U.S. stores hawk same brand of cautious pessimism 2 Mar 2023 Retail bosses from Walmart’s Doug McMillon to Home Depot’s Ted Decker are warning that consumers will curb spending this year. Stubborn inflation and supply-chain ructions fog the outlook. CEOs have good reasons to be uneasy. There’s also nothing but upside if they’re wrong.
Salesforce sufficiently acquiesces to angry mob 2 Mar 2023 The $170 bln software developer improved its operating margin, doubled its stock buyback plan and disbanded its M&A committee. It’s effectively everything multiple dissidents wanted. Unless pushy investor Elliott has superstar board nominees, it would be overkill to ask for more.
CRH’s firm foundations go beyond where it lists 2 Mar 2023 The $38 bln cement maker’s stock rose amid plans to move its primary listing to the U.S. The shift may indeed prompt a re-rating of CRH shares. But the main driver of the latter will be its even greater focus on an infrastructure subsidy-rich market, and on higher-margin work.
Capital Calls: TD Bank’s $13 bln cliffhanger 2 Mar 2023 Concise views on global finance: The Canadian bank’s acquisition of U.S. peer First Horizon will be delayed beyond its May 27 drop-dead date, but there are reasons to think it will still get done.
UK’s Brexit fix has perks for all sides 2 Mar 2023 Prime Minister Rishi Sunak agreed a trade deal with the European Union this week. In this Viewsroom podcast, Breakingviews columnists explain what the accord will mean for future relations between Britain and the 27-nation bloc and how Northern Ireland may get an economic boost.
M&G would be a tricky hop for kangaroo raider 2 Mar 2023 Australia’s $48 bln financial giant Macquarie may bid for the $6 bln UK fund management group. A swoop would be well timed given M&G’s new boss is still bedding in, and the deal math just about works. But any transaction would involve a messy breakup, and the risk of a rival bid.
Banks’ state shareholders can afford slow selldown 2 Mar 2023 The Belgian and Dutch governments took advantage of a market rally to offload chunks of BNP and ABN. Valuations have risen but are still low relative to lenders’ returns. That means Britain and Germany would be wise to move gradually with their NatWest and Commerzbank holdings.
Tesla prepares for its next production hell 2 Mar 2023 Boss Elon Musk addressed “anyone who is an investor in Earth” at a rambling event, but there was no unveiling of a much-hyped $25,000 car. New cost-cutting goals imply the cheaper vehicle may deliver healthy 20% gross margins. Whenever it comes, though, it will be a tough drive.
China’s Two Sessions look doomed to disappoint 2 Mar 2023 Annual meetings kicking off Sunday could publish policies boosting consumption, put reassuring figures atop key regulators and re-emphasise the importance of market forces. Alas, none of that looks likely. The agenda is strengthening President Xi Jinping’s financial grip.
Instacart could do worse than incinerating $32 bln 1 Mar 2023 That’s about how much the company’s value could fall in an IPO compared to its last fundraising. But public market prices have fallen considerably, and Instacart insiders might be getting antsy. If it doesn’t take a valuation reckoning, it could miss the chance.
Pocketbook confusion puts economy on wrong path 1 Mar 2023 Americans are feeling worse about the job market but better about their finances. Those sentiments should be flipped. The U.S. job market still features low unemployment and larger-than-usual raises. Households’ steady spending, meanwhile, threatens to keep inflation high.
Alphabet’s AI response is make-or-break-it 1 Mar 2023 Microsoft’s chatbot likened a journalist to Hitler and spews falsehoods. But a bigger threat is to the Google owner. Given time and improvements, artificial intelligence could cannibalize three-quarters of the search market. Failing to catch up would pose an existential threat.
Revolut audit snag undermines $33 bln price tag 1 Mar 2023 The startup published 2021 results after a long delay. Growth soared but bean-counters raised questions over how its IT systems record revenue. That’s unlikely to help its quest for a British banking licence, which will in turn limit Revolut's ability to make sustainable profits.
Capital Calls: Eli Lilly 1 Mar 2023 Concise views on global finance: The drugmaker is reducing the list price on its insulins by 70%. Problem is, few actually pay anything close to the sticker price. Insurers will probably prefer to use insulins from rivals, assuming they can keep negotiating big discounts.
Euronext CEO tests limits of M&A playbook 1 Mar 2023 Serial buyer Stéphane Boujnah’s exit from his $6 bln bid for Allfunds is a lucky escape. Its likely slim returns hardly justified the price. But he still needs to diversify from equities. A lack of targets and Euronext’s lowly valuation mean the next deal may not be any easier.
EU’s Big Tech shakedown heads down new blind alley 1 Mar 2023 The European Commission’s effort to squeeze money out of the likes of Alphabet and Apple now aims at telecommunications, with a bid to make Silicon Valley pay for the bloc’s broadband infrastructure. Regulators have pooh-poohed the idea since 2012. It hasn’t improved with age.