BREAKINGVIEWS

GE offers 100 bln reasons to divorce CEO and chair

20 April 2018

That’s how many dollars of investor booty the industrial group has incinerated since John Flannery replaced Jeff Immelt. The new boss wants to create more accountability. But that starts at the top. An investor proposal to separate the roles deserves shareholder support.

Wells Fargo bets $200 bln on hopes for new climate

20 April 2018

That’s how much under-fire CEO Tim Sloan is pledging for clean-energy and other green projects. It may distract from a $1 bln mis-selling fine but it’s no mere PR stunt. Boosting financing and outlining credit portfolios’ carbon intensity are smart ways to address climate risk.

Trump’s OPEC smackdown more relevant than it looks

20 April 2018

The president slammed the oil cartel for production cuts that spurred the highest oil prices since 2014. Whatever his intent, members meeting in Jeddah should be wary of leaving the field open for rivals. A U.S. shale-drilling frenzy would hurt prices more than a tweet.

Arsenal manager’s weak second half instructs CEOs

20 April 2018

Frenchman Arsène Wenger is hanging up his boots at the North London soccer club after 22 years. A golden age of winning seasons followed his arrival in 1996, but Arsenal underwhelmed for the last decade. As with corporate bosses like WPP's Martin Sorrell, he hung around too long.

India is prize worth keeping for Uber

20 April 2018

The ride-hailing giant says it won’t exit the market with a minority stake as it did in Southeast Asia and China. Uber has a narrower gap with local rival Ola and the country can serve as a good test-bed for new ideas. Without India, Uber would also look less global in an IPO.

Regulatory reprieve adds tonic to Barclays revival

20 April 2018

After a year-long probe, British watchdogs plan to fine boss Jes Staley for trying to unmask a whistleblower. The verdict keeps Staley in his job and avoids awkward questions for the regulators and for Barclays’ board. Staley can now focus on turning around the investment bank.

Swiss central bank gets FX wish three years late

20 April 2018

The franc has weakened to 1.20 against the euro for the first time since the Swiss National Bank ditched its cap on the currency in January 2015. Several factors could explain why. Policymakers are unlikely to care much about the reasons given the moves may help revive inflation.

Ericsson rebirth as much made in China as Sweden

20 April 2018

The Swedish telecom-kit maker’s shares soared 15 pct after quicker-than-expected cost cuts. That adds credibility to boss Borje Ekholm’s previously unimpressive rescue effort. An even bigger boost could come from anti-Chinese sentiment harming rivals like Huawei and ZTE.

Royal Mail’s best Amazon defence is to stay cheap

20 April 2018

The UK postal group has appointed Rico Back to replace departing CEO Moya Greene. The 5.7 bln pound company is staking its future on growing its parcel business. That requires it to both partner and compete with the online giant. Keeping delivery costs low will keep Amazon close.

First blood won’t be last in Aussie bank showdown

20 April 2018

The boss of wealth manager AMP quit Friday, as a public inquiry into the financial sector Down Under heats up. The Royal Commission has heard horror stories about lies, dud advice, and lenders charging the dead. Craig Meller’s scalp may not be the only one hung on the gate.

Japan would take turn for worse without Abe

20 April 2018

Allegations of cronyism could bring Shinzo Abe’s five-year run as deflation killer to an end. While ultra-loose monetary policies may live on, one potential successor is more focused on North Korea than structural reforms. Markets are being sanguine about the potential fallout.

Amazon’s $10 bln subsidy is Prime for growth

19 April 2018

Boss Jeff Bezos says the free-shipping club has 100 mln subscribers. The annual fee would have to double for Amazon to break even on deliveries, Breakingviews calculates. But at under 6 pct of sales, the shortfall is a cheap way to retain customers and avoid price wars.

Shire makes needy suitors work for risky bet

19 April 2018

The London-listed pharma group has rejected a 42 bln pound offer from Osaka-based Takeda, and may now face a bid from Botox-maker Allergan. Shire’s business has its challenges, but its would-be acquirers have strategic issues and need a deal. The risk of overpaying is going up.