Robots offer blueprint for Chinese M&A in Germany 11 Oct 2016 China's Sanan is circling Osram, the $7 bln lighting firm backed by Siemens. The recent takeover of Kuka, a German robotmaker, could be a precedent. That suggests Sanan needs to offer job guarantees and other concessions to keep Berlin onside, as well as a big premium in cash.
Deutsche blue-chip rescue has method and madness 10 Oct 2016 The idea that German companies might put capital into the country's biggest domestic lender sounds like poor financial sense. Yet as a way to avoid a politically toxic taxpayer bailout of Deutsche Bank, and protect corporates' interests, it has a certain logic.
RWE beats E.ON in parallel power spin-offs 7 Oct 2016 The two German utilities took opposite approaches to splitting up their dirty energy assets from newer, clean ones. E.ON spun off the bits investors liked least, while RWE has floated its best parts in a 5 bln euro IPO. The latter path looks smarter in the near term.
LVMH gets first-class luggage at no-frills price 4 Oct 2016 Louis Vuitton’s owner is buying a majority stake in German suitcase maker Rimowa for 640 mln euros. The multiple of two times sales is less than what Samsonite recently paid for rival Tumi. Perhaps the Arnault clan persuaded family-owned Rimowa to leave some money on the table.
Deutsche’s pain a sign bank regulation is working 4 Oct 2016 Jitters about the German lender have revived memories of the 2008 crisis. But eight years of reform have left Deutsche - and the rest of the banking system - better equipped to absorb a shock. The relative calm in financial markets suggests that regulators got some things right.
Heta shows why bailouts are easier than bail-ins 4 Oct 2016 Austria has a deal to hit creditors of failed former lender Hypo Alpe Adria after two years of wrangling. Theoretically, a bail-in could, if needed, raise capital at much-bigger Deutsche Bank. But Heta’s tortuous saga is one reason Berlin might favour a taxpayer bailout.
Guest view: Where is the IMF on Greece? 3 Oct 2016 The seemingly endless Greek crisis may erupt again unless the country gets debt relief, writes former Citibank executive William Rhodes. The International Monetary Fund should take the lead in spelling out economic forecasts and the decisions Greece and its creditors must take.
Britain starts Brexit; now so might banks 3 Oct 2016 The UK's two-year process to leave the European Union will kick off by the end of March. Financial groups wondering whether to move operations now have the same uncertainty as before, only with a hard 2019 deadline. That could prompt the start of the big relocation.
Deutsche debt market canaries not yet in coal mine 30 Sep 2016 Fears over the German lender have hit its stock and made some clients pull funds. Yet Deutsche Bank’s deeply discounted "CoCo" bonds are still only pricing in the risk that the bank cuts off coupons, not wipes them out. Worse scenarios, like resolution, aren’t yet on the cards.
Deutsche Bank has credible shock absorbers 30 Sep 2016 The German lender's shares are falling on fears hedge funds are withdrawing cash. No bank would emerge unscathed if customers really turned tail. But Deutsche's relatively strong funding, and a battery of central bank support facilities, suggest liquidity isn't its main headache.
Dutch food IPO delivers a lukewarm debut 30 Sep 2016 Shares in Takeaway.com were up 6 percent on its first trading day, less impressive than UK rival Just Eat's 10 percent 2014 debut pop. True, European markets are having a bad day. But pricing was also punchy for a tech group that has yet to become top dog in some of its markets.
Trouble at Deutsche Bank creates tentative winners 30 Sep 2016 It's in the interest of banks and regulators everywhere that the German lender stays afloat. Yet others may benefit if Deutsche Bank is weakened by its woes. U.S. rivals can grab even more market share. And the Italian government gets an opportunity to tackle its ailing lenders.
Commerz sees low bar for bank earnings, lowers it 29 Sep 2016 The German lender wants board support for cuts to 9,600 jobs and its investment bank. But Commerzbank's 2020 return-on-equity goal of 6 pct would still destroy shareholder value, is lamer than fellow laggard Standard Chartered's and needs heroic revenue growth.
Bold issuers test limits of yield-hungry market 29 Sep 2016 Bond investors, who only recently snapped up negative-yielding Sanofi and Henkel debt, shunned an aggressively-priced Lufthansa offering. IPOs too are showing signs that buyer power is returning and that desperation for yield hasn’t dulled asset managers' ability to scent risk.
Deutsche Bank’s CEO ought to channel his old self 29 Sep 2016 The prospect of large fines means the German lender may need capital, but the market is unlikely to provide it without decisive action. Breakingviews imagines what a younger version of boss John Cryan, then an investment banker at UBS, might advise his present-day equivalent.
Germany gets economic rebalancing only half right 29 Sep 2016 The country no longer depends on exports for growth. Strong domestic demand is the key driver these days, a government-commissioned report says. Yet the current account surplus is still rising. Blame not only Angela Merkel’s fiscal restraint but also weak corporate investment.
Bedroom musicians may amplify Spotify profit issue 29 Sep 2016 The Swedish streaming group is in talks to buy SoundCloud, a site where amateur musicians upload songs for free. It would bring 175 mln monthly listeners and additional industry clout. But buying a loss-making group might not help Spotify address its key goal: turning a profit.
German airlines leave logic in the ejector seat 28 Sep 2016 In most sectors, a heavily loss-making company with liabilities that exceed its assets would disappear. Yet German carrier Air Berlin is still airborne, and Lufthansa may take on a chunk of its fleet. Aviation bosses continue to think they can defy financial gravity.
Past mortgage fines give Deutsche room for hope 28 Sep 2016 Settlements by other banks imply the German lender owes up to $5.5 bln for mis-selling mortgage-backed securities. That's much less than the $14 bln the U.S. government wants. But a previous Deutsche fine was much bigger than rivals'. Calculating penalties is an inexact science.
Anglo-German mail merge delivers value both ways 28 Sep 2016 Deutsche Post is paying 243 million pounds for UK Mail, in a play for the British e-commerce market. The target's shares have spent a year in the doldrums after problems at its new automated hub. But a 43 percent premium makes the purchase look less opportunistic.