Orcel exit tests UBS’s Goldilocks investment bank 1 Oct 2018 Like the girl in the fairy tale, the Swiss lender wants a capital markets arm that is just the right size: not too big to weigh on its valuation, but not too small to compete. Departing chief Andrea Orcel managed the balancing act. His successors have to prove they can too.
Swiss packaging IPO defies anti-waste threat 28 Sep 2018 SIG Combibloc is unwrapping a $3.7 bln Swiss listing. Record sector valuations have helped owner Onex more than double its money in almost four years. Growing demand and green credentials should allow the Tetrapak rival to deflect concerns about a crackdown on throwaway plastic.
Cull of bank traders is on the cards 26 Sep 2018 Global fixed income trading revenue has fallen faster than headcount over the past four years, according to Coalition. Pressure is growing on banks, especially in Europe, to cut costs. Technology will replace more humans on the dealing floors.
Saudi-Clariant chemical deal is murky concoction 18 Sep 2018 The Swiss group is setting up a joint venture with 25 pct shareholder Saudi Basic Industries. At the same time SABIC will contribute a new Clariant CEO and four board directors. Though the venture should make sense, the company’s governance becomes more complicated.
Richemont’s board is as complex as its timepieces 10 Sep 2018 The $44 billion Swiss watchmaker appointed a CEO just two years after scrapping the role. But new boss Jérôme Lambert won’t lead Cartier and Van Cleef - brands that generate 80 percent of operating profit. Fuzzy governance will continue to weigh on the group’s value.
Credit Suisse ought to think about Thiam’s exit 7 Sep 2018 The boss of the Zurich-based lender has denied rumours he wants to run for president in his native Ivory Coast in 2020. Even so, completing most of the bank’s restructuring next year will be a natural exit point. Tidjane Thiam’s “long-term commitment” may last no longer than that.
Consumer giants have bigger problems than Turkey 28 Aug 2018 Unilever and Nestlé can resist a crisis in Turkey, which accounts for little of their revenue. But both will suffer if troubles spread across emerging markets, which account for about half of group sales. All the more so since Western shoppers are unlikely to take up the slack.
Cautious miners leave room for new swashbucklers 17 Aug 2018 Heavyweights like BHP have retreated from promising projects in tough spots. Even daring Glencore is fretting about Congo. The result is a long list of untapped resources and few buyers outside China. An intrepid fresh player could step in - if it can access private capital.
GAM plays canary in bond liquidity risk coalmine 2 Aug 2018 Redemption requests spiked after the Swiss hedge fund suspended one of its asset managers. Turning down such demands prevents less agile clients from being penalised. But the move highlights the industry-wide problem of how little it can take to gum up apparently liquid funds.
Credit Suisse returns can vault flatfooted traders 31 Jul 2018 The Swiss bank saw earnings double in the second quarter thanks to its wealth management unit. A weak investment bank means the group is less profitable than rival UBS. But lower costs should allow boss Tidjane Thiam to achieve his 10 percent return benchmark next year anyway.
Nestlé has easier wins ahead in activist battle 26 Jul 2018 New products in the U.S. and an overhaul of baby foods boosted growth in the first half. There are early signs that CEO Mark Schneider’s strategy is working, in the face of pressure from investor Dan Loeb. Yet to keep Loeb at bay Schneider needs to do more to prune tired brands.
UBS’s dented crown still sparkles 24 Jul 2018 The Swiss bank’s first-half pre-tax profit grew 15 percent year-on-year. UBS’s outlook was downbeat, and its prized wealth arm lost 1.2 bln Swiss francs in client mandates, its first quarterly outflow since 2016. Even so, higher quality revenue can help it keep a valuation lead.
Viewsroom: Trump’s Supreme Court pick 12 Jul 2018 The U.S. president has chosen a friend of big business in Brett Kavanaugh. But he faces bigger questions from Senate democrats about executive power. Plus: Commodity giant Glencore faces mounting risks in Washington, and what’s behind the Chinese yuan’s downward slide.
Glencore’s investor sunshine aided by U.S. cloud 5 Jul 2018 A $1 bln buyback will please investors wanting to see the commodities giant’s stronger balance sheet reflected in cash goodies. Yet Glencore is doing it as U.S. authorities demand details on anti-corruption compliance. Its usual gung-ho dealmaking may need to take a back seat.
Dan Loeb hits limits of “constructivism” on Nestlé 2 Jul 2018 A year after disclosing a stake, the activist investor called on the Swiss giant to shake up its business and board. Though his ideas make sense, progress has been slow and the stock has lagged. He could take a more muscular approach, but only if other shareholders go along.
Roche throws $2.4 bln at its growth problem 19 Jun 2018 The drugmaker is paying a 29 pct premium to buy out shareholders in a gene-profiling group it already controls. The deal fits its strategy, but will take years to pay off. With Roche’s cancer business challenged, fuzzy M&A is another reason for investors to steer clear.
Switzerland’s safe money vote is flawed but useful 6 Jun 2018 Giving the central bank a monopoly over electronic cash will not end financial crises or taxpayer bailouts, as campaigners claim. It also muddles monetary policy. However, the upcoming referendum has forced a public debate about the purpose of commercial banks. That’s overdue.
Dutch $8 bln payments IPO banks fat growth premium 5 Jun 2018 Amsterdam-based Adyen is listing shares at a higher multiple than peers. That’s arguably justified by booming sales and racy customers like Netflix and Facebook. But card groups like Visa and tech giants are vying for a slice of the payments pie, likely hurting intermediaries.
Italy’s politics is new obstacle to UniCredit deal 4 Jun 2018 The country’s largest lender has debated merging with French rival Société Générale for over a decade. Past talks foundered on executive egos. Italy’s radical government – and fresh jitters over its sovereign debt – are likely to scupper any attempt to revive the combination.
Nestlé would benefit from a sugar detox 28 May 2018 The Swiss food group’s CEO wants to spruce up a tired portfolio by buying and selling brands worth 10 percent of group sales, or about $9 bln. The recent Starbucks licensing deal gets him around halfway there. Offloading low-margin confectionery brands is the next logical step.