Aviva’s new CEO is a vote against restructuring 4 Mar 2019 The UK insurer has appointed veteran Maurice Tulloch as chief executive. Aviva is overleveraged and undervalued, and selling its international operations offers a potential fix. But given doing so is hardly a no-brainer, an insider CEO may prefer more of the same.
Vale can keep pages from departing CEO’s playbook 4 Mar 2019 Fábio Schvartsman has stepped down weeks after a fatal dam collapse. Waiting for prosecutors to push the issue is bad form. Safety and governance will have to become bigger priorities for the $65 bln Brazilian miner, but many strategic and operational ideas are worth preserving.
Time for Ted Baker to embrace overseas offers 4 Mar 2019 The UK fashion group’s founder Ray Kelvin has left amid an ongoing probe relating to his hugging of colleagues. With the shares down a third in a year and Kelvin still holding 35 pct, Ted Baker could be in play. Chinese luxury players eyeing mid-market brands may come calling.
Daily Mail owner bucks poor media-governance trend 4 Mar 2019 Tycoons like the Bollorés, Lagarderes and Murdochs are often accused of mistreating minority shareholders. The Mail’s Rothermere family, though, is penalising itself through a spinoff. It’s a testament to strong UK rules and a sop to investors whose stakes have underperformed.
India Insight: Money power is choking democracy 4 Mar 2019 From free flat-screen TVs to biryani parties and paid news, cash distorts the workings of the world’s largest democracy, otherwise a marvel of staggering complexity. As a home-grown oligarchy takes hold, India needs a leader who can make good politics out of electoral reform.
China’s parliament will address half the problem 4 Mar 2019 The annual legislative session starts Tuesday, setting key economic targets for officials attempting to balance growth against debt. But investors hoping it will resolve bigger questions about trade, industrial policy, and foreign suspicion of Chinese tech will be disappointed.
AT&T uncovers hidden costs of media deals 1 Mar 2019 HBO boss Richard Plepler is leaving not even a year after the telco acquired parent Time Warner for $85 bln. The “Game of Thrones” network is a jewel and Plepler is a talent magnet. People can be replaced. It just makes an expensive deal even more so.
Lyft IPO promises roads to everywhere 1 Mar 2019 The firm is growing fast in a huge market, and there’s a glimmer of a path to profit. But Lyft is also hemorrhaging cash, faces frightful competition and is dependent on robo-cars arriving soon. Wall Street is along for the ride, but public investors will need strong stomachs.
Investors and citizens try to dam U.S. water risk 1 Mar 2019 An Ohio city voted to protect Lake Erie by granting it rights similar to humans'. Investors managing $6.5 trln want fast-food giants like McDonald's to reduce suppliers' pollution. It's welcome pushback against lax business practices and President Trump's environmental neglect.
Review: Capitalism and democracy are good friends 1 Mar 2019 “Democracy and Prosperity” persuasively argues that markets and shifting electoral balances have worked well together to support economic growth. Its two professor authors don’t think the new “populism” needs to break the pattern. Sadly, that case is much less compelling.
Deutsche Bank’s opaque asset punt trolls regulator 1 Mar 2019 The lender’s pile of hard-to-value assets grew by 3 bln euros last year, despite the European Central Bank’s plan to scrutinise them more closely. The increase jars with boss Christian Sewing’s vision of a simpler bank – and does little to ease Deutsche’s elevated funding costs.
LSE’s new chief faces growth conundrum 1 Mar 2019 The exchange group shrugged off market ructions and Brexit worries to lift EBITDA above 1 billion pounds. Boss David Schwimmer plans to invest in expanding areas like indexes for funds and derivatives clearing. The LSE’s punchy valuation suggests investors expect speedy results.
WPP’s dysfunction discount is now too slim 1 Mar 2019 The 12 bln pound ad group’s results were hardly enough to merit a 7 percent rise in its shares. WPP’s miserable forecasts mean it merits a wide discount to French rival Publicis, which has better growth prospects. Investors are cutting new CEO Mark Read a lot of slack.
Moncler’s strength will whet its M&A appetite 1 Mar 2019 The Italian puffer-jacket maker’s 2018 sales grew 18 percent year-on-year, disproving fears it might miss out on the recent spate of strong luxury results. Moncler could become an LVMH-style sector aggregator. A rising net cash position and share price give it greater firepower.
Europe is better off policing than banning Huawei 1 Mar 2019 The Chinese supplier dominated this year’s telecom gathering in Barcelona. U.S. officials want the EU to follow their lead by banning Huawei, while the company denied its kit has security “back doors”. An industry proposal for Europe-wide testing seems a sensible compromise.