Venezuelan debt swap may ease coming pain 30 Sep 2016 State oil company PDVSA sweetened earlier terms and is now offering more bonds maturing in 2020 in exchange for $5.3 bln worth coming due next year. With crude prices rising, there's a glimmer of hope of postponing default. And investors would get a bigger claim once it comes.
Deutsche debt market canaries not yet in coal mine 30 Sep 2016 Fears over the German lender have hit its stock and made some clients pull funds. Yet Deutsche Bank’s deeply discounted "CoCo" bonds are still only pricing in the risk that the bank cuts off coupons, not wipes them out. Worse scenarios, like resolution, aren’t yet on the cards.
Ralph Whitworth: the gentleman activist investor 30 Sep 2016 The Relational Investors co-founder, who died at 60, was an anomaly in the sharp-elbowed world of forcing change at companies. He preferred working behind the scenes instead of getting into public fights. That helped reluctant boards grow more comfortable talking to agitators.
Deutsche Bank has credible shock absorbers 30 Sep 2016 The German lender's shares are falling on fears hedge funds are withdrawing cash. No bank would emerge unscathed if customers really turned tail. But Deutsche's relatively strong funding, and a battery of central bank support facilities, suggest liquidity isn't its main headache.
Guest view: A new blueprint for corporate tax 29 Sep 2016 Europe's complaint against Ireland and Apple reflects a problem bigger than any one company or country. The global approach to tax is past its sell-by date. A system based on revenue location, and that treats multinationals as single entities, could share the pie more fairly.
John Stumpf takes all the rope Congress gives him 29 Sep 2016 For his second appearance on Capitol Hill, Wells Fargo's CEO could point to pay he forfeited for the fake accounts scandal. Stumpf nevertheless was badly bruised again, in part because of his own lame excuses and contradictions. It bodes poorly for the many probes the bank faces.
Deutsche Bank’s CEO ought to channel his old self 29 Sep 2016 The prospect of large fines means the German lender may need capital, but the market is unlikely to provide it without decisive action. Breakingviews imagines what a younger version of boss John Cryan, then an investment banker at UBS, might advise his present-day equivalent.
Output deal buys OPEC time but not deliverance 28 Sep 2016 The oil cartel surprisingly agreed to cap production but has deferred agreement on which members will reduce the flow of crude. Limiting daily output to 32.5 mln barrels should support global prices for now. A lasting plan to balance supply and demand, though, may remain elusive.
Listed Jose Cuervo may be just as hard to swallow 28 Sep 2016 The tequila maker is set to sell a slug of its shares in an IPO. The controlling Beckmanns will still call the shots, though, and key family members would have to agree to sell. A float will make any weakness more obvious, but Diageo and other possible suitors can be held at bay.
CBS-Viacom tie-up may please only the Redstones 28 Sep 2016 The controlling family wants to reunite the two media firms. Les Moonves at the stronger CBS would do non-Redstone shareholders a disservice if he paid a full premium, but Viacom's owners might want one. Any middle ground is narrow at best – and a governance minefield.
Nike laces up its hurdling spikes 28 Sep 2016 The $90 bln sportswear maker is experiencing a slowdown in orders for sneakers and other gear. Margins also are contracting as challengers like Adidas become fleeter with trendier shoes and apparel. To achieve its lofty sales goal, Nike will have to kick into a higher gear.
Past mortgage fines give Deutsche room for hope 28 Sep 2016 Settlements by other banks imply the German lender owes up to $5.5 bln for mis-selling mortgage-backed securities. That's much less than the $14 bln the U.S. government wants. But a previous Deutsche fine was much bigger than rivals'. Calculating penalties is an inexact science.
Wells Fargo belatedly answers blaring wakeup call 27 Sep 2016 CEO John Stumpf will forfeit $41 mln and his salary as the bank probes the fake accounts scandal. The ex-head of community banking also will have pay clawed back. The shame is that it took years and a lashing in Congress to get Wells Fargo's board to hold top brass accountable.
Borrowers reign despite Caesars defeat 27 Sep 2016 Efforts by Apollo and TPG to salvage something from their $30 bln casino buyout largely failed after creditors fought back. Under a new deal, junior lenders will recover 66 cents on the dollar. Most debt investors bow to lame terms, however, meaning Caesars will be an exception.
Wells Fargo scandal exposes stodgy board 27 Sep 2016 Its members are the longest-tenured of the major U.S. banks. The lead independent director also gets short shrift. A certain languor may have set in and partly explains the slow response to the fake-accounts mess. There's time to get tough, but the board could use a shake-up.
StanChart picks bad time to test U.S. patience 27 Sep 2016 The emerging markets bank has referred charges of wrongdoing at one of its private equity portfolio companies to authorities. After facing the rap for sanctions abuses in 2012, StanChart is on probation in the U.S. It's a risky situation in such a politically charged atmosphere.
Gas deal pushes limits of U.S. energy M&A thaw 27 Sep 2016 Rice Energy's $2.7 bln swoop on Vantage, which was planning an IPO, follows transactions in oilier shale regions. Paying partly in shares will limit debt, but unlike in EOG Resources' recent deal, Rice's shares fell. Maybe gas isn't yet inspiring the same animal spirits as oil.
Deutsche Bank has airbags – but only one matters 27 Sep 2016 The German lender’s market value has shrunk below 14.5 bln euros on fears of big fines. Yet markets seem calm about knock-on effects. It’s less that post-crisis bank rules are fit for purpose, and more that Chancellor Merkel would have to be brave or foolish to let Deutsche fail.
U.S. election campaign wags global currency market 27 Sep 2016 Forex traders decided Hillary Clinton won the first debate. A stronger Mexican peso suggests President Trump is a bit less likely, while the safe-haven yen weakened. Further gyrations will follow. But as the Brexit referendum showed, markets are bad at predicting elections.
Debate affirms worst, best of candidates’ beliefs 27 Sep 2016 The U.S. Republican nominee was brash about his business and reiterated huge growth promises. Hillary Clinton was armed with policy and a sober jobs plan. Voters didn’t learn anything new in the first presidential face-off but it reinforced views on who is ideal to spur growth.