Hadas: Bitcoin at $10,000 is even more dangerous 29 Nov 2017 The crypto-currency is on the verge of turning respectable, but a futures market cannot cure its faults. It is economic nonsense, socially irresponsible and an incoherent vote for cultural nihilism. Then there is the unadulterated greed. Disaster can't come soon enough.
Fidelity gets flexible in fight with index funds 29 Nov 2017 The asset manager’s UK offshoot will charge clients a variable rate depending on how managers perform. Yet even if they do a bad job, investors could still pay over four times the rate for a passive fund. Fidelity’s model is a step forward, but fees are still coming down.
UK plays weak hand badly in Brexit poker 29 Nov 2017 The country has reportedly bowed to EU demands that it pay up to 100 bln euros when it leaves the bloc. Months of haggling have wasted time and goodwill even before the start of talks on trading arrangements. The outcome shows the UK has a lot less leverage than it pretends.
LSE boardroom ceasefire is least bad outcome 29 Nov 2017 CEO Xavier Rolet is leaving the London Stock Exchange immediately, ending an activist campaign for him to stay on. Chairman Donald Brydon will step down in 2019. The compromise averts a longer and more damaging public row. But nobody emerges from the saga with much credit.
Cineworld bid for Regal smells of rotten tomatoes 29 Nov 2017 The British group could make a $3.6 billion bid for the second-largest U.S. movie-theatre chain. It might boost lowly margins and strike better deals with studios and distributors. But a huge equity hike and threats from digital streaming make for a bad picture for investors.
Fred Goodwin’s ghost haunts LSE board fight 28 Nov 2017 In 2007 the forceful RBS boss led his bank into a disastrous deal, encouraged by Chris Hohn. The activist investor is now backing London bourse CEO Xavier Rolet against the company’s directors. Hohn’s call for Bank of England support has backfired. Goodwin may help explain why.
SocGen’s new recipe is missing key ingredient 28 Nov 2017 The French lender has unveiled new plans to boost lacklustre shareholder returns. Its targets are admirable but predicated on demanding revenue growth forecasts. Cost cuts would be more reassuring for long-suffering shareholders.
Britain’s Brexit-ready banks a boon for government 28 Nov 2017 The country’s lenders are robust enough to handle even a messy exit from the EU, according to the Bank of England’s latest stress tests. The clean bill of health will help state-owned RBS restart dividend payments, making it easier for the UK to sell down its 71 percent stake.
Unilever buys more time for HQ beauty parade 28 Nov 2017 The Dove soap maker will postpone a decision on locating its head office in London or Rotterdam. It avoids becoming a lightning rod for discontented voters for now. Sitting on its hands also gives the UK government time to offer up goodies that match or beat Dutch perks.
Ocado gets dubious halo as Europe’s Amazon bulwark 28 Nov 2017 The online retailer’s shares jumped by a fifth after it signed a deal to develop Casino’s digital offering. Investors are pricing in more agreements as European grocers react to the U.S. tech giant edging onto their turf. Ocado’s track record suggests they may be disappointed.
UK’s post-Brexit industrial plan lacks ambition 27 Nov 2017 The government has promised to boost research spending, improve education and upgrade infrastructure. Leaving the EU makes this more important, but less affordable. Even if Britain was not breaking from its largest partner, however, the goals would be strangely short of oomph.
Julius Baer CEO bows out at private banking peak 27 Nov 2017 Whizzkid Boris Collardi is leaving the Swiss group for smaller rival Pictet after eight years in charge. Bold deals and aggressive Asian expansion boosted earnings and lifted shares to record highs. Toppy markets and intense competition will make life harder for his successor.
BASF oil exit belatedly admits flaws of diversity 27 Nov 2017 The chemicals giant may merge its oil and gas unit with DEA, owned by Russian billionaire Mikhail Fridman, before an IPO. Cost savings of 1 bln euros partly make up for low oil prices. A broader lesson is that when companies try to span different industries, shareholders suffer.
Clariant and activist lack a positive reaction 24 Nov 2017 The Swiss chemical maker will devise a new strategy after its merger with rival Huntsman flopped. It rejected demands from White Tale to explore a breakup. Clariant cannot ignore its 20 pct shareholder, but the activist that scuppered the deal needs to propose as well as oppose.
Telecom Italia grid spinoff is no easy quick-fix 24 Nov 2017 The telecom group is reportedly exploring selling a stake in its network. A spinoff might boost TI’s valuation, and ease shareholder Vivendi’s feud with the Italian government. Yet fierce competition from rival Open Fiber would remain unsolved, and deter potential investors.
Review: Macron is a riddle wrapped in transparency 24 Nov 2017 A trio of books help explain how a political neophyte became the French president. One is a decent account of the election campaign, another delves deeper into his youth and family life. But even Emmanuel Macron’s own tome is short of detail on how he formulated his beliefs.
Big Food should resist organic Thanksgiving feast 23 Nov 2017 Natural-foods businesses have grown faster than processed purveyors of late. That makes $4.3 bln organic producer Hain a tempting target for Nestlé or others. But high valuations, changing consumer tastes and the looming threat of Amazon warrant moderation over M&A indulgence.
Hadas: Be thankful for good economic news 23 Nov 2017 The launch of bitcoin futures contracts grabs headlines, but has no weight on the scales of history. A half-century of sharp declines in global misery is another matter. This may be the greatest economic achievement ever. Be grateful - and angry at how much is still not done.
Altice’s Caribbean selloff signals shrinking ambition 23 Nov 2017 Patrick Drahi’s telecom and cable group may dump its Dominican Republic unit just four years after buying it. That adds credibility to the entrepreneur’s plan to cut debt by flogging assets. It also underscores that Altice’s days of heady, M&A-led growth are firmly in the past.
Britain’s RBS garage sale priced for messy Brexit 23 Nov 2017 Chancellor Philip Hammond intends to raise 15 bln pounds to meet fiscal targets by selling the state’s Royal Bank of Scotland shares. He could achieve that even if the shares tumble 30 pct, Breakingviews calculates. Given the wobbly economic outlook, some wiggle room makes sense.