Dixon: Stock markets too sanguine about Brexit 28 Jul 2016 Investors think the UK will settle easily into a new deal with the European Union. More likely there will be cabinet wrangles, tortuous negotiations with the EU, and an unsatisfactory conclusion.
Shell takes disappointing knock post-BG 28 Jul 2016 The oil firm’s latest results are worse than lacklustre compared with rival Total. All divisions are hurting. Sagging oil prices and weak refining margins as well as a bunch of one-offs are blamed. Shell says it’s transitional, but this is hardly the best start to life with BG.
Rolls-Royce has more kerosene in the tank 28 Jul 2016 First-half results at the British engine maker were bad, but not as bad as feared. With cost cuts on track and full-year guidance confirmed, boss Warren East is getting a grip. The stock is already trading on a lofty multiple, but can go further if earnings recover.
Credit Suisse closes in on ‘hockey-stick’ recovery 28 Jul 2016 Boss Tidjane Thiam's view of the Swiss bank's restructuring as a steep drop before a leg-up may be taking shape. Asia was weak, but Credit Suisse boosted capital in the second quarter and took in a net $11.5 bln of private bank assets. Thiam is moving on from a torrid start.
Lloyds dividend machine gets post-Brexit dent 28 Jul 2016 The UK bank has cut back the volume of capital it expects to generate following Britain’s vote to leave the EU. Lloyds is a less risky bank than post-2008. But it is exposed to a domestic slowdown, and its dividend story now looks less compelling.
Nigeria’s problems defy central bank fixes 28 Jul 2016 A hefty rate hike was a fair response to a slump in the naira that’s fuelling inflation. Yet this is unlikely to lure much foreign money back to Africa’s biggest economy. Its political, trade, and fiscal misfortunes are too pernicious for even yield-starved investors to overlook.
StanChart’s chairman now comes in two parts 27 Jul 2016 IMF director Jose Vinals will head the UK emerging market bank’s board. Others too have hired chairmen from the public sector, but StanChart could use a seasoned banker to oversee the recovery of its commercial arm. New deputy Naguib Kheraj may have to do some heavy lifting.
Europe gets pragmatic with budget delinquents 27 Jul 2016 The European Commission doesn’t want to fine Spain and Portugal for flouting EU budget rules. That may look toothless, but piling on fines when both are struggling to cut their deficits doesn’t make much sense and risks political backlash.
Amazon drone lift-off is a mixed blessing for UK 27 Jul 2016 The online retailer got permission from the British government to test drone deliveries, while the U.S. is more cautious. Industrial use of drones could do wonders for Amazon’s spiralling costs. But safety issues and job automation mean there may be losers too.
Barnier’s Brexit gig better than it looks for UK 27 Jul 2016 Brussels' ex-financial services tsar is to lead EU talks over Britain's exit. Michel Barnier has at times raised British hackles, but he largely treated the City of London fairly. Arbitration won't be smooth, but the identity of the negotiator could have been worse.
Santander sprawl contains more ladders than snakes 27 Jul 2016 The Spanish bank is exposed to Brexit risk in the UK and a lacklustre home market. But a previous problem child, Brazil, has an improving outlook. The upshot - tolerably good returns and improving capital - make Santander's latest dividend hike just about justifiable.
Peugeot well positioned for yesterday’s car market 27 Jul 2016 Bumper half-year operating profit shows the French carmaker is cutting costs neatly. Yet a radical shakeup in the car industry means getting up to speed with fuzzier stuff like self-driving cars, electric vehicles and new mobility services. That's a big ask for smallish Peugeot.
Fast is the enemy of good in UK trade talks 27 Jul 2016 Britain is eager to sign up willing free-trade partners for when it detaches from the EU. China, a dab hand at drawing up lopsided pacts, could be a quick win for Theresa May's government. The risk is that the United Kingdom ends up with a deal that binds rather than benefits.
Telecom Italia gives investors reasons to hope 27 Jul 2016 Fierce competition, Brazil and high debt levels are problems that don't easily go away. But Telecom Italia's new chief Flavio Cattaneo has seemingly improved things by sharply cutting costs. The group still faces challenges on many fronts, but it should be a nimble competitor.
Deutsche Bank outlook can’t hide equity hike risk 27 Jul 2016 The German lender thinks litigation and stress tests could turn out better than expected. But second-quarter earnings fell 98 pct to 20 mln euros from a year ago, capital barely improved and revenue slumped. If its optimism is misplaced, a capital increase looms.
LVMH results showcase benefits of mixed luxury bag 26 Jul 2016 A pop in demand for champagne and cognac boosted sales of the fancy French conglomerate in the first half and offset declines at its core fashion division. As travel fears and lower demand for designer goods bite, LVMH's diversity allows it to hold its own better than rivals.
Daimler’s European answer to Uber gains momentum 26 Jul 2016 The German carmaker is merging its ride-hailing app Mytaxi with UK-based rival Hailo. The all-share deal creates Europe’s strongest competitor to Uber while avoiding paying the sector’s frothy multiples. For now, Daimler’s digital first-mover advantage is paying off.
Tesla velocity causes supplier spinout 26 Jul 2016 Mobileye shares plummeted up to 18 pct after it said it would stop supplying advanced cameras to Elon Musk's electric-car maker in 2018. Sales to Tesla are too small to warrant such a crash. It's a reminder that the shift to autonomous vehicles is too early for investors to call.
BP starts to catch a break 26 Jul 2016 Second-quarter results disappointed, but the oil major thinks it has covered the mammoth costs from its 2010 spill. BP has outperformed peers due to a weak pound, and CEO Bob Dudley is staying. A higher-margin pipeline eases the pain of a breakeven point below current oil prices.
Commerz capital rollercoaster goes into a dip 26 Jul 2016 The German bank’s closely watched capital ratio has fallen 50 bps to 11.5 pct. Low rates and sector-wide conduct fines are affecting the models that determine its solvency. At a time when banks are struggling to make money, well-meaning regulation acts as a further drag.