Financial hubs’ neutrality is all at sea 11 Oct 2022 Switzerland and Singapore are taking the West’s side in the Ukraine war. Now fear is rising that Hong Kong will become a Russian stomping ground after an oligarch’s yacht docked there. That’s overdone, but the impartiality of rich centres is increasingly likely to create waves.
Credit Suisse’s debt move is largely reassuring 7 Oct 2022 The lender is buying back $3 bln of bonds, a way to remind credit markets of its cash mountain. Having to reassure on liquidity is hardly ideal, but Credit Suisse’s cost of insuring against default fell. For shareholders, it also flags the bank has creative ways to boost capital.
Credit Suisse can stop rot with $5 bln cash call 5 Oct 2022 Heavy investment-bank losses and higher funding costs risk damaging the Swiss group’s core wealth unit. Chair Axel Lehmann can draw a line by ditching debt trading and slashing costs. To shrink he needs more capital. Asking investors for equity is cleaner than tricky asset sales.
Abu Dhabi would be a logical owner for Gunvor 4 Oct 2022 ADNOC, the emirate’s huge oil company, is interested in the privately held commodities trader. Gunvor’s valuation involves guesswork, and it used to be owned by a target of U.S. sanctions. But the UAE could use the group’s roster of gas client relationships, and it has the cash.
Credit Suisse selloff throws wrench into revamp 3 Oct 2022 The bank’s shares fell 8% on Monday and the cost of insuring its debt soared. Chair Axel Lehmann may struggle to sell assets amid the turmoil, undermining a strategic overhaul. A sustained rout could even force him to raise capital fast – at a painful valuation for shareholders.
Richemont finds tolerable way to refocus 24 Aug 2022 The $60 bln Cartier owner has finally sold part of e-commerce unit YNAP to Farfetch. Richemont gets a lower price than it could have last year, but keeps online presence via payment in its U.S.-listed rival’s shares. And cutting its stake helps it focus on more promising sectors.
Banks’ LBO debt hangover may leave lasting scars 16 Aug 2022 Dicey markets forced Goldman Sachs and peers to take a hit on $80 bln of buyout loans that got stuck on their balance sheets. Calmer conditions mean the worst may be over. But the trauma, along with rising rates and competition from private lenders, adds to the case for job cuts.
Richemont’s governance armour is hard to pierce 12 Aug 2022 Activist Bluebell wants ordinary investors to appoint their own director on the board of the $63 bln Cartier owner. Yet Chair Johann Rupert’s big voting power means he could stifle the attempt. Without a fresh voice, contrarian business ideas may not get much airtime.
Credit Suisse revamp risks being bad copy of UBS 27 Jul 2022 Like its rival in 2012, the $14 bln group is shrinking its trading businesses and cutting costs to focus on wealth management. Yet heavy losses and dicey markets will constrain new CEO Ulrich Koerner, who has never run an investment bank. A respectable valuation may take longer.
Next Credit Suisse CEO’s focus: costs and capital 26 Jul 2022 Thomas Gottstein will soon leave the $14 bln bank, the Wall Street Journal reported. A lack of internal candidates and the need for a strategic rethink argue for a heavyweight outsider. The first job will be to shrink debt trading, a costly effort that may require fresh equity.
UBS’s growth dip cements discount to U.S. rivals 26 Jul 2022 Shares in Ralph Hamers’ $50 bln bank fell 6% after wealthy clients all but stopped investing new money in the second quarter. It’s a setback for his strategy, which rests on boosting revenue. Reversing the trend is key to earning a valuation multiple closer to Morgan Stanley’s.
China gives Zurich exchange a financial panda 25 Jul 2022 Four companies from the People's Republic are seeking to raise $2.4 bln via a new link with the Swiss hub. With U.S. regulators ready to delist Chinese firms, Beijing is expanding European bourse tie-ups. As with London, there will be fanfare, but trading volumes will stay caged.
Benettons swap motorway power for airport clout 11 Jul 2022 The Italian tycoons will exchange their stake in road and airport caterer Autogrill for at least 20% of duty-free player Dufry, without getting a premium. The combined $5.6 bln group is a bet on long-distance travel recovering. Other investors must decide whether to hop on board.
Credit Suisse pays up to pretend all is well 17 Jun 2022 The Swiss lender’s efforts to refinance hybrid credit mean it’s paying a steep 9.75% coupon. Investors expect banks to offer to buy back this sort of debt, but Santander opted not to in 2019. Credit Suisse’s ongoing headaches means it has less scope for such brusque treatment.
Credit Suisse capital hike would speed turnaround 31 May 2022 The bank is considering raising $1 bln of equity, Reuters reported. That would be painful at such a low valuation, and the company denied it. But bigger balance-sheet buffers could fund faster shrinkage of the accident-prone investment bank, reducing its share-price drag sooner.
DSM stocks up on ingredients trend with Swiss deal 31 May 2022 The $29 bln Dutch producer of food supplements is swallowing family-owned Firmenich for shares and 3.5 bln euros in cash. That boosts its appeal with consumer groups seeking to manipulate taste, smell and texture. By making concessions on governance, DSM has got a decent price.
HSBC’s jarring ESG message, Davos in spring 26 May 2022 The bank’s head of responsible investing believes policymakers are exaggerating the financial risks of climate change. In this Viewsroom podcast, Breakingviews columnists discuss the ramifications of those remarks. Plus: The World Economic Forum is back, but the mood is dour.
Global stability partly hangs on Saudi reinvention 25 May 2022 The kingdom’s efforts to shape its image go so far as branding a café at Davos bearing the crown prince’s name. Worldwide demand for oil and gas amid the Ukraine war gives Saudi extra power and a chance to realign itself politically. There’s much more work to do.
Smaller, warmer Davos confronts a siloed world 23 May 2022 The Swiss confab of global leaders returns this week after a gap of over two years. Pandemic, war, and the unusual spring timing explain some notable absences. As markets tumble and economies turn inward, founder Klaus Schwab’s knack for brokering relationships faces a test.
Bulking up in baby food is far from child’s play 17 May 2022 Reckitt and Nestlé’s U.S. sales of infant formula food are surging after market leader Abbott recalled its lines on safety fears. It looks an ideal time for Reckitt especially to flog a weak business line. Unfortunately, state regulations mean its market share gains may not last.