Considered View

Aussie tycoon hammers home overboarding message

20 July 2018

James Packer resigned from a whopping 22 more directorships after he quit the Crown Resorts board for mental health reasons. Campaigns against such overstretched executives are on the rise, as evidence suggests returns can suffer. Companies would be wise to demand greater focus.

China’s air quality depends on its debt clean-up

20 July 2018

Efforts to reduce smog have been an underrated success, with air pollution down by around 33 pct in some cities last winter. The campaign to trim the $20 trln corporate debt pile helped, as it cut credit to inefficient factories. If Beijing resumes easing, haze could reappear.

Microsoft could use some self-inflicted activism

19 July 2018

The software giant now has more than $50 bln in net cash, thanks in part to successfully growing its cloud platform. Tax changes will boost its hoard even faster. With debt easily manageable, the company ought to boost dividends and buybacks, before pushy investors force it to.

Automakers’ U.S. tariff fight heads down dead end

19 July 2018

The industry argues import duties would force Americans to pay an extra $83 bln a year for new cars. There’s a chance next week’s Trump-Juncker summit will yield a deal. But the U.S. president seems determined to punish countries for past trade wrongs, real or perceived.

High hopes accompany Wall Street’s first weed IPO

19 July 2018

Canadian cannabis producer Tilray's stock opened a third above its already raised IPO price, nudging its value above $2.1 bln. That's hefty, but still below bigger Canadian peers Aurora and Canopy Growth. Investors seem undeterred by industry risk - and a dual-class share structure.

Aramco’s downstream diversion solves few problems

19 July 2018

Buying a stake in petrochemical maker SABIC would enable the Saudi oil giant to diversify its business. But it complicates the government’s plans to open state companies to private capital. And the holding is too small to pump up Aramco’s valuation in an initial public offering.

Comcast’s second loss to Disney is a victory

19 July 2018

Boss Brian Roberts decided not to top rival Bob Iger’s $71 bln bid for Fox assets, instead focusing on buying Sky. In 2004, Comcast also backed down after trying to buy the Mouse House. Given the eye-watering price Disney is paying, Roberts and his shareholders are the winners.

Steinhoff swaps sovereignty for a lifeline

19 July 2018

A debt deal with creditors means the scandal-hit retailer is close to removing the imminent threat of default. Lenders have to wait three years to get paid. But on paper they get a higher payout, a say on asset sales and returns that might otherwise go to shareholders.

Unilever has a first-world problem to fix

19 July 2018

Supermarket price wars and greater competition from other manufacturers hit second-quarter sales in the U.S. and Europe. That leaves the Magnum ice cream maker reliant on more volatile regions for growth. Bolder acquisitions would be one way to address the issue.

Publicis setback is healthy dose of adland realism

19 July 2018

Despite an unexpected drop in revenue in the second quarter, the French group still expects to hit financial targets this year and beyond. It may well do so. Even so, the hiccup is a sign that outswimming rivals in treacherous media waters is proving harder than anticipated.