Considered View

Beijing sours on private-sector independence

24 July 2017

Bureaucrats who once encouraged foreign takeovers are now second-guessing private deals by Dalian Wanda, HNA and others. Tech stars like Tencent are being force-fed shares in state dinosaurs. The Communist Party has grown overconfident in its ability to micro-manage.

Abe’s weakness puts Japan reform momentum at risk

24 July 2017

A period of unusual political stability helped Prime Minister Shinzo Abe shake up the economy. But his approval ratings have crashed. He is more likely to respond with populist spending than doubling down on reform. If that fails to shore up his support, he may be replaced.

White House creates its very own jobs crisis

21 July 2017

Press Secretary Sean Spicer quit after the hiring of financier Anthony Scaramucci. Donald Trump also fired his FBI director, undercut his Treasury secretary and regrets his attorney general pick. Just as U.S. employers wrestle with labor participation, so too does the president.

GE’s new boss may find inspiration from Honeywell

21 July 2017

Jeff Immelt’s weak earnings swan song underscores the challenge for John Flannery atop the $222 bln industrial giant. Making quick progress on early goals is key, as Darius Adamczyk is doing several months in at Honeywell. With activists in both stocks, it should be a no-brainer.

Telecom Italia loses out in Vivendi lottery

21 July 2017

Flavio Cattaneo will step down as CEO of Telecom Italia after clashing with shareholder Vivendi. Cattaneo was an effective cost cutter and only in place a year. Investors may be used to Vivendi calling the shots, but such unexplained upheaval is another reason for TI’s discount.

Puppy love keeps IPO investors on the leash

21 July 2017

Snap's stumble, Blue Apron's disastrous debut and YogaWorks' yanked listing spelled doom for trendy, fast-growing businesses. Then shares of PetIQ jumped some 30 pct. More sensible pricing helped the maker of dog treats and medicine, but it also remains vulnerable to competition.

IPO baggage weighs heavier on ZTO

21 July 2017

A U.S. pension fund is suing the Chinese courier and its underwriters for inflating profit margins in its $1.4 bln New York debut last year. Shares have traded poorly since, and the company faces rising costs and fierce competition. Winning over sceptics will be even harder now.

Buyout firms bet $3.7 bln on fintech’s dicier side

21 July 2017

Blackstone and CVC’s bid for Paysafe fits with an M&A rush for financial technology. The UK-based payment processor has a penchant for the racy world of online gambling. Those risks may be better handled in private ownership. In exchange, the buyers stand to make a decent return.

Euro rally will only speed its own reversal

21 July 2017

The single currency has hit a two-year high against the U.S. dollar. That will depress import prices when inflation is still too low. Any hint that a stronger exchange rate will prompt the European Central Bank to leave monetary policy loose for longer will push it down again.

Toshiba’s Swiss cast-off pits hope over experience

21 July 2017

The stricken Japanese group is flogging loss-making Landis+Gyr in a Zurich offering. The maker of smart meters is a technology leader in a growth market. Yet so far financial performance lags engineering expertise. The $2.4 billion price tag depends on a swift turnaround.