Shell’s low-carbon shift yet to charm investors 2 May 2019 The Anglo-Dutch group had a more profitable quarter than Exxon and is better placed for a greener future. But its valuation lags that of its U.S. peer, which finds more new reserves. Investors seem to care more about how much oil is pumped now than when crude demand will peak.
Poorly sales add to next Reckitt CEO’s ailments 2 May 2019 The Durex-to-Dettol maker’s revenue disappointed in the first quarter. Whoever replaces Rakesh Kapoor has to worry about stagnant health brands, legal risks from the opioid crisis, and demand for baby products in China. A mooted breakup of the group is getting trickier.
Cox: Ghosn affair shoves Japan two steps back 2 May 2019 Harsh treatment by prosecutors has amazingly elicited some sympathy for the Nissan boss. Neither greed nor running the automaker like a deity is a crime. And the presumption of guilt on other matters is unseemly. It may scare off foreign executives just as Japan Inc goes global.
Japan’s telecom upstart tests plan for disruption 2 May 2019 E-commerce group Rakuten has done well out of bets on Lyft and Pinterest. That supports its capex-light push to challenge Japan's mobile oligopoly. Reliance upended the Indian sector with a costlier, but similarly daring gamble. Hiroshi Mikitani can hope for some of that success.
China will scale its 2023 population peak 2 May 2019 A new study suggests the country may top out at 1.4 bln people in four years, earlier than expected. That’s disheartening for Mattel, Lego and companies in education. But it reflects a richer, better-schooled nation, while older workers are retiring later too, softening the blow.
The battle for Anadarko: run the numbers 1 May 2019 Weigh up Occidental and Chevron’s competing cash and stock offers to adjust for the bidder’s underlying value, and how much value they can create.
Occidental is winning Anadarko battle by a mile 1 May 2019 The Texan shale producer’s stock has slumped since it offered $38 bln for its rival. The tie-up would rely on cutting costs in a single region, unlike a lower rival bid from Chevron. Yet even if Anadarko shareholders discount Oxy’s stock and planned savings, they’ll do better.
Finance’s green activists see path to climate hope 1 May 2019 An annual Wall Street-heavy confab on environmental risks is offering plenty to worry about. But a group of 340 investors like CalPERS and AXA is notching up wins, including against Equinor, Shell and other polluters. More concerted pressure can help slow global warming.
Carlyle scratches seven-year underperformance itch 1 May 2019 The newish co-CEOs have the buyout shop growing again, notably its relatively stable fee earnings. But with $222 bln under management, Carlyle still trails rivals like Blackstone and Apollo, and its units trade below the 2012 IPO price. Holders’ patience may be wearing thin.
Hadas: Stock market money exaggerates uber-profits 1 May 2019 Equity market valuations suggest investors believe high corporate profitability will continue. They are even paying up for heavily loss-making companies like Uber and Lyft. Easy monetary policy encourages such thinking. Money that does not push up wages has elevated asset prices.
Irish import new thinking into ECB from Down Under 1 May 2019 Ireland has hired New Zealand’s treasury chief, Gabriel Makhlouf, as its new central bank boss. While not a rate-setter, he arrives from a country that added an employment target to its monetary authority’s inflation goal. And Dublin can brag it is attracting global talent.
UniCredit should approach Commerz by the side door 1 May 2019 The demise of the German lender’s merger with Deutsche Bank clears the way for its Italian peer. A straight takeover of Commerzbank could be politically tricky. Spinning off UniCredit’s German arm HVB and then merging it, however, might be an easier sell.
Huawei fracas erodes its European advantage 1 May 2019 Vodafone found flaws in the Shenzhen-based group’s kit. Huawei argues they are common in the sector, and not evidence of Beijing spying. Yet its Chinese roots mean it will be held to higher standards than European peers. Telco customers might decide it’s not worth the risk.
Bayer can do more to defuse investor rage 1 May 2019 Shareholders cast a vote of disapproval against the German group’s management following cancer-related lawsuits linked to the acquisition of Monsanto. Yet neither side wants a new CEO or strategy. Revamping the board and boss Werner Baumann’s pay might quell the revolt.
Sainsbury’s Plan B is underwhelming 1 May 2019 The UK grocer will spruce up stores and cut prices. A new strategy was needed after boss Mike Coupe’s failed takeover of Asda. But with discounters and rivals gaining ground, Coupe needs to be bolder. The risk is that Sainsbury’s keeps losing market share as competition hots up.