GM investors are not showing up for work, either 30 Sep 2019 Striking employees downed tools 15 days ago, and the $53 billion carmaker has lost more money than was initially priced in. The industrial action ought to have been easy to resolve. Now shareholders are ignoring it just as it’s starting to bite financially.
Nasdaq finds odd time for right move on IPOs 30 Sep 2019 The U.S. bourse is making it hard for small overseas firms to go public amid concerns about governance and liquidity. That makes sense. But the tweaks are snaring companies from the People’s Republic. With the U.S. trade war raging, Nasdaq risks looking like it’s currying favor.
Argentina’s FX rift reflects its two-Macri problem 30 Sep 2019 The offshore peso rate has diverged 15% from the official rate, suggesting markets have lost faith with President Mauricio Macri. Political realities may explain why he promised one thing and delivered another. Future reformers may receive a greater degree of investor skepticism.
Bob Dudley has made decent lemonade from BP lemons 30 Sep 2019 The oil major’s chief executive may step down next year. The company is in tolerably good shape given the scale of the Gulf of Mexico mess that he inherited nine years ago. Breaking with Dudley’s cautious approach to climate change would allow his successor to usher in a new era.
The Exchange: Matthew Putman 30 Sep 2019 The factory floor may be an odd place to find a musical virtuoso. But the founder of Nanotronics, a near-unicorn on the Brooklyn waterfront with Peter Thiel on its board, is as comfortable tinkling the ivories as he is tinkering with the complexities of process automation.
Prudential Brexit split only partly reveals value 30 Sep 2019 The 38 bln pound insurer is spinning off its UK asset manager and annuities arm next month. M&G could be worth close to 7.8 bln pounds, according to Breakingviews calculations. To justify the hassle, though, Prudential investors will award its Asian operations a higher rating.
Cox: The gnomes of Zurich aren’t boring enough 30 Sep 2019 Swiss banking is meant to be discreet, stable and predictable. It’s also trying to prove it’s ethical. That’s why Credit Suisse’s dumb decision to ask second-rate detectives to trail former wealth boss Iqbal Khan, who defected to rival UBS, is a national embarrassment.
Big steel can reform its way to a longer life 30 Sep 2019 Rio Tinto will work with China's top producer to make steel greener. From Shell to BHP, resources firms are starting to tackle emissions churned out by oil, coal and the like, after they are sold. Such climate-friendly moves may also keep costs manageable, and an industry going.
AB InBev’s Asia success requires some extra fizz 30 Sep 2019 Budweiser APAC’s stock opened up a modest 1.5% in its Hong Kong debut. The tepid reception is unsurprising given holidays and protests this week, but slowing global beer sales have dampened enthusiasm, too. Outperforming in Southeast Asia could unlock a rally.
China turns 70, to forced applause 30 Sep 2019 The People's Republic marks seven decades of single-party rule on Tuesday. Critics who predicted regime failure underestimated its ability to create wealth and crush resistance. But the cowing of internal critics is a growing risk to economic resilience.
Markets short-termism keeps climate fight boxed in 27 Sep 2019 Governments and the private sector alike pledged to do more to tackle global warming at the U.N. climate summit. Committed financial resources, though, are thin on the ground. Blame wary CFOs, hidebound investors and skewed incentives. It’s creating huge embedded risks.
Osram bidding war triggers flashing red lights 27 Sep 2019 Austrian sensor specialist AMS is upping its bid for the German bulb and LED maker to 4 bln euros. The 17% premium to a formal Bain-Carlyle offer will probably see off the private equity challengers. But it adds another turn to the deal’s already stretched finances.
IPO wannabes split into can’t, shouldn’t and won’t 27 Sep 2019 Talent firm Endeavor scrapped its initial public offering, and it’s easy to see why. Economic signals are worrying; WeWork and Peloton have had frosty receptions. Endeavor has unappealing qualities too, but at least it has a solid business, and the luxury of being able to wait.
Review: Uber rite-of-passage tale will have sequel 27 Sep 2019 Mike Isaac’s “Super Pumped” catalogs Travis Kalanick’s toxic reign at the ride-hailing firm. The conflict between a driven founder and steering a big company was replayed at WeWork this week. Only a later instalment will show whether the $54 bln Uber is built to last.
Wells Fargo’s new boss pulls right strings 27 Sep 2019 Charlie Scharf brings helpful familiarity with the U.S. lender’s regulators and biggest shareholder. Peers too: He started out as assistant to JPMorgan chief Jamie Dimon. Moreover, there’s a connection he thankfully lacks. Scandal-plagued Wells Fargo finally has an outsider CEO.
Exxon Mobil quits North Sea with bags full of gold 27 Sep 2019 The U.S. oil major is shifting capital from high-cost fields to higher-growth areas closer to home. That’s sensible, and a $4.5 bln price tag for its Norwegian operations is a good exit. It’s some consolation for investors antsy about Exxon’s laid-back approach to climate change.
Abolishing UK private schools would be export blow 27 Sep 2019 Britain’s Labour Party will clamp down on non-state education if it wins power. That would scare off overseas students who add 1.7 bln pounds a year to UK GDP. With exports of financial services and cars under threat from Brexit, it’s income the country can ill afford to lose.
Fiddling with bank capital can help the planet 27 Sep 2019 Financial regulators are caught in a bind over climate change. They want lenders to favour environmentally sustainable projects, but also want to prevent them from going bust. A decision by France’s Natixis to apply green criteria to its balance sheet may help break the stasis.
Baidu’s Ctrip sale leaves room for risky wandering 27 Sep 2019 The $37 bln web giant is offloading nearly a third of its holding in China's largest travel agency for $1 bln. Ctrip stock has shed over 30% since Baidu came in; still, thanks to an initial share swap, boss Robin Li can book a profit. Now he needs to spend on more than buybacks.
Hong Kong’s politics could knock down developers 27 Sep 2019 In a sign that protests have hit real estate, officials rejected offers for a plot at the former airport as too low. Things could get worse with perception growing in Beijing that property titans are partly to blame for the unrest. It heralds policy changes that crimp earnings.
Boutique bank rides Chinese unicorns downhill 27 Sep 2019 Since its IPO a year ago, China Renaissance has lost half its market value. Hot tech clients cooled off and new funding dried up. Boss Fan Bao is counting on his own startup investing and a new brokerage to help steady things. If the downturn lasts, however, it will impede both.
Viewsroom: WeWork overhaul won’t be enough 26 Sep 2019 Adam Neumann lost his CEO role and control of the shared-office provider after its valuation plummeted in preparation for a now-postponed IPO. But WeWork’s business model remains a problem. Plus: Thomas Cook’s collapse hits China’s Fosun. And: parsing financial climate pledges.
Peloton fails one of finance’s oldest workouts 26 Sep 2019 The exercise-bike maker’s IPO valued it at $8 bln but its stock promptly sagged. The lack of profit is not the big problem. It’s the competition from other connected-workout startups and health fads plus dependence on a few key suppliers. That makes Peloton look anything but fit.
Chirac showed safe way to mess up an EU referendum 26 Sep 2019 The former French president, who has died aged 86, famously asked voters to back the European constitution and lost. UK leader David Cameron did something similar in 2016. The difference between the two is that the answer to Jacques Chirac’s question was easier to fudge.
Vaping blowback leaves Imperial short of puff 26 Sep 2019 A crackdown by U.S. regulators has choked growth at the UK tobacco group’s e-cigarette unit. Imperial shunned the big bets made by rivals like Altria, and expects demand will return. But $2.3 bln of lost market value suggests investors’ hopes have vanished in a cloud of steam.
SoftBank risks chasing its losses with WeWork 26 Sep 2019 CEO Masayoshi Son may pour an extra $1 bln into the cash-burning shared-office firm. It’s tempting to imagine this means WeWork’s business just needs more cash and patience. The reality is that SoftBank has more to lose from walking away than a regular investor might.
New Molson Coors boss mounts Big Beer’s laggard 26 Sep 2019 The $12 bln brewer’s valuation trails industry peers. A renewed emphasis on marketing might make the difference but could mean less cash for controlling family shareholders. Incoming CEO Gavin Hattersley’s prior record, though, may leave a thirst for higher returns unquenched.
German ECB exit could make Lagarde’s life harder 26 Sep 2019 Sabine Lautenschlaeger resigned from the European Central Bank’s board. With no reason given, it is all too easy to blame the premature departure on discontent over recent monetary easing. Incoming boss Christine Lagarde’s room for manoeuvre may be shrinking before she starts.
ABN Amro investors dread U.S.-style mega-fine 26 Sep 2019 Shares in the state-controlled Dutch bank fell 9% after it confirmed prosecutors had launched a money-laundering probe. The loss of 1.5 bln euros of market value implies a larger penalty than rival ING paid. That would only be justified if American authorities get involved.
Bain’s Osram bid is insufficiently illuminating 26 Sep 2019 The buyout group and new partner Advent may outdo a 4.3 bln euro cash offer for the German lighting group from Austria’s AMS. Yet the latter’s proposal must lapse before shareholders can see what Bain is bidding - which may be less appetising. Osram should stick to its guns.