China tech will double-down in Southeast Asia 5 Aug 2020 As Washington and New Delhi block Chinese apps, fast-growing markets like Indonesia and Vietnam have gained importance for mainland technology firms. Early movers like Alibaba found limited traction in the region, but the next wave is nimbler, and may enjoy more success.
Ford’s new CEO needs deft maneuvering skills 4 Aug 2020 The $27 bln carmaker has promoted Jim Farley to replace Jim Hackett, the second boss in six years to leave after underperforming peers. Farley will have to cut costs while also trying to speed up the company’s investments in electric and self-driving tech. That’s no easy task.
Disney kingdom falls under stubborn sorcery 4 Aug 2020 The $211 bln firm is famous for its theme parks, movie studios and sports-TV network. Now those assets are facing challenges. Streaming is a bright spot. But unlike Comcast, which copied the blueprint, Disney has no cable business to counter the dark forces raging against it.
The Exchange: Dov Seidman 4 Aug 2020 The founder of LRN, a technology and education firm that advises global corporations on culture, governance, ethics and other matters chats with Rob Cox to discuss the importance of moral leadership, an issue that has taken on increased importance during the Covid-19 crisis.
Staid Microsoft gets a viral gift from TikTok 4 Aug 2020 The least cool tech giant has outperformed most of its rivals to reach a $1.6 trln value. Owning the popular video app could finally bring buzz and ad dollars. There are political risks, and buying only part of TikTok may be messy. But potential financial gains make up for it.
Google gets physical-security amuse-bouche 4 Aug 2020 ADT is selling the Alphabet unit a 7% stake for $450 mln. The news sent the Apollo-controlled alarm-service outfit’s value up $4 bln or 60%. That’s a big response to an initial deal to fold Nest devices into its lineup. It may reflect new options for ADT’s corporate future.
HDFC Bank’s new boss is good choice for hard times 4 Aug 2020 Veteran insider Sashidhar Jagdishan will succeed Aditya Puri, who has led the $73 bln Indian lender for 26 years. The group has excelled at controlling bad debt and taking market share. With Covid-19 pains still raging, Jagdishan is a solid pick to defend outsize returns.
Corona Capital: PizzaExpress, Aerospace pain 4 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: The UK restaurant chain’s restructuring is not that tasty a meal for creditors; Airplane-parts maker Spirit’s reliance on Boeing’s 737 MAX has it heading into worse turbulence.
BP gets serious about tough corporate reshaping 4 Aug 2020 CEO Bernard Looney’s dividend cut frees up cash for renewables investment. Plans to axe oil output by 40% by 2030 show added commitment to flicking the green switch. Selling assets is easy but growing new businesses is hard. BP risks ending up neither an oil nor an energy major.
Natixis CEO exit eases open door to M&A 4 Aug 2020 Francois Riahi has left the French lender after dismal results. Risky fund bets and shares which lagged rivals during his tenure outweighed bold initiatives such as green lending. New boss Nicolas Namias, who arrives from majority owner BPCE, may pave the way for a full takeover.
GAM will struggle to shake off virus malaise 4 Aug 2020 The Swiss fund manager reported a net loss and its assets under management fell to $130 bln in the first half. CEO Peter Sanderson is cutting costs, but his medium-term targets look fanciful. His company is badly positioned to cope with the tough environment facing the industry.
Sony is primed for coming game-console battle 4 Aug 2020 Quarterly operating profit at the group’s PlayStation unit blew up 68% year-on-year to $1 bln. With Sony ready to roll out a new console later this year, the momentum looks sustainable. A huge base of loyal gamers plus exclusive content gives it an edge over Microsoft.
Mukesh Ambani’s retail M&A would wipe competition 4 Aug 2020 The tycoon’s Reliance might buy Future Group for $3.6 bln. It would enlarge a shopping giant bigger than all its major brick-and-mortar rivals combined. Amazon might also invest in the behemoth. The deals would shore up Ambani’s dominance, and blunt India’s shopping revolution.
Retail’s WeWork escape hatch is sealed shut 3 Aug 2020 Real estate used to be a valuable asset for troubled retailers: Lord & Taylor sold its flagship store to the office share startup. But a spate of bankrupt apparel chains shows the sector’s last ditch for value is on the fritz. It is bad news for the likes of Simon Property.
Merger tricks no match for rolling up the sleeves 3 Aug 2020 The parent of Men’s Wearhouse has filed for bankruptcy after Covid-19 halted in-person shopping and a need for suits. Just six years ago it was a Wall Street plaything, successfully pulling off a so-called Pac-Man defense. It’s a reminder M&A games are no match for good strategy.
WeChat makes bigger brick in anti-China firewall 3 Aug 2020 Tencent’s app is next in line for a White House ban after TikTok. Blocking WeChat, crucial to life and business in the People’s Republic, would protect overseas Chinese from Beijing’s spies, but cut them off from home. That would hasten and deepen the decoupling of the internet.
Corona Capital: College mergers, UK property funds 3 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: M&A goes to the University of Arizona; Britain’s financial watchdog considers stopping property fund withdrawals.
HSBC is firing on just one shaky cylinder 3 Aug 2020 The $90 bln lender’s investment bank is the only business that’s really growing, as the group racks up further bad-debt charges. CEO Noel Quinn is cutting costs fast. But with low interest rates crimping revenue, he might need to take a sharper knife to restructuring plans.
SocGen confirms weak-man-of-Europe status 3 Aug 2020 Rising bad debt plunged the French bank to a 1.6 bln euro half-year loss. Equities trading was dire even as investment banking rivals made money. A pledge to keep full-year credit charges subdued may be CEO Frederic Oudea’s last chance to revive the lender’s bombed-out valuation.
Speedway adds financial inconvenience for 7-Eleven 3 Aug 2020 The retail chain’s Japanese owner, Seven & i, is gearing up to expand its U.S. footprint by buying Marathon’s gas station business for $21 bln. The synergies could help to eke out a sensible return. But investors have already discounted $2 bln, about half of their net value.