Kotak’s IT slap-down points to a system weakness 25 Apr 2024 Shares of the $44 bln bank fell 13% after the regulator barred it from acquiring new customers online following tech failures. Kotak's rich valuation is slipping away. Targeting growth is a smart punishment but the RBI may need to be tougher. Digital weakness appears widespread.
Time for Kering’s king to consider a step back 24 Apr 2024 François-Henri Pinault, heir to the family fortune, has been at the helm of the 40 bln euro French luxury conglomerate for nearly 20 years. With returns shrinking and as flagship brand Gucci struggles, Kering may benefit from fresh blood – and possibly a new CEO.
Beijing powers up into car wars battleground 24 Apr 2024 The city’s auto show returns, with some 700 exhibitors, for the first time since the pandemic. Foreign brands from Volkswagen to Toyota have to show how they can defend themselves as China’s BYD and new threats like Xiaomi chase market share at home and abroad.
Kate Spade deal veto is lucky dip for trustbusters 23 Apr 2024 US competition cops want to stop Tapestry, owner of the handbag brand, from buying rival Capri. The $8.5 bln merger is a tempting target: well-known products, few political issues, and none of Big Tech’s mighty resources. That offers a chance to road-test novel legal theories.
Chinese stocks have found a bottom 23 Apr 2024 After a $5 trln crash, there are early signs of healthy buying. In this Exchange podcast, Herald van der Linde, HSBC head of equity strategy, Asia Pacific, unpicks the shifting sentiment of Chinese households and implications for the rest of the region’s capital markets.
Buyout barons salivate at Toshiba job cuts 22 Apr 2024 They extract world-beating returns from deals in Japan often without reducing staff because lifetime employment is the norm. Now the private equity-owned conglomerate may cut 5,000 roles. A tight labour market helps, but if layoffs catch on acquirors could both pay and earn more.
ESG is ghost at global retailers’ annual feast 19 Apr 2024 LVMH, Amazon and peers gathered in Paris for the industry’s yearly shindig. The growth areas in the $30 trln sector are Shein-style cheap garments and the Middle East. Both jar with retailers’ previous focus on environmental, social and governance factors.
Czech Sphinx may need to pay up for UK mail morsel 17 Apr 2024 Daniel Kretinsky has been rebuffed in a bid to buy the 72% of 3 bln pound International Distributions Services he doesn’t already own. The Czech billionaire has deep enough pockets to pay more for the owner of Royal Mail. But his target’s board has grounds to dig its heels in.
Walmart-backed IPO makes brick-and-mortar AI pitch 17 Apr 2024 Ibotta is chasing a $2.6 bln public valuation for one of marketing’s oldest tricks: rebates on in-store purchases. Its data-gathering is simple – customers scan receipts – yet solid and profitable. But efforts to cover the company in a high-tech sheen look like a stretch.
Luxury’s great divide will get more striking 17 Apr 2024 Sales at $420 bln LVMH rose a dull 3% in the first quarter. The Tiffany-to-Dior behemoth’s insipid performance points to a broader fragility within the sector. With revenue in the luxury industry flattening, the gap between winners and losers is set to grow wider.
Salesforce’s activist makeover faces trial by M&A 16 Apr 2024 A swarm of pushy investors last year pushed the software firm into cutting costs, returning capital, and de-emphasizing dealmaking. Now it’s mulling a takeover of $11 bln Informatica, the WSJ says. The price will signal whether founder and CEO Marc Benioff has changed his ways.
Powell’s rate cuts may go from steady to steep 10 Apr 2024 Inflation hit 3.5% in March, making a June cut to borrowing costs unlikely. But Fed Chair Jay Powell is running out of time. A decrease in September would be seen to favor President Biden. The November decision is one day post-election. The only other option: take bigger whacks.
Norwegian fund’s podcast guru plays both sides 9 Apr 2024 Nicolai Tangen, head of the country’s $1.6 trln sovereign vehicle, has a side gig hosting interviews with corporate leaders like Elon Musk. The jaunty chats give CEOs cover with one of their few engaged investors. At least the fund is not afraid to vote against his guests.
Tech FOMO prices at a disturbingly high level 9 Apr 2024 Destiny Tech100, a newly listed fund with only $53 mln of stakes in private firms such as SpaceX and OpenAI, is now worth about $700 mln. Investors are clearly overeager to get in earlier on hot trends. A multiple of 13 times net asset value resets the Silicon Valley hype bar.
Beauty boom is busted 4 Apr 2024 Ulta Beauty’s stock plummeted 15% after the $21 bln makeup company’s CEO said lipstick-wearers had less money to put towards their routines. The industry’s M&A trend suggests the glam business can’t stay attractive forever – it has succumbed to a typical cycle like everyone else.
US antitrust push invites creative dealmaking 4 Apr 2024 Policymakers and trustbusters are eyeing new restrictions on mergers and acquisitions. In this Viewsroom podcast, Breakingviews columnists unpack some imaginative workarounds being used by companies ranging from Big Tech to fast food.
Ben & Jerry’s rocky ESG road bucks vanilla trends 4 Apr 2024 The purpose-driven ice cream brand is being scooped out of Unilever as corporate activism increasingly invites controversy. And yet the maker of flavors like Empower Mint has grown faster than its parent. Social values, especially when authentic, can mix well with financial aims.
A Dr Martens sale may cause multiple blisters 4 Apr 2024 An investor thinks the struggling $1 bln UK bootmaker could sell itself. Low valuations may woo buyers, but a bid is unlikely to make up for a 75% share slide since the group’s IPO. A rushed exit may also dampen top investor Permira’s effort to list sneaker brand Golden Goose.
Soho House’s private party may prove disappointing 2 Apr 2024 Executive Chair Ron Burkle could bless a de-listing of the loss-making $1.1 bln chain of members’ clubs, which he reckons will one day generate handsome earnings. He’s only right if the new sites, like São Paulo and Bangkok, prove as popular as the older ones. It’s a gamble.
Profitability is next sacrifice at inflation altar 2 Apr 2024 Central bankers want LVMH, Pepsi and others to pay higher wages without raising prices. Bottom lines in the euro zone already have dipped to 40% of output, the lowest rate since 2020, and Big Tech accounts for most US margin growth. CEOs and investors can expect leaner times.