Americas

Warner Bros Discovery boss’s payday is toast

27 Nov 2023

David Zaslav has to boost the HBO operator’s value by $79 bln to collect stock options worth $200 mln. That’s a stretch even if better parts such as video games and streaming services pick up. His compensation, like the dealmaking that created the company, evokes a bygone era.

EU is ill-equipped to meet growing global threats

27 Nov 2023

The bloc would be more effective in a dangerous world if its 27 members could make decisions more quickly. The snag is that nationalistic currents make countries even more reluctant to give up their vetoes. It is not clear if the European Union can find a way to square the circle.

Capital Calls: Amazon shipping

27 Nov 2023

Concise views on global finance: The online retailing giant’s push to distribute packages itself has been a costly way to attract customers, but some numbers suggest it is becoming more efficient and speed is helping boost profit.

Capital Calls: China and iron ore

24 Nov 2023

Concise views on global finance: A warning from Chinese regulators for traders not to hype up prices has done little to dampen the bullish mood. The rally could extend if Beijing unleashes property market reforms.  

The future of interest rates is more surprises

24 Nov 2023

The return of inflation surprised central banks which until recently predicted rates would remain “lower for longer.” Economists and investors struggle to agree on what has changed or what will happen next. Those who assume current interest rates are normal may be in for a shock.

OpenAI’s boardroom drama is far from over

23 Nov 2023

Sam Altman will return to the helm of the artificial intelligence firm after a torrid week of resignations. In this Viewsroom podcast, Breakingviews columnists explain how the saga has raised concerns about governance, the future of AI and an alarming cult of the CEO.

Every country needs an Inflation Reduction Act

23 Nov 2023

The US's $370 bln in green subsidies left allies fearing they’d be at a disadvantage. Now they’re realising that adapting the blueprint can unlock private capital, boost economies and speed up the energy transition. Funding remains a challenge, but not an insurmountable one.

OpenAI calls time on alt-governance experiment

22 Nov 2023

Sam Altman’s return as CEO cements the failure of the ChatGPT owner’s attempt at shareholder-second capitalism. The board’s mandate to protect humanity was no match for the will of its biggest backer Microsoft. OpenAI is now more like a regular company – for better or worse.

White House needs to talk turkey about inflation

22 Nov 2023

The Biden Administration has encouraged Americans to “be thankful” for falling prices this year. But cherry-picking some items that have edged down from recent peaks won’t counter the fact that US citizens feel glum about the economy. A bit of empathy might go a long way.

Branding’s corporate titans face moment of truth

22 Nov 2023

Sales volumes at consumer goods giants are falling for the first time this century. Branded goods sell well when quality is tangibly higher and price premiums slim. With neither now the case, the valuation of $296 bln Nestlé, and rivals, may shrink in line with its KitKats.

Capital Calls: Carlyle, Panasonic

22 Nov 2023

Concise views on global finance: The US private equity firm is making a decent return selling its stake in McDonald’s China back to the burger chain. The $25 bln Japanese conglomerate is offloading a chunk of its low-margin automotive unit and will consider a listing, too.

Nvidia’s AI boom outpaces China limits

21 Nov 2023

The $1 trln semiconductor company tripled revenue, despite a crackdown on exports to the giant market. Unlike Apple, which also faces risks in China, there’s no substitute for Nvidia’s chips for fueling AI. Right now, the only limit on growth is how quickly it can meet demand.

Binance mega-fine fits go-big-or-go-home vibe

21 Nov 2023

The cryptocurrency exchange will pay $4.3 bln for violating US laws, and its founder will stand down. It’s more than HSBC and Goldman Sachs paid for big financial transgressions, and racked up in a fraction of the time. Crypto is precocious in its lows as well as its highs.

Choice Hotels takes a vacation from reality

21 Nov 2023

The Comfort Suites operator has taken another stab at its unsolicited and unwelcome $9.8 bln offer for rival Wyndham. The part-shares deal is easy to rebuff in a wobbly market where cash is king. But switching it to cash could leave Choice with hefty debt and unhappy customers.

GM’s driverless ride heads into a ditch

21 Nov 2023

The carmaker’s robo-taxi unit is on pause after an accident; its two co-founders have left. As OpenAI’s drama shows, losing visionary leaders is a big problem. The silver lining: In GM’s case, investors never seemed to take the cash-guzzling Cruise division seriously anyway.

Eli Lilly’s M&A trial prints lose-lose outcome

21 Nov 2023

The pharma giant has offered $1.4 bln for Point Biopharma, but if the target’s latest drug comes good it could be worth much more. No wonder Point investors are sitting on their hands. Had Lilly offered them a share of future profit, it could have saved itself the embarrassment.

Capital Calls: Monte dei Paschi

21 Nov 2023

Concise views on global finance: The Italian Treasury raised 920 mln euros by selling a 25% stake in the bank on the open market. So far, it looks like a better outcome for taxpayers than submitting to the onerous sale conditions offered by UniCredit in 2021.

Geely unit IPO will test geopolitical speed limit

21 Nov 2023

EV maker Zeekr, owned by China’s largest auto group, may raise almost $500 mln by going public in New York. Sales of cars, batteries and research are zooming at home, but plans to list and expand abroad look ambitious unless Beijing’s tensions with Washington and Brussels abate.

Microsoft will struggle to clean up ugly AI mess

20 Nov 2023

The software giant hired ousted OpenAI boss Sam Altman to run a new in-house artificial intelligence hub. It creates fresh confusion about strategy and brainpower, as CEO Satya Nadella scrambles to preserve his company’s $13 bln investment. There’s probably more upheaval to come.

World Bank and kin head for a $100 bln cash call

20 Nov 2023

Scaling up the Washington-based lender and other multilateral banks makes geopolitical sense and helps fight climate change. Sweating their balance sheets is a start. But eventually shareholders including the US will have to overcome domestic hurdles and put up more capital.