Tesco’s turnaround may bring forward regime change 11 Apr 2018 Three years after an accounting scandal and price war, the grocer is improving margins and cutting debt. It’s the least shorted of all British supermarket stocks. Boss Dave Lewis’ revamp looks within reach. The question for investors is whether he’ll stick around to finish it.
Cerberus Alitalia carve-up would not fly with Rome 11 Apr 2018 The private equity firm is reported to be plotting a three-headed bid for the Italian airline. It would see easyJet take short-haul routes and Air France-KLM long ones, while Cerberus puts up the cash. But a breakup plan will not pass muster with a new nationalist government.
Solid takeover hurdle trips up Foxconn of sneakers 11 Apr 2018 Taiwanese contract footwear maker Pou Chen wanted full control of its Hong Kong affiliate Pou Sheng. The $1.4 bln deal was nixed, however, by just 4 pct of investors. There's a risk that the rigorous system can be gamed, but it commendably tilts in favour of outside shareholders.
Fed puts price on simpler rules for big banks 10 Apr 2018 The central bank wants to use stress-test results to determine how much of a capital buffer the 30 largest U.S. lenders need. It would reward good risk management and streamline the annual exam while maintaining high reserves at the megabanks. That should spell relief all around.
HSBC donates top banker to China’s soft power push 11 Apr 2018 The bank created a new role sure to please Beijing: Head of Belt and Road Initiative. The job will be to coordinate efforts serving the $1 trln overseas infrastructure plan. The nomenclature will burnish HSBC's cred in China. And it may catch on with the rest of Wall Street.
Washington zeroes in on correct Facebook target 10 Apr 2018 At his first congressional hearing on data practices, Mark Zuckerberg got a grilling about the social network’s confusing terms of service. More clarity and user control would be a start. But Facebook with its ad-driven business model can’t be trusted to police itself.
Viewsroom: The biggest loser, China or the U.S.? 10 Apr 2018 A volley of words threatens a trade war between PRC leader Xi Jinping and U.S. President Donald Trump. Developing China has much at risk in fighting with the world’s largest economy. But American businesses are vulnerable too. Plus: Meituan goes all-in with local services.
New VW boss would only part-solve its problems 10 Apr 2018 The German carmaker may replace CEO Matthias Mueller after just two-and-a-half years. Probable successor Herbert Diess brings a welcome outside perspective having only joined 2015. His difficulty will be getting the conservative board’s approval for radical moves like spinoffs.
Ant Financial’s $150 bln worth could grow further 10 Apr 2018 Its next fundraising could peg the Chinese payment giant at that eye-popping valuation. Getting there calls for art more than science. Throw out traditional methods, stitch together some comparable Western companies and throw in some adjustments, and it needn’t be a stretch.
Bayer investors get unwelcome antitrust present 10 Apr 2018 The German company has struck a deal with U.S. regulators to clear its $60 billion acquisition of seed group Monsanto, the Wall Street Journal reported. After EU approval in March, a two-year saga is almost over. Bayer’s sagging stock price means shareholders can hold the cheers.
Bolloré’s best bet is to play along with Singer 10 Apr 2018 Vivendi chair Vincent Bolloré may lose a fight for control of Telecom Italia with activist investor Elliott. Selling his 24 pct stake would mean a loss, assuming he can find a buyer. Staying put while Paul Singer’s group tries to revive the Italian telco is a better option.
Swiss treasure helps AXA pay for XL folly 10 Apr 2018 The French insurer is restructuring its Swiss life insurance business, freeing up $2.6 bln of capital. The move provides some extra funding for its $15 bln takeover of Bermuda reinsurer XL. Reduced financial risk is welcome, but doesn’t help justify what remains a pricey deal.
Dutch lawmakers give Ahold backup in activist spat 10 Apr 2018 Activist CIAM wants the supermarket to scrap its foundation that can be used to block takeovers. But with the Netherlands eyeing new laws to stymie hostile bidders, companies may not need these arcane tools much longer. Shareholders will suffer either way.
CEO exit signals new era for star Indian banks 10 Apr 2018 The boss of Axis Bank is unexpectedly on the way out after almost ten years running the $20 bln private-sector lender. The boss of rival ICICI could follow. This heralds an era of tougher oversight from the central bank, which could put some of these institutions in play.
South Korean broker redefines fat-fingered trading 10 Apr 2018 Samsung Securities is reeling after clumsily issuing 2.8 bln shares to staff instead of 2.8 bln won in dividends. Worse, some employees swiftly offloaded the stock. Big clients are fleeing and regulators arriving. It's about as painful a way there is to erode trust in finance.
China’s DJI performs impressive fundraising stunts 10 Apr 2018 The drone-maker is requiring investors who want to buy equity at a $15 bln valuation to provide an accompanying interest-free, three-year loan. Such terms suggest DJI is soaring above many struggling gadget companies. It's also the latest evidence of breathtaking tech heights.
Malaysia’s strongman can use his second chance 10 Apr 2018 Najib Razak's reputation took a slap with the 1MDB scandal. Still, the prime minister is likely to win a fresh mandate in upcoming polls. That can help him secure a legacy as a reformer, if he handles China's influence adroitly and meets old pledges to cut the role of the state.
Facebook not Zuckerberg is under fire in D.C. 9 Apr 2018 It will be tempting for U.S. lawmakers grilling Mark Zuckerberg to focus on his all-too-apparent flaws. That would miss the bigger question: whether Facebook is too complex to manage, whoever runs it. That is key to knowing whether the company ought to be regulated.
Dell’s Pivotal IPO actually is pivotal 9 Apr 2018 The private tech giant has a massive debt load, feeble cash flow and investors eventually hoping to exit. Floating part of $4 bln cloud software firm Pivotal into a hot market doesn’t solve its problems, but would provide capital and a path to a cleaner structure.
Fintech lenders will struggle to regain mojo alone 9 Apr 2018 The likes of LendingClub, On Deck and SoFi want to put recent problems behind them. But their loan books, and earnings, are small. The banks they once dared to threaten have been catching up. Even Goldman is nipping at their heels. A bout of M&A could do them credit.