Trump’s attack on red tape more PR than purge 31 Jan 2017 The president reckons making federal agencies repeal two regulations for each new one will reduce business burdens. Similar UK edicts had mixed results. The vague U.S. directive, which excludes major financial rules, could sow more confusion in an already uncertain environment.
Private equity gives ageing North Sea oil new life 31 Jan 2017 Shell's $3.8 bln sale of North Sea fields to upstart Chrysaor gives a glimpse into the declining region's future. Lower prices make the remote province less appealing for energy majors but generous tax allowances offer private equity returns above 20 percent.
VW pay fiasco increases urgency of bonus revamp 31 Jan 2017 The carmaker's departing compliance chief is cashing in 12 mln euros after just one year of service. Granted, Christine Hohmann-Dennhardt's terms were set at the height of the diesel crisis. Still, her payout is symptomatic of an executive pay system in dire need of an overhaul.
Deutsche capital joy fails to offset Russian shame 31 Jan 2017 The German lender will pay only $630 mln to U.S. and UK regulators for failing to stop suspect Russian trades. Being deemed merely negligent means Deutsche Bank's weak solvency gets a leg up. But its litany of catastrophic systems errors will only cement a tarnished reputation.
H&M’s new sales target could fray quickly 31 Jan 2017 The Swedish fast-fashion chain is now targeting annual sales growth rather than how many new stores it opens. Its new goal of 10-15 percent growth is ambitious. With margins under pressure, an unexpected increase in pretax profit in the fourth quarter may be a passing fad.
Intesa-Generali may rest on regulatory swerve 31 Jan 2017 The Italian bank's interest in Generali looks like a dud, but the deal's math could be improved by a capital loophole that flatters bank investment in insurers. The ECB might balk at such fiddles. Then again, that may be Generali’s best shot at staying single.
Trump’s stock-market rally has no clothes 30 Jan 2017 The S&P 500 is up 7 pct since the eve of his election, even after an early Monday dip. The hope is that Trump's promises of cuts in taxes and red tape will unfold without a hitch, while those that would slow trade and immigration won't happen. The weekend's chaos shows otherwise.
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.