Musk’s Twitter capitulation will be painful 4 Oct 2022 The billionaire’s retreat – offering to honor his $44 bln buyout deal after trying to nix it – is a big win for the social network’s investors. But if it sticks, banks must pony up $13 bln amid a crashing market, while Twitter will have an owner who spent months trashing it.
HSBC Canada exit could be a nice clean break 4 Oct 2022 The Anglo-Asian lender is diminutive in a market dominated by a few giants. That, though, might make it easier to sell its profitable Canadian operations without too much antitrust and politics. Tiptoeing away from Canada’s carbon-intensive energy sector can’t hurt either.
Florida has a flood problem and insurance problem 4 Oct 2022 Hurricane Ian could cause insured losses of over $50 billion, making it one of the costliest storms on record. But over 80% of the state’s homes lack flood insurance, and because premiums are skyrocketing, more residents are hitting up the state’s insurance program.
Beware spins from Danaher’s well-oiled M&A machine 4 Oct 2022 The $200 bln conglomerate plans to separate yet another division, this time packaging and water filtration. Its acquisition nous generates strong returns, but recent castoffs have disappointed. Transferring the parent’s kaizen-based system to its progeny is proving difficult.
Capital Calls: Buffett’s Berkshire successor 4 Oct 2022 Concise views on global finance: The Omaha oracle owns $100 bln of stock in his conglomerate. His potential successor Greg Abel’s purchase of $68 mln of stock last week – after selling shares in a subsidiary for $870 mln in June – is too small a move toward Buffett’s standard.
Canary Wharf’s post-pandemic property conundrum 4 Oct 2022 The east London financial hub’s owner is expanding even as tenants like HSBC consider ditching their leases. In this Exchange podcast, CEO Shobi Khan explains how renting out swanky apartments and luring a new breed of tenant can insulate the landlord from a property slump.
Abu Dhabi would be a logical owner for Gunvor 4 Oct 2022 ADNOC, the emirate’s huge oil company, is interested in the privately held commodities trader. Gunvor’s valuation involves guesswork, and it used to be owned by a target of U.S. sanctions. But the UAE could use the group’s roster of gas client relationships, and it has the cash.
Kim Kardashian makes an example out of the SEC 3 Oct 2022 Imposing a $1.3 mln fine on the Instagram star marks an attempt to warn other crypto promoters. It’s unclear how much impact such social-media influencers have on the market, though. Without real teeth, SEC Chair Gary Gensler risks exposing his lack of tools to regulate properly.
Vodafone’s UK merger plan has cost-of-living catch 3 Oct 2022 The $32 bln telecoms group and Hong Kong’s CK Hutchison are in talks to merge their British operations. A deal could unlock cost savings, but shareholders so far seem unenthused. It may be harder for watchdogs to accept lower competition while customers reel from higher prices.
RWE’s U.S. swoop is investors’ gain, Europe’s loss 3 Oct 2022 Germany’s largest utility is paying $7 bln to make a push in U.S. solar power just as juicy subsidies are set to fuel a clean energy boom. That and a fair price tag should please investors. The move risks depriving Europe of green investments as it fights an energy crisis.
The end of cheap money reveals global debt problem 3 Oct 2022 Borrowing has risen to more than 250% of world GDP, far more than before the 2008 financial crisis. Rising interest rates and low growth make this burden harder to bear, causing economic stress in Europe, China and the Global South. This will poison geopolitics, says Hugo Dixon.
Capital Calls: Tesla greases supply-chain fears 3 Oct 2022 Concise views on global finance: The $760 bln electric-car maker manufactured more vehicles in the third quarter but delivered fewer than analysts were expecting, raising fresh concerns about the industry’s ability to get production running smoothly again.
Tax U-turn leaves UK’s Truss with credibility gap 3 Oct 2022 Prime Minister Liz Truss’ move to scrap a tax cut for high earners lowered government bond yields and boosted the pound. But her policies still rely on unfunded giveaways and rosy growth hopes. Investors’ loss of confidence from the crisis makes her agenda even harder to achieve.
Credit Suisse selloff throws wrench into revamp 3 Oct 2022 The bank’s shares fell 8% on Monday and the cost of insuring its debt soared. Chair Axel Lehmann may struggle to sell assets amid the turmoil, undermining a strategic overhaul. A sustained rout could even force him to raise capital fast – at a painful valuation for shareholders.
SocGen’s new insider CEO requires outsider mindset 3 Oct 2022 The French lender trades at a third of tangible book value – lower than almost all its rivals. Next boss Slawomir Krupa previously ran investment banking and eastern Europe, both of which arguably drag down its shares. Breaking with the past may require shrinking his old charges.
South Korea gets short end of U.S. trade stick 3 Oct 2022 Seoul wants to sell more chips and other goods overseas, but Washington is luring Samsung and compatriots to make in America. A trade deficit and crashing won offer a glimpse at what a U.S. revival in high-tech manufacturing means for the $1.8 trln trade-dependent Asian economy.