(Earnings) Klingons on the starboard bow

Why are markets perennial optimists? Perhaps it’s a reflection of the commercial bias favouring a positive investment recommendation by market participants to portray a glass as half full rather than half empty.  Fold in expectations of a central bank put to bail out markets with endless liquidity fixes when things get sticky and it’s easy […]

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M&A mantra: When in a hole, keep digging!

M&A in the Marketing Services sector is a bit like archeology; if you find yourself in a hole, keep digging! This is how companies such as Publicis, can propose to invest a further $4bn on another digital marketing acquisition, notwithstanding presiding over an eroding organic top line and sub market ROIC, notwithstanding splashing out over […]

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Chevron offer for Anadarko – when cheap money meets rising oil prices

A return to ‘cheap money’ by the Fed and stabilising oil prices and it is perhaps not surprising to see a return to acquisition led growth strategies. For Chevron, its $50bn agreed offer for Anadarko looks to be broadly OpFCF neutral after $1bn of projected OpEx cost synergies from combining these two predominantly North American […]

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ECB hopium

“substantial monetary policy stimulus remains essential to ensure the continued build-up of domestic price pressures over the medium term.” So says Sig Draghi in yesterday’s release of the ECB’s 2018 annual report and so much for any doubt that the ending of the asset purchase programme (AAP) in December would actually herald a return to […]

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