Siemens needs a new chief executive 26 Jul 2013 Once again, Peter Loescher is unable to deliver on his promises. He has been forced to admit that his 2014 targets are out of reach. This chronic inability to execute puts the future of Germany’s second-largest company at risk. It’s time for Siemens to find a new head.
Vivendi compromises to get shot of Activision 26 Jul 2013 The French conglomerate is selling most of its stake in the video games maker for $8.2 bln. With this and the sale of Maroc Telecom, Vivendi’s promised reinvention is finally underway. But in neither case do its shareholders get the premium that usually comes with ceding control.
New Anglo American mantra: be boring 26 Jul 2013 The miner’s departed boss Cynthia Carroll was big on vision, but Mark Cutifani, her replacement, wants to improve performance asset by asset. The new strategic plan is appropriately dull. If a more disciplined Anglo makes fewer mistakes, it’ll finally be getting somewhere.
Nomura surge not all Abenomics 26 Jul 2013 New management deserves credit for a year of cost cuts, but the Japanese investment bank has certainly been helped by the huge monetary and fiscal stimulus in its home market. With such favourable tailwinds, it’s too early to tell whether Nomura is truly a changed beast.
China’s next reform: more central planning 26 Jul 2013 The central government wants to cut excess capacity in basic industries by telling 1,400 companies to shut factories. It has to overcome the free-market instincts of local governments and entrepreneurs. But if the plan works, China will be more efficient - and less polluted.
Exploiting the poor will remain a good business 26 Jul 2013 British “payday lenders” gouge feckless borrowers with four-digit interest rates. The new head of the Church of the England wants to take them on with compassionate community banks. Those institutions can do good, but not by being just slightly less rapacious than rivals.
UK’s "operation credit bubble" ripe for rethink 25 Jul 2013 The government’s plan to subsidise high-risk mortgages is bad economics and foolish policy. A nascent economic recovery makes it look redundant. The reasonably strong GDP number provides an opportunity for an almost dignified retreat.
Axel Springer gets top euros for dead trees 25 Jul 2013 It’s easy to see why Germany’s largest publisher wanted to sell a third of a declining domestic print business. It speeds up the move to digital. It’s harder to know why a buyer was willing to pay 920 mln euros, 9.7 times 2012 EBITDA. Springer shareholders should be happy.
Merkel a collateral victim of U.S. spying scandal 25 Jul 2013 Widespread U.S. spying on German Internet and mobile-phone users is angering voters. Angela Merkel doesn’t seem to take the debate seriously. It’s unclear what she knew about possible German involvement. Her battered credibility could have electoral consequences.
Credit Suisse checks out of the capital doghouse 25 Jul 2013 The Swiss bank grew its core equity sharply in the second quarter. That’s a welcome change from a year ago, when its own regulator publicly fretted about its capital under new Basel III rules. The challenge is to keep a strong base amid the uncertainty of rising interest rates.
Hooray! Euro zone economy is almost stagnant 25 Jul 2013 The latest numbers point to minuscule GDP growth, although the pace isn’t fast enough to curb unemployment or make a dent in fiscal deficits. Still, stability is far better than decline. And in rich, ageing and sluggish Europe, it may be as good as it gets.
Carlos Slim needs more than pique to stop KPN 24 Jul 2013 The biggest investor in the Dutch telco has failed to bless its $11 bln German selloff. That’s awkward. Whether strategic or financial, the depth of the Mexican mogul’s misgivings is unclear. Still, blocking the sale would be hard unless Slim can offer a sound alternative deal.
Strong Daimler results can’t hide China woes 24 Jul 2013 A better-than-expected second quarter shows the premium carmaker has the product life cycle on its side for now, as new models are selling briskly. But Daimler still has not fixed its problems in China, where it is falling further behind. Investors should take note.
UK bank tsar is inconsistent, not zealous 24 Jul 2013 Business Secretary Vince Cable claims that “capital Taliban” are causing banks to rein in lending. That misses the point. The real problem is that both governments and regulators are creating uncertainty for banks and investors by failing to practice what they preach.
End of warehousing gravy train is reason to cheer 23 Jul 2013 Low rates, light regulation and a lack of publicity let banks and commodity traders pocket easy profits hoarding metal in their own warehouses. Banks were already eyeing the exit, but U.S. authorities’ fresh scrutiny of the socially useless practice should accelerate its demise.
Vivendi underwhelms with $5.5 bln Maroc telco sale 23 Jul 2013 The French conglomerate will forsake a control premium in the sale of its 53 pct stake in Maroc Telecom to UAE operator Etisalat, which is back on the acquisition path. The bright side for shareholders is that Vivendi has taken the first step in its overdue transformation.
KPN’s 8.1 bln euro German retreat is at full value 23 Jul 2013 Telefonica of Spain is buying the Dutch group’s German unit, E-Plus, in a cash and shares deal equating to 9 times EBITDA. That is a big multiple by the depressed standards of European mobile. KPN is getting a large slice of the deal’s hefty synergies.
Linking German arms of Telefonica and KPN is sound 22 Jul 2013 Merging the German units of the Spanish and Dutch mobile giants would create a 16 bln euro business, yielding 4 bln euros of synergies. The market is tough, a spectrum auction looms, and neither parent is financially strong. Provided Brussels isn’t too harsh, it makes good sense.
UK audit reform plan is only half cooked 22 Jul 2013 Britain’s anti-trust authority says companies should put audit contracts out to tender at least once every five years. That’s good, but an investor-backed plan for mandatory rotation after fifteen years is also needed to bolster accountancy competition. Brussels should take note.
Kurdish oil clash involves unlikely tough guys 22 Jul 2013 M&G and Capital Group are hardly limelight-hogging activist shareholders. Yet the two have forced four directors onto Gulf Keystone’s board, after a war of words with the Kurdistan-focused oil explorer. UK investors rarely reach for this weapon, but it’s good to know it works.