Capital Calls: Microsoft micromanages tech jitters 2 Jun 2022 Concise views on global finance: A 1% revenue shortfall because of a strong dollar normally isn’t that important. Microsoft’s warning reflects how nervous tech investors have become.
Ukraine war helps China’s coal addiction stack up 2 Jun 2022 President Xi Jinping’s administration is boosting coal production to stave off power cuts. The top emitter is embracing the fossil fuel tightly as wealthy nations bid aggressively to replace Moscow’s natural gas supplies. The rational financial choice is a firm blow to net zero.
Facebook sans Sandberg is more vision than company 1 Jun 2022 While the social network had problems under its departing COO, it at least had a business model and a top-tier executive who could sell it to investors. Amid slowing ad sales and co-founder Mark Zuckerberg’s pivot to the metaverse, Sheryl Sandberg’s exit comes at a poor time.
SPACs go back, but with no future 1 Jun 2022 A freight firm with little revenue and ambitious projections agreed to a $500 mln blank check merger, while Forbes has called its SPAC tie-up off. Looming regulations have taken the shine off these once-popular deals. Banks and companies who stay the course are taking a risk.
AC Milan’s soccer triumph rubs off on Elliott 1 Jun 2022 The U.S. fund is selling the Serie A winner to private equity firm RedBird for $1.3 bln, nearly 5 times sales. That’s rich for a club with chronic losses. After a challenging first half and the pandemic, Elliott looks to have made a respectable return from the Italian team.
Big Tech braces for bipartisan midterm punches 1 Jun 2022 Facebook and peers got a pass from the U.S. Supreme Court over a Texas social media law. But if Republicans win Congress in November, they will be deluged with hearings and subpoenas. Democratic critics already lead industry watchdogs. Strife comes from both sides of the aisle.
Capital Calls: Inflation-proof Dr Martens, Saipem 1 Jun 2022 Concise views on global finance: The UK bootmaker’s polished results offer glimmer of hope to embattled retailers; the Italian energy-services group reassures investors with $550 mln sale of its onshore drilling unit.
DWS CEO exit is helpful deterrent for greenwashing 1 Jun 2022 Asoka Woehrmann resigned from the $7 bln asset manager as regulators probe allegations it exaggerated its sustainable investing skills. Fund groups have benefitted from booming demand for ESG investments. The fallout at DWS gives other bosses an incentive to tone down the hype.
Tech giants pick odd time for ad break 1 Jun 2022 Netflix, Sony and others are mulling commercials in shows and games. Given how ad spending gets hit in a downturn, the timing looks curious unless it offsets hard-up consumers cancelling subscriptions. The big winners are the ad-tech firms like Trade Desk making it happen.