UniCredit’s bankers should avoid 2012-style panic 13 Dec 2016 The Italian bank's 13 bln euro cash call is almost double its capital raising five years ago, which nearly imploded. The current one also takes place in the teeth of domestic political upheaval. Yet today's UniCredit is healthier. Underwriters needn't end up holding the baby.
UniCredit detox is key moment in Italy bank reboot 13 Dec 2016 A cost cull, bad debt purge and mega-cash call mean the country's biggest bank merits a much higher valuation. The risk is that investors see smaller Italian peers as weak in comparison. Yet with the top two banks solid and MPS being sorted, cleaning them up is less daunting.
Tillerson would take more bad than good to State 12 Dec 2016 The Exxon CEO's dealmaking means he's already a diplomat of sorts. So he would be fine with the basics of foreign affairs and Donald Trump's apparent "America-first" policy. But his ties to Vladimir Putin and his cronies would make him an inflammatory pick, even with Republicans.
Viewsroom: What’s at stake in Trump vs. China? 9 Dec 2016 The U.S. president-elect upended decades of diplomacy by taking a call from Taiwan's leader. But some U.S. companies will welcome his stance. And China has much to lose from any escalation. Also: Italy PM Renzi gets his marching orders. And there's no easy move to monetize chess.
Trump’s stock sales earn at best a “hold” rating 9 Dec 2016 He says he unloaded his portfolio to avoid conflicts of interest. The June decision also coincided with a cash crunch for his campaign, meaning it may have been a pair trade that paid off. Trump's commitment to ethics will be clearer if he divests his main business holdings.
Fintech’s transformation into banking draws closer 9 Dec 2016 UK regulators are mulling tougher rules for crowdfunding firms that would require greater risk disclosure and wind-down plans. Stricter regulation is good for investors. Yet it also means more loan-based platforms might follow peer-to-peer group Zopa in seeking a banking licence.
Cox: Public company capitalism meets its match 8 Dec 2016 Donald Trump is challenging the ideals that have guided U.S. capital markets and corporate behavior for a generation. If it forces boards to reconsider the broader impact of their actions it may be a good thing. More likely, it will usher in an age of cronyism and quid pro quos.
China gets a good cop as Trump’s primary emissary 8 Dec 2016 The president-elect mollified Beijing with his ambassador pick. The selection of Iowa Governor Terry Branstad, who has personal connections with Xi Jinping, calms waters troubled by Trump's tough talk. As other hardliners are brought in, Branstad will need to pack a surfboard.
National Grid picks happy moment to let off gas 8 Dec 2016 China and Qatar are among buyers of a 61 pct stake in the utility’s UK gas distribution unit. The 3.6 bln pound deal matches a seller that does not need the cash and buyers content with low-yielding assets. Yet prices in infrastructure acquisitions may be nearing a peak.
UniCredit Polish exit tinged by seller’s remorse 8 Dec 2016 The Italian lender will sell a third of Bank Pekao to two Polish state-controlled entities. UniCredit needs capital, may share the upside via a sale of equity-linked paper, and Warsaw's hatred of foreign capital is a spur. Still, at 1.4 times book it's cheap versus some peers.
China regulator has healthy fear of goblin raids 8 Dec 2016 The country's top stock regulator startled investors by ranting against "barbarians" and "goblins". It's not just superstition: he's worried about insurers using premiums to fund corporate raids. Plenty of Chinese boardrooms could use a shake-up, but not by ghoulish speculators.
Antitrust probe will hasten Mad Men decline 7 Dec 2016 The U.S. Justice Department is investigating whether advertising firms rigged bids in the $5 bln commercials industry. The business is already under pressure from Facebook and Google and their own clients. The whiff of more malfeasance is further evidence the model is broken.
Insider-trading cops get early Christmas present 6 Dec 2016 The U.S. Supreme Court has ruled that the government does not always need to prove defendants know tippers benefit from the information they hand over. That reverses an earlier ruling - and gives disheartened prosecutors extra leeway to go after suspected trading miscreants.
Mexican oil drowns out Trump bluster 6 Dec 2016 Despite withstanding months of attacks by the U.S. president-elect, the country found eager investors for its drilling rights. That's helpful amid a looming trade war. Deals with BHP, Chevron and others could boost Mexico's laggard crude output by almost half in a decade.
E.ON brinkmanship gets rewarded in court 6 Dec 2016 Germany’s constitutional court has ruled in the troubled utility’s favour over an 8 bln euro compensation claim following the government’s U-turn on nuclear power. A payout should ease E.ON’s balance sheet headache and vindicate its decision to delay a much-needed capital hike.
Singapore stresses under a wealth of worries 6 Dec 2016 Morale is lousy in the city-state. The trade-reliant nation is heading for a recession and China is flexing its muscles. Singapore's strategic direction and its outsize influence on the global stage are both in question. There are no easy fixes to restore the Lion City's roar.
“Irrational exuberance” gets a new lease on life 5 Dec 2016 After Alan Greenspan coined the phrase exactly 20 years ago, it took three years before the tech bubble burst. Markets are spirited again, by low rates and Trump. As the Fed acts and the president-elect pushes his policies, asset values may face a quicker reckoning this time.
Dakota pipeline defeat fast becoming wistful memory 5 Dec 2016 The Obama administration nixed a key permit for an Energy Transfer oil plan after an uproar by Native Americans and activists. President-elect Trump's love of fossil fuels, including $1.5 trln worth on tribal lands, augurs a tougher fight against pollution and climate change.
Brexit Supreme Court case is a sideshow 5 Dec 2016 The UK's top court may force the government to give parliament a say on triggering Brexit. Yet this wouldn't necessarily change Prime Minister Theresa May's plans much. Two related legal matters - including whether the exit process is reversible - might provide firmer resistance.
Financial startups may soon storm gate 2 Dec 2016 New ventures like SoFi and Betterment could become banks under a new charter regime. The OCC's plan initially may please established lenders by leveling the regulatory field. It also, however, should help upstarts breach the industry's last line of defense: cheaper funding.