Americas

CalPERS CIO was too careless to be so bold

6 August 2020

Making controversial changes at America’s biggest public pension fund may be necessary. But if Ben Meng was going to do it – despite prejudice about his Chinese connections – his own behavior needed to be unimpeachable. His exit suggests he missed that lesson.

Uber’s post-Covid prognosis is far from all clear

6 August 2020

The $60 bln ride-hailing app's second-quarter revenue fell 29%. That may mark the bottom. But despite CEO Dara Khosrowshahi's efforts Uber is still Exhibit A for the lack of benefits extended to gig workers. Washington is unlikely to rubber-stamp its deal for Postmates, either.

IMF worsened Argentina debt fiasco

6 August 2020

The lender couldn't prevent another restructuring and may have added to the rancor. An ill-conceived $44 bln deal with the prior president was the tipoff. And the IMF's premature release of debt projections enabled posturing. Ivory-tower hubris is partly to blame.

Blackstone adds to Ancestry’s dog-show lineage

6 August 2020

Stephen Schwarzman’s firm is the latest well-heeled, but somewhat interchangeable private-equity owner of the genealogy site. Steady cash flow and an aging population explain the continuing appeal. Pandemic boredom presents a new opportunity, but at a hefty $4.7 bln valuation.

Corona Capital: Aviva’s restructuring

6 August 2020

Concise views on the pandemic’s corporate and financial fallout: New CEO Amanda Blanc is reinstating the UK insurer’s dividend and is even open to selling its Asian and European businesses. That’s music to investors’ ears.

Pompeo’s Chinese web wall is a tall order

6 August 2020

The U.S. Secretary of State's "Clean Network" initiative wants to purge America’s internet of Chinese telecoms, apps, and cloud services. Washington aims to ring-fence the People’s Republic, and Mike Pompeo is seeking allies. The costs for companies on both sides could be high.

Virtual $16 bln health merger destroys real value

5 August 2020

Teladoc and Livongo are riding a pandemic-driven telemedicine high. Teladoc hopes buying its rival will unleash even more revenue. The fall in both companies' inflated stock prices suggests investors are questioning the need for M&A if the firms’ individual futures are so bright.

Joe Biden would grapple with Big Tech, too

5 August 2020

Donald Trump’s interventions over the TikTok app are unusual. But national security worries are bipartisan. Both candidates are also suspicious of tech giants, for different reasons. Though Silicon Valley donors have more in common with Biden, they can expect friction either way.

Private equity firms work to get a little credit

5 August 2020

KKR’s debt business underperformed buyouts in the last 12 months. But the company's stock – although overshadowed by Apollo, the most credit-heavy – has done well. The scalable business brings lower returns for fund investors, but is good for the management firms themselves.

Corona Capital: Disney movie magic, “Call of Duty”

5 August 2020

Concise views on the pandemic’s corporate and financial fallout: The Magic Kingdom’s decision to send “Mulan” straight to streaming impressed investors, but is bad news for cinema chains; Activision Blizzard’s shoot-‘em-up game brings a profit surge.

Ford’s new CEO needs deft maneuvering skills

4 August 2020

The $27 bln carmaker has promoted Jim Farley to replace Jim Hackett, the second boss in six years to leave after underperforming peers. Farley will have to cut costs while also trying to speed up the company’s investments in electric and self-driving tech. That’s no easy task.

Disney kingdom falls under stubborn sorcery

4 August 2020

The $211 bln firm is famous for its theme parks, movie studios and sports-TV network. Now those assets are facing challenges. Streaming is a bright spot. But unlike Comcast, which copied the blueprint, Disney has no cable business to counter the dark forces raging against it.

The Exchange: Dov Seidman

4 August 2020

The founder of LRN, a technology and education firm that advises global corporations on culture, governance, ethics and other matters chats with Rob Cox to discuss the importance of moral leadership, an issue that has taken on increased importance during the Covid-19 crisis.

Staid Microsoft gets a viral gift from TikTok

4 August 2020

The least cool tech giant has outperformed most of its rivals to reach a $1.6 trln value. Owning the popular video app could finally bring buzz and ad dollars. There are political risks, and buying only part of TikTok may be messy. But potential financial gains make up for it.

Google gets physical-security amuse-bouche

4 August 2020

ADT is selling the Alphabet unit a 7% stake for $450 mln. The news sent the Apollo-controlled alarm-service outfit’s value up $4 bln or 60%. That’s a big response to an initial deal to fold Nest devices into its lineup. It may reflect new options for ADT’s corporate future.

Corona Capital: PizzaExpress, Aerospace pain

4 August 2020

Concise views on the pandemic’s corporate and financial fallout: The UK restaurant chain’s restructuring is not that tasty a meal for creditors; Airplane-parts maker Spirit’s reliance on Boeing’s 737 MAX has it heading into worse turbulence.

Retail’s WeWork escape hatch is sealed shut

3 August 2020

Real estate used to be a valuable asset for troubled retailers: Lord & Taylor sold its flagship store to the office share startup. But a spate of bankrupt apparel chains shows the sector’s last ditch for value is on the fritz. It is bad news for the likes of Simon Property.

Merger tricks no match for rolling up the sleeves

3 August 2020

The parent of Men’s Wearhouse has filed for bankruptcy after Covid-19 halted in-person shopping and a need for suits. Just six years ago it was a Wall Street plaything, successfully pulling off a so-called Pac-Man defense. It’s a reminder M&A games are no match for good strategy.

WeChat makes bigger brick in anti-China firewall

3 August 2020

Tencent’s app is next in line for a White House ban after TikTok. Blocking WeChat, crucial to life and business in the People’s Republic, would protect overseas Chinese from Beijing’s spies, but cut them off from home. That would hasten and deepen the decoupling of the internet.

Corona Capital: College mergers, UK property funds

3 August 2020

Concise views on the pandemic’s corporate and financial fallout: M&A goes to the University of Arizona; Britain’s financial watchdog considers stopping property fund withdrawals.