Monte dei Paschi can be put out of its misery 15 Jul 2016 A massive bad debt sale and a 3.5 billion euro recap may be enough to sort what has long been Italy's most troubled bank. To be finally fixed MPS would need a rights issue, state capital, or a trade buyer. At least one is possible - and anything is better than the status quo.
Post-Brexit upheaval complicates Irish tax rethink 15 Jul 2016 Ireland faces a slating from the EU for an alleged sweetheart taxation deal with Apple. The optimistic view is that both OECD and domestic reforms mean Brussels is pushing against an open door. Yet moves by the likes of the UK to slash tax rates could slow any reinvention.
Bayer’s modest bump puts target Monsanto on spot 14 Jul 2016 The German chemical giant raised its offer for the American seed purveyor to $64 bln, including debt. It's a token $2 bln increase from Bayer's initial bid. That should scotch hopes that Bayer will go a lot higher. For Monsanto boss Hugh Grant, decision time is fast approaching.
EU’s Google antitrust push slower, more scattered 14 Jul 2016 The European Commission has hit the tech giant with a third charge, saying it abused search dominance on third-party websites. It also reinforced a claim, first made in 2010, that Google favored its own shopping service. A speedier, focused campaign would better serve justice.
Kurdistan oil bust is study in underestimated risk 14 Jul 2016 Creditors will take control of Gulf Keystone after falling prices, excessive debt, unreliable payments and unrest left a company once worth nearly 4 bln pounds essentially bankrupt. Huge oil majors can afford such risks, but most investors should avoid wannabes that take them.
Mark Carney picks good time to confound markets 14 Jul 2016 Sterling rose and UK stocks fell after the BoE left rates unchanged. Its governor's recent remarks had fanned expectations of an easing sooner rather than later. But Carney can afford to reprise his "unreliable boyfriend" persona: such market moves are the least of his worries.
Assault on UK privilege has many possible targets 14 Jul 2016 Theresa May wants to focus on more than the "privileged few". If Britain's new prime minister is serious, the most glaring disparities are in pensions, savings, housing and infrastructure. Action in these areas would go some way to healing north/south and young/old rifts.
Monsanto-BASF talks smell like a red herring 14 Jul 2016 The besieged U.S. seedmaker is reportedly in talks about buying the German group's agrochemicals unit. A deal could see off Bayer's $62 bln bid for Monsanto. Persuading BASF to sell will be tricky. Still, the gambit might be a way of forcing Bayer to sweeten its offer.
Deutsche Boerse has case for go-slow on LSE merger 14 Jul 2016 Almost all the UK exchange group's shareholders voted in favour of merging with its German rival. Index funds are slowing Deutsche Boerse's process. Still, local takeover regulations and post-Brexit difficulties in selling the deal mean it's in DB's interests to take its time.
New UK cabinet best suited to deliver Brexit-lite 14 Jul 2016 British Prime Minister Theresa May has appointed the pro-EU Philip Hammond as chancellor. Brexiteers Boris Johnson and David Davis also have major roles. But the appointments imply a post-EU Britain will look less different to the one that preceded it had others been in charge.
Fintech: bigger and dicier for insurers than banks 13 Jul 2016 Financial technology is highly likely to disrupt the insurance industry, executives told PwC. Preventive cover that use sensors to anticipate damage could benefit society. But many shifts may require intrusive Big Brother-like methods - or questionable changes to risk management.
Steinhoff gives Poundland investors easy way out 13 Jul 2016 The South African group is paying 597 mln pounds for the UK retailer. That's below where Poundland listed in 2014, but a 22 pct premium to its 60-day average share price. With the retailer's margins set to fall and market uncertainty, investors have a simple way to cash out.
Airbus will spend longer in Boeing’s slipstream 13 Jul 2016 The European group is cutting production of its flagship A380 jumbo sharply and has warned of potential new charges on the fraught transporter A400M. Both are likely to dent profitability and will it make ever more difficult to reduce Airbus' margin gap with U.S. rival Boeing.
UK watchdog gets first-hand fat-finger experience 13 Jul 2016 The FCA had to tweak a statistic because of a spreadsheet error. The message - that potentially suspicious pre-deal trading rose last year - wasn't affected. It's still an example, close to home, of a curse that has been costly for financial firms including JPMorgan and Goldman.
Cairn spells out cost of India’s “tax terrorism” 13 Jul 2016 The UK energy group has asked an international arbitration panel for at least $1 bln in compensation from New Delhi. That is the potential cost of Narendra Modi's failure to end retrospective tax claims. It would have been cheaper for the prime minister to honour his pledge.
Ireland’s 26 pct GDP growth merits no champagne 12 Jul 2016 Dublin’s statistics office just revised up 2015 growth from 7.8 percent to 26.3 percent. Blame foreign companies using Ireland for tax inversions. Far from a cause for celebration, it’s reason to take Irish GDP figures with a pinch of salt.
Deal implosion better for UniCredit than Santander 12 Jul 2016 A planned merger of the Italian bank’s asset manager Pioneer with the Spanish bank’s fund arm may be scrapped. A separate sale would help new UniCredit CEO Jean-Pierre Mustier’s capital build. For Santander, which wanted to list the enlarged entity, it would be more annoying.
Carney will be bit player in averting UK recession 12 Jul 2016 Bank of England boss Mark Carney can easily justify easing policy this week. Yet driving policy rates and gilt yields to new record lows is of limited use when investment and spending are held back by fear and uncertainty. Fiscal policy can do more to shore up the economy.
AMC-Odeon deal is both trailer and closing credits 12 Jul 2016 The U.S. cinema chain is buying its European peer for $1.2 bln. The deal ends Odeon's epic stint in private equity hands. It's a further sign of the global ambitions of Wanda, AMC's Chinese backer. And it could be the first of many post-Brexit deals by dollar-based buyers.
PRC legal setback reaches beyond “nine-dash line” 12 Jul 2016 A tribunal rejected sweeping claims over the South China Sea. Beijing refuses to recognise the court's jurisdiction. That means clashes will go on. It also casts doubt on China's respect for other international rules - and undercuts more positive moves to project economic power.