Pirelli IPO leaves long-term questions unanswered 18 Sep 2017 The Italian tyremaker, sold to ChemChina in 2015, is seeking to raise up to $4 bln in a listing. A shift towards luxury tyres has boosted sales and margins. But growth targets look ambitious and there is no clarity on who will succeed long-term boss Marco Tronchetti Provera.
Jes Staley’s share price misery is undeserved 18 Sep 2017 Though the Barclays CEO has delivered on his targets the bank’s shares are down 16 pct this year, making it the UK’s worst-performing major lender. Self-inflicted regulatory and litigation worries haven’t helped. But concerns about headwinds in the U.S. and Britain are overdone.
Asian bid for Pret A Manger won’t cut the mustard 18 Sep 2017 Filipino fast-food joint Jollibee is eyeing the fancy sandwich chain, says Reuters, potentially uniting Chickenjoy buckets and posh ploughman’s baguettes. But a mooted price of more than $1 bln looks far too downmarket. It might need to double that to derail Pret’s IPO plans.
Qatar jet deal a win for BAE but a loss for London 18 Sep 2017 A deal to buy Typhoon fighter jets will secure thousands of UK manufacturing jobs. But building stronger defence ties with the sheikhdom is a risk when its squabble with Saudi Arabia is unresolved. That could backfire if the kingdom reacts by vetoing a London listing for Aramco.
Paris fashion IPO will struggle for luxe valuation 18 Sep 2017 SMCP, the French owner of the Sandro and Maje labels, is planning a listing. Pitched between luxury and the high street, the Chinese-owned group has sales growth and an efficient supply chain to rival retail leader Zara. But its smaller size and high debt will weigh on its worth.
Breakdown: Colour-coding Germany’s election 18 Sep 2017 GroKo, black-green or Jamaica? Angela Merkel is almost certain to win a fourth term, but the race to be her partner is wide open. The outcome matters for Germany – and for Europe. Breakingviews decodes the colourful jargon, and looks at the consequences of different outcomes.
Lure of scale drives Axa asset management union 15 Sep 2017 The insurer may seek a partner for its European fund arm, Bloomberg reports. Joining forces with French rival Natixis would create a European giant with assets of more than 1.5 trln euros. The threat to margins from low-cost passive investments makes cost savings unavoidable.
“Angry Birds” may struggle to float on thin air 15 Sep 2017 Rovio, known for the popular mobile game, plans to list with a value up to 900 mln euros. Though the price is more sensible than initial reports, it’s still flighty for a one-game franchise. Another warning sign is that many existing investors are using the offering to fly off.
Blue Bottle gives Nestlé little more than a buzz 14 Sep 2017 The Swiss food giant is buying control of the hipster coffee chain at a high-octane $700 mln valuation. It's a premium upgrade for the Nescafé maker, which is also offloading its U.S. candy arm. It may prove challenging, though, for such a niche brand to jolt the bottom line.
Saudi can afford to scrap Aramco IPO plan 14 Sep 2017 Achieving the desired $2 trillion valuation for its crown jewel is going to be tricky. Instead of rushing the job, Riyadh may delay listing 5 percent beyond next year. Even then, political and pricing problems will remain. If it wants money, the kingdom has better alternatives.
Private equity gets a double-dip on debt 14 Sep 2017 Hosts hate guests who dip half-eaten snacks back in the sauce. But buyout firms are doing something similar: loan documents now let them add extra debt onto already indebted companies. Loose monetary policy encourages boisterous behaviour, but maybe not for much longer.
Vivendi legal slap exposes folly of Italian push 14 Sep 2017 The French media group effectively controls Telecom Italia despite having only a 24 pct stake, a watchdog ruled, meaning Vivendi may have to consolidate 25 bln euros of its debt. TI has been plummeting in value too. Vincent Bolloré, who chairs Vivendi, has no good options.
Retailer Next confronts last corporate taboo 14 Sep 2017 The UK clothes chain has sketched out a scenario where high-street store sales keep shrinking until they can’t cover their cash costs. Even in that dismal situation, Next would be worth only a third less than now. Few companies consider their own demise in this way; more should.
EU foreign investment review raises bar for China 13 Sep 2017 Brussels has proposed a pan-European scheme to vet sensitive purchases by other countries. Unlike the U.S., rulings will be non-binding. Even so, the People’s Republic will find it harder to buy up EU infrastructure and technology. It’s another reason for Beijing to open up.
Hadas: EU single economy eases way for separatism 13 Sep 2017 Catalan and Scottish nationalism have bubbled up recently. Besides sentiment, the European Union has played a part. The super-national single market not only provides economic protection, but opens up a new vision of sovereignty. It’s the same idea Brexit fans have rejected.
Campaign for euro zone budget is a distraction 13 Sep 2017 The single currency area needs a way to absorb future economic shocks. But comments from European Commission chief Jean-Claude Juncker show that a common tax-funded budget would be a stretch. Better to tweak fiscal rules, deepen financial reform and beef up Europe’s bailout fund.
Ad world’s bling days may be over 13 Sep 2017 The likes of WPP, Omnicom and Publicis risk a low-growth future. Revenues are stagnant and they are over-exposed to slow-growing developed economies. Agencies may be forced to copy the austerity already practised by their consumer-goods clients and pay more attention to margins.
Ten years on, UK banks still far from utility-like 13 Sep 2017 A decade after the run on Northern Rock, British lenders are smaller and better capitalised. But earnings remain bumpy and subdued economic growth means they will struggle to lift earnings. An average dividend yield of 4 pct compares poorly to genuinely safe and boring utilities.
Murdochs pay price for governance scandals 12 Sep 2017 Fox’s bid for Sky may be delayed after a minister questioned whether phone-hacking and harassment scandals could hurt broadcasting standards. It raises the risks of an awkward investigation. Worse, the UK’s volatile politics could shift further against Fox owner Rupert Murdoch.
Merkel’s past omissions will return to haunt her 12 Sep 2017 Germany’s Chancellor has for 12 years failed to invest enough, prepare for costly climate change goals, or tailor the welfare state to an ageing population. An economic upswing is hiding fault lines but Merkel’s past inactivity will exact a high price in the next downturn.