HSBC CEO role calls for a superbanker 26 Sep 2016 The sprawling $150 bln bank has its work cut out to replace CEO Stuart Gulliver. The job requires a multitasker who can manage huge workforces, is compliance savvy, an expert in finance, and has the knack of being able to appear in several places almost at once.
“Hard Brexit” less bad than hard uncertainty 26 Sep 2016 London’s financiers are fretting that the UK may advocate a clean break with the EU. That would hurt the City, but at least banks could plan to move elsewhere. For now, the problem is that the final result could still be benign - so there’s a big risk of jumping the gun.
Japan has most to lose from global trade backlash 26 Sep 2016 The country is begging America to ratify the TPP trade pact and urging Britain to handle Brexit carefully. The desperate pleas reflect Japan's outsized reliance on international trade. TPP also helps Prime Minister Shinzo Abe shake up the domestic economy, especially in farming.
Review: The bad and good of a world without work 23 Sep 2016 Will robots liberate everyone from boring labour, or will they make many workers redundant? Ryan Avent's "The Wealth of Humans" suggests they could do both. So it's up to governments to find new ways to share out the benefits. Past experience suggests this will not be easy.
Corbyn is global symbol not of rage but confusion 23 Sep 2016 The UK Labour Party leader, facing re-election this weekend, has split the left in two. Divisive figures like Jeremy Corbyn and Donald Trump reflect a new difficulty in identifying heroes and villains. An old foe, globalisation, is in retreat, yet perceived inequality persists.
Hadas: Central banks play with monetary absurdity 23 Sep 2016 Monetary authorities have taken recourse in increasingly empty promises. The Bank of Japan's Haruhiko Kuroda has taken this verbal drama to a new and ultimately dangerous level. Central banks could rely on deeds, not words, if their tools and targets were more realistic.
Sports Direct does leg two of governance triathlon 23 Sep 2016 The UK retailer's CEO will be replaced by owner Mike Ashley, its second big concession to investors in a week. That will satisfy calls for the powerful founder to be held accountable. Shareholders might rather have seen the chairman go, but the move shows the group is changing.
UK, even now, is a good bet for Li Ka-shing 23 Sep 2016 The Hong Kong tycoon is reportedly eyeing $14 bln of gas grids. Never mind Brexit uncertainties or the veto of Li's British mobile merger. UK infrastructure offers solid, stable returns, and this could be a good use of the $7 bln cash pile stranded at Li's Power Assets unit.
Latest Apple rumor may vanish as fast as a McLaren 21 Sep 2016 The iPhone giant may have approached the British supercar firm. Apple, though, has made few acquisitions, even to help it pioneer smartphones. While McLaren is high-tech, it's hard to see it taking Apple's car ambitions far. Fancy can run free when a company has $230 bln of cash.
Unilever scrubs up venture capitalist credentials 20 Sep 2016 The $136 bln Dove soap maker is buying green products firm Seventh Generation, talking with Jessica Alba's company and acquired Dollar Shave. Assimilating fast-growing niche brands with entrepreneurial cultures isn't easy. Unilever's Ben & Jerry's experience gives it a leg up.
GSK tries out alternative medicine with new CEO 20 Sep 2016 It's a logical move to name consumer head Emma Walmsley as the drugmaker's new chief executive. Pharma companies can learn a lot from the efficient personal care sector. Critics may see a doubling down on GSK’s HIV-to-Horlicks model, without a fix to its weaker pharma business.
Government bonds signal confusion, not cheer 19 Sep 2016 Yields on long-term sovereign debt have perked up across the developed world. Normally that's a sign of optimism. Yet borrowing costs remain ultra-low. The upward drift most likely reflects uncertainty about central bank policy and worries about the effects of negative rates.
Milk recovery sounds sour note for food producers 19 Sep 2016 Dairy Crest says higher cream prices could hit its margins, though it expects to meet full-year guidance. Sharp falls in milk prices over the past two years mean there are now fewer cows to go around. Yet as the cycle recovers, it's hard to pass higher costs on to consumers.
RBS legal double whammy could wreck capital return 16 Sep 2016 The UK bank faces a shareholder suit seeking up to 6 bln pounds and a U.S. fine for alleged mis-sold mortgage securities. The prospect of both cases exacting maximum pain looks remote, though the threat of a $14 bln DOJ settlement for peer Deutsche Bank raises the stakes.
SVG holds up frail shield to HarbourVest battery 16 Sep 2016 The private equity fund fending off a hostile bid brought forward results and hinted at a better deal. That may stop investors selling to the U.S. investment group. Yet rigid UK rules, and HarbourVest's aggression, give SVG just three weeks to flesh out a tricky alternative.
Tech giants don’t grow on European soil 16 Sep 2016 The region hasn't produced its own answers to tech disruptors like Facebook and Alibaba. That leaves the EU open to accusations of sour grapes when foreign companies like Apple are targeted for unpaid taxes. Regulation and fragmented markets explain Europe's failure to launch.
Morrisons shows there’s life in large supermarkets 15 Sep 2016 Britain’s fourth-largest grocer has racked up three consecutive quarters of positive sales despite being an online laggard and having no fast-growing convenience stores. Operating margins have also improved. CEO David Potts is playing a bad hand well.
Dear candidate: a letter to David Cameron 13 Sep 2016 The former prime minister is leaving the world of politics. His predecessor Gordon Brown now advises fund manager Pimco; Tony Blair before him took a role at JPMorgan. Cameron, who instigated Britain’s referendum on leaving the EU, may find the job market a harsher place.
Ocado learns inconvenient truth about convenience 13 Sep 2016 Sales at the UK online grocer grew 13.6 percent in the third quarter, and average weekly orders were up strongly. But customers treat Ocado like a convenience store - buying small batches more often. Giving customers what they want is proving to be expensive.
Better to fly Europe’s airlines than buy them 12 Sep 2016 Fuel prices have fallen, but that has incentivised European carriers to keep too many planes airborne. Demand is too weak to meet the supply, which means ticket prices are set to fall, and with them airlines’ profitability.