Year: 2016

SVG dangles feasible defence – if markets hold up

4 Oct 2016

The UK private-equity fund says it will break up. Aided by weaker sterling, SVG's plan should create more value, in time, than a 1 bln pound hostile offer from HarbourVest. But there's the risk of a Trump, Brexit or general meltdown. Fearful investors may still prefer certainty.

Google gadgets suggest intelligent life elsewhere

4 Oct 2016

The $540 bln tech titan just unveiled a new smartphone, virtual-reality headset and voice-activated home assistant. They mostly mimic similar devices from Apple, Facebook and Amazon. The machine learning powering Google's, however, should lead to plenty of market opportunities.

Guest view: Insider trading demands top-court tips

4 Oct 2016

The U.S. Supreme Court has been ducking such cases, leaving even legal eagles confused about what defendants like Leon Cooperman may have done wrong. Columbia Law School senior fellow Reynolds Holding says a big case this week finally gives justices a chance to lay down the law.

Uncle Sam adds bite to overseas anti-bribery bark

4 Oct 2016

Och-Ziff just settled a U.S. kickback case in Africa. The Feds are also probing JPMorgan, Microsoft and others for possible corruption abroad. With extra resources behind them, authorities finally have more heft to force multinationals to get their far-flung operations in order.

LVMH gets first-class luggage at no-frills price

4 Oct 2016

Louis Vuitton’s owner is buying a majority stake in German suitcase maker Rimowa for 640 mln euros. The multiple of two times sales is less than what Samsonite recently paid for rival Tumi. Perhaps the Arnault clan persuaded family-owned Rimowa to leave some money on the table.

Sliding sterling is a long way from a crisis

4 Oct 2016

The pound has fallen to 31-year lows below $1.28. That’s hardly a disaster. Buoyant UK bonds and stocks suggest there are few concerns about Britain’s hefty budget and current account deficits. It would take a much steeper drop to worry Bank of England Governor Mark Carney.

Rajan’s successor signals new pace at RBI

4 Oct 2016

The Indian central bank’s monetary policy committee, led by new Governor Urjit Patel, has cut rates. There are decent reasons for the unanimous decision. Nonetheless, it will do little to calm those who fear the departure of Raghuram Rajan has made the RBI less independent.

Deutsche’s pain a sign bank regulation is working

4 Oct 2016

Jitters about the German lender have revived memories of the 2008 crisis. But eight years of reform have left Deutsche - and the rest of the banking system - better equipped to absorb a shock. The relative calm in financial markets suggests that regulators got some things right.

Heta shows why bailouts are easier than bail-ins

4 Oct 2016

Austria has a deal to hit creditors of failed former lender Hypo Alpe Adria after two years of wrangling. Theoretically, a bail-in could, if needed, raise capital at much-bigger Deutsche Bank. But Heta’s tortuous saga is one reason Berlin might favour a taxpayer bailout.

Evergrande finally hits on some sensible M&A

4 Oct 2016

The debt-laden developer plans to swap assets for control of a mainland rival. By acquiring the $1.6 bln Shenzhen Real Estate, Evergrande may win higher valuations onshore. Assuming the overhaul gets past regulators and investors, this makes more sense than other recent deals.

Anbang IPO is high-profile test for global banks

4 Oct 2016

The Chinese owner of the Waldorf Astoria has rocketed from obscurity to hold nearly $300 bln in assets. Now it is eyeing a Hong Kong offering for a key unit. Investment banks must get comfortable with the ownership and operations of a private group that poses many questions.

China couriers muster capital for land grab

4 Oct 2016

ZTO Express has filed to list in New York, the first Chinese courier firm to test U.S. investor appetite for e-commerce logistics plays. Industry revenues are soaring thanks to the online shopping boom, but so are costs. ZTO's healthy margins set it apart from rivals.

News firm heads poorly armed into Monster fight

3 Oct 2016

MediaNews thinks Randstad is buying the ailing recruitment site on the cheap at $429 mln. Rather than making a counterbid, though, the newspaper publisher wants to wrest control by replacing the board. It's a bad second-choice candidate for shareholders with a cash offer in hand.

Idle Congress augurs little help for U.S. economy

3 Oct 2016

Legislators departed Washington after yet another unproductive session. With only 221 laws enacted, they could end 2016 with the fewest in over four decades. For all the campaign talk of immigration and tax reform, deepening partisan obstinacy is what awaits the next president.

Trump taxes imply he’s a living “special interest”

3 Oct 2016

The White House hopeful may not have paid personal income tax for years because of a $916 mln loss in 1995. Rules relating to certain corporate structures could explain it. Trump's economic plans seem to favor such firms. It shows why candidates' taxes need scrutiny.

Bass Pro leaves the bank, takes the taxidermy

3 Oct 2016

The private outfitter is buying rival Cabela's for $5.5 billion, a 40 pct premium. Cabela's is a bank in camouflage - most profit comes from a credit-card business that'll be hived off to Capital One. Avoiding financial entanglements should make the deal easier to manage.

Falling inequality hides rich nations’ failings

3 Oct 2016

The gap between the very rich and very poor has fallen since 2008 - even in developed countries. That’s the surprising finding of a new World Bank report. But a different measure shows rich countries are less good at sharing prosperity. Growth is too weak to mask this failure.

Nutanix debut jams open IPO window – temporarily

3 Oct 2016

The data-storage firm's 131 pct pop on Friday, for a market cap over $5 bln, made it the best tech float this year. The recent warm welcome for IPOs plus decreased VC funding may lead others to pull the trigger. With the U.S. election coming, the opening may be brief.

Guest view: Where is the IMF on Greece?

3 Oct 2016

The seemingly endless Greek crisis may erupt again unless the country gets debt relief, writes former Citibank executive William Rhodes. The International Monetary Fund should take the lead in spelling out economic forecasts and the decisions Greece and its creditors must take.

Hungary throws straw on Europe’s values bonfire

3 Oct 2016

Only a minority voted against EU migrant quotas. Yet almost no one voted for them. Like Britain’s Brexit supporters, Hungarian nationalists want both the benefits of free trade and control of immigration. Europe can resist, but the calls to blunt its ideals are getting louder.

Bill Gross’s firm finds investor-pleasing trade

3 Oct 2016

Janus, home of the famed bond manager, is merging with the larger UK-based Henderson to create a $6 billion group. Even friendly M&A is risky for asset managers, but industry growth is weak and scale benefits massive. The rapturous market reaction won't be lost on other groups.

ING gives EU banks a map to profitability

3 Oct 2016

The $48 bln Dutch lender is cutting 7,000 jobs, which should help it preserve its return on equity lead over European peers. A striking aspect of the plan is to plough most of the savings into financial technology. That signals that banks need to get creative to battle low rates.

Britain starts Brexit; now so might banks

3 Oct 2016

The UK's two-year process to leave the European Union will kick off by the end of March. Financial groups wondering whether to move operations now have the same uncertainty as before, only with a hard 2019 deadline. That could prompt the start of the big relocation.

Golden Chinese shopping spree will tarnish soon

3 Oct 2016

China's "Golden Week" holiday will see mainland tourists splurging in bazaars from Milan to Macau. Retailers should enjoy it while it lasts. Tax cuts will make shopping at home less painful, and younger Chinese prefer experiences to handbags. That will cap future growth.

India illustrates fraught tax amnesty economics

3 Oct 2016

Citizens have declared cash and assets worth $10 bln. A high penalty means New Delhi will pocket almost as much revenue as Indonesia, where locals have just declared $250 bln in a similar scheme. In the long term, using more carrot and less stick is probably more valuable.

Colombia’s “no” to peace will backfire on economy

2 Oct 2016

Voters on Sunday narrowly rejected a deal with FARC rebels that aimed to end five decades of civil war. The result shreds the credibility of the president and pollsters. The desire to be tougher on the rebels proved stronger – just – than the appeal of a needed peace dividend.

Viewsroom: One hundred days of Brexit

30 Sep 2016

Oct. 2 marks 100 days since Britain’s vote to leave the EU. How has the economy fared, and will the City of London weather Brexit? Breakingviews writers discuss trade deals, financial services and the scale of the challenge facing Prime Minister Theresa May.

Trump cold shoulder for TV ads may set the trend

30 Sep 2016

TV loves the GOP presidential nominee, but he has spent only $78 mln so far on political ads. Broadcasters usually count on an election-year windfall, but spending is forecast to fall and digital upstarts like Snapchat are in the mix too. Trump's playbook could become a classic.

Venezuelan debt swap may ease coming pain

30 Sep 2016

State oil company PDVSA sweetened earlier terms and is now offering more bonds maturing in 2020 in exchange for $5.3 bln worth coming due next year. With crude prices rising, there's a glimmer of hope of postponing default. And investors would get a bigger claim once it comes.

Review: Explosions hide reality in BP spill movie

30 Sep 2016

Peter Berg's blockbuster turns the complex Deepwater Horizon disaster into a simple fight between working-class U.S. heroes and a money-grubbing British company. The rig crew's actions surely saved lives. But the film obscures the challenges of oil extraction and lax regulation.