HSBC investors to new CEO: more of the same please 30 Oct 2017 Rising Asian earnings lifted the lender’s underlying pre-tax profit by 8 pct in the first nine months of 2017. With a conservative loan-to-deposit ratio of 70 pct, incoming Chief Executive John Flint can afford to boost lending and look forward to fatter interest margins too.
Nintendo plays its way toward market’s high score 30 Oct 2017 The Japanese company behind Super Mario Bros. hiked its annual forecast, catching up with bullish analysts. With projected Switch sales up to 14 mln, it's fresh confirmation of the console's success. That makes a valuation of 61 times expected earnings a little less cartoonish.
Nomura’s reinvention gets lift from bond slump 30 Oct 2017 The Japanese bank's quarterly earnings slumped 15 pct – and overseas outposts barely broke even – in large part because of fixed-income trading. At least Wall Street rivals are suffering, too. In effect, it's a backhanded endorsement of Nomura's push into steadier businesses.
HNA takeover would be a gift for online also-ran 30 Oct 2017 The Chinese deal machine is in talks to buy e-commerce outfit Dangdang for up to $1.5 bln. A deal would add to an already eclectic conglomerate. It is not clear HNA needs a second-rate online retailer and this would be an expensive shortcut to buying tech talent.
Nikkei surge puts onus on Abenomics to keep pace 30 Oct 2017 Japanese stocks have just enjoyed their longest winning streak on record. The market actually looks less frothy than global peers, given solid earnings and large cash piles. But bets on Prime Minister Shinzo Abe accelerating reforms risk getting ahead of progress on the ground.
Ping An’s tech dreams far from assured 29 Oct 2017 China's biggest insurer reported a big leap in profit, powered in part by online users and AI initiatives. It also added 300,000 agents, suggesting old-fashioned growth in selling policies. That makes it hard to value Ping An in the same silly way as newly listed rival Zhong An.
Hong Kong’s dual-class plans go from bad to worse 30 Oct 2017 Shares with weighted voting rights could be heading for Hong Kong’s main board, says SCMP. A prior controversial plan proposed to insulate the wider market from governance headaches by hiving such stocks off in a separate venue. This latest idea is the greater of two evils.
Big Oil’s well-plugged holes do their job, for now 27 Oct 2017 Exxon, Chevron and Conoco all posted decent earnings for the third quarter. And they’re ramping up production - even Conoco, despite cutting capex. That’s proof their endeavors to adapt to $50-a-barrel oil are paying off. Improving from here, though, could prove tricky.
U.S. economy doing just fine without tax cuts 27 Oct 2017 Initial estimates show GDP expanded at 3 pct in the third quarter, despite the hurricanes. Increasing inventories helped, but global growth and healthy corporate earnings are other positive signs. Trump will take credit, but protectionist policies could put the trend at risk.
Treasury crowns asset managers, insurers victors 27 Oct 2017 Investment and insurance firms should be regulated for systemic risk based on their activities, not by specific entities, the U.S. department said. It also rebuked the global FSB for overreach with its stricter approach. The industries got nearly everything on their wish list.
Bank of Italy chief’s new term faces uphill start 27 Oct 2017 Ignazio Visco has been reappointed as central bank governor despite political opposition. His first challenge is to quell critics of his handling of Italy’s banking crisis. EU rules are also getting tougher and Mario Draghi’s departure from the ECB in 2019 will remove an ally.
Clariant-Huntsman gives way to post-activism chill 27 Oct 2017 The scrapped $14 bln merger between two chemicals makers is not worth mourning; Clariant has other ways to create value. The near-term risk lies in activist duo White Tale, whose 20 pct stake killed the deal. Investors can’t tell whether they will be a catalyst or an inhibitor.
UBS investors benefit from smaller investment bank 27 Oct 2017 An inflow of cash from wealthy clients helped boost the Swiss lender’s pre-tax profit by 39 percent in the third quarter. UBS also profited from the lack of big trading operations which have hobbled some rivals. Shareholders stand to be rewarded with a higher annual dividend.
RBS’ next tempest beckons as past storms subside 27 Oct 2017 The state-owned lender is resolving litigation and other hangovers from the 2008 crisis. It is still barely profitable, but third-quarter results suggest it might one day cover its cost of capital. A rich valuation, however, pays little heed to the risk of a Brexit-induced slump.
Mediobanca can surf Italy’s bad-debt wave 27 Oct 2017 The Italian bank’s net profit jumped 11 percent to 301 mln euros in the three months to September. There are more reasons to cheer. A deeper cleanup of the country’s small lenders will trigger bad-loan sales, share issues, and more mergers. Mediobanca can profit from all three.
China’s Belt and Road plan builds bridge to Canada 27 Oct 2017 Aecon is being sold to a Beijing construction titan for C$1.5 bln. The 42 pct premium should satisfy the target's investors and Canadian officials have little to squawk about. It's also a deal that can bypass China's M&A crackdown as it befits an infrastructure drive.
Macquarie brandishes its conglomerate bona fides 27 Oct 2017 The Australian group unveiled a 19 pct jump in first-half profit and a A$1 bln buyback, which sent its shares to a record high. Weakness in investment banking was offset by strength in asset management. The only worry may be Macquarie's expanding commodities trading tentacle.
Warburg Pincus bucks mall trend in Vietnam 27 Oct 2017 The U.S. private-equity firm is floating Vincom. The $3.4 bln mall operator is a way to bet on booming consumption, and has safeguarded itself against the rise of e-commerce by carefully picking key tenants. No wonder investors were queuing up.
Asian energy deal defies green resistance 26 Oct 2017 The $5 bln sale of Equis solar and wind projects in Australia, Japan and beyond to a global fund group sets a new benchmark. As clean projects expand, they'll attract oil titans, too. Donald Trump and Malcolm Turnbull may discount renewables, but investors are inflating them.
Review: Hong Kong’s recipe for more instability 27 Oct 2017 Three short books analyse the city’s politics after 20 years in Chinese hands. Freedom sets it apart from the mainland, but without full democracy to match Hong Kongers rely on protest instead. An ineffective executive and an implacable Beijing turn this into a combustible mix.
Aetna bid is a defensive prescription for CVS 26 Oct 2017 The drugstore and pharmacy-benefit company’s $66 bln offer for the health insurer should generate some savings. More important, it could help the firm resist Amazon’s entry into drug distribution, and the unpleasant side effects of transparency and low margins that may follow.
Generational shift augurs holiday blues for Mattel 26 Oct 2017 The toymaker’s shares tumbled after it posted a 13 pct quarterly sales drop and suspended the dividend. Toys R Us’ bankruptcy hurt Barbie and Hot Wheels, but American Girl, which sells direct to consumers, suffered even more. Digital kids are the nightmare of Christmas present.
It’s time for Alphabet to feature YouTube 26 Oct 2017 The platform is the leading U.S. video-streaming service, by one estimate, yet the Google parent provides few details. Its stock has underperformed rivals Netflix as well as Amazon and Apple, which are ramping up TV efforts. CEO Larry Page may want to shed more light on the unit.
Microsoft cashes in on corporate comfort 26 Oct 2017 Quarterly figures show a booming cloud business. The work world’s familiarity with Office, LinkedIn and other products makes it a natural supplier for many enterprises. This ease and economies of scale should enable the company to keep winning more of its customers’ computing.
China’s Baidu stumbles in getting back to basics 27 Oct 2017 Investors wiped $10 bln from the web giant’s market value after it forecast disappointing sales for the rest of 2017. Baidu has cut costs and narrowed its focus to revitalise its scandal-hit search business. Unfortunately that has yet to translate into less volatile results.
Kool-Aid on tap in Saudi Arabian desert 26 Oct 2017 The crown prince’s vision for a $500 bln mega-city may have generated even more buzz than the mooted IPO of oil behemoth Aramco. But any kind of success depends on people wanting to do business and live there. The kingdom faces a tough uphill road on competitiveness and freedom.
Viewsroom: China’s leader cements his power 26 Oct 2017 President Xi Jinping emerged stronger at the end of China’s Communist Party Congress. His desire to consolidate control however may not help his plans to keep the Middle Kingdom’s economic engine humming. Plus: U.S. telecom firms try again to dial up a merger.
Heavy Amazon investment aims at rivals – and costs 26 Oct 2017 The $470 bln online giant’s third quarter again showed prodigious growth and a desire for more. CEO Jeff Bezos is pouring money into warehouses, gear and employees to beat Wal-Mart on the ground and Alphabet in the cloud. The bigger challenge may be outrunning rising expenses.
The Exchange: Mark Meadows 26 Oct 2017 The congressman and chair of the Freedom Caucus thinks neither Republicans nor Democrats have had success in being the governing party. The Exchange went to his office to discuss what that means for tax reform and other issues, and why members of Congress could lose their jobs.
CEO exit worsens Deutsche Boerse’s bind 26 Oct 2017 Carsten Kengeter is stepping down after failing to resolve an insider-trading probe. An aborted plan to merge with the London Stock Exchange also eroded support at home. But his departure leaves the German group ill-prepared to benefit from any Brexit-related opportunities.