Unilever gets more than beauty tips from Carver 25 Sep 2017 The Pot Noodle owner is paying 2.3 billion euros for fast-growing Carver Korea, maker of “Eye Cream for Face” serums. Owners Bain Capital and Goldman Sachs pocket a hefty profit. Unilever gains access to a booming Asian market, and exposure to e-commerce and duty-free outlets.
China-backed fund’s latest chip deal looks safer 25 Sep 2017 Canyon Bridge wants to buy troubled UK firm Imagination Technologies, after President Trump stymied an earlier attempt to snap up a U.S. chipmaker. This $700 mln deal will likely set off fewer alarms. Still, the fund's murky state links might attract UK scrutiny too.
Theresa May embraces “extend and pretend” Brexit 22 Sep 2017 Fifteen months after Britain voted to leave the European Union, the prime minister still has no coherent idea how to deliver it. Her proposal to keep things as they are until 2021 lowers the risk of a chaotic Brexit. If accepted, the temptation will be to delay further.
Uber may be low on fuel for London fight 22 Sep 2017 The UK capital has decided not to renew the ride-hailing app’s licence, citing an irresponsible approach to safety and security issues. Boardroom upheaval makes it harder for Uber to address the concerns credibly, while a dented image could undermine Londoners’ enthusiasm to help.
Kingfisher’s DIY skills show room for improvement 20 Sep 2017 The power drill-to-paint retailer’s first-half pre-tax profit beat expectations – welcome for a company that has lost a fifth of its value since May due to a messy business transformation. In a supposedly recession-proof sector, Kingfisher’s woes are largely self-inflicted.
HBOS audit probe shows limits of bank accounting 19 Sep 2017 KPMG was right to accept the UK bank as a “going concern” shortly before its near-collapse in 2008, a watchdog has concluded. Pre-crisis audits deserve scrutiny, but accountants cannot replace regulators. Besides, publicly flagging HBOS’ frailty would have accelerated its demise.
Deutsche Bank investors are stuck with John Cryan 19 Sep 2017 Some shareholders are understandably frustrated at the lack of recovery at the German lender. But replacing the chief executive wouldn’t boost low returns on equity, and might hinder restructuring. Cryan needs an unlikely investment banking recovery to hit his targets.
EU aims torpedo at asset managers’ Brexit defence 19 Sep 2017 Europe’s market regulator may be given new powers to prevent national watchdogs from turning a blind eye to funds that outsource jobs to the UK in the hope of luring business to their shores. London-based funds could face more upheaval than expected after Britain leaves the EU.
What we’ve learned about Brexit so far 19 Sep 2017 Britain’s divorce from the European Union is reaching the critical stage where talks are meant to shift from principle to detail. Progress is being slowed by bickering, technicalities and economic fog. Despite the risk of Brexit fatigue, five clear lessons stand out.
Climate-investing deal targets sustainable returns 18 Sep 2017 London-based Impax’s purchase of U.S. rival Pax stacks up financially and creates one of world’s largest climate-change specialist investors - with $13 bln in assets. Rising environmental risks should heat up demand for such funds, but also draw competition from bigger players.
Jes Staley’s share price misery is undeserved 18 Sep 2017 Though the Barclays CEO has delivered on his targets the bank’s shares are down 16 pct this year, making it the UK’s worst-performing major lender. Self-inflicted regulatory and litigation worries haven’t helped. But concerns about headwinds in the U.S. and Britain are overdone.
Asian bid for Pret A Manger won’t cut the mustard 18 Sep 2017 Filipino fast-food joint Jollibee is eyeing the fancy sandwich chain, says Reuters, potentially uniting Chickenjoy buckets and posh ploughman’s baguettes. But a mooted price of more than $1 bln looks far too downmarket. It might need to double that to derail Pret’s IPO plans.
Qatar jet deal a win for BAE but a loss for London 18 Sep 2017 A deal to buy Typhoon fighter jets will secure thousands of UK manufacturing jobs. But building stronger defence ties with the sheikhdom is a risk when its squabble with Saudi Arabia is unresolved. That could backfire if the kingdom reacts by vetoing a London listing for Aramco.
Lure of scale drives Axa asset management union 15 Sep 2017 The insurer may seek a partner for its European fund arm, Bloomberg reports. Joining forces with French rival Natixis would create a European giant with assets of more than 1.5 trln euros. The threat to margins from low-cost passive investments makes cost savings unavoidable.
Saudi can afford to scrap Aramco IPO plan 14 Sep 2017 Achieving the desired $2 trillion valuation for its crown jewel is going to be tricky. Instead of rushing the job, Riyadh may delay listing 5 percent beyond next year. Even then, political and pricing problems will remain. If it wants money, the kingdom has better alternatives.
Retailer Next confronts last corporate taboo 14 Sep 2017 The UK clothes chain has sketched out a scenario where high-street store sales keep shrinking until they can’t cover their cash costs. Even in that dismal situation, Next would be worth only a third less than now. Few companies consider their own demise in this way; more should.
Hadas: EU single economy eases way for separatism 13 Sep 2017 Catalan and Scottish nationalism have bubbled up recently. Besides sentiment, the European Union has played a part. The super-national single market not only provides economic protection, but opens up a new vision of sovereignty. It’s the same idea Brexit fans have rejected.
Campaign for euro zone budget is a distraction 13 Sep 2017 The single currency area needs a way to absorb future economic shocks. But comments from European Commission chief Jean-Claude Juncker show that a common tax-funded budget would be a stretch. Better to tweak fiscal rules, deepen financial reform and beef up Europe’s bailout fund.
Ad world’s bling days may be over 13 Sep 2017 The likes of WPP, Omnicom and Publicis risk a low-growth future. Revenues are stagnant and they are over-exposed to slow-growing developed economies. Agencies may be forced to copy the austerity already practised by their consumer-goods clients and pay more attention to margins.
Ten years on, UK banks still far from utility-like 13 Sep 2017 A decade after the run on Northern Rock, British lenders are smaller and better capitalised. But earnings remain bumpy and subdued economic growth means they will struggle to lift earnings. An average dividend yield of 4 pct compares poorly to genuinely safe and boring utilities.