China’s war on tycoons intensifies 1 Mar 2018 Authorities are probing the boss of fast-growing oil trader CEFC, a respected magazine says. This comes days after regulators took over Anbang, a major insurer. CEFC shows even magnates who recently appeared untouchable are now at risk of incurring Beijing’s wrath.
Look beyond Macau to bet on China’s high rollers 1 Mar 2018 Even as VIPs benefit glitzy Galaxy Entertainment, Asia's top gambling hub keeps attracting less-affluent customers. So the likes of Vietnam and Cambodia are wooing big spenders. Trouble in the tiny Pacific island of Saipan, though, signals why investors need to be cautious.
Activist spat leaves Aussie chain in bargain bin 1 Mar 2018 Aggressive investors can benefit other shareholders but maybe not at Myer. Solomon Lew's Premier Investments slams the retailer’s board but offers only generic fixes, while he also has conflicts of interest. Sadly, there are no easy levers anyone can pull to boost value here.
Viewsroom: Fraud puts India’s lenders on edge 28 Feb 2018 A $1.8 bln scam at Punjab National Bank comes just months after the government injected $32 bln to bail out 20-odd state-run financial institutions. The scandal may increase calls for them to be privatized. Elsewhere: Will Sky be the limit for Comcast, Disney or Fox?
Comcast’s Sky bid lacks clear financial signal 28 Feb 2018 The U.S. cable group hasn’t laid out the savings to justify buying the pay-TV business coveted by Fox and Disney. The $31 bln deal could work if Comcast can get Sky closer to its own profit margin or boost prices. Then again, the rationale looks more strategic than financial.
Spotify sings out of tune on earnings, governance 28 Feb 2018 The streaming-music firm cued up a poor playlist of falling revenue growth and rising costs in its filing to go public. And refusing to call insiders’ extra voting rights a class of stock sounds like bad karaoke. Spotify’s performance doesn’t deserve a round of applause.
Net neutrality allies may lose battles but win war 28 Feb 2018 Senate Democrats and state AGs are waging a campaign against a Trump administration decision not to require internet service providers treat content equally. It’s an uphill legal climb. But firing up congressional and public opinion might nudge ISPs to follow the rules anyway.
Amazon rings up answer to last-foot problem 28 Feb 2018 Tech giants are racing to own the “smart home,” but opaque consumer benefits and long product cycles mean most residences are dumb. Amazon’s need to master fast shipping and thwart package thieves make it different - and explain why its smart-doorbell deal may ring up success.
Which gunmaker will exit assault rifles first? 28 Feb 2018 With the decision by Dick's Sporting Goods to take AR-15s off its shelves, it's a matter of time before one of the big producers of firearms gets out of tactical weapons and reverts to its self-defense and hunting roots. Aside from sending a message, it would be good business.
Germany gets a chastening exit from HSH Nordbank 28 Feb 2018 The public sector owners of the battered lender are selling out for 1 billion euros, after pumping in 10 times that. Despite restructuring, HSH remains a ropey asset. But Cerberus and its fellow acquirers are buying in at a low enough level to make a healthy return.
Booker boss is pied piper of Tesco deal 28 Feb 2017 The UK wholesaler’s shareholders approved Tesco’s 4 bln pound takeover, despite a slim premium and activist calls for a beefed-up price. Booker CEO Charles Wilson will work on finding synergies with Tesco. A history of stellar returns made investors willing to follow his lead.
India lacks ingredients for next leg of growth 28 Feb 2018 The economy expanded 7.2 pct in the fourth quarter as it continued to recover from Premier Modi’s shock therapy. Even stronger growth would require healthy banks. A massive fraud makes this harder to believe in, and a fresh embrace of protectionism will be another drag.
Accor’s hotel sale has unwelcome discount 28 Feb 2018 The leisure group sold half its property empire for 4.4 bln euros. The low price and a cut on the fees it earns to manage the hotels suggests its partners got the better deal. A buyback will keep investors sweet, but leave less firepower to fend off competitors like Airbnb.
HKEX’s hoped-for listings bonanza could fall flat 28 Feb 2018 Heavy trading and a rush of IPOs sent the Hong Kong bourse’s annual earnings soaring to $945 mln. HKEX’s stock shows investors are excited about 2018, too. That looks overdone: allowing dual-class shares will bring some flotations but bagging secondary listings will be harder.
Stability the only threat to Sberbank’s dominance 28 Feb 2018 Russia’s biggest bank reported a 24 pct return on equity in 2017. A financial crisis and looser central bank allowed the state-controlled lender to cut deposit rates. Sberbank’s pricing power means it it trades at a chunky 1.7 times book value. But fat margins may face a squeeze.
McCall’s next job: show ITV has a future 28 Feb 2018 The former easyJet boss’ first earnings at the broadcaster were depressingly familiar. The terrestrial TV business is shrinking, and its online audience is barely making any money. A lower payout may irk investors, but makes space for critical investment in digital advertising.
Chinese vacancy casts shadow on Hong Kong property 28 Feb 2018 An obscure mainland group buying a $5 bln skyscraper from Li Ka-shing has pulled out. Locals are due to take its place. Similarly, HNA recently flipped land to a Hong Kong developer. If the southbound rush into commercial property abates, the market could regain a little sanity.
Miners face a multibillion-dollar growth debate 28 Feb 2018 The big diggers have emerged from 2017 in rude health: BHP, Rio and Glencore's combined net debt is down to a third of where they ended 2013. The challenge is how to go beyond better payouts. Geology and high prices mean the next phase of growth may be unorthodox.
Sea captain abandons ship amid choppy waters 28 Feb 2018 Nick Nash is leaving as president of the Tencent-backed tech outfit just months after a weak IPO. His visions of a $100 bln Sea were fanciful. Losses are mounting as is e-commerce and payments competition in Southeast Asia. The $4 bln company will have to chart a smarter course.
Malone co-investors have heard this tune before 27 Feb 2018 The media magnate will inject $1.2 bln for a 40 pct stake in troubled radio company iHeartMedia after it goes bankrupt. Creditors would take losses, but the price seems fair. Still, Malone’s past rescue of Sirius XM sounds a note of caution. His help rarely comes cheap.
Georgia gives Amazon one great reason to stay away 27 Feb 2018 The Peach State's Lt. Governor hoisted a big red flag for the e-commerce giant. By lobbying to remove tax breaks for Delta Air Lines, a punishment for withdrawing discounts for NRA members, he makes Georgia an untrustworthy partner – and a poor choice for Amazon’s new HQ.
Powell buys wiggle room with political savvy 27 Feb 2018 The new Fed chair deftly handled his first congressional testimony since taking office, giving few indications he is itching to tighten faster. If anything, his political nous and a friendly Republican majority might give the central bank more room to run the U.S. economy hot.
Poste Italiane tries to catch some Amazon sparkle 27 Feb 2018 The mailing incumbent is targeting a 60 pct EBIT jump to 1.8 bln euros by 2022. Its loss-making delivery business is a drag on the lucrative financial segment, but parcel shipments should rise as Italy catches up with a global e-commerce boom. If Amazon grows, Poste can follow.
European tech tax grab risks U.S. backlash 27 Feb 2018 The EU may tax groups like Google 5 pct of sales based on where users are located. It’s an unsubtle solution to a real problem. But after recent U.S. reforms intended to keep profit at home, the two are reaching for the same slice of pie. The danger is a harmful tax tit-for-tat.
JPMorgan’s new goals hint at U.S. tax doublespeak 27 Feb 2018 The bank hiked its main return target to factor in last year’s tax cuts. While some benefits may get competed away, for now shareholders get the lion’s share. Investing in the community is well and good, but so too is payback after years of absorbing higher costs.
Murdoch holds winning hand in Sky poker game 27 Feb 2018 Comcast’s $31 bln offer for the European pay-TV firm poses a dilemma for Disney’s Bob Iger. He can try to outbid Brian Roberts or reduce his price for Fox’s assets, excluding its Sky stake. Either way, Rupert Murdoch looks set to come out ahead as the seller in a seller’s market.
Comcast’s $31 bln Sky bid spoils Disney-Fox party 27 Feb 2018 The U.S. cable group is offering 12.50 pounds per share in cash for the UK broadcaster controlled by Rupert Murdoch. That complicates the mogul’s plan to sell his entertainment assets to Disney boss Bob Iger. Murdoch must enter a bidding war for Sky or re-think the broader deal.
StanChart shareholders pay Winters a compliment 27 Feb 2018 The Asia-focused lender rewarded investors by resuming dividends. Yet return on equity is still dire at just 1.7 pct. With shares near to tangible book value, investors must believe boss Bill Winters is on track to hit ambitious sales and return targets. That looks optimistic.
Provident Financial faces cleaner but leaner future 27 Feb 2018 The UK doorstep lender is raising 300 mln pounds to settle with regulators over complex loans, and fix its capital. The business that emerges should be better run but less profitable. Shareholders would have been better off with the lower-octane version to start with.
Momo pairs well by swiping right on China’s Tinder 27 Feb 2018 The $7 bln social network is buying Tantan for at least $600 mln. It's yet another shift for Momo, whose original online courtship effort flopped and led it into video. Though lucrative, competition and censorship are getting stiffer. This new partner should spice things up.