Vanguard is rearguard in Vivendi’s Italian coup 19 Jan 2016 French funds helped the media group win four board seats at Telecom Italia in December. Yet Vivendi also was backed by long-term holders, including Vanguard, newly released data shows. It suggests in this age of activism that even the most passive of voters can’t be taken for granted.
Oil lows give Osborne chance to raise UK fuel tax 19 Jan 2016 British finance minister George Osborne may struggle to keep his promise of delivering a 10 billion pound budget surplus by 2020. But lower oil prices could help. Raising fuel taxes for the first time since 2011 would be unpopular, but could help Osborne deliver.
Sweden can be trailblazer for global rate-setters 19 Jan 2016 Small countries sometimes lead the way in monetary policy. Sweden can begin to challenge the global obsession with inflation-targeting by pursuing central bank reforms outlined in a new report co-authored by former Bank of England chief Mervyn King. This shift is overdue.
Credit Agricole’s tortuous saga takes hopeful turn 19 Jan 2016 The French group is mulling the sale of its stakes in over three dozen regional banks, echoing a similar 2013 disentanglement by Natixis. It wouldn’t end Credit Agricole’s cumbersome mutual structure. But greater simplicity, plus a potential cash payout, would be welcome.
Germany is more than a one-woman show 18 Jan 2016 Chancellor Angela Merkel is under pressure. But how would Germany’s role in Europe change without her? Probably not much. While a new leader might need time to build political capital, projects like the euro and keeping the EU together would still be in Germany’s interest.
Adidas CEO change starts a sprint amid a marathon 18 Jan 2016 The hiring of Kasper Rorsted from Henkel to replace Herbert Hainer set the German sportswear company’s stock dashing upward. To catch rivals Nike and Under Armour, Adidas will have to up its performance. Expectations look high, though, for a long race with many hurdles.
Iran may not be nuclear but it’s still radioactive 18 Jan 2016 Lifting some sanctions still leaves financial barriers to overcome. Banks will hang back for fear of breaching U.S. laws that still apply to the Islamic republic. Oil will flow, but slowly. Iran is a welcome addition to the world economy, but its entry remains mostly symbolic.
Dixon: EU’s latest challenge – rule of law 18 Jan 2016 The Polish and Greek governments may be flouting the rule of law. This doesn’t just undermine democracy: it is bad for investment. Brussels is in a quandary. It doesn’t want to pick quarrels. But if it turns a blind eye, bad behaviour could spread.
NAB sets suitably low bar for Clydesdale float 18 Jan 2016 The Australian lender will IPO its UK arm for as little as 0.6 times tangible book value, a discount to rivals even after recent price falls. Clydesdale’s restructuring means it may eventually deserve better; its current numbers and buy-to-let exposures suggest it doesn’t yet.
Arab winter has become markets’ chief worry 15 Jan 2016 Trouble brewing in the Middle East is fast turning into financial markets’ biggest anxiety. Sectarian divisions, the rise of radical Islam and plummeting oil prices are threatening to rip the region apart. International markets suffer too as Arab money is spirited back home.
Shell/BG optimism outweighs oil pessimism 15 Jan 2016 If oil languishes at $30, then Shell’s bid for BG probably destroys value. But if investors were that pessimistic, they wouldn’t be holding Shell shares. With the long-term strategic merits of the deal intact, it should still gain shareholder approval.
Portugal’s crazy bail-in leaves CDS gurus stumped 15 Jan 2016 The International Swaps and Derivatives Association can’t decide if the bail-in of Novo Banco should trigger credit swaps. A “No” would undermine new contracts designed for bank resolution. But a “Yes” would be a bad precedent. It muddies the picture for future resolutions.
Renault flash crash unmasks car confidence crisis 14 Jan 2016 Reports that the carmaker’s offices were searched by investigators knocked the shares. Renault says no signs of emissions-masking devices have been found. Unlike VW, it does not sell cars in the U.S. But it still shares a problem with its German rival: a lack of investor trust.
Bank trading rules hit top line more than capital 14 Jan 2016 Lenders globally may need 70 bln euros more to meet rules on trading-related risk. That looks kind to most investment banks: Basel-based standard-setters are in conciliatory mode. But the changes could put a ceiling on how much broker-dealers can ramp up risk – and revenue.
Oil rout emboldens Saudi Arabia’s reforming prince 14 Jan 2016 The kingdom’s Deputy Crown Prince Mohammed bin Salman is being emboldened by the collapse in oil prices. The son of Saudi’s ageing king has emerged as the driving force behind economic reforms aimed at transforming the state. But for investors, his growing power carries risks.
Tesco recovery starts with some gorilla tactics 14 Jan 2016 The UK retailer’s sales have bounced back to growth. The reason is that Tesco is cutting costs sharply, shoring up its dominant market share. It’s an essential part of a retail turnaround, but doesn’t immediately help the bigger goal of generating cash to reduce its indebtedness.
Das wasted Kapital: a tale of German inefficiency 14 Jan 2016 German consumers are among Europe’s most avid savers, but earn abysmally low returns on their investments. Poor portfolio choices, driven by excessive risk aversion, have dented real household wealth by 15 pct in a decade. Resolving the savings paradox could spur German growth.
UK bonus clawback plan is too complex for comfort 14 Jan 2016 The Bank of England wants to stop a wheeze where miscreant bankers can dodge clawbacks of variable pay by switching firm. It’s one of the main issues with so-called buyouts of bonuses. But given the complexity, the big winners would be the legal profession.
Al Jazeera floored by oil, ratings double-whammy 13 Jan 2016 The broadcaster is shutting its U.S. cable news unit three years after paying $500 mln for a network. High-profile lawsuits added to viewer skepticism and low ad revenue. But the sharp drop in the oil price may have been the final straw for its Qatar government backers.
AB InBev mega-bond calls last orders on debt binge 13 Jan 2016 The Belgian brewer received $70 billion of orders for a $25 billion bond, the world’s second largest. It comes as the U.S. credit cycle turns, with corporate balance sheets bloated by buybacks, mega-deals and a lazy Federal Reserve. Vibrant dealmaking may beget a nasty hangover.