Nelson Peltz becomes gadfly to Disney’s flywheel 5 Mar 2024 A 130-plus page presentation makes a strong case for how and why the $210 bln company's boss Bob Iger didn't do his job. Activist Nelson Peltz’s ideas for fixing Disney are weaker. Still, CEOs run companies; board members keep tabs. In a smaller world, Peltz might win a seat.
White House race puts lots of fine print at stake 5 Mar 2024 Super Tuesday contests may solidify former President Trump’s shot at a 2020 rematch. November’s ballot will decide not just big-picture issues, but a host of smaller tweaks – like financial or climate rules – where a victorious Trump could roll back President Joe Biden’s legacy.
Musk vs. Altman is a battle everyone loses 5 Mar 2024 The Tesla boss's complaint that OpenAI ignored obligations to the human race distracts from a bigger problem. Existential issues are best overseen by democratic governments, because to leave them to techno-libertarians and private contracts is absurd. AI is no different.
Bayer’s inertia will make mounting problems worse 5 Mar 2024 The $30 bln seeds and drugs maker has ruled out a rapid breakup. Bayer could have used a consumer health sale to cut debt and offset bigger US litigation costs. Betting instead that it can grow its way out of trouble risks exacerbating a yawning discount to the sum of its parts.
Kyiv’s defence requires European supply-side shock 5 Mar 2024 Europe is not producing the 2 mln artillery shells Ukraine needs, and missile plants are idle. Meanwhile, its stockpiles are shrinking, threatening the region’s ability to defend itself. To crank up production lines, manufacturers will need a steady flow of government orders.
How to solve Europe’s defence riddle 5 Mar 2024 At 360 bln euros, the bloc’s military expenses are three times Russia’s. Yet fragmented defence systems are a problem, Bruegel senior fellow Guntram Wolff tells The Exchange podcast. To improve scale and boost aid for Ukraine, Europe should consider more joint debt.
Excessive UK tax giveaways risk longer-term harm 5 Mar 2024 Finance minister Jeremy Hunt may spend some 15 bln pounds in pre-election fiscal gifts in Wednesday’s budget. He could be tempted to do more – and make life difficult for the next government – by further cutting public services. But that would put the country in a bind.
China’s economic managers have half a plan 5 Mar 2024 Beijing has kept last year's targets of 5% GDP growth and 3% inflation for 2024. Yet the economy has deteriorated, making them much harder to hit without stimulus. Plans to issue $139 bln of special bonds this year look promising, but details will be key to boosting confidence.
Japan faces a reckoning with its zombie companies 5 Mar 2024 Big firms are ready for the onset of higher wages and the end of negative rates. Smaller rivals, which employ 60% of workers, risk being crushed. One in six already struggles to cover interest payments. If too many fail, they can derail confidence and the economic recovery.
Say hello again to the chief operating officer 4 Mar 2024 The role lost its mojo as growth, revenue and marketing execs muscled into C-suites. Roughly one in three big companies has a COO, down from nearly half in 2000. With money no longer cheap and profitability back in vogue, there’s a fresh case for hiring a solid second-in-command.
Boeing’s reverse deal thrust augurs small tailwind 4 Mar 2024 Jettisoning supplier Spirit AeroSystems in 2005 benefited the plane-maker, but only temporarily. Financial weakness is now compounding 737 MAX woes and hurting shareholders of both companies. Buying back the $4 bln former subsidiary should generate value in quality improvement.
EU’s $2 bln Apple bite is still more of a bark 4 Mar 2024 Brussels is fining the US giant more than expected for hurting streaming competition. That leaves $2.7 trln Apple open to similar cases. But as with other EU bids to rein in Big Tech, it hikes the cost of doing business more than it shakes up the sector.
Cosmetics IPO application calls for a steady hand 4 Mar 2024 Buyout firm CVC is braving uncertain markets to list retailer Douglas, possibly for 7 bln euros. Shoppers’ appetite for premium makeup despite inflation is a positive sign. Yet the group’s high leverage and competition from Sephora call for a valuation discount to US rival Ulta.
Elliott has limited ammo in UK retail bidding war 4 Mar 2024 The US investment group’s latest $951 mln offer for retailer Currys could have yielded an adequate return. But the target has rejected it. Hiking the offer looks tricky given the ropey UK economy, reduced scope for leverage, and potential rival bidder JD.com’s deep pockets.
Ambani wedding puts new spin on Indian business 4 Mar 2024 CEOs of BP, Brookfield and Meta were among those attending Anant Ambani’s pre-nuptials bash in Jamnagar, Gujarat. Rich families are answering premier Narendra Modi’s call to shun overseas extravaganzas. For India, the prize goes well beyond the $50 bln marriage industry.
China’s financial clout will be hard to reverse 4 Mar 2024 Exports from the People’s Republic upended the world economy. Its $4.3 trln hoard of foreign assets is doing the same for global finance. As with trade, winding back the clock will not work. Multilateral problems require multilateral solutions.
If only banks were more like chemical factories 1 Mar 2024 New York Community Bancorp and paint-materials maker Chemours both ousted their CEOs after discovering flawed internal controls. Economic importance and heavy regulation distinguish the two $3 bln companies. One crisis mostly affects shareholders; the other should worry everyone.
Stolen razors are least of US drugstores’ concerns 1 Mar 2024 Walgreens and CVS have locked up items from deodorant to toothpaste. But a hyper-focus on theft is a reflection of drugstores’ more dire straits. Online competition, labor issues, and inflation are cutting into margins. Larceny is just the thing that pharmacies can control.
EIB backing would add spark to EU mini-nuclear bid 1 Mar 2024 Europe’s bid to develop smaller, cheaper nuclear reactors as part of its plan to cut carbon emissions needs cash and political support. European Investment Bank financing for next-generation projects would make a difference. Even so, green benefits may take years to materialise.
European telcos’ new deal hopes face reality check 1 Mar 2024 Executives gathered in Barcelona this week to plead for lighter regulation, cheaper spectrum and some financial help. Policymakers are unlikely to agree. Deutsche Telekom, Telefónica and others will have to convince investors that future growth requires more investment today.