Capital Calls: Illumina, Peloton 12 Aug 2022 Concise views on global finance: Growth is stagnating at the $30 bln DNA sequencing company, and regulatory problems with its Grail deal are also coming into view; a class action lawsuit against the virtual fitness outfit provides an unlikely reminder of its former glory days.
UK’s Bain ban sets oddly high moral bar 3 Aug 2022 Britain has barred the consultancy from public contracts due to misconduct in South Africa. The nod to ethics is overdue but tricky. Rivals McKinsey and KPMG, hit by related scandals, escaped UK censure. A similar stand against global skulduggery would red-card much of the City.
Review: The cat and mouse game of Russia sanctions 15 Jul 2022 In “Freezing Order”, investor Bill Browder describes lobbying to suspend the assets of those responsible for the death of his Russian employee. Moscow used economic interests and U.S. lawyers to undermine the sanctions. The same tactics threaten the response to the Ukraine war.
American shipping law doesn’t sail 27 Jun 2022 A U.S. act passed in 1920 requires ships traveling between U.S. ports to be American made and operated. But that has doubled the cost of transporting gas from Houston to New York, among other things. Eliminating the old rule would ease pressures on shortages – and rising prices.
Casino SPAC is for hardened gamblers only 7 Jun 2022 A legal battle over Okada Manila resort turned physical when its ousted boss seized the property last week. That could scupper its $2.7 bln deal with a U.S. blank-cheque firm. But unfriendly politicians, dubious financial reports and more stack the odds against investors, too.
Capital Calls: Airbnb, Prudential, Glencore 25 May 2022 Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.
Xiaomi fight puts China Inc on India red alert 13 May 2022 The country’s tax and financial agencies have tried to block some $1.2 bln of the smartphone maker’s funds. New Delhi engaged Vodafone, Cairn and others in similar battles but its testy relations with Beijing up the ante. Xiaomi and Chinese peers in India face a slow decline.
Capital Calls: Coinbase is conjoined to crypto 11 May 2022 Concise views on global finance: The exchange saw users and volumes fall, revenues slashed and lost over $400 mln in the first quarter. When cryptocurrencies slump, Coinbase has no choice but to follow.
Post Roe-leak, it’s not the economy, stupid 6 May 2022 Republicans were in a sweet spot ahead of November’s U.S. elections. Joe Biden’s early presidency has brought inflation, a failed attempt to tax the rich, and little help for the middle class. A leaked Supreme Court opinion on abortion, though, changes the calculus.
EU’s oil embargo is slave to volatile crude price 4 May 2022 The bloc wants to stop buying Russian exports within six months. That looks too slow to properly choke off funding for President Vladimir Putin’s war machine. Yet going any faster could make crude prices spike, exacerbating Europe’s battle against inflation.
China’s “bulletproof” coffee IPO is full of holes 12 Apr 2022 Star Plus Legend banks on the founder's pop-star son, Jay Chou, hawking butter-infused, or bulletproof, java and other diet fads. Beijing's crackdown on celebrity influence, however, threatens $57 mln of revenue. Using consumers as a sales force raises another red flag.
Review: Pandering to Beijing has shrinking payback 1 Apr 2022 One difference between the Cold War and current Sino-U.S. tensions is the crowd of capitalists rooting for the communists. In “America Second,” Isaac Stone Fish lambasts the CEOs and lobbyists who take China’s side. Yet the return on sucking up, never high, is falling sharply.
Ericsson’s governance mess stretches beyond Iraq 30 Mar 2022 Investors rebuked CEO Börje Ekholm for not disclosing possible payments to Islamic State by stripping him of legal protections. The telecoms-kit maker kept voting details quiet, and its dual-class share structure means Ekholm looks safe. Investors have more reason to steer clear.
Review: UK corporate servants neglect their manor 11 Mar 2022 The country has become a concierge to the globe’s shady rich, Oliver Bullough argues in “Butler to the World”. Kleptocrats benefit from amenable bankers, assertive lawyers and pliable politicians. But the flow of cash erodes the foundations that make the destination so appealing.
Capital Calls: White-collar crime, Rusal rejig 7 Mar 2022 Concise views on global finance: The U.S. attorney general wants to go after more individuals as well as companies for corporate crimes. Even law firm Wachtell says top bosses should pay attention; a plan to separate Rusal’s non-Russian bits looks like a challenge.
Russia crisis is Big Crypto’s coming-of-age moment 3 Mar 2022 Major exchanges like Coinbase and Binance are still open to Russians despite the risk of sanctions evasion. If they fail to spot illicit transactions, regulators will crush the life out of them. If they pass the test – and they might – it may be their ticket to the mainstream.
Ericsson Iraq snafu dents already-shaky M&A logic 2 Mar 2022 The telecom kit maker’s shares fell 12% after U.S. authorities said it broke a deferred prosecution agreement over possible payments to Islamic State. A large fine would make the $6.2 bln acquisition of Vonage more risky. That puts pressure on CEO Börje Ekholm to find a way out.
Ukraine war is tectonic shift for global finance 1 Mar 2022 Investor turned anti-corruption campaigner Bill Browder joins Dasha Afanasieva on The Exchange podcast to explain why tougher sanctions from the West, including freezing oligarch assets, threaten Russian President Vladimir Putin’s grip, and cripple the country’s economy.
Capital Calls: Buffett, Sanctions, Defence, Canada 28 Feb 2022 Concise views on global finance: The Oracle of Omaha has seen value in his company’s own stock; Switzerland breaks with traditional neutrality over Ukraine; military-equipment stocks are surging; and Ottawa may let the Rogers-Shaw telecom merger follow a discouraging U.S. path.
Allianz’s U.S. fund misery is only half over 18 Feb 2022 Europe’s largest insurer has set aside $4.2 bln to compensate savers for complex derivative bets that went wrong. The figure, less than the $6 bln claimed, looks positive for shareholders. But with so much extra cash, U.S. regulators may impose a heftier fine to even things out.