SoftBank’s $32 bln ARM bet gives investors a shock 18 Jul 2016 The Japanese tech group has reportedly agreed to buy the UK chip designer. It's a pricey punt on connected devices, and an unwelcome surprise for those who thought SoftBank was focused on reducing debt. Shareholders remain at the mercy of Chairman Masayoshi Son's "crazy ideas".
Post-Brexit upheaval complicates Irish tax rethink 15 Jul 2016 Ireland faces a slating from the EU for an alleged sweetheart taxation deal with Apple. The optimistic view is that both OECD and domestic reforms mean Brussels is pushing against an open door. Yet moves by the likes of the UK to slash tax rates could slow any reinvention.
Mark Carney picks good time to confound markets 14 Jul 2016 Sterling rose and UK stocks fell after the BoE left rates unchanged. Its governor's recent remarks had fanned expectations of an easing sooner rather than later. But Carney can afford to reprise his "unreliable boyfriend" persona: such market moves are the least of his worries.
Assault on UK privilege has many possible targets 14 Jul 2016 Theresa May wants to focus on more than the "privileged few". If Britain's new prime minister is serious, the most glaring disparities are in pensions, savings, housing and infrastructure. Action in these areas would go some way to healing north/south and young/old rifts.
Deutsche Boerse has case for go-slow on LSE merger 14 Jul 2016 Almost all the UK exchange group's shareholders voted in favour of merging with its German rival. Index funds are slowing Deutsche Boerse's process. Still, local takeover regulations and post-Brexit difficulties in selling the deal mean it's in DB's interests to take its time.
New UK cabinet best suited to deliver Brexit-lite 14 Jul 2016 British Prime Minister Theresa May has appointed the pro-EU Philip Hammond as chancellor. Brexiteers Boris Johnson and David Davis also have major roles. But the appointments imply a post-EU Britain will look less different to the one that preceded it had others been in charge.
Fintech: bigger and dicier for insurers than banks 13 Jul 2016 Financial technology is highly likely to disrupt the insurance industry, executives told PwC. Preventive cover that use sensors to anticipate damage could benefit society. But many shifts may require intrusive Big Brother-like methods - or questionable changes to risk management.
Steinhoff gives Poundland investors easy way out 13 Jul 2016 The South African group is paying 597 mln pounds for the UK retailer. That's below where Poundland listed in 2014, but a 22 pct premium to its 60-day average share price. With the retailer's margins set to fall and market uncertainty, investors have a simple way to cash out.
Airbus will spend longer in Boeing’s slipstream 13 Jul 2016 The European group is cutting production of its flagship A380 jumbo sharply and has warned of potential new charges on the fraught transporter A400M. Both are likely to dent profitability and will it make ever more difficult to reduce Airbus' margin gap with U.S. rival Boeing.
UK watchdog gets first-hand fat-finger experience 13 Jul 2016 The FCA had to tweak a statistic because of a spreadsheet error. The message - that potentially suspicious pre-deal trading rose last year - wasn't affected. It's still an example, close to home, of a curse that has been costly for financial firms including JPMorgan and Goldman.
Cairn spells out cost of India’s “tax terrorism” 13 Jul 2016 The UK energy group has asked an international arbitration panel for at least $1 bln in compensation from New Delhi. That is the potential cost of Narendra Modi's failure to end retrospective tax claims. It would have been cheaper for the prime minister to honour his pledge.
Carney will be bit player in averting UK recession 12 Jul 2016 Bank of England boss Mark Carney can easily justify easing policy this week. Yet driving policy rates and gilt yields to new record lows is of limited use when investment and spending are held back by fear and uncertainty. Fiscal policy can do more to shore up the economy.
AMC-Odeon deal is both trailer and closing credits 12 Jul 2016 The U.S. cinema chain is buying its European peer for $1.2 bln. The deal ends Odeon's epic stint in private equity hands. It's a further sign of the global ambitions of Wanda, AMC's Chinese backer. And it could be the first of many post-Brexit deals by dollar-based buyers.
ASOS makeover will get fresh lift from weak pound 12 Jul 2016 The online fashion retailer beat expectations with 30 pct sales growth. Sterling's Brexit-induced weakness will help it keep prices low and grab market share. With lots of room to grow, and solid execution, ASOS might be able to live up to its sky-high valuation.
HSBC U.S. fallout will have EU peers biting nails 12 Jul 2016 A Republican-led committee's review of the UK bank’s “Too Big to Jail” uproar is too partisan to land a decisive blow. But it shows how EU lenders can become political footballs. Those awaiting regulatory fines, like Royal Bank of Scotland and Deutsche Bank, have cause to fret.
Positive earnings surprise marks peak Daimler 12 Jul 2016 The German carmaker performed much better in the second quarter than analysts had expected, beating operating profit forecasts by more than 5 percent. Unfortunately, it could be Daimler’s last good news for a while. A Brexit-related slump will dent car sales in Europe.
Burberry finally owns up to ill-fitting C-suite 11 Jul 2016 Marco Gobbetti will succeed Christopher Bailey as the UK brand’s CEO, with the latter staying on as design chief. Investors cheered, as it could improve Burberry’s below-par sales performance. The risk is Bailey sees what looks like a demotion as a demotivation.
Theresa May certainty eases UK political crisis 11 Jul 2016 Her last rival's exit from the Tory leadership race means the home secretary is set to be Britain's new prime minister. May says "Brexit means Brexit" and she's likely to restrict immigration. Business and the City will still be worse off, but a new direction should soon be clear.
Workers on boards only small step in UK governance 11 Jul 2016 Theresa May, perhaps Britain's next prime minister, wants employees among company directors. Germany's 40-year-old union-heavy "Mitbestimmung" model - which goes further than the UK would - hasn't been the disaster predicted by industry, but it also has its downsides.
Remittance risk adds to east European Brexit blues 11 Jul 2016 Sterling's slump has depressed the local currency value of remittances that migrants from central and eastern Europe send home from Britain. This is a worry for countries like Poland or Romania. Their current account balances are particularly flattered by such transfers.