeal contrasts with founder Beppe Grillo’s vitriolic style and may win over moderate voters in 2018. But going mainstream could undermine its basic appeal.
Eminem IPO risks a Slim Shady rap 25 Sep 2017 An online site for buying and selling artists' royalties is floating a unit that will buy into the revenue from music catalogs, starting with the Detroit star's. The interests may be partial, though, and the revenue volatile. The financial remix sounds off-key for public markets.
Scandinavian payments buyout faces long payback 25 Sep 2017 Hellman & Friedman is buying Danish group Nets for $6.6 bln including debt. It’s the latest private equity firm to ride the switch to online payments. Nets has been through the buyout machine before, and faces threats. There are few easy wins in the current hot market.
ABB’s short-term value push takes $2.6 bln detour 25 Sep 2017 The Swiss group is shelving a $3 bln buyback programme to acquire GE’s non-core industrial solutions unit. On the surface it’s a strange move for a company that’s faced calls to simplify and boost margins. But a low price and high synergies mean ABB investors might still prosper.
Unilever gets more than beauty tips from Carver 25 Sep 2017 The Pot Noodle owner is paying 2.3 billion euros for fast-growing Carver Korea, maker of “Eye Cream for Face” serums. Owners Bain Capital and Goldman Sachs pocket a hefty profit. Unilever gains access to a booming Asian market, and exposure to e-commerce and duty-free outlets.
Diminished Merkel will choke ambitious euro reform 25 Sep 2017 One of Chancellor Angela Merkel’s prospective coalition partners rejects closer euro zone fiscal ties. A weak election showing has made her own party restive and the right-wing AfD will hound her. Preserving the euro's status quo is the best that Europe can expect from Germany.
China-backed fund’s latest chip deal looks safer 25 Sep 2017 Canyon Bridge wants to buy troubled UK firm Imagination Technologies, after President Trump stymied an earlier attempt to snap up a U.S. chipmaker. This $700 mln deal will likely set off fewer alarms. Still, the fund's murky state links might attract UK scrutiny too.
Life could get choppy for Sea after $1 bln IPO 25 Sep 2017 The Southeast Asian gaming-to-shopping startup has filed for a U.S. listing. Alibaba is already a rival in the region and Amazon is just getting started. Both are giants that can burn subsidies. For Tencent-backed Sea, listing will only make it harder to compete.
Germany’s Caribbean coalition will shake Europe 24 Sep 2017 The country’s two biggest parties suffered their worst post-war election result. That leaves Chancellor Angela Merkel with little choice but to forge a tricky and fragile “Jamaica” coalition with the pro-business FDP and the Greens. It’s a blow to hopes for European Union reform.
Facebook owners ignore Russian affair at own peril 22 Sep 2017 The $500 bln social network's alleged role in election meddling has legislators flapping, regulators gearing up and even roiled Mark Zuckerberg from paternity leave. Yet Facebook's valuation, at 27 times forward earnings, remains robust. There's a risky disconnect at work here.
Theresa May embraces “extend and pretend” Brexit 22 Sep 2017 Fifteen months after Britain voted to leave the European Union, the prime minister still has no coherent idea how to deliver it. Her proposal to keep things as they are until 2021 lowers the risk of a chaotic Brexit. If accepted, the temptation will be to delay further.
Growth shows up just in time for Argentina’s Macri 22 Sep 2017 The pro-business leader is counting on economic recovery to salve the pain of austerity as he undoes the spendthrift policies of populist predecessor Cristina Fernandez. Strong second-quarter growth is likely to help him stymie her aspirations of a comeback in mid-term elections.
FDIC is last defense against Dodd-Frank rollbacks 22 Sep 2017 Wall Street bankers are counting down the days for the term of Chair Martin Gruenberg, an Obama administration holdover, to end in November. Trump has yet to tee up a successor, however. The longer the Volcker Rule and living wills stay as is, the harder it may be to undo them.
Uber may be low on fuel for London fight 22 Sep 2017 The UK capital has decided not to renew the ride-hailing app’s licence, citing an irresponsible approach to safety and security issues. Boardroom upheaval makes it harder for Uber to address the concerns credibly, while a dented image could undermine Londoners’ enthusiasm to help.
Groundhog Day returns for U.S. wireless mergers 22 Sep 2017 Once again, the fragrance of cost savings worth $30 bln to shareholders has brought T-Mobile US and Sprint into a mating dance. Regulatory opposition and price disagreements sank past efforts. Though Sprint's Masayoshi Son is now a Trump BFF, the chances of consummation are low.
Nestlé’s L’Oréal stake is ready for a makeover 22 Sep 2017 The head of French cosmetic group’s founding family, Liliane Bettencourt, has died, reviving the debate about the Nescafé owner’s 23 pct stake. The best solution is to offload it. The challenge for Nestlé boss Ulf Mark Schneider is how to distribute 24 billion euros of value.
Russia’s state banks profit from financial turmoil 22 Sep 2017 The rescue of two private lenders has raised fears about the country’s banking sector. Savers have flocked to state-owned Sberbank and VTB, which have seen deposits swell by 1.2 pct and 18 pct, respectively this year. The tumult could leave the pair with better lending margins.
Review: How Murdoch’s news revolution devoured him 22 Sep 2017 The play “Ink” dramatises the tycoon’s populist assault on Britain’s cloistered media after buying the Sun in 1969. It’s a deft history of the press culture that eventually led to the phone hacking scandal. These days Rupert Murdoch’s empire is the one at risk of disruption.
ZhongAn’s hit fintech IPO pushes lots of buttons 22 Sep 2017 The online insurer’s $1.5 bln Hong Kong listing turned into a blowout deal. No wonder: this is an unusual growth stock, with powerful backers and a story that should in time lure mainland investors too. Now the Chinese outfit just has to live up to its lofty valuation.
Diplomatic fog blinds China and U.S. over N. Korea 22 Sep 2017 Economic curbs are squeezing North Korea but the volley of test missiles hasn't slowed. Trump and Xi have misread the situation, and each other. Kim Jong Un is unimpressed by half-hearted sanctions; they strengthen him domestically. Time to price in the risk of real violence.
Chinese online retailer sits in lap of IPO luxury 21 Sep 2017 Secoo has carved out a nice niche, selling upscale brands such as Tod's and Versace. Its customer base is small, though, and the firm is burning cash. Even so, impressive order sizes and a clean image make it a tempting target for counterfeit-fighting Alibaba and mass-market JD.
Misbehaving CEOs can get off far too easily 21 Sep 2017 That's a lesson to draw from the case of KB Home boss Jeffrey Mezger, whose crass rant with neighbor Kathy Griffin went viral. Cutting his bonus might hurt if he received one in recent years. A more fitting penalty would be to axe his haul of stock awards worth some $2.4 mln.
Viewsroom: German election all about runners-up 21 Sep 2017 Chancellor Angela Merkel and her Christian Democrats should win more votes than rivals. But they’ll need coalition partners to form a government. Choosing among them promises to be a nail-biter. Also: the Toys R Us bankruptcy won’t be a total loss for its private-equity owners.
Bloated U.S. healthcare spending has silver lining 21 Sep 2017 The first drug that works by silencing targeted genes by Alnylam is heading for FDA approval. It’s hot on the heels of another that treats cancer by using modified immune cells. New therapies are proliferating, thanks in part to America’s unsustainably large healthcare budget.
Anadarko signals its future is out of its hands 21 Sep 2017 The oil firm is spending $2.5 bln to repurchase stock. Yet it’s unlikely to make money until 2020 and has $15 bln of debt. The buyback plan is an admission it can’t find profitable investments. It also implies CEO Al Walker is hoping for the oil price to rise or a takeover.
Siemens-Alstom train-deal economics trump politics 21 Sep 2017 The German firm may merge its train unit with the French peer Alstom, rather than Bombardier. That would create a global player in high-speed rail, but leave Siemens in an awkward embrace with joint-owner French government. It’s a price worth paying to create a European champion.
SEC failure puts U.S. cyber security on back foot 21 Sep 2017 Unlike the Equifax hack, the breach into the watchdog’s systems doesn’t put people’s data at risk. But the SEC buried its belated disclosure of the attack in a broader statement on cyber issues. It sets a terrible example on transparency for the publicly traded firms it oversees.
China can afford to shrug off credit downgrades 21 Sep 2017 S&P just dinged the sovereign rating. Banks have been marked down too. Worries about rising debt are justified, but the market’s non-reaction shows how differently China’s economy is wired. State control and plentiful savings mean Beijing will escape most of the usual fallout.
Hadas: Crypto-currencies presage new monetary era 21 Sep 2017 No, bitcoin and its peers won’t become an electronic version of the gold standard. Rather, the speculation surrounding them indicates a financial system out of control. If the frenzy ends in a crash, it’s a chance to revive the old idea of a centrally controlled money supply.
What Carney can learn from Yellen 21 Sep 2017 Fed Chair Janet Yellen showed rate-setters can shock markets even when they stick to the script. That’s a lesson for the Bank of England’s Mark Carney, who has talked up a rate rise this year. Like her, he may have to hike without having solved a host of economic puzzles.