Capital Calls: McKinsey, Celebrity SPACs 10 Mar 2021 Concise views on global finance in the Covid-19 era: McKinsey’s new boss isn’t new enough; the SEC tells investors to be careful of celebrities bearing SPACs.
Greensill exposes perils of Credit Suisse strategy 10 Mar 2021 The supply-chain financier’s collapse affects almost every division of the Swiss bank. While the financial hit appears manageable, cooperation between its fund, wealth and lending arms increases risk. That’s worrying as CEO Thomas Gottstein’s growth plans hinge on collaboration.
SocGen’s sober revamp could use Russian vodka shot 10 Mar 2021 The 19 bln euro lender is overhauling its retail business to boost profitability. A bolder move would be to sell the Russia unit, which might fetch up to 2.9 bln euros from a rival like Gazprombank. CEO Frederic Oudea could then focus on more lucrative eastern Europe and Africa.
Panasonic turning dial too far on $6.5 bln deal 10 Mar 2021 After paring some sprawl, the electronics giant may now buy the rest of supply-chain software developer Blue Yonder. The faster-growing tech would help lift profitability, but at a hefty price of 40 times forecast EBITDA. Some $2 bln of erased market value speaks to the overload.
China’s dovish target hides hawkish fist 10 Mar 2021 China won’t sweat meeting its 6% GDP growth target this year given 2020’s low base plus ample fiscal support. The low bar gives President Xi Jinping room to keep up pressure on bad debt and crack down on misbehaving industries. For investors that means more volatility.
Strong chairman is best way to fix BT board mess 9 Mar 2021 The UK telecom operator is seeking a replacement for Chairman Jan du Plessis, who stepped down under pressure from CEO Philip Jansen, Sky News reported. The fracas comes at a critical time for BT. Investors, directors and Jansen himself would benefit by recruiting a heavy hitter.
JDE Peet’s spilt milk has lessons for IPO hopefuls 9 Mar 2021 Shares in the $19 bln JAB-backed coffee group dived after weak 2021 guidance. Rivals Illy and Unilever, which may spin off its tea arm, will shudder at the L’OR maker trading below its May IPO. More marketing spends and premium drinks could set them apart in any future listings.
Capital Calls: TV’s royal boost, Shared offices 9 Mar 2021 Concise views on global finance in the Covid-19 era: Oprah Winfrey’s interview with Prince Harry and his wife Meghan is a boon for ViacomCBS’s streaming ambitions; IWG’s revamp depends on a workplace revolution.
Fund stragglers offer own post-crisis value punt 9 Mar 2021 UK asset managers Standard Life Aberdeen and M&G are shaking off the pandemic, helped by better stock picking. The challenge is to keep assets and profit growing in an industry shaken by passive funds, and find new businesses. Their low valuations at least provide a cushion.
Chinese developer undercuts Wall Street’s ESG push 9 Mar 2021 Even after Seazen founder Wang Zhenhua’s imprisonment for child molestation, BlackRock, Pimco and others own the company’s bonds. Although his son now chairs the $15 bln group, Wang still controls it. Such examples make socially conscious investor messages sound like lip service.
Telecoms set the business tone in Myanmar 9 Mar 2021 Buyout group CVC may ditch a $700 mln deal for tower assets after a military coup, but Norway’s Telenor, a big taxpayer, and TPG are heavily invested. How the industry deals with the junta offers a proxy measure of how patient foreign investors will be with any new regime.
Watchdog makes AT&T – and itself – look lame 8 Mar 2021 The U.S. SEC alleges the $214 bln telecom firm disclosed material nonpublic information to Wall Street analysts. It's a case about unsurprising numbers conveyed to massage irrelevant quarterly expectations. For both the regulator and AT&T, there should be more at stake.
Apollo inks status as mini-Berkshire sans Buffett 8 Mar 2021 The asset manager is buying the chunk of insurance company Athene it doesn’t own. The deal cleans up the structure, and Apollo is paying a cheap price. But it may become more stodgy investment firm than racy buyout shop. And its managers are a far cry from the Sage of Omaha.
Capital Calls: American Airlines, Crypto PayPal 8 Mar 2021 Concise views on global finance in the Covid-19 era: The U.S. carrier is issuing new debt and hocking some airline miles to pay back the U.S. Treasury loan that carried restrictions on pay and dividends; PayPal investors give a shrug over another dive into bitcoin-land.
Home offices risk a diversity disaster 8 Mar 2021 Women are likely to embrace flexible work policies in the post-pandemic new normal. That could threaten prospects for promotion, an earlier study of China’s $24 bln Trip shows. Employers need to manage the bias, or efforts to be enlightened will deliver the opposite result.
UK’s Pearson listens to its own online lessons 8 Mar 2021 The 6 bln pound firm is doubling down on a year of virtual learning by selling education directly to individuals. Winning mass-market adherents will take time and is not a given. Yet anything that reduces its reliance on declining textbook sales is a step in the right direction.
U.S. SPACs are a first step for Asian tech giants 8 Mar 2021 Walmart’s Indian e-tailer Flipkart is mulling a New York debut via a blank-cheque firm valuing it at $35 bln. Other wannabe issuers in emerging Asia are eyeing dual listings to stay close to home. If China’s any guide, complex structures will materialise sooner rather than later.
Jardine picks opportune moment for historic buyout 8 Mar 2021 The Mandarin Oriental owner will pay $5.5 bln to buy out its fellow holding company, unwinding a 1980s-era structure designed to fend off tycoons like Li Ka-shing. A low valuation and cheap funding make it a smart time for the storied Hong Kong trading house to reduce complexity.
Microsoft hack reveals cloud pluses, cyber minuses 8 Mar 2021 Tens of thousands of organisations’ email systems were compromised by flaws in the giant’s software. It’s the second massive security problem in a few months, this time allegedly China’s doing. Fully cloud-based services were spared, but many lessons still need to be learned.
White supremacy dies hard on the grocery shelf 5 Mar 2021 New Orleans craft beer Dixie will soon shed its name for a less racially divisive marque. It’s a big risk for a small company. But if a Southern staple can jettison a racially insensitive brand, what’s taking $60 bln giant Colgate, maker of “Black person toothpaste,” so long?