AT&T deal approval doesn’t mean anything goes 13 Jun 2018 The U.S. Justice Dept gambled when it sued to block the $85 bln Time Warner sale. Its failure means business as usual for vertical mergers, like Comcast’s likely bid for Fox. Big firms that directly compete will still face tough scrutiny – and prosecutors eager for a clear win.
New ZTE regime could climb out of big hole 13 Jun 2018 The Chinese telecoms company lost some $3 bln of market value after its reprieve from a U.S. death sentence. That suggests concerns about the clean management sweep. If, however, ZTE can find decent leadership and stay out of trouble – big ifs – a 5G rollout holds real promise.
China will tightly control even looser capital 13 Jun 2018 Money is moving more freely in and out of the country as fears that sparked a 2015 clampdown wane. Greater sums can be invested abroad while daily limits from Hong Kong to mainland markets quadrupled to $8 bln. Official signals suggest, however, that the easing will be tortuous.
CFIUS proves it is not a one-way bet after all 11 Jun 2018 The U.S. security panel cleared China Oceanwide’s $2.7 bln takeover of Genworth, after nearly two years of waiting and as Washington and Beijing feud over trade. The insurer’s shares carried a 30 pct discount, showing just how hard it is to price regulatory risk right now.
Italy’s new cabinet dials up protectionist signal 8 Jun 2018 Prime Minister Giuseppe Conte’s government declared a listed telco in which Libya has long been the top investor a strategic asset, hitting shares. Retelit says it can handle the state oversight. But it sends a warning to foreigners seeking to buy Italian infrastructure.
UK’s Aramco sop could lead to worst of both worlds 8 Jun 2018 The UK regulator is bending its own rules to entice the oil giant to London. The plan will weaken tough laws that safeguard competition and protect minority investors. Making legal exceptions for opaque companies is a slippery slope – and there’s no guarantee Britain will win.
Solar star GCL has fix for dark days in China 7 Jun 2018 The world’s top maker of polysilicon, a key ingredient in solar panels, is selling control of a core Chinese unit for nearly $2 bln. That’s a surprisingly good price. This will help GCL-Poly through a lean patch as the industry adapts to a sudden withdrawal of government grants.
Western banks in China can downplay equities 7 Jun 2018 JPMorgan, UBS and others could soon control Chinese securities houses. It is hardly worth taking on local brokers over underwriting new equity issues or in share dealing, except for private-banking clients. So firms will probably focus on areas such as bonds and M&A.
Investors think Qualcomm-NXP deal is back on 6 Jun 2018 The $44 bln chip acquisition-in-waiting may finally get approval from Beijing – if Chinese telecom-equipment group ZTE can turn a U.S. business ban into a less damaging fine. NXP’s stock is again trading within 10 pct of the offer price. It’s still a bet fraught with uncertainty.
China hands Facebook its worst political misstep 6 Jun 2018 The social network was already in trouble for Russian election meddling. But its undisclosed data-sharing with Chinese phone maker Huawei will inflame U.S. politicians from both parties. The dalliance makes punishing legislation, and tougher scrutiny from watchdogs, more likely.
Hadas: Financial freedom is not what Italy needs 6 Jun 2018 Leaving the euro would give the country two poisoned gifts: a sinking currency to reduce pressure for durable reforms and fiscal deficits generating inflation and waste. Extra government spending can help create jobs, but only under certain conditions. These don’t apply to Italy.
Expanded Heathrow’s value to rest of UK is hazy 6 Jun 2018 Europe’s busiest airport has tried to placate critics of a third runway by incentivising flights to smaller UK cities. But large airlines will struggle to make these stack up. Unless budget players can do so, the charge that Heathrow only works for London will be hard to refute.
Telco rules expose EU’s fake digital single market 6 Jun 2018 Europe agreed to cap cross-border call charges and push member states to award longer spectrum licences. That won’t stop the bloc falling behind China and America’s 5G networks. In the ongoing absence of EU-wide spectrum auctions the telco market will stay fragmented.
Switzerland’s safe money vote is flawed but useful 6 Jun 2018 Giving the central bank a monopoly over electronic cash will not end financial crises or taxpayer bailouts, as campaigners claim. It also muddles monetary policy. However, the upcoming referendum has forced a public debate about the purpose of commercial banks. That’s overdue.
UK funeral probe is death knell for juicy earnings 1 Jun 2018 The competition regulator is investigating pricing in the 2 bln pound industry, sending shares in the only listed provider tumbling. Remedies range from forcing providers to be more transparent about burial costs to price caps. Either way, it’s curtains for morbid profit margins.
Penalty box hastens Deutsche’s Wall Street retreat 31 May 2018 Being branded “troubled” by the Federal Reserve, as the WSJ reported, is hardly the first stateside warning for the German lender. New CEO Christian Sewing already plans to slim the American business. Worried U.S. supervisors will give him a greater sense of urgency.
Gas move gives PetroChina first of several breaks 31 May 2018 China will cut some implicit subsidies for the fuel. The main winner is the $210 bln state-run giant, which as the country’s top supplier will lose less on imports. More freedom is likely to follow - benefiting investors while stoking spending in infrastructure and production.
Volcker tweak reveals Powell Fed’s cautious streak 30 May 2018 Banks hoping for an overhaul of the prop-trading ban will be disappointed by the U.S. central bank’s modest revisions. Compliance costs may fall but Jerome Powell’s team doesn’t want Wall Street to go back to its freewheeling ways. It rightly retains distaste for big risk-taking.
Vedanta’s tin ear is a problem for shareholders 30 May 2018 After deadly protests forced the closure of a plant, Chairman Anil Agarwal is blaming a foreign conspiracy. That is no way to reassure rattled investors in the Indian miner, especially given Vedanta’s controversial history. At least a new incoming CEO can set a better tone.
BT network sale has too many parties to please 29 May 2018 Infrastructure groups may be eyeing the British telco’s broadband arm. BT would need to extract a high valuation and retain control to avoid spooking pension trustees. Any buyer planning to load the business up with debt risks angering politicians eager for more investment.