OPEC gets closer to a Wizard of Oz moment 2 Feb 2022 When the curtain fell back, the fairytale character’s powers proved bogus. The cartel’s ability to steer crude prices rests on the market believing it can boost production. Challenged members like Angola make that tricky, raising the risk oil prices soar higher still.
Santander’s U.S. clinginess has a share price cost 2 Feb 2022 The 55 bln euro bank is keeping its American unit, unlike rivals BBVA and BNP. Full-year results show Chair Ana Botín is running it well, and she has plans to keep it growing. But investors give her scant credit. If that persists, the pressure to sell will become overwhelming.
Rio Tinto’s cultural fix will be an uphill dig 2 Feb 2022 The $117 bln mining giant is rife with bullying and racial and sexual abuse, according to a damning report. Miners’ improved safety records show reform is possible, if hard. Investors’ apparent indifference, though, makes prioritising workplace respect even tougher.
Lithium squeeze could short-circuit electric cars 1 Feb 2022 Automakers like GM battling the chip shortage face a bigger problem down the road. The price of metals in electric-car batteries is soaring as demand outpaces supply. With even market leader Tesla feeling the bite, the electric revolution looks further off – and less lucrative.
Google’s cloud is starting to make rain 1 Feb 2022 Beneath parent company Alphabet’s 32% jump in fourth-quarter revenue, losses at Google’s cloud businesses are shrinking. Investors have sent the shares down 7% this year, but they may be underestimating the shift from unprofitable challenger to established oligopolist.
Shine keeps coming off AT&T-Discovery deal 1 Feb 2022 The U.S. telecom giant is cutting its dividend as it puts finishing touches on its deal with Discovery. The $43 bln of cash AT&T will get for its streaming assets is helpful. But as the deal nears, shareholders’ muted reaction raises the question of whether it’s worth the effort.
Big Oil faces cash tug-of-war 1 Feb 2022 Both Exxon and Chevron slashed expenditures last year as economic slowdowns stalled oil demand. Both companies’ earnings show the cash spigot is on. With oil around $90, reformed spending sinners will get the urge to splurge. Shareholders might prefer cash goes back to them.
MicroStrategy is storing up bitcoin bother 1 Feb 2022 The $4 billion company’s digital currency holdings now account for almost all of its enterprise value. CEO Michael Saylor may be happy running what increasingly looks more like a crypto vehicle than an analytics and software business. But he is inviting more regulatory scrutiny.
The Exchange: San Francisco Fed boss Mary Daly 1 Feb 2022 U.S. inflation is at its highest in four decades. The central banker explains to Swaha Pattanaik how the Federal Reserve plans to tackle price pressures without jeopardising growth or job creation, and outlines her views on the outlook for monetary policy.
Italy energy firm dive is Rome’s latest hot potato 1 Feb 2022 Oil services firm Saipem may need at least 1 bln euros of fresh equity after warning of a loss just three months into a new business plan. The shock puts pressure on new CEO Francesco Caio. Given the uncertainty, top investors Eni and the Italian state may foot most of the bill.
Capital Calls: New York Times buys Wordle 1 Feb 2022 Concise views on global finance: The news organization’s purchase of the popular word puzzle fits its subscription strategy.
UBS’ Morgan Stanley impression could use more work 1 Feb 2022 CEO Ralph Hamers’ job is to get a valuation closer to the U.S. group’s 2.5 times tangible book value multiple, compared with his $68 billion bank’s 1.2. New buybacks help, but the missing ingredient is growth. Investors are understandably sceptical that Hamers can change that.
Nomura’s better numbers still need a new narrative 1 Feb 2022 The Japanese bank posted quarterly net profit of $525 mln, helped by the absence of hefty provisions for the first time since March. Boss Kentaro Okuda has been pushing into private markets and steadier earnings streams. But weak shares suggest he has work still to do.