Lagardère shoots the messenger and its own foot 14 Oct 2019 The $3 bln Paris-based conglomerate wants 84 mln euros in damages from activist Amber Capital for destabilising its share price. Lagardère had been doing a good job of that on its own via its ropey strategy. Suing its third biggest investor and change agent smacks of desperation.
Send the A-Team to Saudi’s “Davos in the Desert” 11 Oct 2019 Financiers are heading to Riyadh for the kingdom’s annual money bash. Given it’s only a year since Jamal Khashoggi was murdered by Saudi agents, they’re trotting out various rationales for attending. Weakest of them all is to send junior people: just put the CEO on a plane.
PG&E faces judicial bankruptcy brownout 10 Oct 2019 Just as the California utility cut off customers to avoid wildfire risks, a judge opened the door for creditors to seize power over its restructuring. They are offering more to fire victims, and less to equity holders. Running the agenda matters: PG&E stock fell another 30%.
Nigeria’s $62 bln oil demand is bargaining chip 10 Oct 2019 That’s how much Africa’s top crude producer wants big oil companies like Shell and Exxon Mobil to cough up under a review of 1990s contracts. In theory Abuja could seize output. In reality it’s sending a message ahead of talks over deep-water production licences due for renewal.
Holding: Net neutrality needs the feds, eventually 8 Oct 2019 A U.S. court said the likes of California can require internet service providers to treat all content equally, despite conflicting federal rules. As in areas like antitrust, though, national standards provide crucial clarity. The best states can do is prod Congress to step up.
College football learns to play by market rules 3 Oct 2019 Young U.S. athletes generate $1 bln in revenue for their governing body – yet their rewards are tightly capped. When demand is high and the supply of elite talent low, as in football, something has to give. A new California law is a nod to what other industries realized long ago.
J&J plays opioid settlements to its advantage 2 Oct 2019 The $348 bln drugmaker’s low-cost deal to end a suit from two Ohio counties is a sign the painkiller-scandal litigation may cost less than expected. Financial incentives and game theory pressure hard-hit areas to come to terms quickly. Settlements may only partly cover damages.
Thiam absolved but not unscathed in spy scandal 1 Oct 2019 An internal investigation has cleared the Credit Suisse CEO of wrongdoing after his chief lieutenant hired spies to tail an ex-employee. Tidjane Thiam has now lost two key staff in three months. Worse, ignorance of key decisions in the company you run is not a good look.
Cox: The gnomes of Zurich aren’t boring enough 30 Sep 2019 Swiss banking is meant to be discreet, stable and predictable. It’s also trying to prove it’s ethical. That’s why Credit Suisse’s dumb decision to ask second-rate detectives to trail former wealth boss Iqbal Khan, who defected to rival UBS, is a national embarrassment.
Nigeria is right to fight $9 bln arbitration claim 25 Sep 2019 The African nation is refusing to honour a ruling by UK-based judges on a failed gas project. Abuja is on thin ice because it failed to appeal on time. But the contract awarded to a little-known Irish firm looks suspect. Reopening the case would be a victory for common sense.
Ghosn’s power would get lost in translation 24 Sep 2019 The SEC claims the former Nissan boss hid half his salary to avoid public opprobrium, and was able to do so because of lax controls. It’s a stark contrast to the United States, where governance is strong but social pressure over pay is weak. Both systems fail in different ways.
Johnson’s legal spanking barely moves Brexit dial 24 Sep 2019 The Supreme Court’s unanimous ruling that the government illegally shut down parliament would normally be the end of the British prime minister. But his majority has already disappeared. The most likely outcome remains as before: another Brexit extension and a bitter election.
Volkswagen’s damaged CEO remains roadworthy 24 Sep 2019 Herbert Diess has presided over a share price fall, made a Nazi joke, and may now face a criminal charge of market manipulation. Assuming he survives the latter, his recent truck IPO and focus on electric vehicles are right. Oddly, the $85 bln group would be weaker without him.
Cox: Imagine Carlos Ghosn as a human rights martyr 20 Sep 2019 The wealthy former Nissan-Renault boss who held a birthday bash at Versailles isn’t the first person to come to mind. But that’s the argument his lawyers are making in a renewed pitch to acquit him of criminal charges in Japan. As unlikely as it sounds, the case has some merit.
Holding: Insider-trading law fix is within reach 11 Sep 2019 The U.S. Congress seems closer than ever to clarifying rules that have perplexed investors, watchdogs and judges for decades. With prosecutors pushing legal limits and dodgy traders slipping through loopholes, reform is overdue. Bipartisan support suggests it may finally happen.
Opioid settlements are best sent to rehab 4 Sep 2019 Local governments may win $100 bln from drug firms over an epidemic costing society $500 bln a year. That’s akin to tobacco’s giant payments, most of which disappeared into budgets. Yet drug treatment generates sevenfold returns. Localities can’t afford to waste this windfall.
Berlusconi and Bolloré vie for media booby prize 2 Sep 2019 The billionaires are fighting over Italy’s $4 bln Mediaset. Giant egos preclude the friends-turned-foes from joining forces to revive the broadcaster’s dwindling fortunes. While they feud, Amazon and Netflix are capturing the growth in European video consumption.
Uber labor bill risks straying from righteous road 29 Aug 2019 The ride-hailing giant’s home state of California wants gig-economy firms to give workers paid vacation and sick time, following similar cases in Europe. Yet some old-school industries may get carve-outs. That would be a pity. It’s a chance to rethink protections for all earners.
Simple math suggests huge opioid hit for pharma 27 Aug 2019 Investors boosted Johnson & Johnson’s stock after an Oklahoma judge ordered the drugmaker to pay $572 mln for its part in fomenting addiction to painkillers. Yet the state represents only about 1% of Americans and this is just one of a torrent of cases. Optimism looks misplaced.
Walmart adds solar burns to Tesla’s challenges 21 Aug 2019 The U.S. retailing giant is suing Elon Musk’s $40 bln electric-car maker for negligence after its solar panels allegedly sparked fires at stores, further denting Tesla’s quality-control image. Walmart’s move also puts Musk’s odd 2016 acquisition of SolarCity back in the spotlight.