Spotify considers listing without I, P and O 7 Apr 2017 The $8.5 bln music-streaming service may float shares without raising capital. A new deal with Universal could make cash needs less urgent. Private funding also has altered startup models. Even so, there's a reason most firms don't march to the beat of a different IPO drummer.
Trump’s Syria strikes don’t justify crude worries 7 Apr 2017 Oil spiked after U.S. missiles rained on Syria. The fear isn’t that supplies will be disrupted but that Syrian ally Iran, which has been increasing its output of crude, will be hit with renewed sanctions. Even if that happens, other forces could keep markets well supplied.
Europe dangles 2008-style bank moral hazard trade 7 Apr 2017 The EU’s willingness to let Italy bail out sickly banks looks a retreat from post-crisis reforms on bank failure. Investors might conclude that senior creditors will always be saved. A key change since the financial crisis – abolishing implicit subsidies – is being muddied.
Zara may end up bound by family ties 7 Apr 2017 The founder of Spain's Inditex, which owns the fashion chain, placed his stake in a holding company, ensuring his heirs keep control. It looks benign for investors, who have made handsome returns. The problem comes if future retail disruption calls for a break from tradition.
BP’s bonus rethink is still kind to Bob Dudley 6 Apr 2017 The British oil major has caved to shareholder pressure and cut 2016 pay for its chief executive by 40 pct. Dudley has cleaned up BP since the Gulf of Mexico spill. But his latest long-term incentive plan still positions him comfortably ahead of his domestic peer group.
Unilever finds clever twist in takeover defence 6 Apr 2017 The Magnum ice cream maker unveiled measures to increase shareholder value, and implicitly prevent a re-run of Kraft Heinz’s hostile approach. It’s mostly obvious stuff. But plans to review Unilever’s dual Anglo-Dutch structure offer a cunning way to build a political shield.
South Africa’s slow burn cuts chances of quick fix 6 Apr 2017 President Jacob Zuma seems to be doing his best to get foreign investors to dump domestic assets. That may not lead to a sudden stop: only a small minority face being forced sellers. The bad news is that this could slow the process to replace him with a more responsible leader.
Hadas: Hard Brexit could have sting in the tail 6 Apr 2017 Conventional wisdom is that even a "clean break" with the European Union just means a slower UK growth rate. But if modern revolutionaries gain control, Britain might end up with less foreign money and fewer trading partners. That would bring a huge drop in living standards.
Saudi will find luring May was the easy part 5 Apr 2017 The British prime minister’s charm offensive in Riyadh may help sell more planes and halal lamb. It also sends a message to EU negotiators. What Saudi really needs is investment, people and skills – which hinge on the so-called soft issues Theresa May seems happy to overlook.
Markets snooze their way to Le Pen showdown 5 Apr 2017 French government bond prices suggest a lower probability of far-right Marine Le Pen winning the presidential election than bookies do. Markets may be too calm about the disruptive potential of voter apathy, or a left-wing alliance. That limits their ability to reassure.
Bovis Homes is a challenging fixer-upper 5 Apr 2017 The UK builder rejected a proposed merger with Galliford Try and instead hired the bidder’s former CEO to fix the business. Bovis has visibly lower returns and profitability than rivals. It’s not, though, a good time for the kind of cost cuts and land selloff that may be needed.
Britain is appropriate spearhead for bonus rethink 5 Apr 2017 UK ministers want to cut so-called long term incentive plans from executive pay. Such schemes can work, but all too often don’t. Turning them into less opaque deferred bonuses could preserve domestic competitiveness, while aligning Britain with peers that value greater clarity.
Brexit forces issues that are best left murky 4 Apr 2017 A phony battle over how Spain and Britain might treat tiny Gibraltar is a distraction, and a warning. If Britain’s exit from Europe becomes a mechanism for settling old scores, it could kill the constructive ambiguity on which the UK, the euro and the single market all depend.
ITV takeover is a hard story to pitch 4 Apr 2017 The UK free-to-air broadcaster’s shares have risen more than 15 pct in the last six months, partly on bid speculation. But ITV’s high margins and exposure to fickle TV advertising make a potential 12 bln pound price tag hard to justify – even for top shareholder Liberty Global.
Iceland needs euro peg like cod needs bicycle 4 Apr 2017 The North Atlantic state’s finance minister suggests fixing the crown’s value to its euro zone peer. Iceland’s economy could use cooling. But its volatility means that focusing attention on inflows – or even pegging to a more appropriate currency – makes more sense.
Asos takes costly fashion cues from Amazon 4 Apr 2017 The UK online clothes retailer has raised sales forecasts on international demand. But Asos is becoming pricier to run: six-month costs rose 38 pct, more than the group's top line. Asos is investing prudently, but a rich valuation leaves it exposed to web-based competition.
Apple imagines away chip supplier’s future 3 Apr 2017 Imagination Technologies lost more than 60 pct of its value after the iPhone maker said it would stop using the UK firm's technology. That may wipe out half Imagination's revenue and any hope of profit for the time being. It's a risk small suppliers run with control-freak Apple.
Dixon: Start preparing for fourth Greek bailout 3 Apr 2017 Despite a last-minute wrangle over pensions, Greece is likely to get the next chunk of the money due under its current bailout plan. But this will only buy Athens time until the middle of 2018. After that, a new programme, and more fraught negotiations, will probably be needed.
Credit Suisse raid jabs at private bank model 3 Apr 2017 The Swiss bank has stressed zero tolerance for tax evasion after authorities swooped on three offices. Credit Suisse may be scrupulous, but managing money for the wealthy brings certain recurring risks – not least because of Swiss private banks' historic pledge of utter secrecy.
Reckitt is smart to go easy on the sauce 3 Apr 2017 The UK consumer-goods group may sell the division that makes French’s mustard for around $3 bln. Cashing out would take the heat out of the company’s debt-financed $17 bln bet on Mead Johnson – even if it seems odd to sell a business that’s growing fast and highly profitable.