Europe is now the main front in gig economy war 19 Feb 2021 Britain’s top court ruled that a group of Uber drivers are entitled to worker rights. Spain is also cracking down. It’s a stark contrast to America, where a California ballot win gave the sector hope. Tougher rules mean a longer path to profit – and higher prices for consumers.
Intel fab spinoff might double its value 19 Feb 2021 The $250 bln chipmaker trades at a big discount to both peers that design processors and rivals that produce them. Splitting would help new CEO Pat Gelsinger close the gap. But Intel’s size and worldwide capacity constraints mean a complete separation will take years.
Capital Calls: Petrobras 19 Feb 2021 Concise views on global finance in the Covid-19 era: Brazil's president becomes Petrobras' activist.
Porsche IPO would be valid twist in VW soap opera 19 Feb 2021 More than a decade ago the sports-car maker’s parent tried to buy Volkswagen but wound up ceding control of the brand instead. VW is now mulling a partial float to fund an electric push. A mooted 100 bln euro value looks set to revive old wrangling over what Porsche is worth.
Danone CEO upsets activist’s Nestlé-fication hopes 19 Feb 2021 Artisan wants the $47 bln yoghurt maker to dump food and water laggards and prioritise higher-margin lines. A focus on medical nutrition echoes the health science push of the Swiss giant, which has outperformed under pressure from Dan Loeb. But boss Emmanuel Faber is in the way.
New Honda CEO seeks fix for mediocrity 19 Feb 2021 R&D boss Toshihiro Mibe is taking the wheel at the $52 bln Japanese carmaker. Current chief Takahiro Hachigo slashed costs and forged an important alliance with GM. But shareholders didn’t benefit much. Without a spark of fresh inspiration from Mibe, margins will underwhelm.
Crown Resorts raises Aussie governance stakes 19 Feb 2021 The $5 bln casino operator just lost one gaming licence and another is now threatened by a new regulatory probe. A board shakeup should help its case, but director candidates are in short supply. The usual suspects fill too many seats: Crown Chair Helen Coonan is a prime example.
Investors can’t have GameStop cake and eat it too 18 Feb 2021 U.S. lawmakers want it both ways for consumers: cheaper trading and protection from sharp losses. Additional transparency and less game-like software from Robinhood and other trading platforms might help. But risks remain and could rise with more retail access to private markets.
Clayton’s new Apollo role is a non-spicy jalapeño 18 Feb 2021 The former SEC head is becoming lead independent director at the buyout firm, keeping an eye on sidelined founder Leon Black. In some companies, the role is used to avoid naming a separate board chair. In this case, it looks like a way of deferring the clean break Apollo needs.
JPMorgan London hire is at smart end of new trend 18 Feb 2021 Linklaters Senior Partner Charlie Jacobs is joining the U.S. group as co-head of UK investment banking. He’s the latest in a string of senior outsiders to transfer to the industry, including ex-UK Chancellor George Osborne. Lawyers are better prepared to make a successful switch.
Viewsroom: Breakingviews’ new SPAC needs a name 18 Feb 2021 Blank check mania has crossed the Atlantic, bringing with it hopes of riches for well-connected financiers, underwriters, startup founders and ordinary investors. The U.S. example, though, offers some warning signs, our columnists suggest, as they ponder a vehicle of their own.
Capital Calls: Walmart, Buffett/Chevron 18 Feb 2021 Concise views on global finance in the Covid-19 era: Walmart gets an unfair ding from investors over its latest earnings report; and the Sage of Omaha takes another bet on the profit still to be made from fossil fuels.
Credit Suisse traders give CEO strategic quandary 18 Feb 2021 The Swiss bank trailed rivals in profiting from volatile markets in 2020. Boss Thomas Gottstein may hope for a better showing post Covid-19, but Credit Suisse’s trading strengths offer limited benefits to its main wealth division. Further shrinkage looks painful but sensible.
Facebook and Google flaunt dominance Down Under 18 Feb 2021 The social network blocked news in Australia in defiance of Canberra’s effort to make it pay publishers. The search titan’s deals with Rupert Murdoch’s empire and others may protect it from wider oversight. Government and media have only chipped off fragments of Big Tech’s clout.
Aussie banks balance above topsy-turvy economy 18 Feb 2021 ANZ is the latest of the big-four lenders to post good earnings. Australia’s pandemic management has helped, but a mix of low interest rates, underemployment and a housing boom could spell trouble down the line. They are wisely keeping higher capital buffers largely in place.
Americans support a reliable grid, in theory 17 Feb 2021 Nearly 3 million Texans are without power days after a cold snap crippled infrastructure. Free market policies and the desire to avoid oversight deserve blame. Yet California’s power isn’t great either. Reliable grids are expensive. That’s unpopular for all political persuasions.
GameStop blowback will echo “Flash Boys” response 17 Feb 2021 U.S. lawmakers will soon grill Robinhood and Citadel bosses over stock gyrations triggered by retail investors and subsequent trading restrictions. As with past scrutiny of high-frequency trading, the outcome may be some fines but little action to change how the market works.
BlackRock can push harder on climate change 17 Feb 2021 The $9 trillion asset manager will require heavy polluters to disclose their full carbon dioxide footprints and set short-term targets to cut emissions. That’s an improvement. But until BlackRock leans on index providers to up their game too, it’s not deploying all its heft.
Capital Calls: Tribune, Shopify 17 Feb 2021 Concise views on global finance in the Covid-19 era: Chicago Tribune sells to a hedge fund known for stripping out newsroom costs; Shopify’s strong year doesn’t shield it from competition.
Darktrace is ultimate test of IPO risk appetite 17 Feb 2021 The cyber group’s top investor, Autonomy founder Mike Lynch, is facing U.S. extradition on fraud charges. Its top ranks are packed with his former colleagues. UBS has dropped out of the $5 bln listing. Pushing ahead despite such red flags suggests investors may pinch their noses.