Theresa May falls victim to anti-incumbent wave 9 Jun 2017 The Prime Minister’s Conservative Party has lost its majority in Britain’s general election. Even if it hangs on, the gamble of seeking a big mandate has failed. The lack of a clear result shows Britain’s political landscape – and its relationship with the EU – remains fluid.
Franco-British laundry deal hinges on spring clean 8 Jun 2017 French group Elis is forking out 2.2 bln pounds for struggling UK rival Berendsen. A 45 pct premium secured the support of the target’s board but gives the buyer a measly 6 pct return on capital. The deal only creates value if the new owner has a plan to clean up its purchase.
Hadas: Misbehaving wages keep economists baffled 7 Jun 2017 Conventional economic theory says wages start to rise when labour markets tighten. It isn’t happening in the U.S., Britain, Japan or Germany. Many semi-plausible excuses and partial explanations have not solved the mystery. That leaves central bankers in a quandary.
British election offers business only bad choices 7 Jun 2017 If the Labour party wins on June 8, companies face higher taxes and wage bills. If the ruling Conservatives retain power, expect more meddling and talent shortages. On balance, companies may prefer the incumbents – if only because they are less likely to carry out their promises.
Complex pay ties British companies in knots 7 Jun 2017 Tesco paid boss Dave Lewis a 142,000 pound allowance to move closer to work, while Burberry’s Christopher Bailey got a big share award at a delicate time. Both controversies are a distraction. If they kept pay simple, companies and investors could focus on more pressing issues.
Viewsroom: The UK goes to the polls 6 Jun 2017 The Brits are about to elect a new government that’ll take the country out of the EU. Brexit, though, has taken a back seat in the campaign to deadly attacks in London and Manchester – and growing concerns about how the new masters of Whitehall will deal with social welfare.
British voters are sleepwalking to painful Brexit 6 Jun 2017 Prime Minister Theresa May called the election to strengthen her hand in negotiating the country’s departure from the European Union. But the political debate has barely touched on the trade-offs involved. The electorate is ill-prepared for the consequences that may follow.
UK cyberspace crackdown faces reality checks 5 Jun 2017 Prime Minister Theresa May pledged new curbs on extremist propaganda and communications via YouTube, WhatsApp and the like following attacks in London and Manchester. Such promises can be good politics, but to actually happen they must make technological and economic sense.
Attacks on UK add tension to “strong and stable” 5 Jun 2017 Murders by militants in London and Manchester come at a time when Britain is already badly split on economic, geographic and demographic lines. Such atrocities show why Prime Minister Theresa May’s pledge of firmer government resonates, but also why it will be so hard to deliver.
Shawbrook Bank bidders bet that slower is better 5 Jun 2017 Buyout firms Pollen Street Capital and BC Partners have raised their offer for the UK challenger bank to 868 mln pounds. The price looks low given management’s aggressive growth targets. But past troubles mean scrapping those goals might be the whole point.
Blackstone sells China some unlikely trophy assets 2 Jun 2017 The buyout firm is cashing in on an appetite for logistics by selling Logicor to CIC for 12.3 bln euros. A European e-commerce boom and shortage of property is driving up valuations and rents. Prime warehouses now have better yields than a luxury store in London’s Mayfair.
Mark Carney’s inflation fight hits close to home 2 Jun 2017 Bank of England support staff are threatening to strike over a sub-inflation pay rise. Across the UK economy, rising prices are squeezing incomes. This hits the least well-off the hardest. But it would be hard for the BoE governor to undermine his efforts to keep prices in check.
Cox: Sgt. Pepper also taught the board to play 1 Jun 2017 It was 50 years ago that the Beatles spawned a music boom. The industry has changed, but the album's messages still resonate, even in the business world. As Warren Buffett or Steve Jobs might attest, if we work together, experiment and fix holes, things get better all the time.
Barclays faces unfamiliar issue: excess capital 1 Jun 2017 The UK lender is offloading all but 15 pct of its African unit for $2.9 bln after strong demand from investors. The sale should lift its capital ratio above 13 pct. After a year of retrenchment CEO Jes Staley can begin to think about how the slimmed-down bank can reward shareholders.
Barclays has honourable Africa retreat in sight 31 May 2017 The UK lender is offloading a $2 bln stake in its Johannesburg-listed unit as part of its exit from the continent. Political turmoil in South Africa may have interfered with a sale. But a supportive local fund and the robust rand have allowed Barclays to effect an elegant escape.
Car debt adds horns to UK’s Brexit vulnerability 31 May 2017 Britons’ non-mortgage debt has been growing at a 10 pct annual clip, of which half the growth is car financing. The risk for that lies not with banks or borrowers but car companies. If they pull back, a post-Brexit Britain could end up with less consumption – and less employment.
IAG can weather turbulence at BA 30 May 2017 The owner of Britain’s flag carrier is reeling from an IT glitch that grounded hundreds of flights. While unions blame cost cutting, the airline has little choice but to bear down on expenses. The impact will fade: customers have short memories and focus on prices in the end.
RBS pays prudent price to bury Goodwin-era shame 30 May 2017 The UK bank is close to settling with investors who say they were misled in the run-up to its 2008 bailout. Doubling their payout will cost an extra 100 mln pounds. But it spares RBS the risk of losing in court and the embarrassment of revisiting ex-CEO Fred Goodwin’s decisions.
Ravenous investors wolf down fintech IPO scraps 26 May 2017 Financial software group Alfa Financial is floating in the biggest UK offering this year by company value. The pricing looked rich to start with, but investors have since bid it up even higher. Blame a general lack of big listings of late, especially for the fintech-enthused.
UK Labour Party’s soft Brexit would still be hard 26 May 2017 The opposition is gaining in polls ahead of Britain’s June 8 vote. Leader Jeremy Corbyn is more pro-immigration than Tory Theresa May. Yet he is less pro-EU than he looks, and is less likely to be business-friendly – which could allow European negotiators to be tougher.