SocGen gets stress test joker with asset shuffle 9 Feb 2017 The French bank is buying an insurer for 500 million euros and will list part of its car leasing unit. Societe Generale wants to grow each business. But with stress tests kinder on insurance than banking, and auto loans treated fairly harshly, there could be a secondary benefit.
Publicis’ Levy pulls plug on heir’s kitchen sink 9 Feb 2017 The French ad giant announced a 1.4 bln euro digital writedown and shrinking fourth-quarter organic growth. New boss Arthur Sadoun thus has less scope to open his tenure with a big dump of bad news. Current CEO Maurice Levy remaining as chair won’t make that any easier, anyway.
Emerging market funds get rare bit of good news 9 Feb 2017 Developing economy specialist Ashmore saw rising profits and demand for its products. That's in spite of the triple threat of Trumpian protectionism, Federal Reserve rate rises and the steady pressure on fees. The firm's resilience is matched, however, by its valuation.
Infineon U-turn is canary in Trumpian coal mine 9 Feb 2017 The German semiconductor group abruptly warned its Wolfspeed deal could be blocked by the U.S., a week after saying all was well. American regulators have tended to get antsy when Chinese deals are involved. A protectionist in the White House implies this could now be broadened.
UK student debt sale is a third-class idea 9 Feb 2017 The government is selling 12 bln pounds of student loans. If wage growth motors, the sale price could wind up looking cheap. Given its reluctance to sell RBS shares that are depressed in value, and the reduced imperative to balance the budget by 2020, it's a needless risk to run.
GSK CEO leaves successor with scope for encore 8 Feb 2017 Departing chief Andrew Witty's final results beat expectations. He steered the drug giant through scandal and patent losses, but did smart deals, and created value. His vision of a diversified group is still unfinished, though, leaving successor Emma Walmsley plenty to do.
Russian toy IPO lacks a political risk discount 8 Feb 2017 Detsky Mir has priced its sale of new shares close to Lenta’s 2014 debut. Fair enough: it has a dominant position. Still, the conviction of opposition leader Alexei Navalny in defiance of a European court ruling is a reminder that Russia plays to its own rules.
Handelsbanken’s love for clients has a downside 8 Feb 2017 The Swedish lender posted a 23 pct year-on-year drop in fourth-quarter earnings after a $40 mln charge on a loan made by its Danish business. Handelsbanken boasts its customers are happy. If some are getting easy credit, investors may wish they were less so.
New captain can steer Maersk into calmer waters 8 Feb 2017 The ailing Danish shipping and oil conglomerate reported disappointing fourth-quarter results, halved its dividend and replaced its chairman. Yet a rising oil price, recovering freight rates and Maersk’s coming split mean former SAP boss Jim Snabe is boarding at a turning point.
LVMH snaps up some strategic hand-me-downs 8 Feb 2017 The French luxury giant has set up a unit to invest small sums in promising startups. It's a departure from the multi-billion euro deals the group is known for. The only catch: its slightly less stylish domestic peers L'Oreal and Danone already set the trend.
Carlsberg boss grapples with stubbornly flat pint 8 Feb 2017 The Danish brewer’s full-year results show Cees ‘t Hart’s turnaround plan is helping profit margins. He also closed a valuation gap with Heineken and beat AB InBev on investor return since taking over. But Carlsberg’s presence in tough markets caps how much more can be done.
Crisis anniversary offers $30 trln sanity check 7 Feb 2017 That's one estimate of the cost of the financial meltdown that started 10 years ago with HSBC's $1.8 bln subprime mortgage loss. With talk of a regulatory rollback in the air, the anniversary offers a timely reminder that exuberance and loose standards can cause painful damage.
Silicon Valley fights for its life on immigration 7 Feb 2017 Over 100 tech firms, including Google and Apple, have joined the legal battle against President Trump's travel ban. They argue that the restrictions interfere with hiring and business operations. For an industry dependent on immigrants, the case represents a fight for survival.
UK housing policy may be answering wrong question 7 Feb 2017 The British government has some ideas to build 250,000 homes every year. But as real rents in England are below 2005 levels and the stock of surplus housing is higher, shortage of supply may not be the biggest issue. Managing rents, not house prices, should be the focus.
Cox: Politics biggest enemy of Paris Brexit hopes 7 Feb 2017 The City of Lights has been on a charm offensive with London’s financial castaways. And the pitch made to dozens of U.S., Chinese and Japanese firms – not to mention French expats – is convincing. What is less persuasive is the complacency around the Republic’s presidential race.
Metro breakup still leaves room for shake-up 7 Feb 2017 Approving the German retailer's split into food and electronics retailers was easy enough. Selling apples and iPhones together is less logical than it sounds. Metro could be worth 90 pct more, but only if boss Olaf Koch and his new counterpart can whip the two parts into shape.
BNP Paribas does just enough to win investor trust 7 Feb 2017 The EU banking giant will invest 3 bln euros in digitalisation over three years and save almost as much in annual costs - a better trade-off than at Credit Agricole. BNP hit all recent goals bar one despite retail bank weakness. A juicy 6 percent dividend yield may be attainable.
Teva’s new boss has bitter medicine to administer 7 Feb 2017 The Israeli pharmaceuticals company has lost its second chief executive in four years. Its next CEO faces tough times in America, where drugmakers’ pricing is under attack. Homegrown problems include bad acquisitions, tricky governance and an over-reliance on one drug.
Look left for the next French election surprise 6 Feb 2017 Frontrunners fared badly in the primaries, and scandal is now hurting the presidential chances of early favourite Francois Fillon. Centrist reformer Emmanuel Macron has gained, but there is also an opportunity for the business-unfriendly hard left to exploit.
Ireland could join Britain in EU departure lounge 6 Feb 2017 Dublin’s unequivocally pro-Brussels stance may be tested if politics unmoors it from key trading partners like the UK and U.S. A tough Brexit deal, along with an inflated EU budget bill caused by tax inversions, could raise tricky questions about Ireland’s true interests.