Trump’s attack on red tape more PR than purge 31 Jan 2017 The president reckons making federal agencies repeal two regulations for each new one will reduce business burdens. Similar UK edicts had mixed results. The vague U.S. directive, which excludes major financial rules, could sow more confusion in an already uncertain environment.
Private equity gives ageing North Sea oil new life 31 Jan 2017 Shell's $3.8 bln sale of North Sea fields to upstart Chrysaor gives a glimpse into the declining region's future. Lower prices make the remote province less appealing for energy majors but generous tax allowances offer private equity returns above 20 percent.
Hadas: Macron might show world a healthy populism 30 Jan 2017 The French presidential candidate has assumed the popular guise of an outsider who connects with voters, promising a glorious future. But this philosopher-banker loves the EU and pro-growth reform. President Macron might offer a helpful mix of vigour, rigour and active optimism.
Vodafone dials for backup in India telco fight 30 Jan 2017 The UK-based group is discussing an all-share merger of its India business with Idea Cellular, part-owned by cement-to-retail Aditya Birla Group. Combined, they could take the fight to sector upstart Jio. Vodafone might also be better-placed for M&A back in Europe.
Atkins $4 bln merger would be fragile construction 30 Jan 2017 A mooted tie-up between the UK engineering consultancy and unlisted U.S. peer CH2M has some logic, ahead of a likely rise in infrastructure spending. Yet WS Atkins shareholders will need some persuading. CH2M's lackluster performance would make its value a bone of contention.
Ireland is the filling in unappealing tax sandwich 30 Jan 2017 It's the big loser, in both trade and security, from the UK's exit from the EU. True, Ireland could pick up high-end investment as the UK sheds it, but even that hinges on an attractive tax rate, which is now under threat - both from its neighbour and from Donald Trump's America.
StanChart takes subtle spin in the revolving door 30 Jan 2017 New public affairs head Tracey McDermott is not the lender’s first supervisor-turned banker. Boss Bill Winters previously helped rewrite UK banking rules. While hiring former watchdogs is not ideal, the potential conflicts are less than they would be at a more UK-centric peer.
Metro AG could be winner in Tesco’s wholesale deal 27 Jan 2017 The German retailer plans to split and form a retail-wholesale group not dissimilar to the British supermarket's 3.7 bln pound acquisition of Booker. If the market's view on Tesco's tie-up is any guide, Metro can argue its own investors aren't giving it full credit.
Tesco takes tighter grip in retail tug-of-war 27 Jan 2017 A near-20 billion pound merger with wholesaler Booker is a smart response to disruption of the UK group's traditional supermarkets. But it will worry suppliers, who will provide most of the big cost savings. And Tesco may use its surplus to cut prices rather than hike dividends.
Britain’s global trade dream is second-best option 27 Jan 2017 Prime Minister Theresa May is hoping her meeting with U.S. President Donald Trump will open up a trade deal with the United States. China and others may follow. But the resulting boost to UK exports will probably be too small to replace those it risks losing by leaving the EU.
Sky’s rising costs highlight Murdoch bid’s appeal 26 Jan 2017 The pay-TV group's operating profit dropped 9 pct in the six months to December as pricey soccer rights kicked in. An unappealing mix of higher content costs and greater customer churn in the UK should make Sky investors look more favourably on Fox's 11 bln pound takeover offer.
RBS takes baby step on road to U.S. redemption 26 Jan 2017 The UK bank's latest $3.8 billion charge almost doubles provisions relating to alleged mis-sellling of U.S. mortgage securities. The final cost could be far higher, since RBS is probably a year away from a settlement. Still, the extra bit of balance sheet clarity is welcome.
Trump can teach May about the art of the deal 25 Jan 2017 A trade pact between the UK and the United States could be helpful to both. The faster it comes, the less comprehensive it would be. Yet what an accord between the two leaders might lack in scope would be made up for by the creation of a clear loser: Europe.
London bankers may dodge one-way trip to Frankfurt 25 Jan 2017 UK-based bankers accompanied by EU colleagues might still be able to advise continental clients after Britain leaves the bloc. The ruse might allow financial institutions to keep more staff in London. But both national and European laws would have to remain accommodating.
Brexit sceptics win battle but will lose the war 24 Jan 2017 Pro-EU campaigners succeeded in their quest to give parliament a say on triggering Brexit. The catch is that Prime Minister Theresa May will probably win a vote. Besides, her opponents would struggle to prove suboptimal outcomes like EEA membership are better than May's vision.
BT’s Italy scandal is more than a wrong number 24 Jan 2017 The UK telecom found alarming levels of collusion, incompetence and fraud at an Italian business that had been closely vetted by itself and external auditor PwC. The collapse in BT’s shares – far more than the actual losses – shows a pressing crisis of trust, not just accounting.
UK industrial strategy needs to go big or go home 23 Jan 2017 Theresa May is right to try and revive Britain's industry - not least because its financial services cash cow is en route to the slaughterhouse. Infrastructure, exchange rates and regional stimulus would be helpful priorities. Otherwise the squeakiest wheels may get the grease.
Five things Davos Man will get wrong this year 23 Jan 2017 Each January the politicians, financiers and company bosses who gather in the mountains offer a snapshot of elite thinking. However, this "Davos consensus" is often wide of the mark. From Donald Trump to Xi Jinping, here are five widely-held views that will probably be mistaken.
Calm words won’t stop bankers leaving London 20 Jan 2017 The City is a big source of UK tax revenue and the European Union's main capital market. Both sides have good reasons for a sensible post-Brexit agreement on financial services. Unless they first extend the timetable, banks will not wait for a deal before moving staff.
Viewsroom: Davos goes topsy-turvy 19 Jan 2017 Team Trump is AWOL at the World Economic Forum's annual alpine shindig while Theresa May's Brexit plan has people on edge. That left it to China's Xi Jinping to defend globalization. Elsewhere, U.S. bank earnings disappoint. And Snapchat considers making investor rights disappear.