Cox: Bruno Le Maire’s an awesome investment banker 6 Jun 2019 That’s one explanation for France’s finance minister torpedoing the $35 bln Fiat-Renault merger, if he now revives it with Paris at the wheel. More likely he’s mimicking President de Gaulle - who roughly expropriated the carmaker after the war - and doing France no favours.
Wells Fargo CEO hunt is chicken-and-egg dilemma 6 Jun 2019 The scandal-racked U.S. lender may make its interim chief permanent, a suggestion it can’t find an outsider to take the job. Wells Fargo needs a strong boss to mend regulatory fences – but with so much hostility, it may be hard and expensive to get someone who fits the bill.
Hedge funds see honey in Japan’s value traps 31 May 2019 The Land of the Rising Sun dominated Hong Kong’s Sohn gathering. Many see signs of unjustified panic in slumping equities this year, creating opportunities to buy low. But even optimists highlight the cash hoarding and slack governance that have long scared investors away.
Goldman beats path to new Wall St hunting ground 13 May 2019 The firm is courting an investment adviser in what would be its largest deal since the financial crisis. United Capital’s $23 bln in assets are a drop in the bucket for Goldman Sachs, but bring the kind of predictable earnings that boss David Solomon wants. He’s not the only one.
Bank of America brings high M&A hopes to oil patch 8 May 2019 Its bankers are so keen for client Occidental to prevail with its $38 bln offer for rival Anadarko that chief Brian Moynihan personally called Warren Buffett for help. After losing ground for a decade, BofA’s dealmakers and their new boss Matthew Koder could use the boost.
Macquarie can keep its edge over Wall Street 3 May 2019 The first full-year results under Shemara Wikramanayake included an impressive 18 pct return on equity. Macquarie cautions things may cool off, but commodities and infrastructure are hot, and play to its strengths. Trading at some 2.5 times book value means expectations are high.
BNP requires more than one-off trading boost 2 May 2019 The French lender enjoyed a 3 percent jump in investment banking revenue in the first quarter, implying CEO Jean-Laurent Bonnafé gained market share from peers. But he will only convince sceptical investors that he will hit his 2020 return target if he can maintain such growth.
Deutsche feels chill wind of conscious uncoupling 26 Apr 2019 A day after the German bank ended Commerzbank merger talks it reported a 1.3 pct first-quarter return. Cost cuts at least broadly kept pace with falling revenue. Yet poor performance and zero deal synergies mean even a lowball 4 pct return target is not in Deutsche Bank’s gift.
Barclays bolsters devil-you-know retort to Bramson 25 Apr 2019 The UK bank’s traders made a 9 pct return in the first quarter. They’re still not earning their keep, but the result shows the merits of a broad investment bank. That, and a pledge to prune bonuses, may help investors resist the upheaval touted by activist Edward Bramson.
Nomura’s star rainmakers face a drier spell 25 Apr 2019 The $13 bln bank’s Japanese advisory arm had a blowout year, a bright spot in otherwise dismal earnings, thanks to mandates for SoftBank and Takeda. Yet cost cuts abroad, uncertainty around deals like Toshiba Memory's IPO and an apparent snub by Japan Post could tarnish 2019.
Credit Suisse’s Thiam needs more than self-help 24 Apr 2019 The Swiss bank’s profit rose in the first quarter, helped by falling costs. But a 4 pct revenue decline makes it harder for CEO Tidjane Thiam to hit his 10 pct return-on-equity target unless the top line recovers. That requires calm markets, and a more profitable investment bank.
JPMorgan’s CEO parlour game is far from over 18 Apr 2019 Putting finance director Marianne Lake in charge of consumer lending is an unsubtle hint about who might one day replace Jamie Dimon. She makes for a solid succession candidate. A lot can happen at a mega-bank in four years, though. Hot-seats have a way of becoming jump-seats.
Morgan Stanley takes lemons, makes weak lemonade 17 Apr 2019 James Gorman’s bank took a hit from weak equities trading, as did rivals. Its advisory business fared worse than theirs, and fixed-income trading did only a little better. What helped was decent wealth-management profit, cost cuts, and comparison with the preceding poor quarter.
Goldman Sachs supertanker starts to turn 15 Apr 2019 The Wall Street firm’s revenue shrank in the first quarter, but its shift from investment banking is gaining speed. Goldman gets $6 of every $10 in revenue from stable business lines, including interest. Boss David Solomon has more to trim, but what’s underneath is encouraging.
Pinterest can make a virtue of down-round IPO 8 Apr 2019 The social-scrapbooking app wants a lower value for its stock-market debut than its last price tag of $12 bln. It may bode ill for tech IPOs after Lyft sputtered. But Pinterest’s finances are healthier than other startups going public. Being conservative can work in its favor.
Deutsche Bank’s Brunei hotel ban raises moral bar 5 Apr 2019 The lender joined a celebrity-led boycott of the Dorchester chain after its owner implemented the death penalty for homosexuality. Shunning the sultanate has few costs. But Deutsche will now have to explain relations with countries with similar laws where it has more to lose.
UniCredit interest gives German bank merger a push 4 Apr 2019 The Italian lender is considering a bid for 9 bln euro Commerzbank if talks with rival Deutsche Bank fail, the FT says. A combination with UniCredit’s German arm makes sense but would leave Deutsche weak at home. That redoubles pressure on the government to back a domestic deal.
It’s déjà vu all over again at Nomura 4 Apr 2019 The ailing Japanese bank will cut $1 bln of costs after enacting an identically sized plan in 2012. All the “right-sizing” and “simplification” is needed, but investors will be forgiven any eye-rolling. At least Nomura is bound to have European company in its restructuring misery.
Beijing sovereign wealth giant merits a rethink 2 Apr 2019 China Investment Corp may have a chairman again, after a two-year gap. The $940 bln fund was set up to juice returns on foreign assets, but results have been ho-hum and its detours sometimes inscrutable. The new boss has his work cut out, even to justify CIC’s mandate.
Jefferies is too cool over wobbly markets 28 Mar 2019 Weak trading and underwriting dogged the first Wall Street firm to report on its performance this year. Chief Executive Richard Handler is relaxed. But an inverting yield curve is more worrying, and investors in rivals from Goldman Sachs to Bank of America show signs of fear.