Conglomerates

Capital Calls: Target’s bullseye

16 Aug 2023

Concise views on global finance: The $60 bln retailer reported better-than-expected second-quarter profit, sending shares up some 8%. The reaction overlooks some big problems and puts faith in factors beyond the company’s control.

CFOs are stepping into a rapidly revolving door

14 Aug 2023

From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.

Capital Calls: Siemens

10 Aug 2023

Concise views on global finance: The rot at the 110 bln euro German industrial group is spreading from its misfiring energy unit to the core automation business.

Capital Calls: Italian bank levy flip-flop

9 Aug 2023

Concise views on global finance: Rome has only partially soothed investors panicking over its windfall tax on lenders.

Capital Calls: PIF, Siemens Energy

7 Aug 2023

Concise views on global finance: Saudi Arabia’s big sovereign wealth fund is getting bigger; the $13 bln German company unveiled a $2.4 bln charge due to persistent wind turbine problems.

GE chief’s efforts pay back twice over

25 Jul 2023

Jet engines and turbines are back in demand after years of weakness when CEO Larry Culp could do little but focus on efficiency. The conglomerate is now equipped for better times. So’s the boss, whose extravagant $232 mln bonus – pegged to the share price – is finally in the bag.

Fading Russia windfall will test Ambani’s ambition

24 Jul 2023

Earnings at the Indian tycoon’s $210 bln Reliance disappointed. The high crude refining margins driven by the dislocation in energy markets are evaporating. As weak global demand bites, scrutiny will intensify on the conglomerate’s newer consumer-facing businesses.

Warren Buffett flaunts his green investment thumb

17 Jul 2023

Berkshire Hathaway is paying $3.3 bln for control of a liquefied natural gas facility. The conglomerate’s utilities now account for about half the conglomerate’s capex. Regulated returns help, but the Oracle’s funding devoted to energy transition should be a sign to laggards.

Samsung sees glimmer of light at end of tunnel

7 Jul 2023

The $365 bln South Korean tech titan warned that its quarterly operating profit has probably cratered 96%, thanks to a global memory-chip glut. But there are signs that prices are bottoming out. A recent artificial intelligence frenzy may also bolster demand in the year ahead.

Adani case threatens watchdog’s rising credibility

6 Jul 2023

Indian regulator Sebi has disciplined two media tycoons for alleged wrongdoing and strengthened disclosures for foreign investors. The moves fit Chair Madhabi Puri Buch’s tough reputation. But an inconclusive probe into the billionaire’s dealings could undermine recent progress.

Swire’s Coca-Cola sale gives investors sugar rush

29 Jun 2023

Handing its US drinks subsidiary to its parent for $3.9 bln allows the Hong Kong conglomerate to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific and other holdings recover soon.

Capital Calls: Canada is calling Meta’s bluff

23 Jun 2023

Concise views on global finance: The Facebook owner plans to pull news on its platforms in Canada after the country passed a bill that requires internet giants pay publishers. If Australia is any guide, Meta will eventually cave.  

Masayoshi Son’s new AI push merits a pinch of salt

22 Jun 2023

The SoftBank founder said he would place further bets on artificial intelligence after taking a pause. Some of his investments may pay off. But Arm is his only real AI win from a $112 bln portfolio, his credibility has taken a knock, and his war chest is smaller than it looks.

GoTo’s new CEO has one key job: bring stability

9 Jun 2023

Patrick Walujo is replacing Andre Soelistyo atop the $10 bln Indonesian superapp. The private equity boss may want to more closely knit together GoTo’s disparate businesses. But after several high-level changes, cost cuts and stake sales, providing a steady hand comes first.

Toshiba gives shareholder management masterclass

9 Jun 2023

The Japanese company is recommending a $14 bln buyout two-and-a-half months after first supporting it. The deft way its board eventually handled the process provides a template for Japan Inc to engage pushy owners. Point one: don’t automatically treat shareholders as the enemy.

Warren Buffett – he invests just like us!

7 Jun 2023

The Nebraskan billionaire has come to embody the idea of buying and holding for the long-term. It’s true where Berkshire Hathaway acquisitions like See’s Candies are concerned. When it comes to sizeable equity stakes such as TSMC, however, he can be as fickle as anyone else.

Gautam Adani’s fundraisings offer multiple tests

16 May 2023

His companies are preparing to tap capital markets for some $3 bln, three months after a short attack succeeded in obliterating $120 bln and 50% off his group’s value. It will test the Indian conglomerate’s reputation, his attitude to public equity, and the besieged regulator.

Ambani’s finance listing will measure disruption

11 May 2023

The fledgling venture mostly comprises a 6% stake in $200 bln parent Reliance. Yet it may be floated as soon as September. It’s easier to spin out than the conglomerate’s digital and retail businesses. How it’s valued will signal whether investors reckon he can shake up lending.

Omaha man sails into Florida’s imperfect storm

9 May 2023

Hurricane Ian’s $50 bln of covered wreckage last year forced insurers in the state to offload risk. At the same time, the price of doing so has been rising. In classic Warren Buffett style, his Berkshire Hathaway justifiably forecasts sun where others see dark financial clouds.

Buffett’s imprint on Berkshire reaches its limit

8 May 2023

The billionaire again made clear that energy lieutenant Greg Abel will someday be the company’s next CEO. By bequeathing his stock to the Bill and Melinda Gates Foundation and others, Buffett has outlined ownership succession too. Even those best-laid plans leave notable holes.