Russia’s banks could once more be its airbag 16 Apr 2018 The Kremlin has already authorised short-term liquidity to metals group Rusal. If the U.S. sanctions net gets cast wider, Moscow could use its control of the big Russian banks to prop up stricken companies. After all, that’s what it did when things last got dicey in 2014.
Coffee to go offers quick fix for Whitbread 16 Apr 2018 Activist Elliott controls 6 pct of the UK hotel and coffee chain and reckons a listing of its Costa brand would add 3 bln pounds of value. It’s a simple-seeming solution to Whitbread’s discount rating. Separating investor worries about the two parts of the business has merit.
Sorrell’s messy exit could put WPP in play 15 Apr 2018 The ad giant’s CEO of 32 years left after a misconduct probe, but is still eligible for a bumper share award. Chairman Roberto Quarta can kick-start a turnaround by selling WPP’s market-research arm. A braver buyer could make a decent return by taking the $21 bln group private.
Wall Street banks’ next big problem is each other 12 Apr 2018 Tax cuts have already boosted lenders’ bottom lines. Now interest rates, regulatory rollback and volatility are working in their favor. That ought to spell even better results than JPMorgan just reported – unless, that is, the exuberance sparks price wars and excesses.
Trump spins trade wheel in friendlier direction 13 Apr 2018 The U.S. president is thinking of rejoining the TPP – an 11-member group set up in part as a bulwark against Trump's trading bugbear, China. Sharing should make that easier, while also appeasing American farmers. The question is whether Trump can compromise for long – or at all.
Review: America’s founding was all about the money 13 Apr 2018 “New World, Inc.” explores the role of British merchant adventurers in laying the groundwork for the colonial settlements in Virginia and Plymouth. The book is a prequel of sorts to the Pilgrim creation myth that suggests Mammon, not religious freedom, drove America's creation.
LSE finds a friend at Goldman to end CEO drama 13 Apr 2018 The stock exchange operator hired U.S. investment banker David Schwimmer as its new chief. He brings deep knowledge of dealmaking and financial market plumbing. Brexit uncertainty and last year’s boardroom fight do not appear to have dented the LSE’s allure for executive talent.
Instagram might want to unfriend Facebook 12 Apr 2018 Mark Zuckerberg snapped up the photo-sharing site for $1 bln in 2012. The savvy purchase could now be worth more than 80 times as much, Breakingviews estimates. But Facebook’s data fiascos are becoming a liability. Setting Instagram free could maximize its value.
Texas downgrade worry is a good problem to have 12 Apr 2018 The Lone Star State’s comptroller reckons its increasingly underfunded pension obligations risk a credit markdown. Texas’ rainy-day fund helps give it more leeway than many states. Others face bigger problems because, as the U.S. economy has improved, their budgets haven’t.
Qatar/Exxon love-in makes two types of sense 12 Apr 2018 Deepening its relationship with the Texas-based oil major would tie the Arab state more closely to the U.S. after recent tensions with Saudi Arabia. It also gets Exxon investing in infrastructure. That could open up the global market, to the benefit of both parties.
BlackRock runs harder to stay in place 12 Apr 2018 Tax cuts helped the asset manager beat first-quarter estimates, but headwinds picked up too. Low-margin index products drew in most of its $57 bln in new assets, pay fueled double-digit cost growth and margins were flat. The rewards of scale may be peaking for Larry Fink’s shop.
Brazil’s anti-graft drive may hamper fiscal reform 12 Apr 2018 The jailing of the country's most popular politician, Lula, and voter disgust at corruption among the powerful will give outsiders with clean reputations a chance to shine in October elections. That's welcome, but could mean needed spending cutbacks are less likely to happen.
Apollo’s Greyhound bet looks past UK politics 12 Apr 2018 Transport operator FirstGroup has rejected an approach from the U.S. buyout giant. The offer is bold given the UK backlash against rail privatisation. But the company’s American operations, including the iconic long-haul buses, help support its 1.3 bln pound market value.
Wynn presents MGM with Vegas-like temptations 11 Apr 2018 The Bellagio owner has a rare chance to bid for its $20 bln casino rival as scandal-struck Wynn grapples with its future. The numbers are a stretch, and the vagaries of Macau make it difficult for MGM to justify a premium. Nonetheless, chances like this don’t arise often.
CBS boardroom drama could use a refreshed cast 11 Apr 2018 Controlling shareholder Shari Redstone may want a merger with Viacom even without CBS boss Les Moonves. Getting rid of him would require new thinking on the board. A revamp is overdue anyway: two-thirds of directors are over 70 and diversity is only slowly getting past M*A*S*H.
Blockchain makes online lenders taste own medicine 11 Apr 2018 The likes of Prosper and SoFi found cryptocurrency technology stealing the limelight at their annual get-together. Traditional banks were once unsure whether to take the hyped upstarts seriously. The maturing fintech players now face a similar dilemma with blockchain.
Lawmakers’ puzzlement is hazard for Facebook 11 Apr 2018 In Congress, Mark Zuckerberg mostly faced confused questioning about his company’s use of data, not a focused grilling. Rather than a let-off, that’s a risk. When the average politician is baffled by something new but suspects pernicious behavior, regulation may not be far away.
Opacity makes U.S. sanctions on Russia more potent 11 Apr 2018 Rusal aluminium will be barred from London’s Metal Exchange, and the Russian group and parent En+ will be deleted from some stock indices. In theory, non-Americans should be able to deal with both. But fear of how rules will be enforced is compounding the pain of tough sanctions.
Fintech outcasts get second life in Silicon Valley 11 Apr 2018 Former SoFi boss Mike Cagney and ex-LendingClub CEO Renaud Laplanche have new loan ventures after losing their jobs to scandals. Plenty of tech executives have bounced back from failure. But Cagney’s rapid return risks further reinforcing the tech industry’s tin ear on equality.
Hadas: Even Trump can’t make graft great again 11 Apr 2018 Resistance to corruption is evident in cases against ex-leaders of South Korea, Brazil and South Africa. Old royal privileges make no sense in modern economies. U.S. officials and the corporate elite have strayed, but rising middle classes will keep straightening out the crooked.