Raiffeisen’s untangling gets off to a bad start 11 May 2016 The Austrian bank may merge its foreign-focused listed subsidiary with its unlisted domestic business. But considering this has been necessary for some time, the bank has given precious little detail. The uncertainty isn’t great for a group with a thin capital ratio.
Feeble margins could stall Alstom’s speed-up 11 May 2016 The French train maker boasts a strong balance sheet, record order intake and big mid-term growth ambitions. Yet a lacklustre operating margin of 5.3 pct leaves little room to cope with intensifying global competition. Sorting this quickly should be Alstom’s key focus.
Moncler’s off-piste record deserves more credit 11 May 2016 The Italian maker of 1,000-euro puffer jackets saw revenue grow 17 percent in Q1. Despite its sales densities and profit margins being among the highest in the luxury sector, its shares trade at a discount. Exposure to one product explains why, but it’s probably due more slack.
China listing doubts leave Qihoo investors on edge 11 May 2016 The U.S.-listed web group’s shareholders have accepted a $9 bln buyout offer. Yet a regulatory crackdown may scupper plans to float in China. Even after a rebound the shares trade at an 8 pct discount. That’s scant compensation for the risk that the buyout group may walk away.
Disney could use a double dose of cable magic 11 May 2016 The $170 bln media firm missed second-quarter profit expectations, as revenue growth stalled at networks ESPN and A&E. The twin disappointments highlight the need to figure out shifting TV-viewing habits. Add the search for a successor, and CEO Bob Iger’s job looks even tougher.
Uber’s deal with U.S. drivers looks cheap 10 May 2016 Treated as employees rather than contractors, the ride-hailing service might have had to pay them as much as $730 mln more, according to court papers. That makes a $100 mln two-state settlement look like peanuts – another reason why the judge on the case might reject it.
Bud’s new name should be "Bahamas," not "America" 10 May 2016 AB InBev will call its iconic beer “America” through the end of U.S. elections in November. It’s a bold move from a brand facing heavy competitive pressure from popular craft brews. A tropical moniker would better reflect the Brazilian-run, Belgium-based conglomerate’s ownership.
UniCredit’s least-bad option: sell more assets 10 May 2016 The Italian bank’s sub-par capital ratio shrank in the first quarter. Even if it parted company with its under-fire CEO, a rights issue would be tricky. Selling the likes of Poland and Turkey would make the bank less diversified, but UniCredit lacks plentiful alternatives.
From Allergan to Zoetis: new drug M&A perspectives 10 May 2016 The acquisitive maker of Botox is devoting capital to buybacks and paying down debt. Meanwhile, Bill Ackman is selling a big stake in the animal-health company he has been pushing as a takeover target. With luck, the two moves together signal a more subdued approach to deals.
Credit Suisse investment bank decline will persist 10 May 2016 The Swiss bank cut costs briskly while keeping capital levels steady in the first quarter. Net margins in wealth management also outdid bigger rival UBS. But boss Tidjane Thiam’s botched restructuring of Credit Suisse’s trading arm is in danger of leaving lasting scars.
Thyssen’s steel slump flags need for big bang 10 May 2016 Europe’s steel crisis is hitting even the most efficient players hard: German group ThyssenKrupp lowered its operating profit outlook by a fifth after a poor quarter. The ongoing slump increases the pressure on boss Heinrich Hiesinger to team up with Tata or another rival.
Nokia could spend a year on hold 10 May 2016 The Finnish telecoms group saw a 9 percent year-on-year drop in Q1 sales, in the first combined set of numbers since its 15.6 billion euro Alcatel-Lucent tie-up. Gross margin improved and synergies have been revised up. But slow mobile equipment sales remain a standout.
Silicon Valley loses if Oracle wins against Google 9 May 2016 Larry Ellison’s $160 bln software company says the web search titan illegally used Java for Android smartphone systems. Despite one favorable ruling, the copyright case looks weak. Worse, it may stifle coders and others. That’s anathema to a tech epicenter built on sharing ideas.
Sumner Redstone ruling takes drama back to Viacom 9 May 2016 A California judge threw out a lawsuit filed by his ex-girlfriend that captivated Hollywood and Wall Street alike. The media mogul’s bizarre deposition confirmed the very poor health many suspected. Even so, he keeps control of his empire – half of which is ailing badly, too.
Lending Club shows limits of fintech disruption 9 May 2016 CEO Renaud Laplanche is out after an internal probe into mis-selling at the biggest alternative lender. The board’s speedy action deserves credit. Financial-technology firms are learning what traditional rivals know: that some rules and habits are not meant to be broken.
VW’s activist exposes Bermuda Triangle of control 9 May 2016 Pay changes demanded by investor Chris Hohn would clearly be an improvement. So why did the Piech family and other large investors not introduce them already? Because their control of the German carmaker is illusory. Local politicians and trade unions have excessive influence.
Credit Suisse could do with a display of stability 9 May 2016 The Swiss bank is tinkering with its asset management arm. As first-quarter results will probably show, the main issues are actually huge investment bank trading losses and sub-UBS money inflows from wealth clients. It needs stability, not more tweaks to a six-month-old strategy.
China’s backdoor listings problem is self-made 9 May 2016 The securities regulator is studying the impact of overseas Chinese companies relisting at home via shell companies. Yet it is a self-inflicted problem. Dizzying stock market valuations and delays in reforming the IPO process are to blame. The regulator has had a hand in both.
Irish bank IPOs suddenly get less enticing 9 May 2016 Ireland’s lenders have of late been looking more investable. But a new minority government plans to slow down the sale of its stake in AIB and push lenders towards greater debt forgiveness. Any sales that do happen this year will warrant a hefty discount.
Shaming VW could be pushy TCI’s best tactic 6 May 2016 Chris Hohn’s hedge fund has tackled the likes of Japan Tobacco and Coal India. That puts the 61 bln euro German carmaker in some bad company. Yet complaints of excessive pay, weak governance and inefficient operations are not new. Only VW’s controlling owners can force change.