Breakingviews

 
The Swiss lender’s private banking arm is pulling in more money. But a 11 pct year-on-year dip in quarterly investment banking revenue suggests Credit Suisse’s other main engine isn’t motoring. Paring back further in fixed income would be one way to get things moving.

Hong Kong needs to defend shareholder democracy

The stock exchange is poised to launch a debate on shareholder voting rights after Alibaba cancelled its listing in the former colony. Dumping “one share, one vote” won’t necessarily attract many new IPOs. But it would undermine Hong Kong’s already shaky corporate governance.

From Ally to Zoe's, IPOs hint at back to basics

Investors had an appetite for most any new issue until last week. Six of 10 offerings couldn’t fetch the desired price and six were yanked as fear again mingled with greed. A fresh crop of sellers, including Moelis and Weibo, may encounter a more rational market than expected.

Diageo throws money at Indian empire-building

The UK distiller is again trying to tighten its grip on India’s United Spirits. It’s offering $1.9 bln to nearly double its stake to 54.8 pct. A sky-high multiple of 38 times EBITDA gives this offer better odds than the last. And there’s industrial logic to offset the huge price.

WH Group’s quick pork flip serves up meaty return

The private Chinese pork producer hasn’t had much time to justify the fat premium it paid for Smithfield last year. Yet relisting the enlarged group in Hong Kong implies the value of the U.S. business has risen at least 21 percent. Others will be tempted to try a similar trick.

Citi looks perfectly priced - for more mediocrity

The mega-bank beat earnings and revenue estimates in the first quarter. Its bad bank is no longer much of a drag, and Citi tapped some of its substantial tax breaks. But with subpar asset returns and no chance of returning capital soon, trading above book value will be a stretch.

How China is stoking London’s housing bubble

Chinese buyers are a key new factor pushing up the UK capital’s property prices. As Beijing relaxes capital controls, the wall of money could intensify. UK politicians will need to decide whether to protect London’s global financial status, or the citizens who have to live there.