EU has political trump card in trade conflict 31 May 2018 The United States is imposing steel and aluminum tariffs on Germany and others. Europe has threatened levies against Harley motorcycles and Kentucky bourbon, among other goods. That hits Republican leaders’ bases as the party faces elections in November. It’s a smart tactic.
Canada adds to global muddle with Chinese M&A veto 24 May 2018 Ottawa blocked the $1.2 bln sale of construction company Aecon to a Beijing-backed rival on national security grounds. The controversial decision could confound trade talks between the two countries. Increasingly, mergers are getting mixed up in the wider geopolitical realm.
Breakdown: EU gains new powers for Big Tech fight 21 May 2018 Europe’s new privacy rule, the GDPR, prohibits covert data gathering and allows users to have information moved or deleted. The likes of Google and Facebook may initially find it easier to comply than smaller companies. But over time they’ll face a hostile EU with new weapons.
Poker group bets $5 bln on Sky-high sports growth 23 Apr 2018 Canada’s Stars Group is buying UK online sports-gambling specialist Sky Bet. The price is more than current owners CVC and Sky would have got in a mooted IPO. For Stars, the debt-heavy punt only works if Sky Bet’s rapid growth continues - or the U.S. relaxes sports-gambling laws.
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.
Vivendi discovers quitters can be winners 21 Mar 2018 Vincent Bolloré’s media group has made a capital gain of 153 pct by selling its stake in Ubisoft, which he had long coveted. The restraint is laudable. If only he could exit as easily from an investment in Telecom Italia, where he is stuck with a paper loss and angry investors.
Cox: Sliding stocks don’t surprise our readers 5 Feb 2018 From Mumbai to Milan, we polled participants at our Predictions 2018 summits. Even before last week's rout, most thought investors are too exuberant, bitcoin is a bubble and Donald Trump is doing poorly. More surprising were regional takes on NAFTA, Italian elections and Brexit.
Old-media stalwart tries out new business model 31 Jan 2018 Thomson Reuters’ $20 bln deal to cede control of its Financial & Risk unit to Blackstone includes a 30-year commitment to help fund the news division. That gives Reuters protection in a competitive industry, assuming its now highly leveraged biggest client prospers.
Blackstone could double its money betting on data 30 Jan 2018 The buyout firm is taking control of Thomson Reuters’ financial unit in a $20 bln deal. With a shade more efficiency and some acquisition-led growth, Blackstone could generate a generous return. The risk comes from adding financial leverage to a cyclical, competitive industry.
Thomson Reuters deal puts financial over risk 30 Jan 2018 The Canadian group is in talks to sell 55 pct of its data and analytics business to Blackstone at a $20 bln valuation, including debt. That implies a market discount for the remaining legal and tax arms. Carving up the company may end a run of lagging peers’ stock performance.
Auto industry exposes NAFTA’s blind spot 29 Jan 2018 Canadian negotiators have pointed out that the North American treaty doesn’t capture the value of high-tech equipment in autos, Reuters reported. A rule change to reflect tech advances is due. Complex supply chains call for new ways of measuring trade flows.
Boeing needs Embraer deal to fly after tariff crash 26 Jan 2018 A U.S. trade agency surprisingly rejected calls by the aerospace giant and the Trump administration to slap duties on Bombardier’s C Series jet. It shifts the regional-airplane dogfight back to the marketplace, upping the pressure on Boeing to seal a tricky merger with Embraer.
Weed giants share a deserved peace pipe 24 Jan 2018 Canada’s Aurora and rival CanniMed have agreed a friendly merger after months of acrimony. CanniMed’s shareholders only get a small stake in the $6.2 bln combination, but a big uplift in value. The world’s biggest listed weedmaker is now well positioned for regulatory changes.
Canada’s insurance policy on NAFTA isn’t loony 23 Jan 2018 Negotiators have opened talks on revamping the trade pact, but their chances look slim. A U.S. pullout from NAFTA would affect Canadian exports amounting to nearly 20 pct of the country’s GDP. But Ottawa has other trade pacts in the works, and a flexible currency would help cushion any blow.
Amazon HQ2 choices disappointingly undisruptive 18 Jan 2018 The e-commerce giant has cut the field for its second headquarters to 20 prime locations including Dallas, Atlanta and New York. Hundreds of cities hoped Amazon would think outside the box, but a desire for talent and a welcoming environment led it to the usual hot spots.
Brookfield bets on nuclear plants aging gracefully 4 Jan 2018 Cost overruns building expensive, controversial nuclear plants got Westinghouse into trouble. Servicing, fueling and decommissioning them, however, is a more predictable business. That makes the $4.6 bln Brookfield is paying for the bankrupt Toshiba unit look realistic.
Canada will export its pension model to U.S. 4 Jan 2018 Canada’s retirement funds are well funded and governed, run most of their money in-house, shun rosy assumptions and post good returns. As the need to lift returns increases, expect struggling U.S. public pensions to adopt at least some of their northern neighbors’ approach.
Boeing’s tie-up with Embraer brings co-pilot risk 21 Dec 2017 The $177 bln aerospace giant is in talks to acquire the $3.7 bln Brazilian jetmaker. It makes strategic sense, given rival Airbus’s deal with Bombardier. But Embraer’s government shareholder means the deal may come with a high premium and low returns.
Canada will be biggest loser in U.S. trade spats 20 Dec 2017 Trump threatened China and Mexico with tariffs, but the real levies hit Canadian lumber and Bombardier jets. While Ottawa is pushing other trade deals, America is its biggest export market. Souring NAFTA talks and fights over dairy, wine and paper make it the chief target.
Canadian Solar CEO deserves some shareholder shade 11 Dec 2017 Shawn Qu is offering a 7 pct premium to take the renewable-power firm private. It’s a cutthroat industry. But medium-term demand is strong. And Canadian Solar stock surged more than two-fifths this year. Investors should have no qualms forcing Qu to put more energy in his bid.