Time continues to be on TikTok’s side 12 Mar 2024 A US bill that would force the social media app’s parent ByteDance to sell the platform is gaining ground. Demands are like those made years ago, only the app is now more powerful, the relationship with China more complicated, and politicians less willing to compromise.
Capital Calls: Small Fed windows 12 Mar 2024 Concise views on global finance: US consumer prices rose 3.2% year-on-year in February, above the Federal Reserve’s 2% target, prompting traders to rein in hopes for rate cuts. The agency’s Chair Jerome Powell could have avoided that by guiding markets towards a higher number.
How to sustain the big rebound in dealmaking 12 Mar 2024 The year kicked off with a 75% increase in global M&A activity, to $525 bln. Speaking to The Exchange podcast from a gathering of merger mavens in New Orleans, Evercore banker Bill Anderson discusses the resurgence and what’s needed to keep the momentum after a two-year slump.
A $35 bln gas reunion tracks a topsy-turvy market 11 Mar 2024 Gas producer EQT spun off its midstream unit in 2018 to sate activists. The argument was that pipelines return cash while gas firms spend it. But that’s no longer true and the operational logic was thin. Striking amid low gas prices invites scrutiny, but recombining makes sense.
Hostile bidders run into a credibility crunch 11 Mar 2024 Retailer Macy’s and hunting-gear maker Vista Outdoor are resisting uninvited $7 bln and $3 bln buyouts, arguing that the funding is flimsy. Higher interest rates indeed make life harder for suitors. Both proposals, however, look carefully calibrated to reflect the times.
Apple’s Epic fail powers up EU tech oversight cred 11 Mar 2024 The $2.6 trln firm quickly reversed its decision to close ‘Fortnite’ maker Epic Games’ developer account. Frowns from the EU, which is going after Big Tech via fresh laws, look to have played a role. The episode is as much a victory for the bloc’s credibility as it is for Epic.
Biden’s imperfect pitch is pleasantly concrete 8 Mar 2024 The US president made a strong case in his annual address that his tenure saved the economy. Distinctly Democratic initiatives were surprisingly effective, but the next four years may leave less in any president’s control. At the very least, Biden has set the terms of the debate.
Simmering M&A gumbo lacks essential ingredients 8 Mar 2024 Dealmakers cooked up more than $520 bln of mergers during the first two months of 2024, up 75% from last year’s ultra-sluggish start. Financial and legal advisers gathered in New Orleans are still stewing, however. For them, the recipe calls for some Fed and private equity spice.
This year’s Oscar winner is…Ozempic 8 Mar 2024 The weight loss drug and its peer Mounjaro will make more than one red-carpet appearance at the Academy Awards. Such free advertising has long helped luxury firms like LVMH and Hermes sustain high pricing power, margins and valuations. Now drugmakers are in on the act.
Capital Calls: Packaging M&A 8 Mar 2024 Concise views on global finance: A potential 11 bln pound tie-up of UK-listed packaging companies DS Smith and Mondi will rest on yet-to-be-disclosed synergies.
Nickel rout is energy-transition warning for West 8 Mar 2024 Prices of the battery metal have halved in a year, leaving many mines unprofitable or mothballed. Indonesia’s China-backed industry now dominates. Piecemeal aid and a green premium push are unlikely to alter that. Absent smart planning, copper and lithium are vulnerable, too.
Lower rates, office return will ease property pain 7 Mar 2024 The post-pandemic boom in hybrid work is causing trouble for banks that have lent heavily to office developers. But in this Viewsroom podcast, Breakingviews columnists explain how losses may be limited if central banks bring borrowing costs down and bosses call employees back.
American healthcare is a perfect cyber-hostage 7 Mar 2024 A hack at the biggest processor of insurance claims snarled billions of dollars of payments to US hospitals. The healthcare system’s interdependent web of middlemen means none can be allowed to fail, making it an ever-more-obvious target for the growing onslaught of ransomware.
A year on, SVB’s killer is still at large 7 Mar 2024 Twelve months after Silicon Valley Bank’s demise, investors worry more about real estate than flighty depositors. The disjointed system that enabled a crisis remains intact, though, with patchy oversight, incomplete safety nets and ambiguity over who loses if a lender fails.
NYCB revives an old playbook for the new crisis 6 Mar 2024 Trump-era official Steven Mnuchin is leading a $1 bln infusion in the stricken lender, a move reminiscent of his 2009 IndyMac deal. Tapping private investors saves passing NYCB’s woes to another bank; a cheap price squares the math. It may be a template for future stragglers.
Basel climbdown would make the shadows less scary 6 Mar 2024 Tough new rules on bank capital are likely to be watered down. That would be a victory for lenders like JPMorgan that complain they’re already smothered by safeguards. It’s less good for so-called shadow banks like Blackstone and Apollo that stand to grow fat on their castoffs.
China’s new tastes will spit out more than Apple 6 Mar 2024 The iPhone maker is losing share in the People’s Republic to domestic champion Huawei. American companies in the giant market face both weakening demand and a move to homegrown brands. Chinese consumers’ shifting attitudes suggest the woes will worsen.
Starbucks union is labor’s mighty mouse moment 6 Mar 2024 An organization representing workers withdrew its board nominees for the $103 bln coffee company after getting some concessions, which look perfunctory. But the structure of Starbucks’ workforce isn’t amenable to successful collective bargaining. Even a small labor win is a win.
Swarming investor gnats circle too widely 6 Mar 2024 New US rules have started helping smaller fund managers make a mark. They’re increasingly needling boards and stinging CEOs. When they flit around bigger targets such as Disney and Crown Castle, however, they’re easily swatted away and become a nuisance for larger activists.
Capital Calls: Reddit’s IPO 5 Mar 2024 Concise views on global finance: Retail investors that flocked to Reddit in 2021 are threatening to bet against the social media site’s own IPO. Momentum may be easier to create going up than down. But boss Steve Huffman has to fight a monster he created.