Cobham’s repeat cash call shows danger in defence 2 Mar 2017 The troubled British military electronics maker is anything but defensive. After reporting a full-year loss it has unveiled plans to raise 500 mln pounds through its second rights issue in a year. Despite hopes for higher spending on armaments, a recovery could be elusive.
Northern Ireland may bolster case for own spinoff 2 Mar 2017 If Thursday’s elections produce a stalemate, London may have to rule the thorny region directly. The 9 bln pound cost per year of propping up the region is likely to grow after Brexit, but a united Ireland is problematic too. The north is a prize no one wants.
Research “Big Bang” sifts losers from megastars 1 Mar 2017 Sellside firms must charge fund managers an explicit price for European securities analysis from next year. Research is already competitive - hence brokerage CLSA chopping 90 staff in the Americas. More jobs will go, even as the best analysts command fatter pay packets.
ITV will struggle to fight solo in content wars 1 Mar 2017 The UK broadcaster’s revenue grew by 3 percent in 2016, as its production arm offset a bleak ad market. Low debt means ITV can add to its content locker, even after paying a special dividend. Stiff competition, though, suggests it might be better as target than acquirer.
Burberry self-help makes light work for activists 1 Mar 2017 Billionaire Albert Frere, who was among investors that drove change at Adidas, has built up a 3 percent stake in the trenchcoat-maker. With a turnaround plan and new boss in place, there’s less to do at Burberry. Still, Frere can help ensure the company sticks to its knitting.
Man offers fund managers contrarian bet on selves 1 Mar 2017 Disappointing growth hit the asset manager’s pumped-up shares. It feeds into broader fears over the challenges faced by active management. Yet Man and other stock pickers ought to benefit from central banks printing less money. On that basis its shares don’t look stretched.
Philip Green pays 363 mln pounds for a quiet life 28 Feb 2017 That’s what the British apparel billionaire has put into the pension pot of defunct retailer BHS. It ought to calm politicians who painted Green an enemy of the state. And, anyway, the return from reinvesting his jumbo dividends should cover it nearly twice over.
PwC might have seen Oscars mixup coming 27 Feb 2017 The accounting firm presided over an error that saw the wrong movie initially named as best picture before "Moonlight" took the prize. PwC's audit work for numerous scandal-hit companies has shown how even established processes are no match for human sloppiness, buck passing and vacillation.
Rate tweak whiplashes UK insurers 27 Feb 2017 Insurance companies will have to pay more for injury claims after the government said payouts must be discounted at a negative rate. The metric was too high before, and arguably still is. The real mystery, though, is why financial risk ends up with claimants, not insurers.
LSE and Deutsche Boerse get a gift neither wants 27 Feb 2017 The exchange merger looks sunk after European regulators demanded a sale of an LSE trading platform. That’s not so bad - especially for LSE, which might find suitors elsewhere once Britain’s future is clearer. Besides, investors had only priced in a sliver of the deal’s benefits.
Vivendi problems even bigger at home than in Italy 24 Feb 2017 Shares in Vincent Bollore’s media group fell over 5 pct on news of an Italian probe into its Mediaset dealings. The wider problem is results showing weak pay-TV performance. A breakup of the conglomerate, which might improve matters, is the opposite of what’s likely to happen.
Local election results mark peak for Theresa May 24 Feb 2017 The prime minister’s Conservatives confirmed their lead over rivals Labour with a landmark by-election victory. Acrimonious Brexit negotiations and squeezed incomes will test May’s popularity in the coming year, though. Not calling an early general election could prove a mistake.
StanChart struggles to match even low expectations 24 Feb 2017 CEO Bill Winters is making some progress fixing the emerging market bank: income stabilised last year and it’s on track to hit 2018 cost targets. Fourth-quarter expenses were higher than forecast, though. StanChart’s poor return on equity looks out of kilter with its valuation.
RBS’ less ambitious returns goal still a stretch 24 Feb 2017 The loss-making UK lender has pushed back its 12 percent return on tangible equity target by one year, to 2020. Even this will be challenging, barring a marked pickup in revenue, which looks unlikely. RBS’ sensitivity to interest rates means more disappointment may lie ahead.
Britain’s takeover regime is worth exporting 24 Feb 2017 “Put up or shut up” rules tightened after Kraft’s Cadbury deal have led to more deals where the bidder makes a firm offer, UK data shows. Generali, currently being stalked by Intesa Sanpaolo, will be envious. It would benefit if something similar was implemented in Italy.
Viewsroom: We need to talk about Uber 23 Feb 2017 A former employee accused the ride-hailing company of sexual harassment and gender discrimination. It’s not only bad form but yet another roadblock for money-losing Uber. Plus, where do Kraft Heinz and its owner 3G go after their failed $143 billion bid for Unilever?
Rodrigo Rato jailing is weak crisis coda 23 Feb 2017 The ex-IMF chief has been sentenced to over four years in prison for fiddling expenses while head of Spain's Bankia. It's a rare instance of severe banker punishment. For investors globally, though, this case will offer little satisfaction and even less deterrent value.
RSA flies the flag for insurance simplicity 23 Feb 2017 The UK group’s operating profit rose by a quarter in 2016, pushing its shares up 6 pct. The results vindicate CEO Stephen Hester’s small-is-beautiful strategy. Diversified giants like Axa and Allianz should benefit from scale. But performance - and valuations - suggest otherwise.
EU veto could do LSE and Deutsche Boerse a favour 23 Feb 2017 It's a year since the two exchanges proposed joining forces. The European Commission will soon decide if the tie-up is anti-competitive. A thumbs-down would spare both sides the need to navigate post-Brexit political waters, and force them to do the sensible thing: wait.
Hadas: Statistical tricks are easy and dangerous 23 Feb 2017 The Trump administration might take up the new autocratic practice of fiddling with standard economic measures. That’s easy to justify, because the data really are arbitrary and can be misleading. But falsifying disagreeable official numbers is a modern kind of tyranny.