Bitcoin is maimed, long live the blockchain 13 Mar 2017 U.S. regulators vetoed an ETF proposed by the Winklevoss twins, slamming the door on taking the crypto-currency to the masses. At the same time, the ledger technology behind it is gaining traction on Wall Street. Bitcoin-related speculation and long-term investing will coexist.
BT split will please all people some of the time 10 Mar 2017 The UK telco has agreed to legally separate its infrastructure business. Rivals said the status quo made them and customers worse off. There is still scope for BT to be too influential in how Openreach runs, but its huge pension scheme would have made a clean break impractical.
Bitcoin’s ETF drive may spark volatile backfire 9 Mar 2017 The Winklevoss twins of Facebook fame are among those who want to open up the crypto-currency to a wider audience via an exchange-traded fund. Watchdog approval could unleash big inflows, but also fuel bitcoin’s scariest white-knuckle ride yet – and impede mainstream acceptance.
CEO ouster takes AIG from frying pan to fire 9 Mar 2017 Peter Hancock is leaving the insurer a month after a surprise $5.6 bln charge. His replacement needs a better handle on risk and communication than predecessors and the nous to fend off a probable revived push for a breakup from Carl Icahn and John Paulson. It’s a tough call.
Cox: Kalanick gives future Uber investors a lift 9 Mar 2017 The longer the impulsive founder remains at the wheel, the more apparent the flaws become at the $68 bln ride-hailing app. The jig is up on violating livery laws, as it may be on avoiding capex now that drivers understand depreciation. It's best all this happens before an IPO.
Aviva’s transition from zero to hero gathers pace 9 Mar 2017 The UK insurer beat forecasts and is on track to hit 2018 targets on operating profit, cash generation and dividends. It’s a far cry from its hapless performance post-financial crisis. Increasingly, CEO Mark Wilson’s job is to avoid splurging his excess capital on duff deals.
Scarcity of UK chairmen is partly man-made 9 Mar 2017 Rio Tinto’s Jan du Plessis is leaving for BT. Barclays and Standard Life’s chairs will reportedly stay put for two years, with the latter likely to replace the former. The merry-go-round shows too few people can run complex boards. Increasing the supply requires lateral thinking.
SoftBank loses focus with $100 bln Vision fund 9 Mar 2017 The Japanese giant may inject an $8 bln stake in chip designer ARM into the tech fund, at the behest of the latter. Other recent buys will also be offered. That would help SoftBank pare debt. But the benefits of Vision are tainted by a related deal frenzy and murky relationship.
Aramco IPO has limited destination choices 8 Mar 2017 Every global exchange would love to host the Saudi oil titan's shares. A Breakingviews analysis weighing market, political and other forces suggests New York is most attractive and Tokyo a top wild-card. Aramco's sheer size and importance mean finance fundamentals come first.
Adidas has the speed, now for the destination 8 Mar 2017 The sports brand shows how quickly fortunes in the consumer goods industry can turn. Better products and marketing are boosting sales. Profit is up too, but margins are still trailing Nike’s by a mile. Closing that gap will be the ultimate test for new boss Kasper Rorsted.
Foxtons shines light on London’s squeezed middle 8 Mar 2017 The London-centric estate agent is a good guide to the capital’s property market since the vote to leave the EU. Things look toughest in the affluent middle, and city centre. With its shares below their IPO price, Foxtons is suffering for hitching its wagon to the metropolis.
Board diversity is good use of passive voice 7 Mar 2017 Women in the boardroom can improve performance, but U.S. companies have been slow to adapt. State Street, where three of 11 directors are female, is threatening proxy fights if companies don't widen their gender horizons. It's a smart way for quieter fund managers to get pushy.
Citi dips cautious toe in China bond pool 7 Mar 2017 The U.S. bank will include Chinese bonds in existing emerging market indexes - the first major provider to do so. This is a victory for Beijing, which has struggled to lure foreign investors. It’s a low-risk diplomatic win for Citi, as the sums involved are probably small.
Jack Ma casts a shadow over JD’s fintech spinoff 7 Mar 2017 Boss Richard Liu is separating the finance business valued at $7 bln out of the e-commerce group and taking a direct stake for himself. It is less controversial than when Alibaba did the same in 2011. But there are enough similarities with this cosy deal to sound an alarm.
Holding: Alphabet-Uber collision dents tech ethos 6 Mar 2017 Silicon Valley broadly, and especially the former Google, thrived more by sharing than suing. A legal brawl between its Waymo outfit and the $70 bln ride-hailing service over driverless-car secrets may signal a sharp turn. Open cultures would fade far in the rearview mirror.
Deutsche Bank gives itself a chance of revival 6 Mar 2017 The German lender is to raise 10 bln euros, chiefly via a rights issue and a part-IPO of its funds arm. Assuming slimmed-down revenue can then grow, there’s a path to hit a 10 pct return goal in the medium term. But the fragile investment bank will need to do the heavy lifting.
BT’s Champions League win could be an own goal 6 Mar 2017 The UK telco’s 1.2 bln pound bid beat rival Sky to retain rights to Europe’s elite soccer tournament. It’ll help BT’s TV push. But justifying the 32 pct price rise requires heroic assumptions about the boost to subscribers elsewhere in the business.
India becomes front in global e-commerce proxy war 5 Mar 2017 Alibaba is leading a $200 mln investment into Paytm’s marketplace, creating a new Indian unicorn. That confirms the Chinese juggernaut's decision to take on Amazon, which is investing $5 bln in India. As homegrown rivals flail, tech's big boys will duke it out. Only one will win.
Deutsche $8.5 bln equity hike would be partial fix 4 Mar 2017 The German bank may raise funds while markets look kind. The infusion would boost creditworthiness and thus Deutsche Bank's key trading and corporate lending arms. That's fine unless investment banking falters, or Deutsche turns out to have underestimated its capital needs again.
Luxury mall fight is small sign of what’s in store 3 Mar 2017 An aggressive investor wants to add new directors at $4.2 bln shopping-center operator Taubman. U.S. malls are in for a world of hurt as tenants collapse financially. Even upscale owners like Taubman need a push, but there are more vulnerable targets. And the fixes aren't easy.