Considered View

Elliott flexes its two biggest muscles at Sempra

18 September 2018

The $32 bln utility agreed to add two new board members and says it will review a break-up. Meanwhile, Elliott’s lawyers won back a $275 mln fee from when Sempra bought Texas utility Oncor. Paul Singer’s fund specializes in persuasion and litigation. This time, both paid off.

Investors can ignore glimmers of China trade hope

18 September 2018

The latest round of U.S. tariffs on $200 bln of its goods, and China’s response, could have been worse. That buoyed markets. But investors are missing the bigger picture. Talks and hearings haven’t stopped things getting to this point, and they are likely to escalate further.

Gary Cohn too quick to vote for President Dimon

18 September 2018

JPMorgan chief Jamie Dimon would be “phenomenal” in the White House, the former Trump adviser says, adding that running the country is like heading a global firm. There are parallels. But Dimon isn’t restrained by an unwieldy Congress – or strict limits on what he can pay.

Trump makes and breaks case for new global order

18 September 2018

The U.S. president’s propensity to impose tariffs and ditch multilateral accords may prod developed and emerging countries to plan sturdier safety nets for the world economy and financial system at the G20 and elsewhere. Trump is also the reason they will struggle to succeed.

New Ferrari boss needs to prove green credentials

18 September 2018

Louis Camilleri fixed an initial blunder by reaffirming the targets of predecessor Sergio Marchionne. He also wants to sell more eco-friendly cars. Yet the goals look ambitious, and Ferrari is in the slow lane on hybrids. A late move into sports utility vehicles doesn’t help.

Saudi-Clariant chemical deal is murky concoction

18 September 2018

The Swiss group is setting up a joint venture with 25 pct shareholder Saudi Basic Industries. At the same time SABIC will contribute a new Clariant CEO and four board directors. Though the venture should make sense, the company’s governance becomes more complicated.

Marsh & McLennan pays hefty price for global push

18 September 2018

The U.S. insurance broker is buying UK rival Jardine Lloyd Thompson for 4.3 bln pounds in cash. Mooted savings of $250 million a year don’t justify the hefty 34 percent premium. As competition heats up, Marsh is relying on JLT to continue its rapid growth in emerging markets.

Naspers takes first step to shrinking Tencent gap

18 September 2018

The South African group is valued at a hefty discount to its $120 bln stake in the Chinese internet giant. Floating its African TV unit should therefore provide some relief to frustrated investors. To unlock more value, though, Naspers may need to shed its remaining operations.

Google’s car deal is hazard light for auto groups

18 September 2018

Renault and Nissan will install the Android operating system in their cars from 2021, making it more likely others will follow. That extends the search giant’s data dominance beyond smartphones. Consumers will win, but carmakers may give up a valuable source of future income.

Indian bank deal offers welcome glimmer of reform

18 September 2018

A surprise plan to merge three state lenders leans on Bank of Baroda to form a group with $200 bln of assets. With an election coming next year, it’s a good sign that an overdue restructuring of the sector is back on the agenda. The details, though, are less inspiring.