Deutsche Bank turnaround victory is really a loss 2 Feb 2023 Technically, CEO Christian Sewing beat an 8% return target that was the centrepiece of his plan to revive the former basket case. Strip out a tax gain, though, and he came up short. It leaves Sewing with a depressingly familiar job: cut costs and hope traders keep raking in cash.
India signs up banks for a pre-election campaign 2 Feb 2023 New Delhi is topping up a loan backstop scheme for small firms. The plan will drive $24 bln of funds to a bruised set of borrowers that are also a key voting bloc in polls next year. The plan may cause banks some pain, and it risks entrenching structural economic snarls.
Adani’s share sale U-turn spares only some blushes 2 Feb 2023 It nixed a $2.4 bln offer after a near-30% fall in Adani Enterprises’ stock. But big funds, including from Abu Dhabi, still face hard questions for participating. Ditto the banking advisers. The dead deal shows support for Gautam Adani has limits, and the controversy will run on.
Investors are ignoring Meta’s hardware reality 1 Feb 2023 The $400 bln social media firm’s shares surged on a strong sales outlook and more stock buybacks. But a better 2023 after revenue fell last year is a long shot. Plus Meta’s big problem is its hardware pivot. Other tech companies that similarly transitioned did not have much luck.
Bottling U.S. inflation could cost workers dearly 1 Feb 2023 Winning the battle against rising prices could swell America’s jobless ranks by nearly 1 million, if the Fed’s own estimates prove correct. That assumes it remains relentless in the quest for inflation of 2%. But given the cost, it’s not clear that such precision is needed.
Meta exposes danger of trustbusting virtual risks 1 Feb 2023 Facebook’s owner won in court over U.S. efforts to block its acquisition of fitness-app developer Within. It trips up regulators trying to avoid missing another Instagram, with judges unpersuaded by future competition worries – a bad omen for the FTC’s case against Microsoft.
John Malone prepares for a victory lap 1 Feb 2023 The mogul’s labyrinthine Liberty Media is preparing another spinoff and fresh tracking stocks. Such financial razzmatazz hasn’t always benefited investors. In this case, isolating the Atlanta Braves and Formula One should generate value as the 81-year-old rides into the sunset.
Intel points cost-cutting laser in wrong direction 1 Feb 2023 Turning around the embattled $117 bln chipmaker requires capital and an inspired workforce. Slashing managerial pay by 5%-15% will save money, but risks demoralizing staff and losing the best of them. Suspending a $6 bln dividend would conserve cash in a more effective way.
Italy may hold key to unlock EU green subsidies 1 Feb 2023 Europe’s response to the U.S. green-subsidy surge now hinges on tapping existing budgets, rather than new money. Ursula von der Leyen wants to channel unspent pandemic billions into tax credits and tweak state aid. Italy’s Giorgia Meloni may be the one to broker a deal.
Capital Calls: Cryptocurrency, Chelsea FC 1 Feb 2023 Concise views on global finance: Britain delivers a blow to digital assets by aiming to regulate them the same way as traditional ones, while the UK soccer team’s new owner Todd Boehly splashes the cash.
Liberated GSK is still searching for booster shot 1 Feb 2023 The $72 bln drugmaker spun off its consumer unit last year to focus on prescription medicines. But it now trades at a discount to European rivals. To close the gap, CEO Emma Walmsley needs to deliver new drugs, fend off Pfizer’s respiratory vaccine, and prove her M&A skills.
Europe’s autos have weak defences against China 1 Feb 2023 Carmakers like Stellantis and Volkswagen are facing greater competition on their home turf from Chinese rivals. Higher tariffs or government subsidies might soothe the pain, but could also prompt a backlash in the Middle Kingdom. And Europe may even welcome the competition.
Sick Britain no longer needs Dr Bailey’s medicine 1 Feb 2023 The Bank of England is likely to raise its key interest rate to 4% on Thursday. That would be a step too far. The UK is nearing a recession, consumers are suffering and inflation is abating. The higher Governor Andrew Bailey hikes rates, the more drastic cuts will likely follow.