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.
Capital Calls: Amazon and consumers 29 Apr 2022 Concise views on global finance: People are spending more amid price hikes, while the e-commerce giant struggles with them.
How to return control of companies to their owners 28 Apr 2022 Investors used to argue that companies exist to maximise profits. Now they want executives to consider environmental, social and governance issues. The danger is that money managers impose their priorities, Edward Chancellor says. But there are ways to give ultimate owners a say.
Just Eat investors are stuck with its founder 27 Apr 2022 Some shareholders want to oust the Dutch takeaway group’s finance chief and supervisory board. Yet they have no obvious replacement for CEO Jitse Groen, architect of its disastrous U.S. expansion. It exposes the limits of investors’ ability to challenge powerful entrepreneurs.
Deutsche can leave Credit Suisse in the dust 27 Apr 2022 Europe’s erstwhile bank basket case is now valued by investors on the same multiple of book value as the Swiss wealth manager. Rate hikes and a debt-trading boom will play to its strengths. Meanwhile, Credit Suisse’s weak capital ratio and slow growth will keep its shares gloomy.
Capital Calls: GM electrifies executives’ pay 27 Apr 2022 Concise views on global finance: The Detroit automaker’s move to tie boss Mary Barra’s pay to electric vehicles goals is a new spin on pledges to shift away from combustion-engine cars.
UK fund manager picks canny time to do right thing 26 Apr 2022 The $10 bln Schroders is ditching its non-voting shares. A 37% discount to the voting stock helps smooth a deal without its dominant family losing out too much either. It’s a timely corrective to UK Chancellor Rishi Sunak’s efforts to lure more dual-share structures to London.
Capital Calls: Stellantis CEO’s outsize salary 14 Apr 2022 Concise views on global finance: The carmaker’s shareholders opposed Carlos Tavares’s 59 mln euro pay package, but he’s going to receive it anyway.
Capital Calls: GoTo debuts in smart fashion 11 Apr 2022 Concise views on global finance: The Indonesian e-commerce, ride-hailing and financial technology firm, valued at $28 bln, jumped more than 20% in opening trade on its first day in Jakarta.
Capital Calls: Credit Agricole’s Italian job 8 Apr 2022 Concise views on global finance: The French lender buys a 9% stake in Italy’s Banco BPM, making it harder for local rivals to launch a bid.
Next Hong Kong chief gives China chance to reset 8 Apr 2022 Carrie Lam’s handling of protests and Covid-19 weakened the city’s stature and deepened economic imbalances. John Lee, the frontrunner to succeed her, looks thinly qualified to fix such issues. A more pragmatic approach from Beijing, though, might shore up investor confidence.
Telegram’s Russia performance is a one-man show 7 Apr 2022 Pavel Durov’s messaging app has resisted President Vladimir Putin’s edicts and survived them. The app’s popularity has surged, setting it up to double its $30 bln valuation. Yet for skeptics of transparency at Twitter or WhatsApp, Telegram arguably presents even starker risks.
Chancellor: In praise of slack 7 Apr 2022 Executives spent decades optimising strategies to boost efficiency and returns on equity. That left them exposed to shocks like the global pandemic and invasion of Ukraine. In a world that values spare capacity, Japanese firms look better placed than their American counterparts.
Capital Calls: Buffett’s HP bet, Gambling M&A 7 Apr 2022 Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.
Musk fully cashes in on Twitter hype 5 Apr 2022 Tesla’s CEO has joined the $41 bln social media firm’s board after buying a 9% stake. He has a solid tech track record, and with 80 mln followers, it’s an insurance policy he won’t start his own platform. But Twitter’s value is up $10 bln. His presence doesn’t validate that jump.