Ping An’s HSBC campaign fails the financial test 7 Sep 2022 The Chinese insurer has doubled down on its call for the $123 bln bank to spin off its Asian unit. Doing so would put cross-border revenue at risk and raise funding costs. To make it worthwhile, the business would have to snag a premium to most regional peers. That’s unlikely.
Capital Calls: Porsche’s bold IPO 6 Sep 2022 Concise views on global finance: German carmaker Volkswagen is pushing ahead with its plan to list the luxury brand, despite torrid markets.
Trussonomics may freak out the markets 5 Sep 2022 If the UK’s new prime minister was only planning big energy subsidies, investors might not worry too much. But Liz Truss is also planning tax cuts – and may pick fights with both the Bank of England and European Union. If so, the pound could be clobbered, says Hugo Dixon.
Capital Calls: UBS fintech U-turn, UK housebuilder 5 Sep 2022 Concise views on global finance: CEO Ralph Hamers cancels the $1.4 bln acquisition of robo-adviser Wealthfront; Countryside Partnerships accepts a 1.3 bln pound offer from UK rival Vistry just three months after rejecting a higher bid.
Starbucks CEO brings warm skills to hot problems 2 Sep 2022 The $98 bln coffee chain named Reckitt boss Laxman Narasimhan as its next leader. He’s expected to deliver more and faster Frappuccinos with a restless workforce and rising costs. Narasimhan’s track record is promising. But with Howard Schultz still around, he is under the gun.
Capital Calls: Lululemon stretches inventory logic 2 Sep 2022 Concise views on global finance: The $41 bln company raised annual profit and revenue forecasts, but is a little too relaxed about its growing stockpiles of yoga gear.
Shell’s next boss looks a shoo-in 2 Sep 2022 The $192 bln energy group’s veteran CEO Ben van Beurden is likely to depart next year. Shell’s heads of oil drilling, refining, and finance all merit consideration. But gas and renewables boss Wael Sawan, who holds the key to Shell’s future revenue growth, is the logical choice.
CEO exit gives Reckitt suitors a narrow window 1 Sep 2022 Shares in the $55 bln Durex condom maker fell amid Laxman Narasimhan’s sudden departure. Naysayers can cite Reckitt’s half-done rejig and inflation risks. Yet with a valuation lagging the likes of Colgate Palmolive, a bidder could point to other positives to justify a swoop.
AstraZeneca’s Soriot on cures for pharma ills 30 Aug 2022 The $208 bln drugmaker’s CEO is celebrating 10 years at the helm. In this edition of the Exchange podcast, he explains why after quadrupling the company’s share price, there is more to do. He also delves into Chinese competition and the consequences of caps on U.S. drug prices.
Nio’s affordable cars carry luxury baggage 25 Aug 2022 Founder William Li is rolling China’s $32 bln electric-vehicle maker into the mass-market. It will be tempting to hitch cheaper products with premium services like battery-swapping to win market share. A similar strategy has served him well so far, but risks driving up costs.
Gautam Adani’s tycoon rivalry spills into the news 24 Aug 2022 The Indian infrastructure tycoon has grabbed a 29% stake in $300 mln NDTV, a move to match the influence Mukesh Ambani enjoys thanks to his Reliance group’s TV channels, watched by half the country. The broadcaster may be a trophy asset but there are decent returns to be made.
Instacart’s fast growth isn’t fast enough 23 Aug 2022 The grocery delivery service is expanding into advertising and offering services to rivals, as boss Fidji Simo preps to potentially go public. Yet even with double digital revenue growth it only looks to be worth around $11 bln, far less than a private valuation a few months ago.
Capital Calls: Paytm protest vote 22 Aug 2022 Concise views on global finance: A majority of the Indian fintech posterchild’s public institutional investors voted against the pay of founder and boss Vijay Shekhar Sharma.
Tencent is running in two different directions 17 Aug 2022 The Chinese video game giant suffered a 43% plunge in operating profit from falling markets and a weak economy. Boss Pony Ma is cutting costs and promising buybacks, but he also is pushing on overseas expansion and new businesses like cloud. The message on discipline is garbled.
Capital Calls: Walmart whiplash 16 Aug 2022 Concise views on global finance: The U.S. mega-retailer revised its profit forecast yet again, just weeks after sounding the alarm.
Anshu Jain’s influence still lingers at Deutsche 15 Aug 2022 The Indian banker, who has died aged 59, was an industry icon who pushed the German group to go toe-to-toe with Wall Street. His stint as CEO was beset by solvency and conduct woes. But Deutsche Bank’s latest strategy is about as reliant on trading as Jain’s plan a decade ago.
Strong market an apt tribute to India’s Big Bull 15 Aug 2022 Billionaire investor Rakesh Jhunjhunwala, who has died aged 62, led the way for first-time buyers. This horde is now propping up Indian stocks at rich valuations, muting the impact of foreign selling amid U.S. rate hikes. If the enthusiasm holds, it will mark a coming of age.
Richemont’s governance armour is hard to pierce 12 Aug 2022 Activist Bluebell wants ordinary investors to appoint their own director on the board of the $63 bln Cartier owner. Yet Chair Johann Rupert’s big voting power means he could stifle the attempt. Without a fresh voice, contrarian business ideas may not get much airtime.
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.
Streaming video’s next episode: price wars 9 Aug 2022 Eight out of every 10 American households has three streaming services, 50% more than three years ago. Plus, the amount people are spending has spiked. It all points to saturation. Rivals now have to steal share by lowering prices. Disney boss Bob Chapek has the most to lose.