Europe wields foam hammer at big U.S. tech groups 15 Dec 2020 Competition Commissioner Margrethe Vestager proposed new rules governing the behaviour of Amazon.com, Facebook and others. The potential fines are large, but that is a flimsy deterrent. Recommendations on sharing data with rivals are a neat idea but look narrow in scope.
The Exchange: Guy Hands on private equity’s future 15 Dec 2020 The British buyout baron, best known for his disastrous purchase of music group EMI in 2007, now focuses on more modest deals. He joins Liam Proud to discuss Covid-19, ESG, and why the private equity industry’s returns are likely to fall.
Sheriffs take overdue ride into ESG wild west 15 Dec 2020 French and Dutch regulators have called for greater oversight of ratings and products that gauge companies’ green credentials. Nailing down a coherent approach will be tricky. But the breakneck growth of sustainable investing makes clearer ground rules critical.
Corona Capital: New York City, Fed/climate change 15 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: New York City’s exodus puts local government in a tight spot; the Fed’s belated move shows a change in Washington.
Credit Suisse growth plan is refreshingly utopian 15 Dec 2020 CEO Thomas Gottstein will invest up to 200 mln Swiss francs in new initiatives to juice revenues in wealth management and investment banking. It’ll be hard to achieve that without taking more risk. At least he’s trying to buck the prevailing mood of declinism across the sector.
Volkswagen pact helps CEO more than returns 15 Dec 2020 The German carmaker has made a statement in support of boss Herbert Diess, allowing him to appoint key allies and cut some costs as it moves to electric cars. The agreement should end a long-running dispute with unions. Investors hoping for higher returns face a lengthier wait.
China rental woes show excess creative destruction 15 Dec 2020 New York-listed Danke is the latest property middleman to implode, embarrassing Beijing in more ways than one. It’s a problem for President Xi Jinping's affordable housing push, and yet another good business idea warped by price wars, financial engineering and vague regulation.
ByteDance ends discordant 2020 on a high note 15 Dec 2020 TikTok's Chinese parent is raising $2 bln at a $180 bln valuation amid U.S. pressure to sell the video unit. The company is also on track to hit a full-year sales target of $30 bln, thanks to its local apps. A booming home market more than makes up for stalled global expansion.
Tech IPOs uncork too much of a good thing 14 Dec 2020 First-day pops like Airbnb and DoorDash’s look like success, but have left rivals hesitant. Gaming platform Roblox and payments startup Affirm are delaying IPOs after peers left billions on the table. Firms like a share-price jump but exaggerated moves leave losers close to home.
Elliott can clean house in Public Storage 14 Dec 2020 Paul Singer’s fund wants the U.S.’s largest self-storage provider to junk its ultra-cautious debt strategy, plow cash into the business, and shape up governance. It’s an activist trifecta. But changes are needed to keep pace with the industry. Elliott has found easy pickings.
Sensitive U.S. hack is one more problem for Biden 14 Dec 2020 Network software used by America’s armed forces and big companies was compromised for months, possibly by Russia. The maker, Texas-based SolarWinds, has egg on its face. For users in D.C. and elsewhere, it’s a reminder that cybersecurity can’t be ignored, even in a pandemic.
Ferrari’s next boss will need luxury credentials 14 Dec 2020 The race is on to replace CEO Louis Camilleri, who suddenly quit. Fiat boss Mike Manley ticks many boxes, but John Elkann, chair of both groups, needs him to smooth a merger with Peugeot. Leading $42 bln Ferrari will be as much about enhancing its bling status as engine parts.
U.S. gaming giants find extra gear in UK developer 14 Dec 2020 Electronic Arts offered $1.3 bln in cash for London-listed Codemasters, overtaking rival Take-Two Interactive. The $40 bln group clearly sees scope to squeeze more value out of its target’s “F1” driving game. Shareholders can sit back and watch the race unfold.
EQT’s $2.8 bln pharma bet relies on sales booster 14 Dec 2020 The Swedish buyout firm is buying manufacturer Recipharm, which handles outsourced production for drug giants like Moderna. Given the target’s already heavy borrowings, delivering a decent return for EQT’s investors will depend on ramping up revenue growth.
Unilever inches head above climate change parapet 14 Dec 2020 The group will follow Spain’s Aena in granting investors a say on green transition plans. As with advisory votes on pay, letting shareholders take potshots at strategy is good governance. Unilever’s scope for strife is less than would be the case in a sector like oil, though.
Corona Capital: NFL’s ad fumble 14 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: This year fewer people are watching the National Football League, and that means broadcasters like Comcast’s NBC are lowering prices for commercials or offering free ad space.
Big Beer’s India bender is worth the hangover 14 Dec 2020 AB InBev, Heineken-backed United Breweries and Carlsberg are facing modest fines for price-fixing in the world’s fifth biggest economy. Margins are slim in the $6 bln market. But despite regulators’ love-hate relationship with booze, Indian growth is too good to give up.
Robots drive Hyundai from humdrum to high tech 14 Dec 2020 The South Korean carmaker is taking control of Boston Dynamics in a $1 bln deal. Seller SoftBank, which admits mechanical dogs are no cash cow, is keeping a 20% stake. That endorses Hyundai boss Euisun Chung’s ambitious vision to upgrade his autos-to-steel empire.
AstraZeneca’s $39 bln deal is bold as well as big 12 Dec 2020 The UK drugmaker will buy U.S. biotech Alexion, which makes treatment for a rare immune disease. It’s growing and throws off cash. Yet competitive challenges and a wayward M&A strategy have depressed its stock. That’s an opportunity and a threat for AstraZeneca CEO Pascal Soriot.
Disney streaming empire strikes back at Netflix 11 Dec 2020 With a trove of content including the Marvel and Star Wars franchises, the Magic Kingdom is eyeing 350 mln streaming subscribers in four years' time – more than double the count now. For Netflix, staying ahead may mean stumping up to buy a content-producing studio.