BREAKINGVIEWS

Climate risk gets the right kind of oversight

18 April 2019

Central banks presiding over almost half the planet’s GDP plan to treat global warming as a threat to financial stability. It’ll add heft to existing pressure from investors and make it harder for companies and their lenders to ignore the longer-term impacts of climate change.

Weed giant chooses odd way to lay down U.S. roots

18 April 2019

Canopy Growth has struck an unusual deal to buy an American rival for $3.4 bln – if marijuana becomes legal there. It’s a clever way of getting into the world’s biggest market. The question is why the Canadian outfit would want a company happy to accept this lopsided arrangement.

Pinterest and Zoom indulge in IPO micro-aggression

18 April 2019

Both tech companies sold shares for more than underwriters previously indicated. True, market debuts give little indication of long-term success. When insiders already hold supervoting shares, though, leaving a bit less on the table is a gentle reminder of who calls the shots.

Blackstone’s conversion is less than it seems

18 April 2019

Turning into a corporation should broaden the buyout shop’s investor base and win inclusion in indexes. Yet a similar move hasn’t done much for rival KKR, and power stays in hands of boss Steve Schwarzman and insiders. They, not passive investors, will decide Blackstone’s value.

Aramco sale would grease Mukesh Ambani’s tidy-up

18 April 2019

The Saudi oil giant is eyeing a stake in the energy assets of the tycoon’s $127 bln Reliance Industries. That would aid Aramco’s strategic ambitions. It would also mean India’s biggest listed group could keep expanding its consumer-to-oil businesses without adding too much debt.

Unilever could use a few Nestlé diet tips

18 April 2019

Decent first-quarter revenue growth at both consumer giants means their 2020 margin goals can live another day. But Unilever’s foods business expanded just 1.5 percent organically compared to 3.4 percent overall at Nestlé. The Anglo-Dutch group needs to overhaul its pantry.

Chinese millennials create M&A urgency for Kering

18 April 2019

Gucci’s success, especially with the mainland’s young affluent, is a blessing and a curse for Francois-Henri Pinault’s luxury empire. The Italian brand accounts for 61 pct of sales. Finding another marque, like Valentino or Patek Philippe, to balance the business won’t come cheap.

Next Ukraine leader will inherit unfunny problems

18 April 2019

A comedian whose TV character accidentally becomes president is the front runner to win Sunday’s election and take charge of securing billions of dollars in aid. To unlock the money, Kiev must satisfy the IMF it is tackling corruption. It’s a challenge where life may imitate art.

TSMC’s new chips will leave Samsung in the dust

18 April 2019

Quarterly earnings at Taiwan’s $220 bln semiconductor maker fell 32 pct to $2 bln. However, cutting-edge technology means TSMC will benefit first as 5G handsets come into use and its South Korean rival will struggle to catch up. That justifies the rich valuation gap.

Terry Gou’s presidential hopes will rock Taiwan

18 April 2019

Citing support from a sea goddess, the Foxconn founder is running for the top job. Beijing links and a history of outsourcing to cheap mainland factories will be at issue, when the economy is weak. The campaign will also unsettle relations between Taipei, Washington and Beijing

Indonesian election may change some investor votes

18 April 2019

Polls suggest Joko Widodo won another term, but with a narrow enough victory margin to embolden a belligerent opposition. There were pockets of populist success, too. That will temper hopes he’ll finally tackle energy subsidies and even rigid labour rules to woo foreign money.

Veteran Indian bank CEO pushes the limit

18 April 2019

Aditya Puri has been at the helm of the high-performing $90 bln HDFC Bank over two decades. He’s now nearing retirement age. Stunning returns favour a mooted rule change allowing him, and others, to stay on, but blowups elsewhere suggest timely succession may be better.

JPMorgan’s CEO parlour game is far from over

18 April 2019

Putting finance director Marianne Lake in charge of consumer lending is an unsubtle hint about who might one day replace Jamie Dimon. She makes for a solid succession candidate. A lot can happen at a mega-bank in four years, though. Hot-seats have a way of becoming jump-seats.