Considered View

Santander’s Andrea Orcel story doesn’t add up

19 July 2019

The Spanish lender offered the former UBS banker up to 35 mln euros for lost compensation when he joined as CEO, a letter seen by Breakingviews says. That clashes with the bank’s subsequent explanation for withdrawing the offer. Chair Ana Botin owes investors an explanation.

Wall Street bonuses hit by misplaced optimism

19 July 2019

All the major U.S. banks posted a drop in trading and corporate finance revenue this year, with Morgan Stanley suffering most. That's already putting a dent in employees' generous pay packages. A poorly timed hiring spree is exacerbating it, especially at JPMorgan and Jefferies.

BlackRock margin pinch is chilling sign for peers

19 July 2019

Earnings fell 7% at the world’s largest fund manager even as it pulled in a massive $151 bln of new money. Investors shifting to bonds, cheap index funds and ETFs are to blame. Larry Fink’s firm has the breadth and size to cope; others like T. Rowe Price may not be so fortunate.

AB InBev’s deal machine goes into smart reverse

19 July 2019

The brewer’s sale of its Aussie unit to Asahi for $11 bln will cut debt. The Japanese are paying a valuation less than AB InBev wanted from its botched Asia IPO but probably more than investors ascribed to the unit. It keeps the door open for boss Carlos Brito to try again.

Barrick CEO lets hard image slip for sensible deal

19 July 2019

Mark Bristow will, after all, pay up to buy out 36% of Acacia Mining in a transaction worth over 50% more than the gold miner’s offer in May. It’s a small victory for minority owners, whose company is under fire from Tanzania’s government. But for everyone, it beats a standoff.

Publicis merits bottom place in advertising pile

19 July 2019

The French group lost 850 mln euros of market value after disappointing sales forced CEO Arthur Sadoun to scale back 2019 revenue ambitions. Overpriced M&A and broken promises on growth explain why the advertising group’s valuation is lower than peers – even troubled rival WPP.

Aramco gives bankers new scope for Saudo-masochism

19 July 2019

A second crack at the Saudi oil giant’s stalled $100 bln IPO could mean different bankers. Spurned advisers can comfort themselves that the listing won’t be lucrative and may never happen. The reputational and other issues that plagued the first attempt have only intensified.

RBS turnaround boss can repeat trick Down Under

19 July 2019

Ross McEwan has been named CEO of National Australia Bank, the lender worst hit by a bruising inquiry into misconduct. He's a welcome arrival at a low point. But he'll need to draw on his Edinburgh nous to rebuild trust and overhaul the group, as the economy cools.

Yes Bank’s cash call will be high-wire act

19 July 2019

The Indian lender’s bad debt spiked in the June quarter and it needs more than $1 bln in fresh capital, over a third of its market value. To avoid a more radical rescue, boss Ravneet Gill must convince private equity investors that a recovery in a handful of accounts will spread.

Hong Kong demonstrators risk muddling the message

19 July 2019

As the city's tycoons will attest, scale comes at a cost. Protests first focused on extraditions to the mainland, but as the leaderless movement has grown, so too have flare-ups around issues like border traders. That is hitting business; it may also squander a chance for change.