|Posts on Regator:||2853|
|Posts / Week:||17.1|
|Archived Since:||June 19, 2011|
The nation’s strong World Cup showing reflects astute management of its big fan base and valuable on-field talent. That contrasts with a 100-year record of wasting its human and natural resources. Avoiding policy own-goals could one day make Argentina an economic champion, too.
The UK tobacco group wants to acquire assets sold following a possible merger of U.S. peers Reynolds and Lorillard. Imperial may win a path to scale in America. But the positive market reaction is too sanguine about balance-sheet strain and the acquisition of low-growth assets.
The scandal-hit Spanish wifi provider raised many red flags. Why were they all ignored? Because more people benefit when companies flourish, and Spain needs success stories. Gotham City, Gowex’s nemesis, did everyone a service, but its work shouldn’t have been necessary.
Many books about China strive for a sweeping overview. Evan Osnos’ “Age of Ambition” adopts a refreshingly human perspective. Despite some inevitable gaps, his close-up portraits of people in the People’s Republic are as revealing as a torrent of statistical superlatives.
The maiden budget from Narendra Modi’s new government failed to live up to the reform hype. But a promise to do away with retrospective changes in the tax code is welcome. And while boosting spending on roads, ports and cities is a gamble, this could revive the investment cycle.
Despite a recent successful rights issue, the Iberian lender is exposed to its troubled major shareholder and has a large exposure to dodgy Angolan loans. Its owners face a difficult refinancing this year. Authorities should demand full transparency and a quick restructuring.
Italian capitalism is undergoing Darwinian selection. Companies can no longer rely on the state, age-old shareholder pacts or even Mediobanca for capital. Firms are being forced to adapt to the rules of global finance to avoid extinction. The next generation looks fit to prosper.
Volatility, gauged by indicators like VIX, is ultra-low. While it could be the calm before a storm, investors including Pimco have been selling insurance against price swings. It’s one way to make money amidst shrinking yields, but it’s also a risky bet against the unexpected.
State television has accused Bank of China of helping clients move money abroad, prompting chatter of an official backlash. The mainland’s capital controls are famously porous. If Beijing decides to plug the leaks then overseas banks, casinos and real estate markets will suffer.
Jana Partners was joined by another big shareholder in commanding the $6.8 bln dog food retailer to roll over and sell itself. Management could throw investors a bone with a bigger buyback. The better option is a deal with Petco, the rival controlled by TPG and Leonard Green.
Central bankers and economists say the official cost of money in the post-zero rate era will remain cheap by historic standards. Their prognostications rely on a theory which is unsound, unsupported by evidence and impossible to apply. Future rates are as likely to be high as low.
Popular Jakarta Governor Joko Widodo faces a tough challenge from ex-general Prabowo Subianto in the country’s presidential poll. While the latter’s nationalistic talk makes investors edgy, a slim win for the former could also dim hopes of strong leadership and lasting change.
The London-listed drugmaker is pondering a fresh, $51 bln unsolicited bid from its U.S. rival. AbbVie touts shareholder support and is offering a hefty 45 pct premium. Shire’s board can probably extract one more increase in return for a recommendation.
KKR and Silver Lake are listing web hosting outfit GoDaddy. The use of what’s called an “Up-C” structure means the company will float with big tax deductions. IPO investors and existing owners will both benefit, but other IPOs with Up-Cs have seen more dubious arrangements.
The Airbus CEO is the latest to complain about the strength of the single currency, echoing similar grumbles by the French prime minister a week ago. But the ECB is right: exchange rates can’t be a primary target of monetary policy.
The online arm of state news agency Xinhua is planning an IPO with a near-$1 billion valuation. Booming advertising has brought it success that has eluded the Western media. Xinhuanet’s fortunes aren’t built on headlines or scoops, but a lucrative monopoly on the PRC’s PR.
The extra cash just injected into the payment processor means the $29 bln buyout has now absorbed a whopping $10 bln of equity. KKR seems, however, to have avoided the sunk cost fallacy of throwing good money after bad. A Breakingviews analysis suggests a return finally beckons.
The $30 bln U.S. food giant is buying Swiss natural ingredient maker Wild Flavors for $3 bln. It’s ADM’s biggest deal, and a shift from its commodity business. A small add-on with like customers makes sense but won’t change how investors see the firm. The question is, what next?
The Spanish wifi provider has said its CEO admitted falsifying the accounts, days after short-seller Gotham City attacked the company. Gowex’s status as a poster child for Spanish entrepreneurialism means the fallout will go beyond increased risk aversion to junior listed stocks.
The automaker hopes a Hong Kong listing will help it cash in on China’s yearning for luxury vehicles. But its own marques lose money. Earnings depend on joint ventures with foreign groups like Hyundai and part-owner Daimler. It’s a reminder that China’s car market has two speeds.