Mukesh Ambani will take credit where it’s due 6 Dec 2022 The Reliance boss is pushing into consumer lending and might trim his stake in the $220 bln conglomerate to fund the move. A star-banker hire, and huge customer base are pluses. Still, there’s good reason for the tycoon to play down his ambition in this booming corner of finance.
Saboteurs add new twist to U.S. outage problem 5 Dec 2022 Over 40,000 customers were plunged into blackouts out after attacks on two U.S. substations. Vandalism on the power grid is costly to secure against, but utilities continue to face much larger vulnerabilities. The threat from storms is orders of magnitude larger and growing.
Circle’s SPAC flop does the public market a favor 5 Dec 2022 The stablecoin that CEO Jeremy Allaire runs is meant to have a predictable, steady price. But the company, which scrapped a merger with a blank-check firm, defies valuation. That could change, but only if the crypto storm calms and Circle can remain profitable until then.
Railway fight gets stakeholder capitalism on track 5 Dec 2022 After President Biden blocked a strike that threatened to disrupt the U.S. economy, investors want Norfolk Southern and Union Pacific to let shareholders vote on the sick-pay sticking point. Such proposals bring welcome attention to fresh ways of thinking about the bottom line.
Vodafone CEO exit limits room for quick turnaround 5 Dec 2022 Nick Read is leaving the 25 billion pound telecom group after just four years. Finding a permanent successor may take time, and the board’s focus meanwhile is on completing two deals and improving the group’s weak performance. Bold moves like a breakup may take a back seat.
South Africa growth is derailed, Ramageddon or not 5 Dec 2022 President Cyril Ramaphosa is under pressure to resign over a graft scandal. The country’s strong finances and small exposure to foreign investors will prevent a full-blown crisis. But his economic reforms are over, whether he stays or goes.
Friendshoring makes sense if done in the right way 5 Dec 2022 The United States and its allies want to build up suppliers of goods such as solar panels in friendly countries so they’re not vulnerable to Chinese disruptions or blackmail. To avoid self-harm they should define friends broadly and not attack China economically, says Hugo Dixon.
China’s Covid pivot may be damned by faint praise 5 Dec 2022 President Xi Jinping told EU officials that recent virus variants are less lethal, green-lighting more quarantine relaxation and inspiring markets. The next step is persuading households that hoarded $1.9 trln this year to spend or invest it. That won’t be easy or quick.
Aussie energy woes put miners in windfall hole 5 Dec 2022 Canberra may cap the soaring price of coal or tax profits to reduce electricity costs. That’s a potentially explosive new risk for producers like Whitehaven, which is buying back up to a third of its stock at near record highs. Such short-term largesse could come back to burn.
Blackstone’s BREIT slump looks nasty but not fatal 2 Dec 2022 The buyout goliath’s market value fell nearly $8 bln on news that investors were fleeing its flagship property fund. That doesn’t look like an augur of crisis for Steve Schwarzman’s firm. But it does suggest a nasty black eye to one of Blackstone’s best earners.
U.S. stock pickers win by not picking stocks 2 Dec 2022 Active funds are set to deliver their best performance since 2007, Goldman says. But they gained an edge by ditching stocks like Tesla and Amazon and moving into cash. Success hasn’t diverted flows away from passive funds. Fees are one problem. Lack of consistency is the other.
Worker scarcity puts pressure on U.S. policymakers 2 Dec 2022 Despite adding more jobs than economists expected in November, the labor participation rate fell again. The shrinking supply available to fill 10.3 mln open roles risks keeping inflation high. Pay hikes have yet to fix the problem. Coordinated congressional and Fed action might.
Western firms’ Chinese red lines are not their own 2 Dec 2022 Anti-lockdown protests have got boards pondering what to do in case of an escalation. For companies like Tesla and LVMH the Chinese market is probably too crucial to consider an exit. Most firms will rethink their China presence only if their governments tell them to.
China needs a Covid target more than a GDP target 2 Dec 2022 After a wave of protests, officials are preparing citizens to live with the virus. Beijing has plenty of economic goals, quotas and deadlines but no published plan for epidemiological transition. There are many templates. What’s key is picking one, and sticking to it.
Blackstone feeds private-market valuation fears 1 Dec 2022 The buyout shop is limiting redemptions from a $125 bln real estate fund after investors flooded it with requests, echoing a broader selloff in publicly traded peers. Limiting withdrawals risks a dangerous feedback loop. And a profitable Las Vegas deal offers limited reassurance.
Flummoxed Congress dims faith in post-FTX fixes 1 Dec 2022 The first public hearing since the crypto exchange’s collapse laid bare Capitol Hill’s collective ignorance. A lack of new laws leaves agencies unfit to oversee digital currencies. It’s a steep learning curve to protect investors without the industry just writing its own rules.
Salesforce shakeup puts co-CEOs under a cloud 1 Dec 2022 Bret Taylor is stepping down after just a year of running the $140 bln software developer alongside founder Marc Benioff. Another former copilot lasted less than two years. Because entrepreneurs typically struggle to surrender the reins, sharing them is often a terrible idea.
Credit Suisse banks needn’t break too big a sweat 1 Dec 2022 The lender’s battered shares are now trading just 7% above the price of its $2.4 bln rights issue. A further slump could leave Deutsche, Morgan Stanley and 18 other underwriters with unwanted stock. But they have a margin of safety, and Credit Suisse may have backup options.
The bubble in predicting the end of the world 1 Dec 2022 The globe faces multiple threats to peace and prosperity. Several new books address the challenges of enormous debt, geopolitical rivalries and climate change, predicting disastrous consequences. The best thing investors can do is keep a level head, writes Edward Chancellor.
Capital Calls: Farfetch 1 Dec 2022 Concise views on global finance: Shares of the New York-listed online retailer dropped over 20% as its plan to sell e-commerce services to luxury groups like Salvatore Ferragamo failed to convince investors.
Eni’s $6 bln Neptune swoop will be a haggle-fest 1 Dec 2022 Italy’s $52 bln oil major may bid for the private equity-backed gas producer. Windfall tax and recession risks make the $10 bln price tag from last year’s mooted IPO unlikely. But Eni’s scope for synergies and need to pivot to gas give owners like CVC scope to hold out for more.
Yandex split marks end of Russian tech hopes 1 Dec 2022 The group once known as the “Russian Google” may split its international and Russian businesses. Ex-finance minister Alexei Kudrin will head the shrunken local arm. The company’s founders can start anew, but investors in the former Nasdaq darling will likely remain bereft.