Father of Indian TV muddies deal transmission 1 Aug 2019 Subhash Chandra is selling 11% of Zee Entertainment to Invesco to pay down debt. The transaction values the top broadcaster at $5.6 bln and fends off a mooted Comcast-led bid. Shareholders miss out on a control premium and face more uncertainty before Zee can realise its value.
LSE’s data download needs growth to add up 1 Aug 2019 The stock exchange operator confirmed its $27 bln takeover of financial information provider Refinitiv. To earn an adequate return on investment, CEO David Schwimmer will have to cut costs, but also find new sources of revenue. LSE shareholders’ expectations are already high.
Barclays takes out insurance policy to meet target 1 Aug 2019 Lower revenue and higher costs led to a 15% first-half drop in underlying pre-tax profit. The bank’s UK division faces tough times and will be less likely to offset dour performances in trading. CEO Jes Staley is pledging more cost cuts to hit a 9% annual return target.
StanChart’s Winters makes best of a weak hand 1 Aug 2019 The emerging market bank is growing, helped by trading revenue and falling impairments. But currency swings, a trade war and rate cuts make Bill Winters’ targets harder to hit. Investors probably shouldn’t begrudge him a salary that's a sliver of what he could have had elsewhere.
European oil majors’ gas lifeline could be a noose 1 Aug 2019 Royal Dutch Shell and Total rely on gas for future growth. That’s greener than oil, but weak second-quarter results show the drawback of their exposure. More importantly, longer pay back times than shale projects may help explain why the pair trade at a discount to U.S. peers.
Rio’s shiny profit masks a less lustrous reality 1 Aug 2019 The miner reported solid earnings, seasoned with a $1 bln special dividend. The detail is a bit more tarnished: iron ore operations are feeling the strain from years of cuts, and a Mongolian mine has underwhelmed. Investors love cash, but Rio also needs to invest in what it has.
Victor Li is a half mark up on Hong Kong’s tycoons 1 Aug 2019 Political unrest is a threat to top conglomerates with a big focus on the Fragrant Harbour. Earnings at Li’s CK Hutchison put a spotlight on the group’s shift away from the territory. Global growth is slowing and currencies are volatile, but a diversified bet still looks better.