Capital Calls: AI out-buzzes the blockchain 27 Jan 2023 Concise views on global finance: Digital publishing outfit BuzzFeed’s stock surges in part because it’s using AI to help create content. But investors’ excitement is likely to be short-lived.
Capital Calls: Data falsehoods 26 Jan 2023 Concise views on global finance: Better-than-expected U.S. GDP and durable goods data suggest the country might be spared from a recession. But exclude Boeing sales and corporate stockpiling, and the economic outlook is less rosy.
Adani’s buy now, pay later fundraise could sting 26 Jan 2023 The world’s third-richest man Gautam Adani won anchor investor backing for a $2.4 bln share sale by his flagship company, including from Abu Dhabi’s wealth fund. Yet an Adani group selloff resulting from a short attack means terms that were meant to reward buyers could hurt them.
Short-seller attack raises Gautam Adani stakes 25 Jan 2023 Hindenburg reinforces how the $230 bln empire of the world’s third richest man is closely held, overvalued, and dismissed by Wall St. The upstart’s record of exposing U.S. fraud will make India sit up. But Adani is a giant target, and too many powerbrokers have a lot to lose.
Vodafone stake-builder sends fuzzy breakup signal 24 Jan 2023 UAE telecoms group e&’s 12% holding in its $31 bln UK peer makes it seem like a full bid or a breakup lies just around the corner. But the $61 bln Middle East stake-builder doesn’t seem that keen. And most of Vodafone’s many locales look hard to split off anyway.
Davos, Inc. finds reasons to be less gloomy 20 Jan 2023 Business leaders gathering in the Swiss mountain resort have plenty to fret about. Still, with China reopening, Europe keeping the lights on and interest rate pressure easing, the overriding emotion is one of relief. Less clear is whether the mood extends beyond the alpine elite.
Snam rethink reflects Europe’s new energy reality 19 Jan 2023 The $18 bln network operator is hiking spending to boost gas flows into Italy and the EU. Stable revenues from such investments can help new CEO Stefano Venier lift EBITDA. But a lighter push into hydrogen and green projects suggests a slower European shift from fossil fuels.
AGL’s new boss has a $14 bln target on his back 19 Jan 2023 That’s how much Damien Nicks needs to turn Australia’s top carbon emitter into a renewables giant. Unlike predecessors, he has a proactive board, improving earnings and a half-placated billionaire agitator. He’ll still get hauled over the coals if he can’t find funds quickly.
How to navigate a bewildering market landscape 17 Jan 2023 The pandemic boom lured in new and younger investors. Now interest rates are up, asset prices are down, and ESG investing faces a backlash. In this Exchange podcast, Morningstar CEO Kunal Kapoor talks about personalising investment, the value of data, and taking the long view.
The Davos party returns, with the shakes 16 Jan 2023 Business leaders including JPMorgan’s Jamie Dimon and Chevron’s Mike Wirth are back in force at the World Economic Forum’s Swiss shindig. But heads of state who shape corporate fates more than ever are mostly staying home. It’s symptomatic of a divided, uncertain world.
Will Disney’s real activist please stand up? 13 Jan 2023 Dan Loeb started a campaign, but took an easy win. Nelson Peltz is using velvet gloves to persuade current boss Bob Iger to get the $180 bln media giant on the right track. But activists’ main job is forcing a regime change. At Disney, that’s going to take some muscle.
LVMH has smarter way to tackle succession dilemma 11 Jan 2023 Bernard Arnault picked his daughter Delphine to run the luxury giant’s Dior brand. If she proves her mettle, she may win the race among her siblings to eventually replace the 73-year-old tycoon. Naming one heir would help LVMH extend its success to the next generation.
Bayer’s rude health lays better path for breakup 11 Jan 2023 Activists including Jeff Ubben are piling into the $58 bln German seed and drug maker. Its cheap share price, thanks to the dire Monsanto deal, has for years dangled the promise of a lucrative carve-up. Improvements in the pharma unit and a CEO change make it more likely now.
Female bank CEOs help in theory, not yet practice 4 Jan 2023 Marianne Lake or Jennifer Piepszak may one day succeed JPMorgan’s Jamie Dimon. Women stack the benches at BNP, UBS and Credit Suisse. Yet too often female CEOs don’t enact change throughout the ranks. Jane Fraser’s Citi shows it takes time for the gender balance to trickle down.
Boardrooms will rediscover the value of gray hair 29 Dec 2022 The economy is headed for conditions not seen in over a decade, yet a third of the U.S. workforce was under 20 during the last real recession. CEOs are getting older, while tech and crypto blowups knocked youth off its perch. In 2023, companies will embrace an aging workforce.
“Lifetime value” is Silicon Valley’s next buzzword 28 Dec 2022 As the cost of recruiting customers rises, tech firms and investors are paying more attention to the revenue users bring in. It’s a welcome shift from breakneck growth. Yet as with previous favourites like “total addressable market” or “flywheel effect”, the idea may get garbled.
Carmakers will reverse out of public markets 28 Dec 2022 Shares of companies like Stellantis and BMW are depressed on fears of a recession, and the threat of Chinese rivals. Yet the groups are profitable and throwing off cash. One way to make the most of low prices is to buy back shares. The logical next step is to go private.
Capricorn mess mixes new and old ESG goofs 22 Dec 2022 Shareholders are angry at a takeover of the $950 mln oil group formerly known as Cairn Energy, months after they rejected a separate deal. It’s partly about price. But it also reflects investors’ new concern over environmental risks, and a very old dislike of poor governance.
Putin’s Russia will look more like North Korea 22 Dec 2022 The Kremlin leader will strengthen his hold over the ailing economy, from banking to industrials. Massive nationalisation, along with the end of U.S. and European investments, could soon be followed by strict capital controls. The complete closure of the Russian economy is next.
How Ana Botín can defeat the Santander sceptics 21 Dec 2022 The Spanish bank suffers from a lower valuation, relative to its return on tangible equity, than rivals. If its executive chair can keep costs low and show the group is worth more than the sum of its parts, that might change. If not, it’s time to sell assets, starting in the U.S..