Vietnam’s Elon Musk challenger turns heads in 2023 21 Dec 2022 Le Thi Thu Thuy is steering VinFast onto Western roads to race the entrepreneur’s premium marque, Tesla. She’ll have to convince investors in its New York IPO to look past niggles at its powerful parent. It’s a complex route, and puts the former Lehman banker in the spotlight.
Capital Calls: U.S. labor market softens, slowly 8 Dec 2022 Concise views on global finance: Joblessness data suggests Americans are taking longer to find work. That’s good for inflation, but sluggish progress means the Fed will have to keep tightening monetary policy.
Capital Calls: DWS fixes what it can 7 Dec 2022 Concise views on global finance: The 6 bln euro German asset manager unveiled some punchy new targets, but its biggest challenge will be to unshackle itself from controlling shareholder Deutsche Bank.
New CEO gives Prada more stylish look for listing 6 Dec 2022 Former Luxottica executive Andrea Guerra will replace founder Patrizio Bertelli at the $15 bln fashion house. It’s a breath of fresh air for the family-controlled firm. Putting an experienced outsider in charge may increase Prada’s appeal as it eyes a share sale in Milan.
The complexities of EY’s big breakup bet 6 Dec 2022 The Big Four firm is pushing a plan to separate its auditing unit from its consulting business. In this Exchange podcast Andy Baldwin, global managing partner, discusses the challenges of convincing partners in over 70 countries to back the split – and what happens if it fails.
UniCredit CEO Orcel has leverage in pay debate 6 Dec 2022 The veteran dealmaker has hit his bank’s targets this year and narrowed a valuation gap to peers. Andrea Orcel may therefore deserve his maximum annual bonus. A pay hike beyond that is less obviously required, but legitimate fears he may jump ship may tip the board to offer one.
Breakup is best cure for Fresenius chronic pain 6 Dec 2022 Covid-19 disruption and staff shortages have hit the $16 bln medical group, in which activist fund Elliott owns a stake. Sold separately, its various bits could better reward investors. Flogging low-hanging fruit like hospital builder Vamed would earn CEO Michael Sen a first win.
Capital Calls: Twitter’s news problem 6 Dec 2022 Concise views on global finance: If the U.S. Congress passes a law that allows news organizations to band together and negotiate with online platforms, Elon Musk may have one more challenge to add to his growing list.
Vodafone CEO exit limits room for quick turnaround 5 Dec 2022 Nick Read is leaving the 25 billion pound telecom group after just four years. Finding a permanent successor may take time, and the board’s focus meanwhile is on completing two deals and improving the group’s weak performance. Bold moves like a breakup may take a back seat.
Salesforce shakeup puts co-CEOs under a cloud 1 Dec 2022 Bret Taylor is stepping down after just a year of running the $140 bln software developer alongside founder Marc Benioff. Another former copilot lasted less than two years. Because entrepreneurs typically struggle to surrender the reins, sharing them is often a terrible idea.
Credit Suisse banks needn’t break too big a sweat 1 Dec 2022 The lender’s battered shares are now trading just 7% above the price of its $2.4 bln rights issue. A further slump could leave Deutsche, Morgan Stanley and 18 other underwriters with unwanted stock. But they have a margin of safety, and Credit Suisse may have backup options.
Capital Calls: Farfetch 1 Dec 2022 Concise views on global finance: Shares of the New York-listed online retailer dropped over 20% as its plan to sell e-commerce services to luxury groups like Salvatore Ferragamo failed to convince investors.
Juventus drama calls for an Exor exit strategy 29 Nov 2022 Chair Andrea Agnelli and the rest of the soccer club’s board quit amid an accounting scandal. For top investor Exor, controlled by the Agnelli clan, it’s a chance to rethink long-held ties to the loss-making team. After a cleanup, a 2.3 bln euro price tag looks plausible.
Private equity’s pay boom may have peaked 29 Nov 2022 The average European buyout partner has 20 mln euros of outstanding carried interest in their current fund, reckons Heidrick & Struggles, up a quarter from 2021. Junior wages soared. Yet a possible fundraising slowdown and layoffs elsewhere in finance will slow the gravy train.
Oatly’s best turnaround recipe is dollops of cash 25 Nov 2022 Shares in the $950 mln faux-milk maker are down 80% this year, and revenue growth is slowing. CEO Toni Petersson will struggle to stop burning cash, and has ruled out selling the company. That means a looming capital hike may have to be much bigger than he currently thinks.
Gucci designer’s exit boosts Kering’s M&A urgency 24 Nov 2022 Alessandro Michele’s departure from the bling group’s top label puts CEO François-Henri Pinault on the spot. Finding a new creative star will be hard, and he needs more brands to cut his $71 bln firm’s reliance on Gucci. A recent miss on Tom Ford also weakens his dealmaking hand.
China’s tech giants will have to keep on giving 23 Nov 2022 Authorities may finally fine fintech player Ant, while JD Chair Richard Liu is cutting executive salaries and donating some of his cash to aid lower-paid workers. Investors may hope they’re one-offs. But Beijing’s fiscal woes and common prosperity push make such firms handy ATMs.
Debt woes will restrain Enel’s global ambitions 22 Nov 2022 CEO Francesco Starace vowed to cut the 52 bln euro utility’s net debt by 21 bln euros, amid spiralling gas costs. Focusing on fewer regions looks sensible and may shield investments and dividends. But it will hinder Enel’s efforts to stay one of the top energy transition winners.
Disney offers an Iger solution to an Iger problem 21 Nov 2022 The media giant tapped its former boss to, among other things, find a successor. Shareholders seem relieved. But Iger failed to cultivate a replacement in his 15-year tenure, and left the $180 bln firm laden with debt. His legacy hinges on a refreshed board, boss, and company.
Giving up the keys is Musk’s best Twitter option 17 Nov 2022 The billionaire admits he’s overworked running Tesla, SpaceX and the social media firm. His own blue-sky math suggests he’d be far better off financially by focusing on electric cars. Walking away from Twitter puts his $44 bln purchase at stake. But it's a small price to pay.