Deutsche Bank CEOs are running out of chances 14 Dec 2012 The last week has seen Deutsche warn on Q4, suffer police raids and be forced to pay corporate damages. True, the issues relate mainly to the bank’s history. But Anshu Jain and Juergen Fitschen now have no margin for error as they try to move Deutsche on from its, and their, past.
Merkel wants banking union – a good, German one 11 Dec 2012 Germany’s refusal to rush through the details of the single banking supervisory mechanism is not driven by a hidden agenda to delay the decision forever. Berlin genuinely agrees on the need for pan-European financial oversight. It just wants one tailored to its interests.
Deutsche spat reopens mark-to-model/myth debate 6 Dec 2012 Former employees of the German bank allege it hid $12 bln of losses during the crisis. Banks valued the structured credit assets in question with their own models. This raises the question of whose interests would have been served by a more robust approach.
EADS’ governance rejig falls short of true reform 6 Dec 2012 Paris and Berlin will reduce their influence over the aerospace group. Private shareholders Lagardere and Daimler will be free to divest their stakes. But EADS is still a long way from the kind of reform that would prevent unwarranted government meddling in its operations.
ThyssenKrupp boxed in by dilapidated governance 4 Dec 2012 The steelmaker has survived an orgy of mismanagement that would have annihilated most companies. New management is trying hard to turn things around. Unfortunately, its room to manoeuvre is limited by a controlling foundation, which has too much power and not enough sense.
Siemens outsmarts market with $2.8 bln rail deal 29 Nov 2012 The German group will buy the rail arm of Invensys for a hefty $2.8 bln - surprising analysts and investors who had soured on the UK group and its pension deficit. For Siemens there’s strategic logic and synergies. For pension trustees, relief. For the Invensys chairman: déjà vu.
Ackermann jibe evokes ghost of Deutsche past 27 Nov 2012 Deutsche Bank has erred by choosing not to send co-CEO Anshu Jain to a parliamentary hearing on Libor. Jain wasn’t directly called, but it still looks evasive. And it has given ex-boss Josef Ackermann the chance to revive an unseemly Deutsche custom of undermining new leadership.
Germany first beneficiary of ECB’s future largesse 23 Nov 2012 The business climate in Europe’s largest economy unexpectedly brightened a bit in November. The staunchest critic of the ECB’s bond-buying programme is the first one to benefit from Mario Draghi’s determination to reduce uncertainty about the future of the euro.
German press crunch time could imperil democracy 21 Nov 2012 The oldest national paper is insolvent and Financial Times Deutschland is in limbo. German quality publications are suffering from the familiar problems of old media in the internet age. The sector is vital for the country. It might soon have to argue for a public bailout.
Merkel forgets austerity at home as elections near 21 Nov 2012 Europe’s austerity grand priestess seems to have forgotten domestic fiscal prudence as she braces for a tough political fight next year. She is spending freely on pet projects that voters might like. Germany does need more public spending, but not that type.
ACS shows who’s the boss at Hochtief 19 Nov 2012 The Spanish group is purging the top management of Hochtief 18 months after gaining control of the German builder. What makes sense for struggling ACS could endanger its subsidiary’s future. Investors should learn to mistrust promises made in the heat of takeover battles.
Bayern’s profits shine in fickle football economy 19 Nov 2012 The German Bundesliga team’s steady profit stands in stark contrast to the exuberant irrationality that is the rule in European football. Other teams, as well as real-world managers or bankers, could learn a few things from the world’s most financially successful team.
Buba can’t rely on orthodoxy to fight bubbles 14 Nov 2012 The German central bank is nervously eyeing rising property prices and is pledging to prevent a possible bubble early on. However, the traditional armoury of central banks is quite empty. One of the most orthodox central banks might be forced to think out of the box soon.
E.ON shocker opens era of crippling uncertainty 13 Nov 2012 Investors punished the energy group for saying it wouldn’t reach its outlook for the next three years. Economic gloom along with political and regulatory uncertainty make life uneasy for European utilities - and even harder for German ones. This isn’t about to end soon.
VW relaunches mandatory convertible market 6 Nov 2012 The German carmaker’s 2.5 bln euro issue is the biggest for a while. The deal immediately alleviates pressure on its credit rating, and is less costly than placing shares today. Other issuers with comparable equity stories may follow.
Deutsche evolution outshone by UBS revolution 30 Oct 2012 The German bank had a strong third quarter, driven by fixed income and equities trading. But its recent three-year strategy to improve capital and returns now looks less decisive against the Swiss bank’s wholesale restructuring. Investors may want Deutsche to be more radical.
Patent lawyers: Y’all better Deutsch sprechen 17 Oct 2012 The smartphone wars are moving from eastern Texas to western Germany. The shift is occurring because courts in Mannheim let the likes of Apple block rivals without proving harm, and their rulings carry global weight. The transatlantic legal arbitrage hurts competition, though.
EADS can’t move if it doesn’t change. But can it? 10 Oct 2012 The Airbus maker couldn’t do a deal with BAE because of its skewed, politicised governance. CEO Tom Enders may have been over-optimistic in thinking the Franco-German group was a normal company. He still has work to do to convince the French and German governments to step back.
BAE must show standalone strength post-EADS 10 Oct 2012 An “in play” BAE may attract a low-ball bid. So the UK defence group must reassure investors. But there are few levers to pull. It has been cost cutting for years. And with defence budgets still shrinking, showering shareholders with cash does not look too wise.
BAE pays price for having no deal to sell 8 Oct 2012 The UK defence group’s lead investor has taken aim at the EADS merger. Finessing leaked deals is always tricky, and angry investors nowadays seem almost de rigueur for big M&A. Still, Invesco’s intervention shortens the odds on a BAE management clearout if the tie-up fails.