Alibaba delivery deal could be tasty side dish 27 Feb 2018 The $500 bln e-commerce outfit may buy the rest of Chinese startup Ele.me, which gets meals from restaurants to homes. Simply battling rival Meituan Dianping would be costly. If it can enhance Alibaba's payments, groceries and parcels businesses, though, it makes much more sense.
AIA’s warchest is good omen for investors 27 Feb 2018 After a 28 pct surge in new business last year, the Asian life insurer is sitting on a cool $12 bln. It is hard to see all of that being consumed by modest M&A or investments in growth. That means before long shareholders should be in line for a big special dividend or buyback.
Indonesia lays bare green-bond growing pains 27 Feb 2018 The country's $1.25 billion fundraising is hard to square with its palm-oil and coal exports. Issuers with the least eco-conscious credentials, though, are also important to lure onto the bandwagon with financial incentives. It's the various shades of green that are awkward.
Hadas: Billy Graham’s great missed economic chance 26 Feb 2018 The evangelist, who died last week, lived through a global debate over the Christian responsibility to help society. He put preaching before activism. If he had spoken out – as many European Catholics did – America might have a stronger welfare system now, and less populism.
George Foreman Grill maker gets leaner, not meaner 26 Feb 2018 The maker of the famed kitchen device – as well as bits and bobs ranging from faucets to fish food – is combining with its majority owner in a deal valued at $10 billion. Spectrum Brands comes out with a neater structure. Its collection of businesses, though, is still messy.
General Electric brings more bad things to light 26 Feb 2018 The $125 bln conglomerate keeps finding skeletons in its closets. A $4.2 bln charge to better account for service contracts was expected; less so are revelations GE Capital inflated its earnings. CEO John Flannery’s overdue cleanup is exposing flaws throughout the weakened giant.
Corbyn turns soft Brexit into hard politics 26 Feb 2018 The Labour leader says Britain should stay in a customs union when it leaves the EU. Though his Brexit vision is fuzzy, it may appeal to voters and galvanise a parliamentary challenge to embattled Prime Minister Theresa May. UK political instability looks set to step up a gear.
Qualcomm slaps Broadcom with two Herculean labors 26 Feb 2018 The chipmaker laid down conditions for agreeing a merger – including boosting the proposed break fee to about $13 bln. Qualcomm is being reasonable but disingenuous. Its suitor would still have two very high bars to clear: raising the $120 bln price, and convincing regulators.
Latvian bank failure raises 8 bln euro question 26 Feb 2018 That’s the amount foreigners have deposited in the Baltic nation’s lenders. Now ABLV, the third-largest bank, is being wound up following U.S. money-laundering charges. The cost to Latvian taxpayers is limited. Containing the fallout for the overall banking system will be harder.
Deutsche Bank IPO highlights capital conundrum 26 Feb 2018 The German lender may raise 2 bln euros by listing a 25 pct stake in its fund management arm, boosting already strong capital ratios. In normal times Deutsche could return some excess to shareholders. But volatile investment banking revenue means it cannot be too generous.
McKinsey’s next leader inherits a big project 26 Feb 2018 Kevin Sneader has been chosen to run the elite consultancy. He’s a traditional-looking candidate but a stint in Asia suggests growth markets are a priority. The challenge is to keep digital reinvention on track and avoid embarrassments like that recently suffered in South Africa.
Xi’s open-ended rule bodes ill for governance 26 Feb 2018 China is set to scrap presidential term limits, meaning Xi Jinping could serve as leader for life. For foreign execs and investors, the further consolidation of power means less predictable policymaking. It also raises the risk of bad decisions taken in an information vacuum.
Geely wheels Mercedes into its chop shop 26 Feb 2018 The Chinese carmaker's founder has bought a 10 pct stake in Daimler, parking it next to Volvo, Lotus, London cabs and Swedish trucks. It's another strange turn in Geely's route to global growth. This new $9 bln part will be hard to fuse onto what has otherwise been a sweet ride.
Buffett generational shift applies to investors too 24 Feb 2018 The Berkshire Hathaway chairman’s fans will lap up his ample returns and folksy advice as they always do. But will their kids? Away from Omaha, big investors like BlackRock and Vanguard are positioning for a new generation of investors. A similar challenge awaits Buffett’s successors.
Dropbox seeks hard valuation for soft business 24 Feb 2018 The data-sharing company wants to raise $500 mln from public investors. In its favor are rapid revenue growth and strong cash flow. The trouble is that an early fundraising round inked a high value that’s hard to justify, especially with Dropbox’s growing competition.
Cox: Gun lobby meets match with economic protests 23 Feb 2018 Civil rights movements often embrace boycotts. Think of Gandhi's Salt March, suffragette strikes, South African divestment or MLK's final speech, where he told followers not to buy Coke. Now it's the NRA's turn, as consumers force all manner of companies to sever ties.
General Mills pays runaway price for Blue Buffalo 23 Feb 2018 The Cheerios maker is throwing an $8 billion bone at the natural-pet-food producer to beef up sales to furry darlings. The prospect of taking over the pantry is as appealing. But to make the investment stack up, General Mills’ new pet will need to grow faster than a puppy.
Review: Knocking at the door of tech’s boys’ club 23 Feb 2018 Women played key roles in the development of computers, but you wouldn’t know it by looking at Silicon Valley. A hostile culture has pushed them to the fringes of America’s technology hotbed. A new book says thinking differently would pay dividends for women, and the industry.
Anbang is big test of China’s non-market market 23 Feb 2018 The state seizure of the insurer looks designed to leave markets unruffled. It will probably work, since capitalist forces in China are still on a tight rein. The real impact will be subtle, as investors and foreign regulators weigh up this new hands-on approach.
Trump Jr. corrodes India’s anti-corruption efforts 23 Feb 2018 The U.S. president's son is promoting his family real-estate brand and was due to speak in New Delhi on Indo-Pacific ties. A backlash saw that revised to a fireside chat. Still, the mix of business and politics undercuts Premier Modi's own efforts to end crony capitalism.
Standard Life Aberdeen sale exposes core problem 23 Feb 2018 The recently merged group sold its insurance business to Phoenix for 3.2 bln pounds. Though the price looks unexciting, the deal releases capital and leaves behind a pure fund manager. But as long as the group continues to lose assets, the benefits of scale remain unproven.
RBS is a step away from ending its lost decade 23 Feb 2018 The state-owned UK lender made its first after-tax profit in 10 years. A 4 pct rise in revenue and falling costs moves boss Ross McEwan closer to his return on tangible equity target. Settling U.S. charges over mortgage securities is the last hurdle to restarting dividends.
Anbang seizure flips script on Chinese takeovers 23 Feb 2018 Authorities have commandeered the acquisitive insurer and prosecuted its boss. It is the boldest step yet in Beijing’s battle against financial excess, and is meant to protect policyholders and avert systemic trouble. The move may also be a worrying omen for HNA and others.
Apple tide will lift fewer Asian supply boats 23 Feb 2018 Disappointing iPhone X sales have hurt the value of Foxconn and others in the production chain. The lofty expectations could make recovery harder for many. Specialists like lens maker Largan, though, are better positioned to benefit from fewer but more profitable Apple handsets.
South Korea misses podium in corporate Olympics 23 Feb 2018 The world’s gaze is on the host of the winter games, so it is a bad month to showcase the rot by freeing a Samsung boss or jailing another tycoon amid a corruption probe. At least for Seoul and its mighty conglomerates, the only way is up in the corporate-governance medal tables.
Viewsroom: Chipmaker battle fries M&A circuits 22 Feb 2018 Broadcom has lowered its hostile bid for Qualcomm after its target upped its longstanding offer for NXP. That decreases the chance the two larger rivals can strike a deal – assuming regulators wouldn’t nuke it. Plus: Credit Suisse shines a rare light on Asian investment banking.
Kardashian slap shows hole in Snap’s accounting 22 Feb 2018 Celebrity sibling Kylie Jenner wiped over $1.5 bln from the disappearing-message app’s wobbly value after she questioned its usefulness. Influential fans attract users – and repel them if they publicly flee. Such assets don’t show on the balance sheet. Maybe they should.
Macquarie Infrastructure slips on $2 bln banana 22 Feb 2018 That’s how much the power-to-airport-services group’s stock plunged after the loss of fuel-oil contracts led it to slash the dividend and put assets up for sale. Getting caught out by a shifting U.S. energy mix is embarrassing. Having too much leverage compounds the damage.
Holding: Privacy computes for Supreme Court 3.0 22 Feb 2018 High-tech snooping is back at the U.S. tribunal next week with Microsoft’s fight to shield users’ email from Uncle Sam. As in smartphone and GPS-tracking cases, the justices will probably focus on personal rights. The nine of them are remarkably attuned to technology’s risks.
Whistleblowers lose a shield, but so do employers 22 Feb 2018 Those who suspect U.S. securities breaches must tell regulators or lose some protection from vengeful employers, the Supreme Court says. Major misconduct should still get reported. But small stuff might fall through the cracks – depriving companies of a chance to tackle it early.