Man City can narrow the deficit in Chinese soccer 29 Dec 2017 When it comes to mainland investment in European soccer and vice versa, the score is $3bln-nil. China’s splurge is over, but connecting old teams and new fans still makes sense. The Abu Dhabi-owned group behind Manchester City could be the first heavyweight to go the other way.
The Exchange: Professor Anand Menon 28 Dec 2017 The “Brexit and British Politics” author explains how last year’s vote to leave the EU became the UK’s defining political issue. He says longer-term political undercurrents helped tip the balance towards Leave – and will dictate the type of Brexit the country ends up with.
Apple and Saudi test out their comfort zones 28 Dec 2017 Saudi Arabia’s large population and income make it logical that the smartphone giant is in talks to open a shop. Enticing a cutting-edge global tech firm would also gloss the crown prince’s rule and modernizing campaign. There are risks for both; Saudi’s gamble may be bigger.
Temperance is the new craft beer for drinks groups 28 Dec 2017 Health awareness and restrained young drinkers are driving demand for booze-free tipples. Growth in volumes of low-alcohol beer will outstrip traditional drinks fivefold next year. It’s a new source of expansion for global companies as the craft beer craze loses its froth.
Bank clients will learn the value of data in 2018 28 Dec 2017 New EU regulations will force lenders to share account information with competitors - subject to savers’ consent. Up to two-fifths of banks’ revenue could be at stake. New entrants will need to overcome privacy concerns. Even so, customers will discover what their data is worth.
GE exits 3D-printing fight only slightly bruised 27 Dec 2017 The U.S. group ended a 15-month tussle for ownership of Sweden’s Arcam by buying hedge fund Elliott’s stake at a modest premium. GE should benefit from having full control of a technology critical to its aviation business, even if it nets Elliott’s Paul Singer a handsome profit.
Geely could be useful back-seat driver at Volvo 27 Dec 2017 Seven years after buying Volvo Cars, the Chinese group is acquiring Cevian’s 8.2 pct stake in the Swedish truckmaker. The activist gets a decent exit after 11 years, while Volvo gets help with electric vehicles and China. The risk is Geely is getting in at the top of the cycle.
Unilever and Nestlé will sidestep supermarkets 27 Dec 2017 The duo’s decade-high operating margins are being squeezed between grocers, who are bargaining harder on price, and new ways of shopping. Selling direct to consumers is one way to reach ambitious profit goals that were set to appease activists. But the strategy is risky.
Regulators will drive next wave of EU bank mergers 27 Dec 2017 Past disasters, fragmented rules and limited cost savings rightly make European lenders wary of cross-border deals. The European Central Bank, however, is eager to see fewer and bigger banks in the euro zone. Mergers will please regulators more than shareholders.
Mega-miners will find good things in small packages 27 Dec 2017 They still depend on moving tonnes cheaply. But with green energy changing demand, big producers must increasingly think like small ones. For companies like Rio Tinto and BHP that will require a change of mindset – and in some cases, leadership.
Credit markets will enjoy one last hurrah 26 Dec 2017 Healthy global growth will make chief executives and buyout firms more willing to take risks and keep a lid on defaults. There’s also a case for locking in cheap borrowing costs before central banks become less generous. But the next wave of blowups is building.
Musical debuts will produce financial syncopation 26 Dec 2017 Look for Spotify and Vivendi's Universal to float in 2018, thus presenting investors with a choice of content versus distribution. One is an unprofitable tech darling, the other a cash-generative rebound story. Both will be valued too richly, and Spotify is more apt to fall flat.
Ebenezer Scrooge is ripe for shareholder activism 22 Dec 2017 Companies are swerving toward more active corporate giving and better conditions for workers. Investors should be pleased, but they might also have to recalibrate their idea of what makes a good company. One activist fund in particular isn’t feeling the festive spirit.
Catalonia poll delivers no Christmas joy 22 Dec 2017 Parties seeking to break with Spain won a majority of seats in local elections. Their support didn’t strengthen, but it didn’t really weaken either. PM Mariano Rajoy now faces the challenge of appeasing the region with greater autonomy. The political uncertainty will linger.
Bank compliance-cost explosion will abate in 2018 22 Dec 2017 Next year watchdogs will finalise big set-piece regimes for capital levels and investor protection. For banks from JPMorgan to HSBC, rampant growth in spending on due diligence, reporting and the like will level off. That in turn should be positive for lending margins.
Britain will take the high road out of the EU 22 Dec 2017 Leaving the European Union will hurt manufacturing and financial services and make the government more willing to explore controversial ideas to help the economy. Legalising cannabis would help employment, lift tax revenues and reduce law enforcement costs.
Hadas: Christmas presents and economic humbug 22 Dec 2017 Are gifts generous gestures or an awkward waste? Addictive materialism or open-ended exchanges of valuable tokens? Is it better just to swap envelopes of cash? Children and retailers know what Christmas means, but economists are less certain. Anthropologists have good ideas.
A Western money manager will turn Chinese in 2018 22 Dec 2017 While U.S. and European outfits battle competition and regulation, wealth is ballooning in China, and many firms are looking for growth. It’s the perfect recipe for a big cross-border deal, perhaps involving a name such as Franklin Templeton or Deutsche Bank's DWS unit.
Viewsroom: Saudi Aramco’s path may lead to China 21 Dec 2017 That the Hong Kong Stock Exchange will join Riyadh in hosting the world’s largest IPO is one of Breakingviews’ 2018 predictions. We also explain the method to our fortune-telling and lay out why China will win the 5G standards race and why Wall Street will learn to love bitcoin.
Capital glut will overwhelm rising disaster losses 21 Dec 2017 Hurricanes and wildfires doubled estimated catastrophe-related insurance claims to $136 bln in 2017. Reinsurers and cat-bond holders have had a bad year. A hotter planet suggests more pain. But a surfeit of investors chasing uncorrelated returns will keep the cash flooding in.