UK devaluation has a message for Greece and Spain 13 Apr 2012 The latest British trade figures might suggest otherwise, but a devalued pound has bolstered UK exports and growth. Big devaluations would turn the beleaguered Greek and Spanish economies around. But the competitive cheapening would come at a high price in lost wealth.
Lloyds forced disposals inch towards quasi-auction 12 Apr 2012 The race to buy 632 branches the UK bank must sell to meet state-aid rules had seemed all but won by the Co-op mutual group. Now new entrant NBNK is detailing a rival pitch. The odd nature of the two bidders may rule out a hot auction. But at least Lloyds has a choice of buyer.
U.S. sale could kickstart Aviva’s spring clean 12 Apr 2012 The UK-based insurer is mulling a sale of its U.S. arm, according to reports. Offloading North American operations would make regulatory sense. But it would also be a welcome sign that Aviva is getting to grips with parts of its empire that aren’t pulling their weight.
Barclays short of options over pay time bomb 11 Apr 2012 The UK bank faces a potentially toxic protest vote against seemingly unjustified bonuses for CEO Bob Diamond and CFO Chris Lucas at its AGM. Barclays tends to tough out such rows. But this time it could mitigate its fault by being an early adopter of proposed UK pay reforms.
Titanic’s century-old metaphor misses the point 11 Apr 2012 The famous 1912 sinking tells us something eternal. Life, even the most privileged, is like an ocean voyage, and then the ship goes down and you die. It also seems like a warning against modern hubris. But an iceberg couldn’t stop the spread of ever more advanced technologies.
AstraZeneca needs a more active chairman 10 Apr 2012 Investors are frustrated with the Anglo-Swedish pharma group’s shrinking collection of blockbuster drugs. It’s time for a major strategic review, led by an active leader willing to tackle taboo topics. There’s an opportunity - a new chair is set to be approved later this month.
Rothschild Anglo-French union secures family grip 5 Apr 2012 The investment bank is merging its French and British subsidiaries into a single listed vehicle, Paris Orleans. But the new group’s limited partnership structure guarantees airtight family control - regardless of who takes over from current chairman David de Rothschild.
Nigerian billionaire’s LSE-quote plan is watershed 5 Apr 2012 A mooted London listing for Aliko Dangote’s $11 bln cement group is a milestone for Nigeria and for Africa. The resource-rich continent has seen false starts before, and Dangote’s venture isn’t without risks. But a FTSE 100-sized Nigerian company gives cause for celebration.
Against the euro, the pound looks sound 4 Apr 2012 Britain’s economy probably grew 0.5 percent in the first quarter. That’s a big improvement on Q4 - and a lot better than the euro zone. UK inflation is stubborn too, making further rounds of money printing less likely. It all bodes well for sterling against the euro.
UK social investment fund merits cautious welcome 4 Apr 2012 The government has siphoned 600 mln stg from banks to help finance socially valuable businesses. Its “Big Society Capital” fund will need to show it’s not just making soft loans to duff projects. But it could help private capital plug the hole left by cutting grants to charities.
Who will fill Ian Hannam’s shoes? 4 Apr 2012 The JPMorgan banker’s resignation leaves a hole in the London market. Candidates to fill it are rival investment banks and Hannam himself, assuming he clears himself of market abuse charges. But it’s also possible that some of the business he generated just won’t come to London.
BSkyB better off without Murdoch in chair 3 Apr 2012 Murdoch Jnr’s decision to jump before he might have been pushed means the pay-TV group finally has an independent chairman. The sale of News Corp’s stake in BSkyB is unlikely, though no longer unthinkable. The same goes for replacing Murdoch Snr as the parent company’s chairman.
JPM insider non-trading case puts banks on notice 3 Apr 2012 Britain’s regulator has fined Ian Hannam for sharing price-sensitive information about a client. The penalty looks harsh since the JPMorgan dealmaker’s slip was accidental and nobody traded on the tip. Even if Hannam wins his appeal, advisers may have to re-think how they work.
UK government faces tough N-power choices 2 Apr 2012 Two German utilities’ withdrawal from Britain’s Horizon nuclear project is a blow to the government’s clean energy ambitions. It needn’t be a fatal one, but policymakers face some politically unappetising choices if they want new nuclear capacity to be built.
BP has yet to deliver its positive Macondo legacy 2 Apr 2012 The Gulf of Mexico disaster prompted soul-searching and a wide-ranging review of BP’s sprawling portfolio. The pledge was to divest low-return assets and focus on its core competence in exploration. But two years on and it’s clear the strategic renewal is proving a long slog.
Review: Fictional financiers remain elusive 30 Mar 2012 Despite the crash, recent novels have produced few memorable investment bankers. Roger Yount, the anti-hero of John Lanchester’s “Capital”, might have been an exception. Sadly, his tale is lost in the sprawling novel’s attempt to capture a cross-section of London.
Int’l Power non-execs have some leverage over GDF 30 Mar 2012 The UK energy firm has had a 6 bln stg approach from GDF for the 30 pct that the French group doesn’t own already. Bid rumours have already effectively added a slim premium to IPR shares. But its independent directors still have some power to push for a bit more.
Bank of England pressured by Treasury mea culpa 30 Mar 2012 The UK finance ministry has published an internal report criticising its handling of the crisis. Following the Financial Services Authority’s multiple exercises in self-flagellation, the central bank’s continued refusal to publicly examine its own performance looks unsustainable.
Intel and ARM heading for bloody chip collision 29 Mar 2012 Intel dominates the market for PC processors. ARM Holdings-powered chips run nearly all phones and tablets. Their skirmishing over tablets is just the start of what is likely to become a full-fledged brawl as both firms invade the other’s territory. Investors look out.
Regulator holds key to unshackling RBS from state 28 Mar 2012 Interest from Middle Eastern funds has raised hopes the UK government might shrink its stake in the bailed-out lender. But any sale is doubtful until RBS has escaped costly state insurance. To do so, it must first persuade the Financial Services Authority it has enough capital.