Immigration ban hands U.S. firms dilemma 30 Jan 2017 Tech firms, Goldman, Starbucks and others may become political targets after criticizing a temporary White House block on citizens from seven mostly Muslim countries. But silence may alienate customers and future workers, especially among younger, digitally connected generations.
Kaspersky finds fighting cybercrime leaves bruises 30 Jan 2017 The Russian group's jump in 2015 earnings shows protecting corporate clients from hacking is a growth industry. Post-U.S. election, it should be in line for a further spurt. Yet the arrest of one of its experts by Moscow suggests reputational risk is its real challenge.
Hadas: Macron might show world a healthy populism 30 Jan 2017 The French presidential candidate has assumed the popular guise of an outsider who connects with voters, promising a glorious future. But this philosopher-banker loves the EU and pro-growth reform. President Macron might offer a helpful mix of vigour, rigour and active optimism.
Vodafone dials for backup in India telco fight 30 Jan 2017 The UK-based group is discussing an all-share merger of its India business with Idea Cellular, part-owned by cement-to-retail Aditya Birla Group. Combined, they could take the fight to sector upstart Jio. Vodafone might also be better-placed for M&A back in Europe.
Atkins $4 bln merger would be fragile construction 30 Jan 2017 A mooted tie-up between the UK engineering consultancy and unlisted U.S. peer CH2M has some logic, ahead of a likely rise in infrastructure spending. Yet WS Atkins shareholders will need some persuading. CH2M's lackluster performance would make its value a bone of contention.
French elections beat Brexit for market disquiet 30 Jan 2017 The Gallic vote is worrying investors more than Britain leaving the EU. It now costs over a third more to insure against a French default than a UK one, though rating firms see little chance of either going bust. It's the scope to weaken its currency that gives Britain an edge.
Ireland is the filling in unappealing tax sandwich 30 Jan 2017 It's the big loser, in both trade and security, from the UK's exit from the EU. True, Ireland could pick up high-end investment as the UK sheds it, but even that hinges on an attractive tax rate, which is now under threat - both from its neighbour and from Donald Trump's America.
StanChart takes subtle spin in the revolving door 30 Jan 2017 New public affairs head Tracey McDermott is not the lender’s first supervisor-turned banker. Boss Bill Winters previously helped rewrite UK banking rules. While hiring former watchdogs is not ideal, the potential conflicts are less than they would be at a more UK-centric peer.
Publicis boss exit plan is bad ad for succession 27 Jan 2017 Maurice Levy is finally stepping down from running the $16 bln advertising firm, but he'll only move to the supervisory-board chairman's office. The presence of Levy, in charge for 30 years and a proven reluctant ex-CEO, risks clipping the wings of the new leader, Arthur Sadoun.
Metro AG could be winner in Tesco’s wholesale deal 27 Jan 2017 The German retailer plans to split and form a retail-wholesale group not dissimilar to the British supermarket's 3.7 bln pound acquisition of Booker. If the market's view on Tesco's tie-up is any guide, Metro can argue its own investors aren't giving it full credit.
UBS fate is in hands of fickle markets 27 Jan 2017 The world's largest private bank reckons resurgent investors may rescue its tepid returns after $5.4 billion in net fourth-quarter outflows. Its American and investment banking businesses are bright spots and a strong dollar would help. But UBS is over-reliant on outside help.
Tesco takes tighter grip in retail tug-of-war 27 Jan 2017 A near-20 billion pound merger with wholesaler Booker is a smart response to disruption of the UK group's traditional supermarkets. But it will worry suppliers, who will provide most of the big cost savings. And Tesco may use its surplus to cut prices rather than hike dividends.
Britain’s global trade dream is second-best option 27 Jan 2017 Prime Minister Theresa May is hoping her meeting with U.S. President Donald Trump will open up a trade deal with the United States. China and others may follow. But the resulting boost to UK exports will probably be too small to replace those it risks losing by leaving the EU.
Chinese tycoon turns cinema buyout into big score 27 Jan 2017 AMC, the cinema chain backed by China's richest man, is paying nearly $1 bln to become the Nordic No. 1. After a short stint in the director's chair, sellers Bridgepoint will enjoy a blockbuster return. It pays to be a seller when an A-lister like Wang Jianlin has an epic vision.
Viewsroom: Trump’s borderline tax ideas 26 Jan 2017 Two competing tariff ideas from President Trump and congressional Republicans bring merits but mostly unforeseen risks. Meanwhile, any cut in the corporate tax rate will benefit hapless Yahoo and its Asian holdings. Plus, why it pays to bet against Davos Man's thinking.
Merkel ignores dark side of job boom at her peril 26 Jan 2017 Rises in employment and real incomes mask the problem of growing income inequality in Germany. Chancellor Angela Merkel’s ability to fend off an election challenge from the rebooted centre-left Social Democrats may hinge on how she proposes to stop the poor becoming poorer.
J&J bid lets Actelion have $30 bln cake and eat it 26 Jan 2017 Johnson & Johnson has offered $280 per share for the Swiss drugmaker - 70 pct more than it was worth last November. That's a full price to bolster the U.S. group's specialist drugs portfolio. Meanwhile, Actelion shareholders get to keep most of the upside from its R&D pipeline.
Sky’s rising costs highlight Murdoch bid’s appeal 26 Jan 2017 The pay-TV group's operating profit dropped 9 pct in the six months to December as pricey soccer rights kicked in. An unappealing mix of higher content costs and greater customer churn in the UK should make Sky investors look more favourably on Fox's 11 bln pound takeover offer.
RBS takes baby step on road to U.S. redemption 26 Jan 2017 The UK bank's latest $3.8 billion charge almost doubles provisions relating to alleged mis-sellling of U.S. mortgage securities. The final cost could be far higher, since RBS is probably a year away from a settlement. Still, the extra bit of balance sheet clarity is welcome.
Syngenta forces hedgies to read Chinese tea leaves 26 Jan 2017 Investors have swung from despair to optimism over the agribusiness giant's $43 bln sale. The implied probability of ChemChina's bid for Syngenta succeeding has leapt from 10 pct to over 60 pct in a few short weeks. Beijing's involvement means extra complexity for arbitrageurs.