Banks

Uber analysts ride dreams to common destination

4 Jun 2019

They expect the $70 bln ride-hailing app to lose money for years but see various grounds for optimism, from cross-platform synergies to flying cars to demographics. Yet most roads lead to a forecast price upside of around 25%. It’s Wall Street’s form of herd immunity.

Guest view: Innovation transforms central banking

3 Jun 2019

Technology is upending payments and regulation, writes the Bank for International Settlements’ Agustin Carstens. As policymakers rise to the challenge, and even study the possibility of issuing digital currencies themselves, monetary and financial stability is their pole star.

Beijing’s threats may soon come in bigger packages

3 Jun 2019

Officials are drafting a blacklist for badly behaved foreign companies. It is the latest warning signal, as China tries to respond to U.S. blows without escalating an increasingly bitter trade dispute. But that’s getting harder, and a new FedEx probe raises the stakes.

Goldman abandons Trump’s White House, for India

30 May 2019

The Wall Street bank just cut the ribbon at a new $250 mln Bengaluru office with room to grow staff by about 50%, to 7,300. After supplying the U.S. president with a coterie of close advisers, Goldman is clearly rejecting his anti-global positions by eyeing overseas expansion.

UK’s dirty-money defences tinker at the edges

29 May 2019

The sybaritic shopping habits of the subject of one of Britain’s new unexplained wealth orders make spicy reading. But the UK is not using all its tools to stop the acquisition of UK assets by illicit funds. The hefty economic contribution from the money is one reason why.

Imagine choosing Mario Draghi’s successor on merit

29 May 2019

The race to replace the European Central Bank boss is underway. Finland’s Olli Rehn says competence, rather than nationality, should decide the choice. Breakingviews ranks the candidates on policy experience, open-mindedness, and their ability to cajole investors and citizens.

Central banks’ plain talking has perils

28 May 2019

Monetary policymakers increasingly want to speak directly to the public, partly to defend and justify their independence. A conference in Ukraine showcased this desire – but also the resulting imperative to speak more simply. Stripping away nuances and caveats may backfire.

Veteran Hong Kong tycoon leaves bank in a bind

28 May 2019

After 38 years as Bank of East Asia’s CEO, David Li is stepping back and his sons will take over. Returns have been lacklustre as the $9 bln lender battles Paul Singer’s Elliott, which has sued over a share issuance and wants the board to sell. A shakeup is overdue.

Big Tech deserves Wall Street-like global cop

21 May 2019

The G20 helped rein in systemically risky banks after the financial crisis by creating the Financial Stability Board to develop new rules. Adapting that approach to set up an Internet Accountability Board would be a smart way to police the likes of Facebook, YouTube and Twitter.

Deutsche may shaft another group of shareholders

20 May 2019

Minority investors in the German bank’s 6 bln euro asset manager could be next up in Deutsche’s wave of value destruction. Allianz and Amundi have expressed interest in DWS. But Deutsche CEO Christian Sewing's need to maintain control makes a lowball deal with UBS more likely.

Metro Bank capital fix highlights bigger failings

17 May 2019

The troubled UK lender raised 375 mln pounds from investors, ending months of uncertainty. Though the outcome is welcome, asking shareholders to wave their rights is not ideal. The lack of a boardroom clearout and the Bank of England’s endorsement also set a worrying precedent.

Cerberus’s German bank punt looks stuck in Hades

16 May 2019

The U.S. buyout group has seen the value of its stakes in Deutsche Bank and Commerzbank fall by around half and one-third respectively since 2017. Cerberus now needs revenue to rise and costs to drop at both lenders just to break even by 2022. That’s not a foregone conclusion.

Deutsche credit upgraded from hopeless to hapless

15 May 2019

The bank’s credit default swap spread, a measure of riskiness, has nearly halved. The fall was due to a legal technicality, not a change in fortune, but should help clients trade with it. Still, high funding costs mean CEO Christian Sewing will struggle to boost profitability.

Metro Bank capital hike depends on luring new fans

13 May 2019

The troubled UK upstart is finalising a 350 mln pound equity issue. The prospect of buying in at 50% of book value should entice some investors. But to earn a decent return, Metro will have to persuade regulators it can safely boost lending while reassuring jittery depositors.

Viewsroom: Oil M&A fight may end with no winner

9 May 2019

Occidental boss Vicki Hollub corralled BofA CEO Brian Moynihan and investor Warren Buffett to her side to seal a $38 bln offer for Anadarko. Her tactics scared off rival bidder Chevron but may alienate her own shareholders. Plus: Malaysia’s reform efforts since the 1MDB scandal.

BlackRock’s Italian U-turn leaves state on hook

9 May 2019

A specialist fund run by the world’s largest asset manager abruptly pulled out of a 720 mln euro rescue of ailing lender Carige. It’s a belated admission the plan was too risky and relied on rosy assumptions. Italian taxpayers once again face the risk of another costly bailout.

Bank of America brings high M&A hopes to oil patch

8 May 2019

Its bankers are so keen for client Occidental to prevail with its $38 bln offer for rival Anadarko that chief Brian Moynihan personally called Warren Buffett for help. After losing ground for a decade, BofA’s dealmakers and their new boss Matthew Koder could use the boost.

UniCredit’s spring clean would aid foreign jaunts

7 May 2019

Italy’s largest bank by assets is mulling a sale of its 2 bln euro stake in local online broker Fineco. Chunky capital gains on the holding would boost UniCredit’s solvency. That’s handy if it decides to make a swoop on in-play Commerzbank.

HSBC’s rich valuation reflects spare buyback ammo

3 May 2019

The emerging market lender’s pre-tax profit jumped a tenth in the first quarter, buoyed by a lending boom in Asia. Investors are assuming the bank will hit its 11 percent return-on-equity target in 2020. Surplus capital of $2.6 bln gives boss John Flint extra room for manoeuvre.

Metro Bank’s rehab should start with the board

3 May 2019

The upstart lender’s deposits shrank in the first quarter and pre-tax profit halved after a capital blunder. Sliding shares make it harder to sell a planned 350 mln pound rights issue. A governance overhaul - starting with Chairman Vernon Hill - is vital to rebuilding confidence.