Considered View

Musk’s rare dose of realism could serve Tesla well

18 January 2019

The electric-car maker’s CEO effectively issued the firm’s first profit warning, saying it needs “luck” to turn a “tiny” profit this quarter and cutting staff. If this is the start of a more pragmatic approach by the firm after years of Musk overpromising, that’s no bad thing.

Market turmoil is last straw for asset managers

18 January 2019

State Street will slash its payroll by 6 percent. Both the selloff in stocks and outflows hit the company’s AUM in the fourth quarter. The investment industry is already reeling from fee pressure and turning to technology as the solution. That will mean plenty more pink slips.

KKR scrapes second-rate return out of First Data

18 January 2019

After a long 12-year investment in the payment processor, a sale to Fiserv sets the stage for a profitable exit. It’s a wonder the $29 bln buyout survived the financial crisis, considering the debt and multiple CEOs. Anything better than breaking even amounts to a win.

EU can afford to shunt Siemens-Alstom to a siding

18 January 2019

Margrethe Vestager may well block the rail groups’ merger. That would rile German and French politicians yearning for a European champion to face down distant fears of Chinese dominance. But if the antitrust tsar pulls the plug, neither Siemens nor Alstom would suffer too much.

Context makes Santander’s Orcel fail even worse

18 January 2019

The Spanish bank expected UBS to honour a portion of its would-be CEO’s deferred pay. But recent executive moves at Deutsche Bank and Barclays saw new hires compensated in full. Andrea Orcel’s acceptance of a cut was a concession – making it all the odder Santander backed out.

Telecom Italia’s new boss needs some quick wins

18 January 2019

The Italian telco’s shares have dived after a profit warning. New CEO Luigi Gubitosi can stop the rot by listing its fixed network, but that path is slow and uncertain. A quicker route to credibility lies in selling stakes in choice assets like Inwit and the Brazil business.

Ryanair will weather fare squeeze

18 January 2019

The low-cost carrier expects to make less post-tax profit this financial year than previously anticipated as CEO Michael O’Leary cuts fares to attract customers. That’s tough as he is having to pay staff more. But passenger numbers are growing fast enough for his bet to pay off.

Sophos crash dents London’s tech dreams

18 January 2019

The cybersecurity firm’s shares fell by a fifth after it warned of weak orders. It adds to other recent large listings, like Funding Circle, that disappointed. Battered investors, and loss of talent from Brexit, will make it harder for the UK to become a European technology hub.

Fortnite outplays media titans in a battle royale

18 January 2019

The video game may have raked in as much as $2.4 bln in sales last year, more than any 2018 Hollywood blockbuster. Now Netflix says it is threatened too. Success comes from mass appeal: both young and old gamers are hooked. Streaming giants and movie outfits are right to be alarmed.

Jamie Dimon puts America and himself first

17 January 2019

JPMorgan’s CEO said last year he wanted the U.S. tax cuts “shared broadly.” And he followed through, boosting low-paid workers’ wages and opening branches in poorer areas while also growing the bank’s earnings. But taking a $1.5 mln pay hike himself is unnecessary and tin-eared.