GAM will struggle to shake off virus malaise 4 Aug 2020 The Swiss fund manager reported a net loss and its assets under management fell to $130 bln in the first half. CEO Peter Sanderson is cutting costs, but his medium-term targets look fanciful. His company is badly positioned to cope with the tough environment facing the industry.
Sony is primed for coming game-console battle 4 Aug 2020 Quarterly operating profit at the group’s PlayStation unit blew up 68% year-on-year to $1 bln. With Sony ready to roll out a new console later this year, the momentum looks sustainable. A huge base of loyal gamers plus exclusive content gives it an edge over Microsoft.
Mukesh Ambani’s retail M&A would wipe competition 4 Aug 2020 The tycoon’s Reliance might buy Future Group for $3.6 bln. It would enlarge a shopping giant bigger than all its major brick-and-mortar rivals combined. Amazon might also invest in the behemoth. The deals would shore up Ambani’s dominance, and blunt India’s shopping revolution.
Retail’s WeWork escape hatch is sealed shut 3 Aug 2020 Real estate used to be a valuable asset for troubled retailers: Lord & Taylor sold its flagship store to the office share startup. But a spate of bankrupt apparel chains shows the sector’s last ditch for value is on the fritz. It is bad news for the likes of Simon Property.
Merger tricks no match for rolling up the sleeves 3 Aug 2020 The parent of Men’s Wearhouse has filed for bankruptcy after Covid-19 halted in-person shopping and a need for suits. Just six years ago it was a Wall Street plaything, successfully pulling off a so-called Pac-Man defense. It’s a reminder M&A games are no match for good strategy.
WeChat makes bigger brick in anti-China firewall 3 Aug 2020 Tencent’s app is next in line for a White House ban after TikTok. Blocking WeChat, crucial to life and business in the People’s Republic, would protect overseas Chinese from Beijing’s spies, but cut them off from home. That would hasten and deepen the decoupling of the internet.
Corona Capital: College mergers, UK property funds 3 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: M&A goes to the University of Arizona; Britain’s financial watchdog considers stopping property fund withdrawals.
HSBC is firing on just one shaky cylinder 3 Aug 2020 The $90 bln lender’s investment bank is the only business that’s really growing, as the group racks up further bad-debt charges. CEO Noel Quinn is cutting costs fast. But with low interest rates crimping revenue, he might need to take a sharper knife to restructuring plans.
SocGen confirms weak-man-of-Europe status 3 Aug 2020 Rising bad debt plunged the French bank to a 1.6 bln euro half-year loss. Equities trading was dire even as investment banking rivals made money. A pledge to keep full-year credit charges subdued may be CEO Frederic Oudea’s last chance to revive the lender’s bombed-out valuation.
Speedway adds financial inconvenience for 7-Eleven 3 Aug 2020 The retail chain’s Japanese owner, Seven & i, is gearing up to expand its U.S. footprint by buying Marathon’s gas station business for $21 bln. The synergies could help to eke out a sensible return. But investors have already discounted $2 bln, about half of their net value.
TikTok learns old lesson about U.S. art of deal 2 Aug 2020 President Trump had significant influence on conversations between Microsoft and TikTok after owner ByteDance’s proposed minority stake in earlier talks posed concerns. On M&A that raises national security worries, Chinese firms will find Uncle Sam is the new poison pill.
Rich $16.4 bln cancer deal is too ambitious 2 Aug 2020 Siemens Healthineers is re-entering radiation treatment about a decade after exiting, buying Varian. Combining diagnostics and treatments is a good idea. But savings don’t cover the $3 bln premium, and a financial wheeze from Siemens doesn’t compensate.
James Murdoch headlines broader ESG challenges 2 Aug 2020 The one-time heir apparent to his father’s media empire quit the board of Wall Street Journal publisher News Corp. He cited clashes over content and strategy. If the ultimate insider can’t have much sway at a company, imagine how hard it is for outsiders such as BlackRock.