Cigna pays over the odds for uncertain benefit 8 Mar 2018 The insurer is paying $54 bln for pharmacy middleman Express Scripts in the latest healthcare consolidation move. Express’s business has stalled and the FDA’s campaign for drug-price transparency threatens its model. Cigna’s $13 bln premium is not a sure prescription for growth.
Congo digs deep hole with overhaul of mining law 8 Mar 2018 The world's top cobalt producer is right to update rules written after a ruinous war. But the dramatic shift to bring in more taxes also reneges on an earlier promised 10-year "stability clause". Unpredictable swings damage an already battered image, and put investment at risk.
China’s softening on bad loans looks complacent 7 Mar 2018 The regulator is easing buffers required for problem loans, according to media reports. This is another incremental move to relieve struggling lenders and borrowers amid a shadow banking squeeze. That’s good for them, but Beijing appears too relaxed about bank balance sheets.
Cohn exit makes White House chaos markets’ problem 6 Mar 2018 The ex-Goldman Sachs banker was a buffer against anti-trade voices in President Donald Trump’s administration. Now Gary Cohn is leaving, and Trump is ramping up protectionist talk. Markets have been phlegmatic about disorder in Washington. That can no longer be taken for granted.
U.S. bank mergers creep one step closer 6 Mar 2018 The Senate looks set to raise the $50 bln level at which a bank comes in for extra regulation. Received wisdom is that doing so will set off a wave of deals for small and mid-size lenders. But amid falling taxes and rising rates, comfortable CEOs may have other ideas.
Qualcomm deal delay hints at new tech nationalism 6 Mar 2018 U.S. authorities fear the $95 bln chipmaker could lose its innovative edge if acquired by rival Broadcom. Yet objections to a foreign buyer look like a fig leaf for the real message: Qualcomm is too strategic to be taken over by a suspect suitor, regardless of its nationality.
Akorn deal could crack M&A MAC nut 6 Mar 2018 Merger escape clauses are notoriously hard to trigger. Even performance woes at drugmaker Akorn aren’t enough for Fresenius to demand a discount on an agreed $4.3 bln tie-up. If the German healthcare group can prove Akorn misled regulators, though, it is a different story.
Disney’s Sky choices: bid, barter or back down 6 Mar 2018 Comcast’s swoop on the British broadcaster puts the U.S. group’s $52 bln tie-up with Rupert Murdoch’s Fox at risk. CEO Bob Iger can enter a bidding war he may lose, offer U.S. assets in exchange, or give up on Sky. The third option is most logical, but hard to sell to Murdoch.
Beijing electric car leader runs on policy power 6 Mar 2018 A $4.5 billion backdoor listing offers the first pure play on China’s new energy auto market. Beijing Electric Vehicles leans heavily on subsidies and patronage - a precarious position as the central government reworks support for the sector. Its alliance with Daimler might help.
Trade tensions curb spirits in U.S. energy sector 5 Mar 2018 OPEC is breaking bread with U.S. shale producers at an industry confab in Houston. It’s a sign of American wildcatters’ influence on the global market. But infrastructure bottlenecks and Trump’s new tariffs threaten to prevent drillers from taking full advantage of their clout.
Trump’s immigration aims undermine economic goals 5 Mar 2018 Court rulings are preventing the deportation of people who entered the U.S. illegally as minors even as protections were due to expire. Yet many remain in legal limbo, and the White House wants to reduce new arrivals. Faster growth, which depends on migrants, will be a casualty.
U.S. simplifies Qualcomm decision by complex means 5 Mar 2018 The foreign-investment watchdog has told the chipmaker to delay a vote that could give board control to nominees of Singapore-based Broadcom, which wants to buy its rival for $117 bln. It’s a surprising twist in a tangled situation. But it removes a big unknown from the equation.
China’s economic targets invite promise fatigue 5 Mar 2018 More money and more credit, less tax and red tape, plus the same old 6.5 pct growth target: Beijing’s key economic conference opened with cautious tweaks to last year's playbook. Chinese promises in Davos that reform will "exceed foreign expectations" look thin already.
BlackRock puts gun-complex boards in crosshairs 2 Mar 2018 The $6 trln asset manager outlined steps to ensure the makers and sellers of AR-15s it owns through index funds make "a positive contribution to society." The philosophy of engagement can be more effective than divestment. For directors, their jobs are at stake.
Coin-offering boom carries seeds of its own demise 1 Mar 2018 The SEC is cracking down on initial coin offerings with subpoenas, the Wall Street Journal reported. Tighter scrutiny is welcome given the billions being raised. With hundreds of ventures in the pipeline and many business plans sketchy, the odds of success get longer by the day.
Viewsroom: Fraud puts India’s lenders on edge 28 Feb 2018 A $1.8 bln scam at Punjab National Bank comes just months after the government injected $32 bln to bail out 20-odd state-run financial institutions. The scandal may increase calls for them to be privatized. Elsewhere: Will Sky be the limit for Comcast, Disney or Fox?
Net neutrality allies may lose battles but win war 28 Feb 2018 Senate Democrats and state AGs are waging a campaign against a Trump administration decision not to require internet service providers treat content equally. It’s an uphill legal climb. But firing up congressional and public opinion might nudge ISPs to follow the rules anyway.
Booker boss is pied piper of Tesco deal 28 Feb 2017 The UK wholesaler’s shareholders approved Tesco’s 4 bln pound takeover, despite a slim premium and activist calls for a beefed-up price. Booker CEO Charles Wilson will work on finding synergies with Tesco. A history of stellar returns made investors willing to follow his lead.
Latvian bank failure raises 8 bln euro question 26 Feb 2018 That’s the amount foreigners have deposited in the Baltic nation’s lenders. Now ABLV, the third-largest bank, is being wound up following U.S. money-laundering charges. The cost to Latvian taxpayers is limited. Containing the fallout for the overall banking system will be harder.
Anbang seizure flips script on Chinese takeovers 23 Feb 2018 Authorities have commandeered the acquisitive insurer and prosecuted its boss. It is the boldest step yet in Beijing’s battle against financial excess, and is meant to protect policyholders and avert systemic trouble. The move may also be a worrying omen for HNA and others.