Infineon U-turn is canary in Trumpian coal mine 9 Feb 2017 The German semiconductor group abruptly warned its Wolfspeed deal could be blocked by the U.S., a week after saying all was well. American regulators have tended to get antsy when Chinese deals are involved. A protectionist in the White House implies this could now be broadened.
UK student debt sale is a third-class idea 9 Feb 2017 The government is selling 12 bln pounds of student loans. If wage growth motors, the sale price could wind up looking cheap. Given its reluctance to sell RBS shares that are depressed in value, and the reduced imperative to balance the budget by 2020, it's a needless risk to run.
Nordstrom handed a presidential gift certificate 8 Feb 2017 The higher-end U.S. retailer added some $300 mln in market value after Donald Trump deemed a business decision to discontinue his daughter's clothing line a personal attack. By overstepping his boundaries yet again, the president managed to turn shopping into an act of protest.
GSK CEO leaves successor with scope for encore 8 Feb 2017 Departing chief Andrew Witty's final results beat expectations. He steered the drug giant through scandal and patent losses, but did smart deals, and created value. His vision of a diversified group is still unfinished, though, leaving successor Emma Walmsley plenty to do.
Russian toy IPO lacks a political risk discount 8 Feb 2017 Detsky Mir has priced its sale of new shares close to Lenta’s 2014 debut. Fair enough: it has a dominant position. Still, the conviction of opposition leader Alexei Navalny in defiance of a European court ruling is a reminder that Russia plays to its own rules.
Silicon Valley fights for its life on immigration 7 Feb 2017 Over 100 tech firms, including Google and Apple, have joined the legal battle against President Trump's travel ban. They argue that the restrictions interfere with hiring and business operations. For an industry dependent on immigrants, the case represents a fight for survival.
Jose Cuervo IPO can drink to weak peso 7 Feb 2017 The U.S. election outcome put the Mexican tequila maker's stock float on ice. It's now back at a mooted valuation of over $5 bln with a Singaporean investor ready to take a shot. New tariffs in Jose Cuervo's biggest market are a threat, but a cheap currency may be just the tonic.
UK housing policy may be answering wrong question 7 Feb 2017 The British government has some ideas to build 250,000 homes every year. But as real rents in England are below 2005 levels and the stock of surplus housing is higher, shortage of supply may not be the biggest issue. Managing rents, not house prices, should be the focus.
Cox: Politics biggest enemy of Paris Brexit hopes 7 Feb 2017 The City of Lights has been on a charm offensive with London’s financial castaways. And the pitch made to dozens of U.S., Chinese and Japanese firms – not to mention French expats – is convincing. What is less persuasive is the complacency around the Republic’s presidential race.
Tiffany CEO exit takes ring off luxury finger 6 Feb 2017 Frederic Cumenal is out after less than two years, just after Ralph Lauren ditched its new boss. Having Tiffany's flagship store next to Trump Tower doesn't help. But both suffer from a long-term sales slump and a lack of new products and ideas. A fix requires more than a new CEO.
Dodd-Frank rewrite could disappoint everyone 6 Feb 2017 U.S. bankers are now hopeful Donald Trump will roll back the 2010 law. In reality, Trump's call for a review does little, and a repeal of Dodd-Frank looks a long shot. Meanwhile any talk of dilution has Democrats howling. Neither banks nor their critics will get what they want.
Look left for the next French election surprise 6 Feb 2017 Frontrunners fared badly in the primaries, and scandal is now hurting the presidential chances of early favourite Francois Fillon. Centrist reformer Emmanuel Macron has gained, but there is also an opportunity for the business-unfriendly hard left to exploit.
Ireland could join Britain in EU departure lounge 6 Feb 2017 Dublin’s unequivocally pro-Brussels stance may be tested if politics unmoors it from key trading partners like the UK and U.S. A tough Brexit deal, along with an inflated EU budget bill caused by tax inversions, could raise tricky questions about Ireland’s true interests.
Romania can salvage positives from graft mess 6 Feb 2017 An attempted softening of laws against corruption sparked mass protests, a ministerial resignation and an eventual U-turn. Despite this, Romania has made progress on fighting graft. It now needs to put more effort into judicial protection – and ensure cases have credibility.
Tokyo is no economic enemy for Trump 6 Feb 2017 Japanese Premier Shinzo Abe is preparing a big package of U.S. investment and job creation to placate the president. Trump's claims of deliberate yen devaluation are wide of the mark. But Tokyo has little choice but to respond, even though it is already an important U.S. ally.
Gary Cohn has Trump drinking Wall Street Kool-Aid 3 Feb 2017 The White House economic adviser and ex-Goldman No. 2 says the president will roll back regulations to make U.S. banks globally competitive and enable them to lend more freely. As the 10th anniversary of the financial crisis nears, there's little evidence big lenders need help.
Presidential orders can’t fix slow factory hiring 3 Feb 2017 The U.S. economy notched 227,000 jobs in January, Obama's final tally. Trump vows to rev up the pace, especially in manufacturing, but automation is limiting the growth of that line of work. The president's bully pulpit is of little use in the face of that long-term trend.
Banco Popular creditors get a shareholder airbag 3 Feb 2017 The Spanish bank's stock fell after it took bigger than expected losses. Yet it took steps to protect hybrid debtholders from losing their coupons. Bondholders have an edge over banks: even if it's possible to inflict losses on them, the pain may be more bother than the gain.
Greece is in a mess but not at the brink 3 Feb 2017 The government, its European creditors and the IMF are all being unreasonable in their own way over a bailout needed by July. The most sensible option would be for the IMF to withdraw. More likely is that if a compromise can't be found, the ruling Syriza party calls an election.
India state firm fusion is marriage of convenience 3 Feb 2017 A push to create national champions starting with the oil sector pairs industrial logic with Prime Minister Narendra Modi’s propensity for grand gestures, and desire to compete globally. Selling off small stakes in bigger players will also be easier than full privatisations.