30SC

SoftBank debt burden may stoke an asset fire sale

5 Nov 2019

The group’s $45 bln of borrowing seems low compared with $260 bln of equity holdings. Yet that ignores layers of leverage, and overstates SoftBank’s asset value. If CEO Masayoshi Son’s giant tech-investment machine runs into trouble, he may have to offload stakes like Alibaba.

Ryanair’s ascent could yet hit a 737 MAX ceiling

4 Nov 2019

The European budget carrier’s shares have soared, mainly since a price war is proving less painful than feared. Yet darker clouds lie ahead. Delays in reviving the troubled jet are crimping growth in passengers. Without the more efficient plane, costs will be harder to control.

Danske’s sunny 2023 targets jar with Baltic chill

1 Nov 2019

The $12 bln lender wants investors to focus on a 9%-10% return on equity target in four years. They’re rightly sceptical, since 2020 returns may be half that level. A risk of fines from investigations into possible Estonian money laundering further cement a cut-price valuation.

Cox: Sergio Marchionne posthumously gets his deal

31 Oct 2019

Fiat Chrysler’s $50-bln-plus merger with Peugeot culminates a journey begun by the Italian carmaker’s former CEO to reduce capacity and wasteful spending in the industry. It took some fits and starts, and dalliances with GM and Renault, but has finally come to fruition.

Cash payout would help smooth FCA-Peugeot ride

30 Oct 2019

Combining two second-tier carmakers is tough enough. Add the French government, a state-owned Chinese company and squabbling European families, and things get even messier. A special Peugeot dividend and putting the Agnelli family in charge would make the $50 bln deal cleaner.

BP’s new CEO can give investors a golden hello

29 Oct 2019

The UK oil major had a messy third quarter as it took a charge on recent disposals, and borrowing jumped year-on-year. But it also pays out less of its cash than peers. If incoming boss Bernard Looney can limit future writedowns, he has a simple way to get investors onside.

HSBC unveils mandate for radical shakeup

28 Oct 2019

Interim CEO Noel Quinn scrapped an 11% return on tangible equity target as pre-tax profit fell 12%. Ideas like offloading the French unit are easy, but he and Chairman Mark Tucker will have to think bigger to satisfy shareholders. The bad results make bolder plans easier to sell.

AB InBev gets dragged back into M&A dilemma

25 Oct 2019

The Budweiser maker said profit in the third quarter was stagnant, and volumes declined in China. That puts pressure on boss Carlos Brito to do more deals. Yet the world’s top brewer is still working off a debt hangover, and the weak performance makes dealmaking harder.

Mario Draghi’s tacit advice to Christine Lagarde

24 Oct 2019

The outgoing ECB boss says his successor needs no guidance. But his last big news conference contained clues. First, never give up, though economic risks are rife. Second, turn the page on infighting. Third, be wary of financial bubbles. Fourth, expect brickbats, whatever you do.

Nokia misses yawning Huawei open goal

24 Oct 2019

The phone-kit maker’s shares dropped by a fifth as it slashed profit forecasts and cancelled its dividend. Increased competition for 5G networks suggests its Chinese rival is cutting prices. But if Nokia can’t cash in on Donald Trump’s anti-China push, the future looks grim.

Britain is not ready for Boris Johnson’s Brexit

23 Oct 2019

Parliament rejected the prime minister’s attempt to push through his flawed deal to leave the European Union by Oct. 31. What happens next depends on the EU, on lawmakers, and on Johnson himself. Another extension looks inevitable, an election remains the most likely outcome.

Naspers spinoff wades into UK food delivery fight

22 Oct 2019

Newly listed Prosus slapped down a 4.9 bln pound order for Just Eat, beating rival Takeaway.com’s all-share bid. Though the UK delivery group rejected the offer, its $120 bln suitor has deep pockets. Rivals like Uber Eats and Deliveroo have a new competitor to worry about.

Smith+Nephew calls rare bluff over CEO pay

21 Oct 2019

Namal Nawana wanted a higher salary to run the UK artificial joint maker. The board said no and has parted company with him. His $8 mln package lags U.S. peers, and the shares have done well since he joined 17 months ago. Still, he should have negotiated harder at the start.

Aramco’s latest IPO delay is a triple fail

18 Oct 2019

It’s embarrassing enough that the Saudi oil giant has again postponed its float. The hitch also messes up the kingdom’s efforts to show its best side at an upcoming annual finance junket. And it undermines Saudi’s already-shaky attempts to attract more foreign investment.

Johnson’s poor Brexit deal avoids worse outcome

17 Oct 2019

The UK prime minister secured an unlikely agreement to leave the European Union, but only by carving out Northern Ireland. Winning parliamentary approval for the economically costly plan will be hard. At least the chaotic exit Johnson had threatened is off the table - for now.

Ericsson’s upbeat 5G forecasts still too cautious

17 Oct 2019

The Swedish telecom equipment maker has raised its 2020 sales targets by 10% to reflect strong demand for the superfast networks. Yet given market leader Huawei’s U.S. problems, that still looks conservative. The perennial underperformer may have turned a corner.

U.S. hits Turkey where it hurts with bank charges

16 Oct 2019

The Justice Department accused Halkbank of helping evade sanctions against Iran. A big fine would erode the state-owned lender’s already weak capital position. Ankara can act to contain the damage but a ban on shorting bank shares signals the government sees systemic risk.

Wirecard is becoming uninvestable

15 Oct 2019

The $15 bln payments group’s share price fell 19% after the FT said it overstated sales. The company disputes the claims. Persistent volatility makes life hard for short-term traders. Long-term investors may be put off as the latest allegations involve a bigger chunk of revenue.

India Insight: Oyo gives off a WeWorky vibe

14 Oct 2019

Ritesh Agarwal’s $10 bln upstart is pushing into co-working, cloud kitchens, weddings and more, frantically expanding beyond its base as the world’s No. 2 hotel rooms provider. Oyo’s dizzying rise and dealings with SoftBank echo the hype before the fall of Adam Neumann’s empire.

Markets show Boris Johnson benefits of Brexit deal

11 Oct 2019

Sterling and stocks in UK-focused companies rose after Britain’s prime minister and his Irish peer said they had a “pathway” out of their standoff. Agreement is far from certain, as is parliamentary approval. But the advantages of avoiding a chaotic departure are crystal clear.