Credit Suisse beats Deutsche despite rotten year 29 Jun 2016 The banks' stocks are down 50 pct since they switched leaders last July. Deutsche boss John Cryan had the harder task. But while Credit Suisse's Tidjane Thiam botched an investment bank revamp, geographic and business mix suggests he's more likely to restore shareholder value.
Nestle no closer to the medicinal Kit Kat 28 Jun 2016 The Swiss consumer giant’s new boss spent the last decade running medical company Fresenius. It’s a nod to the convergence between food and healthcare. But it makes more sense when the transfusion runs the other way. Nestle’s unhealthy governance, meanwhile, remains untreated.
UBS laudably admits U.S. wealth unit has a problem 8 Jun 2016 The Swiss bank is upending how it pays its American brokers and cutting a layer of management. With some of the worst results among local rivals, something had to give. Along with an alliance with a fintech provider, the moves may give UBS a shot at some qualified U.S. success.
Money-for-nothing idea will survive Swiss rebuff 6 Jun 2016 Welfare systems once seemed as outlandish as the proposed guaranteed basic income for all that has been rejected by Swiss voters. Advocates must provide more details on funding and the potential social impact. Other countries, such as Finland, will be the lab for the experiment.
1MDB scandal stings Singapore’s banking pillar 24 May 2016 The city has shut down BSI as Swiss authorities open a criminal probe into the private bank relating to the Malaysian state fund. The battle against illicit money flows is global. But Singapore is only now properly facing up to the risks of its push into wealth management.
Richemont accepts new tempo for luxury watches 20 May 2016 The Cartier owner faces a drawn-out downturn in demand. April sales fell 15 percent, even compared to a terrible 2015. The Swiss group can cut costs, but the bigger problem is that luxury watch demand is less resilient than it once seemed.
Credit Suisse investment bank decline will persist 10 May 2016 The Swiss bank cut costs briskly while keeping capital levels steady in the first quarter. Net margins in wealth management also outdid bigger rival UBS. But boss Tidjane Thiam’s botched restructuring of Credit Suisse’s trading arm is in danger of leaving lasting scars.
Credit Suisse could do with a display of stability 9 May 2016 The Swiss bank is tinkering with its asset management arm. As first-quarter results will probably show, the main issues are actually huge investment bank trading losses and sub-UBS money inflows from wealth clients. It needs stability, not more tweaks to a six-month-old strategy.
UBS’s golden ratio shows cuts are vital 3 May 2016 The Swiss bank is rejigging its wealth unit after trading income as a percentage of invested funds dipped to historic lows. Group return on equity was just 5.1 pct in the first quarter. UBS depends on rich folks being active. When they aren’t, the only option is to trim expenses.
ABB’s soul-searching is dragging on too long 20 Apr 2016 The Swiss engineer says it needs until October to decide what to do with its Power Grids unit, under review since the autumn. CEO Ulrich Spiesshofer deserves credit for improving the division’s operational performance. But the decision to sell the unit looks clear enough now.
Consumer goods giants shield their defensiveness 14 Apr 2016 Unilever and Nestle are selling more goods, but prices aren’t rising as fast. Demand everywhere is weak. Yet valuations for such defensive stocks have soared. Dividends that are stable or keep rising - like Unilever’s - are the best insurance policy against reality setting in.
China’s airline food bid is low on flavour 11 Apr 2016 HNA Group wants to gobble up Swiss airline caterer Gategroup for 1.7 bln Swiss francs including debt. Despite a 33 pct premium, the price is best described as bland, and the timing looks a bit opportunistic. Shareholders ought to wait for something more appetising.
Credit Suisse wise to flaunt Brexit neutrality 8 Apr 2016 The Swiss bank has banned staff from events and debates tied to the UK’s EU referendum. Overt partisanship might have unnerved some Credit Suisse clients. As Switzerland renegotiates its own trading terms with Europe, Brexit impartiality also makes sense for its domestic banks.
Monsanto CEO puts M&A-addicted peers to shame 7 Apr 2016 Hugh Grant walked away from buying pesticide company Syngenta last year rather than overpay. Now he’s swearing off the biotech seed maker doing big deals. Choosing organic growth over ill-fitting, frothy tie-ups is a smart move that more bosses ought to put on their to-do list.
Credit Suisse mess goes right to the top 5 Apr 2016 In October the Swiss bank aimed to make investment bank earnings steadier. But it kept lucrative high-yield positions, which then lost $1 bln. Boss Tidjane Thiam says he was unaware the holdings had been ramped up. He should have been watching them like a hawk.
Tidjane Thiam has a PAF back to credibility 23 Mar 2016 Credit Suisse’s boss blamed colleagues for hiding distressed debts that cost the bank $1 bln. Saying he’d take a bonus cut “out of solidarity” only dug the hole deeper. Thiam could partly redeem himself by being paid in toxic assets, as bankers once were in a plan called PAF.
Credit Suisse’s epiphany is late and embarrassing 23 Mar 2016 By adding cost cuts and lowering risk assets, the Swiss bank should make acceptable returns in 2018. Tidjane Thiam could have done more when he outlined his strategy in October. Instead, positions in illiquid assets have helped lose $1 billion – and the bank is on the back foot.
Credit Suisse’s Thiam needs a new new strategy 17 Mar 2016 Boss Tidjane Thiam set out to double pre-tax profit in Asia, and the same in wealth management. China’s slowdown and a money-laundering case show events are overtaking him. Time for a face-saving rethink – or in bank-speak, a strategic acceleration.
BTG Pactual’s Swiss sale less cheap than it looks 22 Feb 2016 The under-fire Brazilian investment bank will sell Swiss wealth manager BSI to EFG International for $1.3 bln. A 10 pct discount to tangible book looks fair. A probe into corruption in Malaysia could hit BSI and the potential for cost savings, despite a guarantee to cover fines.
Nestle’s growth goal is unnecessary sweetener 18 Feb 2016 The Swiss food group’s sales undershot its long-term target, and will again in 2016. Unable to push up prices much, Nestle is spending more on promotions to stimulate sales volumes. That’s probably unnecessary. Right now, defensive qualities are worth more than growth anyway.