JPMorgan and its customers deserve more credit 23 May 2022 The U.S. lender may hit a profit target it thought it might miss, partly because households remain flush. That matters, because souping up the consumer bank is one reason for the lender’s big investment plans. The idea that Americans are holding up should help rivals too.
HSBC’s green loose cannon misfires at a bad time 23 May 2022 The $123 bln bank has distanced itself from a senior executive who said investors needn’t fear climate risk. His message jars. The energy crisis gives lenders cover to go slow on restrictive net-zero goals, but stakeholders may demur if they fear this is what they really think.
Australian election augurs serious climate upgrade 23 May 2022 Labor’s more ambitious green goals helped unseat the conservative coalition. Wins by climate-focused independents warn further against complacency. New Prime Minister Anthony Albanese also will rely on Greens for support. Bolder 2035 emissions targets would set the right tone.
Boeing’s chief pilot has risky path out of dive 20 May 2022 A blizzard of bad news has pushed the $75 bln U.S. plane-maker’s market value below rival Airbus for the first time. Customers are fuming about delayed orders. Assuming it can actually deliver jets, the risk is CEO Dave Calhoun keeping buyers sweet with ever bigger discounts.
Drought of economic ambition blots Aussie election 20 May 2022 Despite a 48-year low in joblessness and navigating the pandemic, Prime Minister Scott Morrison’s party is in a dogfight. Homebuyer and dam-building policies smell fishy, and a lack of climate leadership hurts too. As times get tougher, whoever wins will have to be bolder.
Crypto’s day of reckoning, Goldman holiday perks 19 May 2022 Terra unravelled while $75 bln Tether wobbled. In this Viewsroom podcast, Breakingviews columnists discuss why reforming stablecoins which are supposedly linked to the dollar could dent their allure. Also, the Wall Street firm’s vacation offering is unlikely to benefit staff.
Wanted: Chillaxed CEO for $21 bln French laggard 18 May 2022 Frédéric Oudéa will depart from SocGen after 15 years at the helm. He leaves a bloated bank with one of the lowest valuations in Europe and an unclear appetite for change. Breakingviews imagines a letter from a headhunter specialising in cushy job placements.
Capital Calls: Twitter, Peloton 18 May 2022 Concise views on global finance: The social media company’s directors have too much at stake to renegotiate a deal with Musk; and Apollo and Blackstone’s interest in the $5 bln virtual workout company could benefit more if it fails rather than succeeds.
Fortescue energy transition loses sight of another 18 May 2022 The $42 bln miner and wannabe green hydrogen champ is hiring older white men as part of a management shakeup that repositions two women. Chair Twiggy Forrest and former GE, AGL and RBA bosses may bring useful experience, but it’s important to keep making progress in all phases.
Being Jamie Dimon just became less fun 17 May 2022 Over two-thirds of JPMorgan investors rejected the CEO’s pay package, the worst rebuke at a big U.S. bank in a decade. That won’t hit Dimon in the wallet, and there’s no sign shareholders want him gone. But his bully pulpit, like his bank, is smaller than it was a year ago.
Unlimited vacation is a classic Goldman trade 17 May 2022 Goldman’s offer of unchecked time off for senior partners, and more vacation days for the rest, has some sincere aspects. But employees will still have strong incentives to work as hard as possible, and harder. As a rule, Goldman rarely ends up on the wrong end of a transaction.
Twitter brinkmanship favors Musk exit for a price 13 May 2022 The Tesla boss is worried about well-known erroneous user figures. The company appears to be preparing a defense if it were to stay independent. Both parties need to act like they want a deal, and Twitter needs it more. But Musk can probably convince Twitter to call off the ball.
Vodafone’s deal zeal is a risk factor 12 May 2022 The telecoms group may combine its UK business with smaller rival Three, owned by Hong Kong’s CK Hutchison. Its 39 bln pound debt pile makes a joint venture more likely than an outright purchase. CEO Nick Read’s eagerness to hook up means he may not secure the best deal possible.
St-Gobain activist hits right nails at wrong time 12 May 2022 Bluebell wants the 27 bln euro French construction group to rebuild by ditching its chairman and less profitable units. The upstart investor’s ideas have firm foundations. Its only problem is new CEO Benoit Bazin is already on the case, and the results are starting to show.
Chelsea buyer will struggle in financial league 9 May 2022 A group led by LA Dodgers owner Todd Boehly and U.S. buyout firm Clearlake will pay $3 bln for the UK soccer club. Unlike current owner Roman Abramovich, they’ll be eyeing a return on their investment. Yet $2 bln of pledged spending, including a new stadium, make that tricky.
Capital Calls: AB InBev 5 May 2022 Concise views on global finance: Anheuser-Busch InBev’s revenue grew 11% in the first quarter compared to last year, but rising prices are a particular headache for the debt-laden brewer.
Anti-Americanism is blinding Chinese policy 5 May 2022 President Xi Jinping’s obsession with surpassing his country’s top trading partner is distorting his approach to growth and the pandemic. Bad debts, crackdowns and Covid-zero could slow China’s push to double output by 2035 and become the world’s largest economy.
Capital Calls: Uber vs. Lyft, GE executive pay 4 May 2022 Concise views on global finance: Shares in both ride-hailing firms fell on Wednesday despite Uber signaling it doesn’t have to invest to attract drivers like its smaller rival. And only two-thirds of investors backed CEO Larry Culp’s compensation, even after a $10 mln bonus cut.
Adler gifts German watchdog a shot at redemption 4 May 2022 BaFin’s probe into the property group has gained added weight after KPMG’s refusal to approve its 2021 accounts. The mess is an important test for new boss Mark Branson after the regulator’s Wirecard failings. Adler’s patchy disclosure and shaky governance make it an easy target.
Italy’s financial order repels attack on Generali 29 Apr 2022 Mediobanca-backed CEO Philippe Donnet overcame opposition from investors with 30% of the $30 bln insurer to win a third term. That preserves a key financial link with the merchant bank. Donnet now has to deliver on his growth plan. The rebel investors will keep him on his toes.