Glencore is gaining ground on its trust issues 15 Feb 2022 The $77 bln commodity giant has set aside $1.5 bln to settle graft probes. That’s better than feared. And an improving valuation suggests investors are less bothered about its desire to stick with coal. But the mineral remains sufficiently controversial to check further upside.
Busted bank cartel case leaves pieces to pick up 11 Feb 2022 Australian prosecutors dropped criminal charges against Citi and Deutsche Bank over a 2015 share sale for lender ANZ. The lawsuit smacked of overreach and was dragging on too long. It also bared unsavoury investment-banking practices. There are lessons to learn for all involved.
The Exchange: Margrethe Vestager 8 Feb 2022 Europe’s antitrust tsar is responsible for keeping U.S. digital behemoths in check and making sure that the bloc doesn’t slip too far behind on technology. She joined Liam Proud to talk about a string of recent court losses and the future of competition policy.
Capital Calls: Antitrust game of chicken 31 Jan 2022 Concise views on global finance: President Joe Biden’s administration is hypersensitive to mergers that reduce competition. Sectors that have also experienced inflation may be top of the hit list – like poultry production.
Congress is out of excuses on insider trading 27 Jan 2022 U.S. lawmakers have long avoided constraints on their investments despite obvious conflicts of interest. It undermines their criticisms of trades by Fed officials and corporate leaders. There's momentum finally to impose rules. The latest proposals might even have real teeth.
Lululemon’s valuation makes it a target 21 Jan 2022 The yoga-pants maker is facing a fresh legal battle from Nike after already being hit by Peloton. Such lawsuits are common, but the athletic business is highly competitive, easily replicable and hard to differentiate. Success means rivals take notice and play defense.
EU greenwash laxity could see it build back worse 13 Jan 2022 Europe’s green taxonomy is meant to direct billions of euros towards clean energy so a post-virus continent can “build back better”. Yet political fudges mean gas and nuclear count as sustainable. Worse, the tool’s new draft contains loopholes that could make it dirtier still.
Viewsroom: A $3 trln Apple, Theranos boss busted 6 Jan 2022 The company led by Tim Cook hit another mega-milestone thanks to a lightning focus on the iPhone universe and investor willingness to accord it a market-beating multiple, Richard Beales explains. And Elizabeth Holmes draws bright lines between hype and fraud, Gina Chon says.
EU’s anti-greenwashing crusade takes a risky turn 5 Jan 2022 The bloc’s new draft of its green taxonomy includes gas and nuclear power. The risk is a tool intended to make sustainable financing less prone to greenwashing does the opposite. A lot hinges on whether investors properly differentiate between clean and “transition” activities.
Theranos jury draws a line between hype and lies 4 Jan 2022 Elizabeth Holmes, who touted non-existent capabilities for her now-defunct blood-testing startup, has been convicted of defrauding investors. If it stands, she faces jail time. Even in Silicon Valley, there's a limit to how flagrantly founders can fake it until they make it.
Canada’s weed lead is running out of puff 21 Dec 2021 The country’s homegrown outfits are angling for the U.S. market, which could be worth $40 bln a year by 2026. The high after Ottawa's early legalization of cannabis is fading, however. Canadian players in the pot sector need to act soon to make the most of the remaining buzz.
Capital Calls: 3M is a banker’s idea of no fun 15 Dec 2021 Concise views on global finance: The industrial giant has paid investment bankers 95% less in fees than General Electric. The company may have a hard time getting Wall Street’s best advice, even though deals might not help it.
Capital Calls: Chanel’s CEO pick 14 Dec 2021 Concise views on global finance: The privately-owned French fashion house appointed a Unilever executive as its new leader.
Capital Calls: UBS, Pfizer, Peloton 13 Dec 2021 Concise views on global finance: An appeals court has reduced a penalty for the Swiss bank by 60% for tax wrongdoings; the U.S. pharma group is buying a drugmaker to bolster its post-pandemic growth options; real risks are a bigger threat to the bike-app company than fake ones.
Andrea Orcel’s moral victory weakens Ana Botin 10 Dec 2021 A court awarded the Italian banker 68 mln euros as compensation for Santander’s sloppy U-turn on making him its CEO. The Spanish bank will appeal. But the ruling vindicates Orcel’s decision to fight, while reviving doubts about Santander’s chair, and the rest of the board.
Longer weekends are the next economic battleground 10 Dec 2021 The United Arab Emirates is slicing half a day off the working week while companies experiment with shorter hours. A lasting shift requires a majority to follow, even as tech makes it harder to log off. But post-pandemic workers may be more willing to trade labour for leisure.
Capital Calls: Deutsche and DWS, Big Four 9 Dec 2021 Concise views on global finance: The German bank’s ownership of the asset manager looks less appealing after an ESG reporting scandal riled U.S. regulators; a record $167 bln in revenue will soothe the accountancy giants’ breakup pains.
EU gig economy faces lengthy fight with Brussels 9 Dec 2021 Draft rules would reclassify up to 4 mln of the bloc’s freelancers as employees. That will raise costs and dent demand for firms relying on the self-employed. Ride-hailing and food-delivery groups can tweak business models or argue in court. The winner won’t be clear for years.
UK’s Facebook slap-down raises bar for US watchdog 1 Dec 2021 Britain’s antitrust body told the social media giant now named Meta to sell GIF maker Giphy. Its ruling hinges on a view of how the online ad market will evolve, not what it’s like now. CEO Mark Zuckerberg can appeal but the order still sets a punchy precedent for Big Tech deals.
Succession mess turns Orange into governance lemon 25 Nov 2021 The $30 bln French phone firm is seeking a new chairman and CEO after incumbent Stéphane Richard received a criminal conviction. A previous trial in 2019 should have prodded the board to line up a replacement. Splitting the top jobs is a first step to smoother future transitions.