After FT, Pearson’s challenge is existential 24 Jul 2015 The Pink ’Un contributed 3.3 pct of the UK company’s adjusted operating profit last year. North America pumped in 64 percent. With the FT sold, Pearson will focus on education. It may work better as a U.S. company, or in other hands. It could sell itself, as a whole or in parts.
Tide flows against UK’s pro-EU campaigners 24 Jul 2015 Polls right now suggest Brits want to stay in Europe. Yet the rough handling of Greece and a proposed transatlantic trade deal are alienating left-leaning voters. Meanwhile, potential sops to those worried by immigration are very unlikely to placate eurosceptics on the right.
Financial logic in $1.3 bln FT buy is paper thin 23 Jul 2015 Japanese media group Nikkei is taking a bold step with its purchase of the Financial Times. The price equates to 35 times adjusted operating income. Sure, Nikkei gets a bucketload of kudos. But the tag is around three times higher than the multiple enjoyed by quoted media peers.
Barclays faces awkward Qatari settlement dilemma 22 Jul 2015 The UK bank may have the option of taking a so-called deferred prosecution agreement for alleged inadequate disclosure of fees paid to the emirate after a 2008 capital hike. A speedy resolution would remove a key risk for investors. But it might also open a legal can of worms.
UK wage plans are bad fit for low-skill workforce 21 Jul 2015 Raising the minimum wage is a fine idea on paper. Workers earn more without adding much to inflation or subtracting much from growth. But reality may be less benign. Chancellor George Osborne’s desired wage floor could be too high for the relatively low-skilled British workforce.
Pearson sale of FT could stick this time 20 Jul 2015 The $16 bln publisher may offload the pink-hued newspaper, according to new reports. The Financial Times looks increasingly out of place in a group focused on U.S. education. The healthy M&A market might encourage potential buyers to bid a price acceptable to Pearson.
Shouldn’t Credit Suisse and StanChart swap CEOs? 20 Jul 2015 Bill Winters is beginning his tenure as new boss of the emerging markets lender at the same time that Tidjane Thiam takes charge of the Swiss investment and private bank. Both are capable executives, but their experiences seem uncannily to better suit the other’s job.
UK seeks watchdog: must be tactful, tough and able 17 Jul 2015 Britain is searching for a new regulator after Chancellor George Osborne ousted Financial Conduct Authority boss Martin Wheatley. His replacement will need to avoid mistakes and forge a conciliatory pact with financial institutions while also protecting consumers. It’s a big ask.
The dubious maths behind UK non-dom tax clampdown 17 Jul 2015 Britain reckons it can raise 1.5 billion pounds by limiting a loophole that allows wealthy residents to avoid tax on overseas income. The country’s budget watchdog is sceptical. Regardless of the merits of changing an archaic system, it’s just as likely to lose as make money.
UK’s BT can gain from more open future 16 Jul 2015 Britain’s telecoms giant has invested an impressive 10 bln stg in national fibre-optic broadband over the last decade. But times have changed. Ofcom’s regulatory review is a good time for a rethink. A division might now allow capital to be raised and deployed more efficiently.
Barclays lacks options to avoid ring-fence pain 13 Jul 2015 The UK bank’s chairman says buying another lender could help it meet UK ring-fencing reforms. That might make the process quicker, but probably wouldn’t save much money. The bigger problem remains the risk of tangibly higher funding and capital costs.
BBC needs good pruning, not root-and-branch change 13 Jul 2015 UK lawmakers are questioning the broadcaster’s remit. Its 3.7 bln stg pseudo-state funding is anticompetitive. But while the BBC, like the monarchy and NHS, comes from another era, reformers need to be careful. A “bonsai” BBC – smaller and stronger – might be worth cultivating.
Barclays investment bank is hardest to turn round 9 Jul 2015 The UK lender, Credit Suisse and Deutsche Bank have all changed chief executives this July. Each has a distinct investment banking challenge. The Swiss bank is capital-light, Deutsche needs to cut costs. Yet Barclays’ shrinking top line suggests its revamp will be the toughest.
UK Tories pinch some choice left-of-centre ideas 8 Jul 2015 Britain’s budget saw hikes to the minimum wage, a slowing of austerity, and hits for banks and non-doms. That isn’t the usual domain of British Conservatives. Yet deep welfare cuts, higher inheritance tax thresholds, and falls in business tax show the clothes-stealing has limits.
Barclays CEO vacancy will be a headache to fill 8 Jul 2015 Antony Jenkins has paid the price for weak investment bank returns and tactical missteps. Chairman John McFarlane can hold the fort. But a permanent replacement has to inspire a wary workforce and pull off a tricky revamp – just as UK ring-fencing rules make it all much harder.
Lloyds may be the victim of UK bank levy rejig 8 Jul 2015 The 2.5 bln pounds the bank tax raises from domestic players would suffer if HSBC relocates its head office. Chancellor George Osborne may use the upcoming budget to put the levy on a more stable footing. The least-bad option could be to shift the burden to UK-dependent Lloyds.
BP may now get closure on Gulf spill 2 Jul 2015 The UK oil major has settled claims with the U.S. government and five states for $18.7 bln. It brings the total bill to $53.8 bln. But it could have been worse and it’s payable over as much as 18 years. It may also mean BP can finally put the Deepwater disaster behind it.
Heathrow offers quaint lessons in infrastructure 1 Jul 2015 After at least six years of heated debate, a British government-appointed panel has backed the idea of a third runway for London’s largest airport. China has built 44 new airports in that time. The UK’s deliberative approach has advantages, but now it’s time to start building.
Willis-Towers Watson insure against market turmoil 30 Jun 2015 The insurance broker and the risk consultant plan to merge. There’s positive logic: combining Towers’ knowhow and Willis’ client relationships could drive revenue. But $125 mln of cost synergies would also help the group weather an insurance sector wrestling with low rates.
New drivers could rev Formula One’s billions 24 Jun 2015 Private equity backer CVC is ready to speed off after a decade of turbocharged returns, while 84-year-old patriarch Bernie Ecclestone may not be doing enough to tune high-tech motor racing’s commercial chassis. Qatari and U.S. owners might just restore full power.