Trump trade spleen makes foreign firms great again 11 Jun 2018 A fragile G7 detente imploded over his steel tariffs and an adviser's dig that there’s a “special place in hell” for Canada’s Trudeau. Because retaliation pushes up costs, the levies hurt U.S. firms more than they help. It’s rivals like Chinese ag firm COFCO that will profit.
HSBC’s new CEO strives for profitable banality 11 Jun 2018 John Flint’s plan to lift return on tangible equity above 11 pct, while investing up to $17 bln in technology and China, is hardly radical. Yet aiming for more than modest revenue growth could be reckless. It should be enough to maintain the bank’s premium to its European peers.
Trump-Kim parley has a downside for Xi 11 Jun 2018 A breakthrough in Singapore between the mercurial U.S. and North Korean leaders would be an economic win for Seoul and others in the region. China might even profit from the détente. President Xi Jinping also could lose negotiating leverage, though, as trade tensions escalate.
CFIUS proves it is not a one-way bet after all 11 Jun 2018 The U.S. security panel cleared China Oceanwide’s $2.7 bln takeover of Genworth, after nearly two years of waiting and as Washington and Beijing feud over trade. The insurer’s shares carried a 30 pct discount, showing just how hard it is to price regulatory risk right now.
Argentina’s $50 bln IMF deal has a year to work 8 Jun 2018 President Macri, like Cardinal Mazarin’s preferred generals, has been lucky as well as bold so far in his efforts to fix Latin America’s No. 3 economy. With elections not due until late 2019 and the deal shielding social spending, he has time to beat opponents’ IMF-phobia - just.
Verizon’s new boss will unscramble M&A signals 8 Jun 2018 Outgoing CEO Lowell McAdam sent mixed messages on whether the U.S. telecom would buy a big media company. Replacing him with the chief tech guy suggests Verizon is more interested in growing its reach than its content. A bid for $15 bln satellite operator Dish could follow.
Viewsroom: Are tech investors lemmings? 7 Jun 2018 Despite Facebook’s mounting problems, only a third of independent shareholders refused to reelect Mark Zuckerberg and Sheryl Sandberg to the board. Tesla and Netflix owners tend to follow the leader, too. Yet protest votes are useful. Plus: Chinese stocks make it into the MSCI.
G7 risks becoming G-zero without consensus 7 Jun 2018 President Donald Trump is the sore thumb among leaders meeting in Canada on Friday. Last year’s G7 pledges were already watered down, and he hadn’t then left the global climate accord or started erecting trade barriers. The forum loses relevance if it lacks U.S. economic backing.
Water M&A mudslinging does no one any favors 7 Jun 2018 A cold war between four utilities is heating up. Frustrated California Water is launching a hostile $1.4 bln bid for local rival SJW. SJW’s preferred Connecticut partner, also in Eversource’s sights, is grudgingly seeking other offers. It may be too late to keep watchdogs happy.
ZTE deal sets a bad precedent 7 Jun 2018 The White House will fine the sanctions-violating Chinese telecoms giant $1 bln and replace its board. The sum is a financial giggle, board changes look mostly symbolic, and a new compliance team will be challenged from the get-go. It’s a weak deterrent and a wasted opportunity.
Amazon’s softly-softly UK soccer move is smart 7 Jun 2018 The e-commerce group made its first foray into UK football rights. But it won’t screen as many games as Sky and BT. The restraint means the group run by Jeff Bezos should easily break even, and suggests it’s more interested in scoring tactical goals than tackling rivals head-on.
Uber may find four wheels just as bad as two 7 Jun 2018 The car-share app plans to run electric cycles in Europe. Logical as it sounds given Uber’s transport expertise, it will lumber the company with troublesome assets, add fresh regulatory risks from city officials, and it could torch cash. The worst part: Uber has little choice.
Morrisons can pilfer from larger rivals’ trolley 7 Jun 2018 The merger of J Sainsbury and Walmart-owned Asda leaves the UK grocer in a distant third place. Boss David Potts could counterbid, but drumming up similar synergies looks tough. Better to lobby against the deal, and grab market share and the best shop locations if it goes ahead.
Latest Bitcoin ETF idea flirts with mainstream 6 Jun 2018 A year after its first shot was nixed by the SEC, SolidX is proposing a new exchange-traded fund backed by the digital token. Futures markets have addressed the agency’s concern about maturity. And closer regulatory scrutiny of cryptocurrencies improves the odds of a green light.
Investors think Qualcomm-NXP deal is back on 6 Jun 2018 The $44 bln chip acquisition-in-waiting may finally get approval from Beijing – if Chinese telecom-equipment group ZTE can turn a U.S. business ban into a less damaging fine. NXP’s stock is again trading within 10 pct of the offer price. It’s still a bet fraught with uncertainty.
The Exchange: A Down Under take on Trump 6 Jun 2018 Former Australia Prime Minister Kevin Rudd gives the U.S. president some credit for his dealings with North Korea’s Kim Jong Un. But he explains that Donald Trump’s protectionism has enraged China’s leaders and may play into the hands of the country’s own nationalists.
China hands Facebook its worst political misstep 6 Jun 2018 The social network was already in trouble for Russian election meddling. But its undisclosed data-sharing with Chinese phone maker Huawei will inflame U.S. politicians from both parties. The dalliance makes punishing legislation, and tougher scrutiny from watchdogs, more likely.
Athenahealth moves from trauma to cure 6 Jun 2018 The underperforming healthcare-software firm has removed CEO Jonathan Bush shortly after he admitted hitting his ex-wife. The company is looking for a replacement, but a stalking-horse bid from activist Elliott Management could lead to a sale. Either could address what ails it.
Facebook’s top two get a muddled message 5 Jun 2018 Most independent shareholders elected to nix the social network’s super voting rights. Yet they voiced approval for Mark Zuckerberg and Sheryl Sandberg. The strong showing for the boss and COO undercuts the argument to scrap the structure that keeps them entrenched.
Hedge funds are unwitting crisis altruists 5 Jun 2018 It was they, not banks or asset managers, who set the Mexican peso’s level after the 2016 U.S. election and the pound’s after Brexit, a new study finds. The irony is hedge-fund returns have remained mediocre. It suggests price discovery is a social service more than a business.