Patrick Winters
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All things finance for @Business in Singapore. Views my own. Tips at pwinters3@bloomberg.net.
Patrick Winters’s Journalist Portfolio
View as a gridRussians Skip Riviera Jaunt as Sanctions Ground Private Jets
Bloomberg News
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For years, Nice Cote d'Azur airport received a steady stream of wealthy Russians touching down in corporate jets on their way to holiday homes on the French Riviera. As the Ukraine crisis deepens, that's begun to change. European Union sanctions curbing travel for leading Russian business people and politicians have started to bite, causing private-aircraft flights from Moscow to Nice to drop 5 percent in the seven months through July, the first fall since 2009. "A lot of Russians bought property in the south of France, they love to come here," said Umberto Vallino, head of business aviation development for Nice, Cannes and St.
Red-Light District Dims as Zurich Bankers Curb Spending
Bloomberg News
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Zurich's red-light district is dimming. Bankers who have been core patrons of the city's sex industry and cabarets are curbing spending. The venues of Langstrasse -- or long street -- are closing, replaced by hipster bars, techno clubs and even a backpackers' hostel. Like the finance industry, the sex trade has opted for a lower profile. "Times have changed," said Kevin Joliat, the manager of the Petit Prince nightclub in central Zurich. "Bankers really have to show who the client was, why they spent the money and was it really necessary," said Joliat, who once worked at Zuercher Kantonalbank, Switzerland's largest state-owned bank.
Mighty Franc Spells Headwinds for 'Made-in-Switzerland' Label
Bloomberg News
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The mighty franc is undermining the "Made in Switzerland " label. For exporters, it's a double whammy. The depreciation of emerging-markets currencies against the franc is making Swiss products less attractive. At the same time, operating factories in the Alpine nation is becoming increasingly expensive. "The way the franc is now is not acceptable in the mid-term or long-term," said Nick Hayek, chief executive officer of Swatch Group AG (UHR), the Swiss watchmaker that exports 90 percent of its goods. "We have to fight against it, not say 'Well, we can't do anything about it.'" As Europe's slumping economy pushed the franc near parity with the euro in 2011, Swiss companies ramped up exports to faster-growing countries like China.
Elementia Said in Talks to Buy Out Lafarge in Mexico Venture
Bloomberg News
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Elementia SA, the Mexican cement maker backed by billionaires Carlos Slim and Antonio del Valle, is in talks to buy out partner Lafarge (LG) SA in their joint venture, people with knowledge of the matter said. Elementia has the right to buy Lafarge's 47 percent stake under an option described in the original terms of the Mexico partnership, said two of the people, who asked not to be identified discussing private negotiations. Lafarge wants to avoid competing with itself in Mexico after agreeing in April to a $40 billion merger with Holcim Ltd., which already operates in the Latin American nation, two people said.
Monsanto Said to Have Weighed $40 Billion Syngenta Deal
Bloomberg News
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The desire to avoid U.S. corporate taxes has now spread to agricultural giants -- as a dead deal shows. Monsanto Co. (MON), the world's largest seed company worth $64 billion, recently explored a takeover of $34 billion Swiss rival Syngenta AG (SYNN) in a transaction that would have allowed the U.S. firm to move its tax location to Switzerland. The deal, which is now defunct according to people familiar with the matter, is another sign of how U.S. firms in many sectors are trying to avoid corporate taxes by moving their headquarters overseas. U.S. drugmaker Pfizer Inc.
Swiss Startup Turns Military Drone Cameras on World Cup
Bloomberg News
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FIFA is betting on lightning-quick cameras and sensors used in surveillance drones to be goal-line supervisors at the World Cup, in the biggest test yet for the technology. World Cup orders have added to demand from factories and railways where the cameras are used for inspections and surveillance, according to Marcel Krist, chief executive officer of manufacturer Photonfocus. The cameras, tested at soccer's Confederations Cup, could be rolled out full-time if they prove successful. "2013 was a very good year, 2014 is going like crazy" said the CEO of the Lachen, Switzerland-based company, created in 2001.
Barbarians at Gate for Swiss Boards as Activist Investors Rule
Bloomberg News
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Swiss directors beware: that role now comes with an ejector seat. As part of the "fat-cats" referendum last year that gave investors a greater say in executive salaries, shareholders can fire all the board members of Swiss companies in one fell swoop. At recent annual meetings, companies such as Nestle SA (NESN) and Syngenta AG (SYNN) implemented new rules they say tip the balance of power toward foreign activist shareholders who may place their own interests ahead of the long-term good of the company. "We have given away a lot of decision power to people outside of the country," Syngenta Chairman Michel Demare said at a May 26 conference in Bern.
Swiss Corporate Allure Ebbs as People Power Deters Companies
Bloomberg News
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Switzerland's liberal tax and labor laws made it a magnet for companies. Now the country's open approach to politics is making it a repellent. In the past 15 months, Swiss voters have approved a proposal to curb the inflow of foreigners and backed an initiative to limit executive pay including severance packages. In the latest referendum, on May 18, they will decide whether to introduce the world's highest minimum wage, paying workers at least 22 francs ($25) per hour or 4,000 francs a month.
Billionaire Anchored in Cement Pours Heart Into Vineyards
Bloomberg News
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Thomas Schmidheiny inherited a cement company from his father that's poised to become the world's biggest. Yet what really excites the Swiss billionaire is a wine sideline with sales of about 0.1 percent of the cement revenue. "If I could come back in my next life, it would be as a winemaker," Schmidheiny said over coffee at Heerbrugg, his 12-acre vineyard that tumbles down the verdant hills flanking the Rhine where Switzerland and Austria meet. Schmidheiny, 68, joined the family company at a Mexican subsidiary in 1970, became CEO of Holcim (HOLN) Ltd. in 1978, and inherited his father's share in the business in 1984.
Lafarge-Holcim Success Hinges on Bridging Culture Gap
Bloomberg News
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Merging cement makers Holcim and Lafarge will create an industry giant with $44 billion in annual sales. Just as important to the venture's future, it will also bring two of Europe's most ambitious executives under one roof. The relationship between Holcim Ltd. (HOLN)'s Wolfgang Reitzle and Lafarge SA (LG) chief Bruno Lafont will be crucial as the companies attempt to sell assets to gain regulatory approval, satisfy a roster of billionaire shareholders and cut costs by combining operations sprawled across five continents. German-born Reitzle brings strategic merger experience following a successful $14 billion takeover as CEO of Linde AG.
Holcim to Merge With Lafarge to Form Biggest Cement Maker
Bloomberg News
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Holcim Ltd. and Lafarge SA (LG) agreed to form the world's largest cement maker as they prepare to sell assets with 5 billion euros ($6.9 billion) in revenue to win regulatory approval for the biggest European deal this year. About two-thirds of the divestments will come from Europe, according to Lafarge Chief Executive Officer Bruno Lafont, who will lead the merged company. The new entity, with $40 billion in annual revenue, may also sell assets in Canada, the U.S., Brazil, India and China, he said on a conference call today.
Rich Swiss Develop Taste for UK Cheese Man's Smelly Wares
Bloomberg News
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Accidental entrepreneur Michael Fontana-Jones is making stinky British cheese pay in a crowded market: Switzerland, a country renowned for domestic varieties such as holey Emmental and nutty Gruyere. Last year his British Cheese Centre in Zurich imported 16,000 kilos (35,000 pounds) of British cheese compared with 700 kilos in 2008, the year after he started. He sells Stinking Bishop, voted England's smelliest cheese and supplied to the household of Prince Charles, for 79 francs ($91) per kilo. He gets 100 francs for Ragstone, a soft raw goat's cheese. Gruyere, a traditional Swiss cheese, retails for 19 francs per kilo at supermarket chain Migros.
Nicotine Branded Made-in-Switzerland Gets E-Cig Boost
Bloomberg News
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Nicotine is so toxic that it's been used as a pesticide, and less than a teaspoon can kill a person. With the advent of electronic cigarettes, that potency is creating an opportunity for pharmaceutical companies that can assure the purity and quality of the drug. "Nicotine is an extremely difficult-to-handle, hazardous product," said Torsten Siemann, managing director of Germany's Contraf-Nicotex-Tobacco GmbH, which sells the drug in a partnership with Switzerland's Siegfried Holding AG. (SFZN) "Our offering is like a brand," he said. "It's clear that this is high-quality nicotine, made in Switzerland." Global sales of e-cigarettes will top $5 billion this year, Euromonitor International Ltd.
Hacking Joins Curriculum as Businesses Seek Cyber Skills: Tech
Bloomberg News
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For students of cybersecurity at Switzerland 's 150-year-old ETH university in Zurich, hacking is a legitimate part of the curriculum. Students learn to infiltrate Internet and mobile networks in classes on "wireless electronic warfare" and "modern malware" designed to prevent computer malfeasance. The number of students enrolled in ETH Zurich's information security master's program has more than tripled since 2009, the university said. Demand for cyber specialists is rising as companies such as Deutsche Telekom AG (DTE) and ABB Ltd. (ABBN) hire more experts to counter risks to their networks and products.
Ex-UBS Banker Quits Zurich Desk for Horse Racing Dream
Bloomberg News
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After more than 20 years in the financial-services rat race, Swiss banker Michael Reichstein packed it in and turned to horse racing for a living. The 46-year old quit his job as a vice president at UBS AG (UBSN)'s private-banking unit in Zurich where he advised wealthy clients in countries from Jordan to Lebanon and in 2011 began offering bets on British horse races. Reichstein said his Gibraltar-based service, which mostly places lay bets -- a wager that a horse won't win -- is unique.
That $2.5 Million Classic Jaguar for Sale May Be a Fake
Bloomberg News
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In the 1930s, British sports-car maker MG made exactly 33 of the K3 open-top race car. If you want to buy one now, there are more than 100 to choose from. No, the defunct carmaker didn't restart production. The tripling of the K3 fleet is part of the booming trade in fake antique autos as soaring prices for classic cars spur sophisticated counterfeits, according to Bernhard Kaluza, vice president of international antique auto club FIVA. "In the 1990s, I would find one faked car every five years," said Norbert Schroeder, who verifies classic cars at TÜV Rheinland, a Cologne, Germany-based technical testing company.
Swiss Rage Against CEO Pay Provokes Vote on Salary Limits
Bloomberg News
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Thomas Aebischer, who grew up on a farm, studied at Harvard Business School and traversed four continents to secure the top finance post at the world's largest cement maker, Holcim Ltd. (HOLN) On Sunday, Swiss voters will decide if he deserves his salary. Nine months after putting checks on excessive payouts for executives in a referendum, Europe's best-paid voters will decide whether to cap the highest wages in a company at 12 times the lowest pay. Swiss corporations and the government have joined forces to oppose the so-called 1:12 initiative, which is forecast to be rejected.