Reckitt slump offers a cue to slim down 18 Mar 2024 The $41 bln Lysol maker’s shares fell sharply after it lost a US court case. One option for Reckitt Benckiser is to separate the nutrition arm, focus of the legal woes. That would ease the hit to the rest of the group, but also leave a new arm that may yet be worth something.
UK media muddle is fresh turn-off for foreign cash 14 Mar 2024 Hurried Westminster amendments are set to block an Abu Dhabi-backed bid to buy the Telegraph. It’s OK to stop foreign states owning domestic media, and it may not even upend UAE relations. But making policy on the hoof so flagrantly offers a new reason to swerve UK assets.
UK monarchy suffers an impairment to its goodwill 13 Mar 2024 A poorly edited photo of the Princess of Wales has fanned a firestorm of speculation about her health. If Britain’s royal family were a listed company, it would have a fiduciary duty to provide more detail. While the hit to its brand equity is not visible, it’s still tangible.
Nickel rout is energy-transition warning for West 8 Mar 2024 Prices of the battery metal have halved in a year, leaving many mines unprofitable or mothballed. Indonesia’s China-backed industry now dominates. Piecemeal aid and a green premium push are unlikely to alter that. Absent smart planning, copper and lithium are vulnerable, too.
Slow growth puts ECB before Fed in rate-cut line 7 Mar 2024 The European Central Bank held borrowing costs but President Christine Lagarde suggested it might lower them in June. That could make her the first major central banker to ease policy, ahead of US Federal Reserve boss Jay Powell. Sadly, that’s only due to dire euro zone growth.
Virgin Money sale is UK challenger banks’ swansong 7 Mar 2024 Nationwide Building Society is paying a high premium for the embattled lender, but accounting gains and the scope to rival giants like Lloyds Banking Group sweeten the $3.7 bln deal. Still, the demise of the most prominent smaller bank suggests the sector is reverting to form.
UK ‘non-dom’ slap is right move for wrong reason 6 Mar 2024 Finance minister Jeremy Hunt scrapped tax benefits for people living in the UK but officially domiciled abroad. That improves fiscal fairness and may raise over $3 bln per year. But the benefits are uncertain and the funds went to pre-election giveaways, not public services.
L&G is an insurer with a fossil fuel-style problem 6 Mar 2024 The $18 bln UK group has underperformed European rivals. New CEO António Simões at least has a booming business in taking on corporate pension schemes. But like Shell and BP’s oil fields these are a finite resource, necessitating a durable Plan B.
Swarming investor gnats circle too widely 6 Mar 2024 New US rules have started helping smaller fund managers make a mark. They’re increasingly needling boards and stinging CEOs. When they flit around bigger targets such as Disney and Crown Castle, however, they’re easily swatted away and become a nuisance for larger activists.
Excessive UK tax giveaways risk longer-term harm 5 Mar 2024 Finance minister Jeremy Hunt may spend some 15 bln pounds in pre-election fiscal gifts in Wednesday’s budget. He could be tempted to do more – and make life difficult for the next government – by further cutting public services. But that would put the country in a bind.
Elliott has limited ammo in UK retail bidding war 4 Mar 2024 The US investment group’s latest $951 mln offer for retailer Currys could have yielded an adequate return. But the target has rejected it. Hiking the offer looks tricky given the ropey UK economy, reduced scope for leverage, and potential rival bidder JD.com’s deep pockets.
European telcos’ new deal hopes face reality check 1 Mar 2024 Executives gathered in Barcelona this week to plead for lighter regulation, cheaper spectrum and some financial help. Policymakers are unlikely to agree. Deutsche Telekom, Telefónica and others will have to convince investors that future growth requires more investment today.
LSEG’s big data dividend is still in the cloud 29 Feb 2024 Three years after absorbing information purveyor Refinitiv, CEO David Schwimmer has hit his growth and margin targets. Yet investors still value the $60 bln London Stock Exchange owner like a bourse operator. An upgrade depends on persuading Microsoft users to pay for LSEG data.
UK $4 bln insurance mash-up may yet motor 28 Feb 2024 Direct Line rejected a cash and share offer from its $8 bln Belgian rival Ageas. The target’s depressed share price suggests it has good reason to hold out for more. And synergies related to the two groups’ capital should give Ageas scope to hike its offer.
St James’s Place mess may spark a Lloyds reunion 28 Feb 2024 The UK wealth manager’s shares fell 33% after a $539 mln charge to compensate angry clients. Given these payouts may not worsen, St James’s Place looks to be in play. Lloyds Banking Group, which once owned part of SJP and wants to expand in wealth, could be first in the queue.
Vodafone’s Italy exit puts speed before valuation 28 Feb 2024 The UK telco looks poised to sell its hard-pressed local business to Swisscom for 8 bln euros in cash. The price tag is lower than a previous Iliad offer. But it’s a cleaner exit, and advances boss Margherita Della Valle’s goal of prompt M&A to make her company less sprawling.
Why central banks risk making more mistakes 27 Feb 2024 Western rate-setters were late in fighting inflation. In this Exchange podcast, TS Lombard economists Dario Perkins and Davide Oneglia argue that, as price growth abates, the US Federal Reserve and European Central Bank may be too slow in easing monetary policy.
StanChart is a permanent work-in-progress 23 Feb 2024 The Asia-focused bank inched past its 2023 returns target, bagging longtime boss Bill Winters a 22% pay boost. But he's downgrading or postponing his next goals. And the years-long promise to simplify the lender is back. Persuading investors to boost its valuation will be hard.
Mining pain may be just getting started 22 Feb 2024 Falling prices for nickel, lithium and copper have hit earnings at Glencore and Anglo American. In this Viewsroom podcast, Breakingviews columnists explain why competition and dwindling demand for electric vehicles will keep key battery commodities under pressure.
Anglo American can mine Vale for revamp ideas 22 Feb 2024 The $30 bln miner is reviewing its asset mix after a ropey year. To ease its conglomerate discount CEO Duncan Wanblad could offload his struggling diamonds arm, but that’s not easy. Or he could follow his Brazilian peer and split off copper – perhaps using some outside cash.