United Kingdom

George Hay

Breakingviews - Steel is awkward candidate for UK bailout largesse

31 May 2019

LONDON (Reuters Breakingviews) - Steel is a tricky candidate for a UK government bailout. The fate of 4,000 workers employed by British Steel is in question after the operator of the Scunthorpe steelworks entered insolvency in May. Unless one of the private enterprises now examining its books steps in, public cash will be needed. Unfortunately, three decades after it was privatised by the Conservative government of Margaret Thatcher, neither company nor sector looks sufficiently strategic or sustainable.

Breakingviews - British Steel rescue loan is worst of bad options

21 May 2019

LONDON (Reuters Breakingviews) - Greg Clark has one of the worst jobs in the UK government. The business secretary needs to decide whether to nationalise British Steel, let it go bust with the loss of at least 5,000 jobs, or apply a sticking plaster to let it limp on. All three are bad options, but the last is the worst.

Breakingviews - Saudi Arabia will feel Trump’s Iran slap too

22 Apr 2019

LONDON (Reuters Breakingviews) - Donald Trump is calling in a favour. In November, the American president publicly exonerated Mohammed bin Salman, Saudi Arabia’s crown prince, over his alleged role in the murder of journalist Jamal Khashoggi by Saudi agents. Five months on, Trump’s quid pro quo for MbS - to help him mitigate the effect on oil prices of stymieing Iran via tough sanctions – looks clear-cut.

Breakingviews - Overpriced Aramco debt still has a Saudi discount

10 Apr 2019

LONDON (Reuters Breakingviews) - Aramco’s debt is both cheap and overpriced. That’s the takeaway from the Saudi oil giant’s maiden $12 billion bond sale to international investors. While a success, it’s also contradictory.

Breakingviews - Rugby’s dilemma: take the penalty or go for a try

19 Mar 2019

LONDON (Reuters Breakingviews) - Rugby Union teams awarded a penalty near the opponent’s goal line face a dilemma. Should they kick a penalty between the H-shaped posts and earn an easy three points, or attempt to ground the ball beyond the posts for a so-called try, earning seven? That’s one way to think about the choice between a 500 million pound private equity bid from CVC for the Six Nations Championship, and a more ambitious 5 billion pound plan by governing body World Rugby for a wider global league.

Breakingviews - Shell CEO’s bonus problem less size than length

14 Mar 2019

LONDON (Reuters Breakingviews) - There’s no getting around Ben van Beurden’s extremely large bonus. Royal Dutch Shell said on Thursday that its chief executive would receive 19.8 million euros in direct pay, more than double 2017’s 8.5 million euros, with the major shift via a near-quadrupling of his so-called long-term incentive plan. Unless one takes a moral approach to gargantuan pay awards, the bigger problem is not size but length.

Breakingviews - Norway’s mega-fund fluffs move away from crude

08 Mar 2019

LONDON (Reuters Breakingviews) - Norway has taken a step in the right direction, but then slipped on an oily patch. Oslo on Friday finally answered a question that had kept climate change watchers on tenterhooks: whether its $1 trillion Government Pension Fund Global would continue to invest in oil and gas stocks. Its equivocal response represents a missed opportunity.

Breakingviews - BP beats Rosneft in valuation, not operations

05 Feb 2019

LONDON (Reuters Breakingviews) - Bob Dudley and Igor Sechin both have something the other lacks. The BP chief executive, whose $138 billion oil producer owns 20 percent of Sechin’s $67 billion Rosneft, may look covetously at the Russian group’s fat margins. Sechin, meanwhile, will look ruefully at Dudley’s much perkier valuation.

Breakingviews - Deripaska markdown will persist at En+ and Rusal

28 Jan 2019

LONDON (Reuters Breakingviews) - Call it the Deripaska discount. Shareholders in Rusal and En+ received the news they’d been waiting for on January 27 when the U.S. Treasury unshackled them from sanctions imposed last April by its feared Office of Foreign Assets Control. Still, the reluctance of their shares and global depository receipts (GDRs) to fully return to their pre-sanctions levels suggests lingering concern over the continuing presence of former majority shareholder Oleg Deripaska.

Breakingviews - Oleg Deripaska’s En+ deal is more sour than sweet

23 Jan 2019

LONDON (Reuters Breakingviews) - Oleg Deripaska has become a political football. A pre-Christmas deal with the U.S. Treasury to lift sanctions on the Russian oligarch’s power group En+ has riled Democrats worried about the Kremlin’s influence in domestic politics. While the deal contains multiple grey areas, the overall upshot looks sufficiently black and white.

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