China’s airlines are set for a long-haul price war 17 May 2018 Beijing is freeing local carriers to raise fees at home and fight for share on international routes. State ownership endures, however, as do distorting airspace restrictions. A painful battle over fares is in the offing, and will come at foreign rivals' expense.
Caps not breakups are best cure for Big Four woes 16 May 2018 UK lawmakers suggested forcing auditors to hive off their consulting units. That might prevent conflicts but could make the companies less profitable and competitive. Imposing limits on auditors’ market share is a better way to make the sector more efficient and avoid blowups.
EU transparency purge may boost bitcoin legitimacy 14 May 2018 The European Union will force exchanges to identify users who trade in cryptocurrencies. That could make it harder for criminals to use them to hide ill-gotten gains. The clampdown might deter some traders, but should make virtual currencies more respectable.
Trump’s signal on ZTE helps make China great again 14 May 2018 He said he'd try to get the telecom giant "back into business, fast" after fresh U.S. punishments over sanctions violations put it on the ropes. It undermines efforts by his trade negotiators to look tough. And it's too late now to stop China from seeking technology independence.
Portuguese power bid tests EU’s open door to China 11 May 2018 China Three Gorges is set to bid for the 77 pct of EDP it doesn’t own. The group has been an investor since 2011, but success would place the 11 bln euro utility under Chinese state control. That will add a spark to European Commission plans to better screen foreign investment.
Barclays slap calls time on UK banker-bashing 11 May 2018 Regulators fined CEO Jes Staley 642,000 pounds for trying to identify a whistleblower. The relatively low penalty reflects lenience towards misbehaviour which doesn’t involve ill-gotten gains or investor losses. Bank chiefs can no longer complain they are being treated unfairly.
U.S. helps make RBS nearly great again 10 May 2018 A $4.9 bln fine for missold mortgages is less than feared and means the lender has 4 bln pounds in surplus capital. The UK’s 71 pct stake means it gains most from renewed dividends and greater chances of a share sale. It’s a small present ahead of President Trump’s July visit.
Open-and-shut verdict leaves Anbang case unsolved 10 May 2018 Three months after authorities seized the insurer, a Chinese court has sentenced ex-Chairman Wu Xiaohui to 18 years in prison for fraud. The one-day trial provided only a glimpse into the opaque conglomerate. Swift justice means Anbang's rise and fall remains mostly a mystery.
UniCredit may be stuck with costly crisis capital 10 May 2018 The Italian bank should not be able to treat the proceeds of a 2009 hybrid issue as equity, a hedge fund argues. CEO Jean Pierre Mustier might prefer to get rid of the expensive instruments. But it’s hard to extract UniCredit from the transaction without upsetting investors.
Higher rates are likely to calm Hong Kong property 8 May 2018 Interbank lending is getting pricier after a decade-long slump, as authorities defend the Hong Kong dollar. That implies costlier mortgages and slower growth in a frothy real estate market. This will be manageable for banks and developers, and welcome for renters and retailers.
Viewsroom: M&A gets carried away 3 May 2018 Dealmaking is breaking records. But more tie-ups are being pulled. And recent proposed unions like T-Mobile US with Sprint and Xerox with Fujfilm come with regulatory or boardroom drama. Crisis throwbacks and the careless brag-song of Sainsbury’s CEO are sending warning signals.
UK tabloids’ dire top line strengthens M&A case 3 May 2018 Sales are down 9 pct this year at Trinity Mirror, whose acquisition of Express newspapers is under the regulatory microscope. Buying rivals and slashing costs seems the only viable option for the Daily Mirror parent. Blocking the deal would leave the media sector on the sickbed.
Peppa Pig can survive Chinese censor’s cleaver 3 May 2018 Video-sharing app Douyin chopped the cartoon swine after it appeared in “subversive” videos posted by users. The ban does not directly hurt owner Entertainment One’s revenue. Still, it’s a reminder that even the most innocent media characters can fall out of official favour.
Australian banks are down but not out 3 May 2018 A string of inquiries and painful revelations is buffeting ANZ, CBA, NAB and Westpac – the most recent about lost details on 20 mln accounts at CBA. As ANZ’s boss says, a golden era is over. But though costs are rising and loan growth is set to slow, the oligopoly will endure.
Japanese odds may be growing longer for casinos 3 May 2018 MGM and Melco are among those keen to bet on the new market, estimated at $25 bln. They got lucky with Prime Minister Shinzo Abe, who helped advance plans in the face of opposition. His political woes, though, could deal the efforts some public backlash and crippling regulation.
Latam oil opening demands hedged bets 2 May 2018 The region's growing receptiveness to foreign investment in its energy assets could be a dream come true for oil majors. Political winds can change, though, and there is no perfect blend of hydrocarbon potential and legal certainty. Brazil and Mexico will do better than the rest.
Xerox effort to go quietly is thwarted on all sides 2 May 2018 Carl Icahn and Darwin Deason have ousted the CEO and board members at the struggling copier company, and at least delayed any deal with Fujifilm. The outgoing CEO, directors and advisers all look bad. Yet Xerox needs a credible final act, and the activists don’t have one written.
Sainsbury’s shows need for new antitrust approach 2 May 2018 The grocer, which is buying Asda for 7.3 bln pounds, wants UK competition authorities to vet retail mergers in a new way. The rise of discount rivals and online sales means it has a point. A revamp of the metrics used to make sure shoppers have enough choice looks inevitable.
UK raises global bar in tax secrecy fight 2 May 2018 Britain will force overseas territories like the Cayman Islands to reveal the owners of anonymous companies. Those looking to avoid tax and scrutiny can move their business, but the UK's action will throw the spotlight on other shelters like the United States and Hong Kong.
Mooch returns to place that’ll have him: Wall St 30 Apr 2018 Anthony Scaramucci is heading back to SkyBridge, the investment firm he founded, after HNA dropped its bid. The Chinese conglomerate’s rationale for buying it was more absurd than his chaotic turn as a White House flack. With HNA out and the Mooch back in, order is restored.