UK universities graduate to bailout candidates 1 Nov 2018 Tertiary education colleges across the UK are issuing more and more debt. The lack of an insolvency framework means any default would be messy, but lenders reckon the government would probably prevent a default. With demand for degrees waning, the bet may soon be tested.
U.S. vote could put Wall St, Big Tech in same boat 1 Nov 2018 Polls give Democrats a good shot at taking control of the U.S. House in next week’s elections. That would mean more scrutiny for big banks like Wells Fargo and Silicon Valley titans. Tension with the White House would rise, but mortgage agency reform may spur rare bipartisanship.
Credit Suisse can afford the odd trading goof 1 Nov 2018 A third-quarter loss in fixed income and equities meant a 2 pct revenue dip at the Swiss bank. Boss Tidjane Thiam has other levers, though. So long as he keeps controlling costs, lower losses from Credit Suisse’s non-core unit should mean he can hit a 10 pct 2019 return target.
Sterling appreciates Brexit deal more than bankers 1 Nov 2018 Britain may be close to securing a deal that would give London basic access to EU financial markets. That’s boosted sterling but offers limited cheer to banks. Such an accord would fail to cover many banking services and force an alignment with rules over which the UK has no say.
New BT boss will be hostage to Brexit fortune 1 Nov 2018 The telecom company’s success at tempting clients to buy pricier connections is lifting revenue and profitability. The strategy may unravel and its pension deficit widen if Britain exits the EU without a deal. Incoming CEO Philip Jansen would then have to cut more costs quickly.
Shell deserves to check out of investors’ doghouse 1 Nov 2018 The UK energy group slightly undershot earnings forecasts but generated oodles of cash in the third quarter. That compensates for a bigger disappointment earlier this year. Unless oil prices dive, Shell should be able to invest as much as it needs while rewarding shareholders.
Japanese telecom titans get rude wakeup call 1 Nov 2018 The country’s big three carriers lost $30 bln in market value after NTT Docomo said it would cut prices. Scant details suggest the selloff may be overdone. With new rival Rakuten rolling out soon and a SoftBank IPO approaching, anxious investors are now bracing for the worst.