British drug group can’t even give away opioids 6 Aug 2019 Mallinckrodt suspended a plan to spin off its painkiller business to shareholders. It was a too-transparent attempt to shield itself against legal liabilities from thousands of lawsuits. With falling sales, hefty debt, and a potentially big settlement looming, its future is grim.
Bolloré hits right note to mute Vivendi doubters 6 Aug 2019 The French tycoon may sell 10% of Universal to China’s Tencent at a price that values the music label at 30 billion euros. Sceptics who feared a deal wouldn’t happen this year will be silenced. But more selloffs are required to erase Vivendi’s persistent conglomerate discount.
End is in sight for Italy’s bad loan emergency 6 Aug 2019 The country’s banks have halved the pile of shaky debt from a 341 bln euro peak in 2015, helped by frantic sales. The pace at which good credit is turning sour has also slowed. New European Commission boss Ursula von der Leyen has one less hurdle on the way to a banking union.
India’s bold Kashmir grab raises economic stakes 6 Aug 2019 New Delhi says an abrupt move to end special rights for the disputed territory will aid development. Kashmir could use more state funds and private cash, but gains will be limited without peace. Serious unrest would also hit a $3 trln Indian economy already in the doldrums.
Trump hands Beijing an excuse to let yuan slide 5 Aug 2019 China's currency has slumped past 7 to the dollar, a long-defended threshold. That marks a trade war escalation, days after Washington announced fresh tariffs, but also an adjustment to reality: with growth slowing, the yuan was too strong. Diplomatic failure has a silver lining.
Crown’s China troubles upset Melco’s grand gamble 6 Aug 2019 Fresh allegations around the Aussie casino giant's dealings with Chinese high-rollers have drawn scrutiny Down Under. That leaves new shareholder Melco in an uncomfortable spot. It hoped to use its Crown stake to push overseas; instead, the bet is adding to investor worries.
Trump’s yuan move makes a China deal much harder 6 Aug 2019 The U.S. Treasury labelled China a manipulator after its currency fell below 7 to the dollar. It followed Beijing’s threat to retaliate for the president’s latest tariffs. The sudden escalation makes it tougher for both sides to strike a deal. No wonder markets are fragile.
Three ways Walmart could help on U.S. gun violence 5 Aug 2019 The giant U.S. retailer had already tightened its rules on gun sales before a mass shooting in one of its stores. Ditching all firearms may be too bold a step, but there are other steps it could take, from banning open carry to pledging to stock safer, tech-enabled alternatives.
IMF stitch-up would set at least one good example 5 Aug 2019 Kristalina Georgieva, Europe’s pick to lead the lender, is a technocrat who lacks former Managing Director Christine Lagarde’s stature and clout. But the IMF would have to raise its age ceiling for her – about time for a body that prods countries to raise retirement ages.
Takeaway.com’s $6 bln Just Eat bid is undercooked 5 Aug 2019 The Dutch food-delivery group is offering to buy its UK peer using its highly-valued equity. The offer undervalues Just Eat, which is rudderless but at least makes a profit and has the option of selling Brazilian and Canadian assets. Shareholders should hold out for more.
Saudi and healthcare tech each get shot in the arm 5 Aug 2019 The kingdom's sovereign wealth fund is injecting $200 mln into healthcare app Babylon. After being passed over by SoftBank, the startup gets fresh impetus and a $2 bln valuation. Saudi gets welcome proof that its poor human rights record won’t stop companies taking its money.
HSBC’s CEO volte-face puts chairman on the spot 5 Aug 2019 The board led by Mark Tucker forced out Chief Executive John Flint just 18 months after picking him to run the global bank. Finding a permanent replacement could take up to a year, leaving the bank adrift. Investors will hold the former AIA boss accountable for what happens next.
CEO exit leaves HSBC with worrying gap at the top 5 Aug 2019 John Flint has parted company with the Asia-focused lender after 18 months at the helm. The abrupt exit of a veteran banker overshadows decent earnings and a $1 bln buyback. Given mounting uncertainty around Brexit, a trade war and Hong Kong, it's a bad time to be adding more.
Shiny Shanghai tech market needs a reality check 5 Aug 2019 China's freshly minted STAR board saw shares hold on to triple-digit gains after a week of regular trading. It passed the first test: volatility was manageable, even if valuations now look alarmingly inflated. Fixing that may require an overpriced listing to founder.
The Exchange: China’s unicorn squeeze 5 Aug 2019 Mainland startups are under pressure, as once-plentiful funds dry up. Jixun Foo, managing partner at GGV Capital and a backer of tech giants like Didi Chuxing, discusses with Alec Macfarlane why the drop-off in financing could ultimately benefit investors.
Chevron’s M&A discipline looks smarter than ever 2 Aug 2019 The $225 bln oil major’s margins eroded in the latest quarter even as it ramped up Permian output. The effect was greater at rival Exxon. At least CEO Michael Wirth put Chevron investors first by refusing to outbid Occidental for Anadarko. But he still has a growth quandary.
Trump trade tweets are the new Fed and jobs report 2 Aug 2019 The U.S. president on Thursday unexpectedly threatened a 10% levy on $300 bln of imports from China. He rattled markets more than the central bank’s interest-rate cut a day earlier, and put Friday’s steady jobs report in the shade. Economy-watchers must now scan Twitter.
RBS payout is temporary pain relief for investors 2 Aug 2019 Departing CEO Ross McEwan ditched the state-controlled lender’s 2020 return target, blaming pressure on margins. Increased lending makes up for some of the shortfall, but at the risk of more bad debts if the economy turns. A 1.5 bln pound special dividend is a short-term balm.
Brexit casts a double cloud over IAG 2 Aug 2019 The British Airways owner’s top and bottom lines are growing, a rarity among ravaged European carriers. Yet the risk of Britain crashing out of the EU weighs on its valuation. IAG can’t reduce its dependence on UK travellers, but more clarity on post-Brexit ownership would help.
Telecom Italia’s fixed woes creates M&A imperative 2 Aug 2019 The Italian telco is losing market share at its key retail fixed-line business despite a push to replace old copper lines with broadband. The rise of fiber-only network player Open Fiber poses a further threat. A plan to team up with the rival is assuming existential importance.
KKR gets a biscuit LBO do-over Down Under 2 Aug 2019 The private equity fund that invented the cookie buyout is acquiring Campbell's Australian snacks unit for $2.2 bln. It’s less audacious than the $25 bln RJR Nabisco deal 30 years ago. But if KKR can scrape out decent growth and profitability, this one may prove tastier.
Glencore coal split could scratch multiple itches 2 Aug 2019 The $42 bln giant is the largest thermal coal exporter, at a time when miners are under growing pressure to clean up. Splitting out that business would help, and can also lift a depressed valuation. It might even make sense for boss Ivan Glasenberg to lead the carve-out himself.
U.S. tariffs risk reviving Chinese zombies 2 Aug 2019 President Trump is threatening new levies on $300 bln of goods after Shanghai talks proved inconclusive. Beijing can cushion with stimulus, benefitting state industries and inflating asset bubbles. Liberalisation offers better yields, but by this point patience may be lacking.
U.S. exchanges have reasons to stay in their lanes 1 Aug 2019 ICE and CME show no interest in butting in on data outfit Refinitiv, the LSE’s $27 bln target. The NYSE owner is pushing into fixed-income data, while CME is dominant in futures. Exchanges may yet consolidate further, but the big players have plenty to do on their own turf.
Viewsroom: Is Beyond Meat worth a bite? 1 Aug 2019 The meatless-burger maker is the best-performing IPO of the year by far. Now insiders are selling stock early as the company deals with rising competition, regulations and even a potential pea shortage. Plus: Using wine goggles to look at Western firms’ joint ventures in China.
Refinitiv’s unequal exchange 1 Aug 2019 As the London Stock Exchange reveals plans to merge with data provider Refinitiv, run the numbers to see which of the target’s backers, Blackstone and Breakingviews parent Thomson Reuters, comes off best.
Gas-guzzlers undercut GM’s triple-zero goal 1 Aug 2019 CEO Mary Barra aims one day to nix pollution, crashes and congestion with electric and self-driving cars. But the $59 bln automaker relies on SUVs, pick-ups and the like for most of its profit and is delaying robo-taxi plans. Committing to lower emissions could provide a boost.
Thomson Reuters beats Blackstone in Refinitiv deal 1 Aug 2019 If the financial data provider clinches a $27 bln takeover by the London Stock Exchange, the buyout firm will make a handsome return. Yet an insurance policy designed to protect its downside works in its Canadian co-investor’s favour. Thomson Reuters may almost triple its money.
Brexit makes Carney less of a central bank oddity 1 Aug 2019 Bank of England boss Mark Carney is, like everyone, in the dark about whether Britain will crash out of the EU. Without that uncertainty, he might be tightening policy when peers are either easing or hinting they might. Being odd man out would be better than the current limbo.
Greece’s new PM needs to avoid banking own goal 1 Aug 2019 The fund that oversees state shareholdings in the country’s four big banks has been a force for better governance. Even so, recently elected Prime Minister Kyriakos Mitsotakis may decide to overhaul its leadership. A changing of the guard now would send the wrong message.