Chairman’s death intensifies HNA uncertainty 4 Jul 2018 The accidental death of co-founder Wang Jian adds to questions about the future of the embattled conglomerate. His precise remit at the closely held group was not clear. Unlike some other big private Chinese outfits, however, HNA was not reliant on a single leader.
WhatsApp hits limits of technology in India plight 4 Jul 2018 Just as the Facebook-owned messaging app pushes into payments in its biggest market, it has been warned by New Delhi about false information linked to mob killings. The service’s encryption means new code will be of little help. WhatsApp requires a different sort of innovation.
Chinese markets have much to fear from fear itself 4 Jul 2018 A stronger dollar largely accounts for a recent 6 pct fall in the yuan, with the central bank managing the pace. Tumbling Chinese stocks can be weathered, and some defaults are healthy. Patience is not one of President Xi’s virtues, though, and panicked intervention is a risk.
1MDB trial is just start of Malaysian war on graft 4 Jul 2018 Former Premier Najib Razak has been charged in connection with the $6 bln scandal. The swift action is commendable. Deeper change is needed to reassure investors, though. That means measures like forcing politicians to declare assets, and regulating party funding.
Take Lloyds’ PPI nonchalance with a pinch of salt 3 Jul 2018 A legal ruling implies UK banks may have to repay commission on missold loan insurance. Despite paying 18 bln pounds on wider PPI claims, Lloyds is only modestly adjusting its provisions. That would be encouraging if it didn’t have a track record of goofing its estimates.
WTO pullout is self-fulfilling prophecy for Trump 3 Jul 2018 About 70 pct of cases filed this year at the world body target new U.S. tariffs. The White House also isn’t strongly pursuing disputes. Tilting America’s winning record to losses would bolster WTO rancor. Congress can stop a withdrawal but anti-trade rhetoric still resonates.
Glencore’s Washington risks are starting to add up 3 Jul 2018 The resources giant’s shares fell 12 pct after the U.S. asked for details of anti-corruption compliance in Nigeria, Congo and Venezuela. Glencore’s geographies mean this is always a danger. But a June settlement with U.S-sanctioned Dan Gertler won’t have endeared it to Uncle Sam.
Hutchison’s $3 bln Italian buyout is a good call 3 Jul 2018 The Hong Kong conglomerate is buying Russian-backed partner Veon out of their Italian mobile JV, Wind Tre. That is a bold step amid political instability and intensifying competition. But the deal looks cheap, and could prove shrewd for new CK Hutchison boss Victor Li.
Italy picks wrong medicine for job market malaise 3 Jul 2018 Rome wants to clamp down on short-term work contracts by diluting past labour reforms. That might help job security but would be counterproductive in cutting unemployment. Tackling a skills gap and trimming employers’ costs would do more to boost the quality and quantity of jobs.
Lloyd’s of London next CEO faces many perils 3 Jul 2018 Inga Beale will leave the insurance marketplace next year. The 330-year-old business’ first female boss banned lunchtime boozing and modernised underwriting. Her successor must navigate the fallout from Brexit, losses from climate change, and tackle Lloyd’s bloated cost base.
U.S. veto on China Mobile could grow wider 3 Jul 2018 The Trump administration wants to deny the $180 bln carrier’s longstanding bid to offer overseas calls from America. The financial impact will be negligible. But this could herald a broader U.S. campaign to weaken Beijing’s control over Chinese people and companies abroad.
Deutsche reboot looks incompatible with China tech 3 Jul 2018 New boss Christian Sewing is scaling back in capital-intensive businesses like bond trading and serving hedge funds. That creates a challenge: how to hold onto rainmakers in less problematic areas, like a revamped Asia tech team which is winning deals with Ant and Tencent.
Chinese mega-fund is the last thing tech needs 3 Jul 2018 A state-owned enterprise is working with one of SoftBank’s partners on a $15 bln answer to the Vision Fund. Deploying huge sums wisely is hard, even if you have SoftBank’s track record. This could further inflate valuations, and stoke fresh subsidy battles among startups.
Aging fashion labels battle in bargain basement 2 Jul 2018 The founder behind Perry Ellis wants to take the clothing company private. An interloper that licenses brands for accessories is offering investors a premium – all of 50 cents a share. When the target is a grab bag of department-store merchandise, upping the ante is cheap.
Tesla upshift puts focus on bigger battles 2 Jul 2018 Elon Musk had to pull out all the stops to hit his oft-postponed Model 3 production target. It will cheer his faithful followers and make it easier to raise capital. But for the electric-car maker to really cruise, he must prove he can sustainably increase output and make money.
Bank CoCos get a new reason to go pop 2 Jul 2018 Exchange-traded funds are pooling bonds that convert into equity in a crisis. It’s an odd mix: ETFs allow investors to buy or sell assets easily, while contingent convertibles can be hard to trade. The union may mean more investors for funky debt, but also bigger price moves.
Dell gets more real by deleting virtual stock 2 Jul 2018 It’s buying shares that mirror those of its VMware division for $21.7 bln. The 29 pct premium is ample but still gives away less than half the discount at which the tracking stock traded. The sensible simplification takes the IT firm closer to a full return to the stock market.
Tech backlash grows in Silicon Valley’s back yard 2 Jul 2018 California will force internet companies like Google to give consumers more control over their information and stop it being sold to third parties. The law is narrow but the Golden State is often a litmus test for legislation that takes hold nationwide.
Dan Loeb hits limits of “constructivism” on Nestlé 2 Jul 2018 A year after disclosing a stake, the activist investor called on the Swiss giant to shake up its business and board. Though his ideas make sense, progress has been slow and the stock has lagged. He could take a more muscular approach, but only if other shareholders go along.
Vedanta digs just deep enough to leave London 2 Jul 2018 Chairman Anil Agarwal’s offer of a 28 pct premium for the mining group’s 2.3 bln pound UK unit is probably enough for investors spooked by deadly protests. They can invest directly in the Indian operations anyway. And a simpler structure paves the way for more dealmaking.
Steel pact lets Thyssen/Tata tackle wider problems 2 Jul 2018 Tweaking the terms of their September joint venture gives the German steelmaker a bigger share of a future IPO. It could have driven a harder bargain, but Tata had limited wiggle room. Besides, ThyssenKrupp needed a deal to kickstart its own much-needed overhaul.
Micro Focus $2.5 bln sale amplifies growth problem 2 Jul 2018 The British tech group’s disposal of an open-source software unit is helping its share price, which halved in March. Yet the source of its problems, a troubled former HP division, now accounts for more of the group’s revenue. A tricky turnaround has become even harder to execute.
Recordati take-under is painful reality check 2 Jul 2018 CVC is buying 52 pct of the Italian pharma group for 3 bln euros, a valuation 18 pct below the market price. A share rally following the death of patriarch Giovanni Recordati did not match growth prospects. Minority shareholders must now decide whether to hold out for more.