The investor love being heaped on acquirers should be a catalyst for takeovers amid plentiful cash and credit. Other market anachronisms also suggest the pendulum could swing. Yet CEOs and boards have settled into a cautious mindset. Inertia is about as powerful a force there is.
The California lender is now one of the top global investment banks, thanks to doubling underwriting and M&A fees since 2008. Much of that stems from smaller clients. If Wells Fargo decides to go after bigger fish, it could put Wall Street’s bigwigs on the back foot.
The football-mad Brazilian hosts have won five times, more than any other country. But on Breakingviews’ analysis of the hard numbers – the players’ transfer value, population, participation and public engagement – Teutonic power will squash the romantic dream of a sixth win.
The emirate in 2009 shocked lenders who assumed it stood behind all local debt. As China shifts to a more market-based financial system, it will have to draw a clearer line between public and private loans. A system for protecting bank deposits is crucial to limiting the fallout.
Russian President Vladimir Putin says he will pardon the jailed former oligarch. Years ago, such clemency might have signalled openness to reform. Today it has nothing to do with political or economic liberalisation. It just reflects a desire to make the Sochi games run smoothly.
The EU governments’ agreement on how to resolve failing lenders looks complex and hard to implement, and it could worsen the fragmentation of euro zone banks. But it is a start. And the final compromise lowers the political barriers to fixing the southern countries’ lending woes.
If the gates at Apple, Microsoft and P&G can be rattled, complacency just isn’t an option for a $270 bln conglomerate. While GE’s strategy looks more coherent than ever, it still has soft targets for uppity investors: its finance arm and long-standing leader Jeff Immelt.