France’s Macron passes first of three big tests 21 Mar 2017 The independent presidential hopeful was, according to a poll, the most convincing candidate in a debate where he had the most to lose. His next challenge is to win the election. Even if he does, legislative ballots will decide whether the ex-banker can deliver promised reforms.
Iceland gives hedgies cooler welcome than Greece 21 Mar 2017 Och-Ziff, Goldman Sachs and two funds bought 30 pct of Icelandic lender Arion, with an option to add more. In 2013, those brave enough to back Greek banks got juicier terms. As rare examples of European capital controls, both countries remain risky. Reykjavik is more alluring.
Aberdeen-StanLife offer thin gruel on two-CEO move 20 Mar 2017 The fund managers have spelled out how Chief Executives Keith Skeoch and Martin Gilbert will split the job after their planned merger. But it’s still a fudge, with too much room for discord. Judging by the share price, investors are giving the deal two thumbs down.
Piech exit only small step to VW governance revamp 20 Mar 2017 The 79-year-old patriarch may sell his stake in the carmaker to younger family members. The next generation should be keener on shareholder value than empire building. But while Ferdinand Piech’s vanity will be history, VW’s bigger burden - flawed governance - remains intact.
Ireland will struggle to recoup AIB bailout costs 20 Mar 2017 The country spent 20.8 bln euros rescuing the lender, and has so far got 6.6 bln euros back. A forthcoming listing could, under optimistic assumptions, raise the rest. The staggered nature of the sale, economic uncertainties and the need for a discount point the other way.
Colao trades one Vodafone risk for another 20 Mar 2017 The telco chief’s joint ventures in India and the Netherlands are a clever way to get scale and efficiency, and may help Vodafone’s valuation. The catch: investors depend on Vittorio Colao keeping his JV partners sweet. Too much success or too little could jeopardise the balance.
Corona Capital, March 18: Elizabeth Warren 18 Mar 2020 Breakingviews has launched a daily column covering pandemic-related insights that you might have missed. Throughout the day, we’ll bring you shorter-than-usual views with the same financial savvy on companies, economies and capital markets during this important unfolding story.
George Osborne’s newspaper gig is lose-lose deal 17 Mar 2017 British politicians tend to pursue wealth after leaving high office. The former British chancellor is doing so at BlackRock, but has added a twist: he will edit London’s Evening Standard while remaining a member of parliament. The tawdry arrangement devalues both institutions.
Corona Capital, March 17: Boeing, AB InBev, Retail 17 Mar 2020 Breakingviews has launched a daily column covering pandemic-related insights that you might have missed. Throughout the day, we’ll bring you shorter-than-usual views with the same financial savvy on companies, economies and capital markets during this important unfolding story.
Diamond noses ahead in ex-Barclays nags’ derby 17 Mar 2017 The former bank boss has bid a rich 15.5 mln stg for stockbroker Panmure Gordon. It’s a low-key return to UK finance. Even so, Bob Diamond is faring better than former lieutenants Rich Ricci, who is currently low on luck at Cheltenham’s horse races, and Jerry del Missier.
Market angst about France infects whole of EU 17 Mar 2017 Far-right leader Marine Le Pen has promised to reshape French ties with the European Union if elected president. That would be an existential test for the whole bloc. Currency options prices show investors have rarely been so anxious about the EU-wide impact of a single event.
U.S. workforce could use some German engineering 16 Mar 2017 Donald Trump wants to bring back manufacturing jobs despite a lack of skilled labor. Executives advising the president point to the success of European apprenticeships. There are educational and cultural challenges in America, but it's a good time for more radical training ideas.
Anglo raid is a complex way to do simple thing 16 Mar 2017 Indian magnate Anil Agarwal appears to be building roughly a 12 percent stake in the mining group. In fact he is renting it, using an exchangeable bond to get access to the votes. The structure is clever, but suggests he is more interested in influence than direct financial gain.
Agarwal weakens Anglo’s breakup defences 16 Mar 2017 Indian billionaire Anil Agarwal’s raid on the UK-listed mining giant may be a prelude to asking for the company to break itself up. Splitting off South African assets might create value. Boss Mark Cutifani may still prefer another course, but the pressure on him is now rising.
Generali’s M&A rumble leaves fading wake-up call 16 Mar 2017 After facing down a bid by Intesa, the insurer is speeding up cost cuts and hiking its dividend. The danger for investors is the Italian bank’s interest looks a one-off. If so, the impetus to streamline Generali and fend against an Italian crisis and declining rates might slow.
Renault’s main risk is Ghosn exit – not emissions 16 Mar 2017 The carmaker’s shares lurched on reports of French authorities’ allegations of emissions cheating. Unless Renault’s protestations of innocence are bogus, the concerns look overblown. A far bigger problem for the group would come if boss Carlos Ghosn were to be shunted aside.
Dutch deliver conventional protest vote 16 Mar 2017 The country’s governing coalition suffered heavy losses in Wednesday’s election. But right-wing firebrand Geert Wilders picked up fewer seats than expected and finished a distant second. The setback for extremism leaves mainstream political parties more fragmented than ever.
Indian tycoon bets house on Africa in Anglo raid 16 Mar 2017 Anil Agarwal's personal 2 bln pound raid on Anglo American reveals a wish to build a global mining giant. There is little overlap with his London-listed Vedanta. But Agarwal has a keen interest in Southern Africa - and a 12 pct stake would give him prime position in any break-up.
PPG will struggle to paint by Akzo Nobel numbers 15 Mar 2017 A $22 bln proposal to mix the makers of Glidden and Dulux pigments was rejected by the Dutch target. To make a sweetened bid deliver even a reasonable return, PPG will have to apply ultra-glossy cost savings. For shareholders, the outcome would more likely be corrosive.
Britain’s budget U-turn merits Brexit deal alarm 15 Mar 2017 Chancellor Philip Hammond has reversed last week's tax hike for self-employed workers. As EU exit negotiations begin, the UK critically needs a united government that can be firm in the face of political pressure. Ditching a defensible reform implies the opposite.