Naturgy split may be less than sum of its parts 11 Feb 2022 The 25 bln euro Spanish power group is putting renewable energy and gas under one roof and fencing off its regulated network business. It could create value if investors see gas as less worthy of a discount than they have in the past. But that’s a pretty big if.
Credit Suisse self-flagellation is risky but right 10 Feb 2022 The Swiss bank lagged rivals as revenue fell 12% in the fourth quarter. That’s partly because CEO Thomas Gottstein is putting safety first. The danger is that clients flee and star bankers defect after bonuses shrank by 32%. Yet avoiding future mistakes is the top priority.
Pru CEO change puts HSBC and StanChart on the spot 10 Feb 2022 Mike Wells is retiring after shaking up the $46 bln insurer and redirecting its focus to emerging markets. Whoever replaces him will be based in Asia instead of London. Where the top brass sit depends on many variables, but the job is harder to do far from the main hub.
Mediobanca’s fortunes are tied to Generali 9 Feb 2022 The bank’s 13% stake in the Italian insurer accounts for a third of its net profit. Mediobanca could sell the 3.8 bln euro shareholding to finance deals, but targets are expensive. Even if CEO Alberto Nagel loses a boardroom battle at Generali, his financial future rests on it.
Peloton gear-change starts with stock, not CEO 8 Feb 2022 Drafting in ex-Spotify executive Barry McCarthy may help the fitness company tone up. But founder John Foley’s voting power limits Peloton’s options. Other firms fared better after ditching supervoting stock. Foley could revive Peloton and his fortune by doing likewise.
BP inserts wind in sails of its energy transition 8 Feb 2022 The $110 bln UK group joined oil peers in reporting bumper results. But it also pledged to maintain fossil fuel profitability despite cutting output, and gave new 2030 targets for its low-carbon growth business. That could start to revive its becalmed valuation.
BNP Paribas’ growth push merits investor jitters 8 Feb 2022 The 81 bln euro bank wants to boost revenue to help hit an 11% return target. But CEO Jean-Laurent Bonnafé’s plan hinges on uncertain investments and buoyant markets, while a cut-price valuation betrays shareholder doubts. Deeper cost cuts would make his goals more credible.
Why Spotify’s Daniel Ek is sticking with Joe Rogan 7 Feb 2022 The streaming group’s CEO condemned the talk show host’s use of racial slurs but refused to axe him. Ek is betting that financially motivated music labels will resist artist boycotts, and that users are locked in. Rogan represents a podcast pivot that’s key to boosting earnings.
Toshiba rejig goes long pragmatism, short vision 7 Feb 2022 The $18 bln Japanese titan now intends to split into two, not three. Ditching its earlier plan as too costly makes some sense, while buybacks and more asset sales may somewhat placate its most vocal critics. What’s lacking, though, is a longer-term strategy – and leadership.
Italy’s top banks raise stakes in shareholder duel 4 Feb 2022 Intesa Sanpaolo CEO Carlo Messina pledged to lift the lender’s return on tangible equity to 14% by 2025, topping a bold target set by new UniCredit boss Andrea Orcel. Intesa starts from a strong base but lacks M&A options. Rising interest rates could give both an extra boost.
Siemens Gamesa’s new Mr. Fixit can take his time 3 Feb 2022 The wind turbine maker has ousted its second CEO in two years. As another German, Jochen Eickholt may get a frosty reception from Spanish bits of the firm. Parent Siemens Energy won’t mind. The longer Gamesa’s woes drag on, the easier it will be to buy out minority investors.
The Exchange: UniCredit’s Andrea Orcel 3 Feb 2022 The Italian banker wants to return 16 bln euros to investors by 2024. Choppy markets and growing geopolitical risks raise the bar for European banks’ promised returns. UniCredit CEO Andrea Orcel tells Breakingviews how his $35 bln lender can navigate through uncertain times.
Santander’s U.S. clinginess has a share price cost 2 Feb 2022 The 55 bln euro bank is keeping its American unit, unlike rivals BBVA and BNP. Full-year results show Chair Ana Botín is running it well, and she has plans to keep it growing. But investors give her scant credit. If that persists, the pressure to sell will become overwhelming.
Italy energy firm dive is Rome’s latest hot potato 1 Feb 2022 Oil services firm Saipem may need at least 1 bln euros of fresh equity after warning of a loss just three months into a new business plan. The shock puts pressure on new CEO Francesco Caio. Given the uncertainty, top investors Eni and the Italian state may foot most of the bill.
UBS’ Morgan Stanley impression could use more work 1 Feb 2022 CEO Ralph Hamers’ job is to get a valuation closer to the U.S. group’s 2.5 times tangible book value multiple, compared with his $68 billion bank’s 1.2. New buybacks help, but the missing ingredient is growth. Investors are understandably sceptical that Hamers can change that.
Nomura’s better numbers still need a new narrative 1 Feb 2022 The Japanese bank posted quarterly net profit of $525 mln, helped by the absence of hefty provisions for the first time since March. Boss Kentaro Okuda has been pushing into private markets and steadier earnings streams. But weak shares suggest he has work still to do.
Boris Johnson’s fate is an economic sideshow 26 Jan 2022 The partygoing prime minister’s antics have cast doubt over his political future. Past upheaval had far-reaching consequences, particularly for Brexit. But Britain’s direction is now mostly fixed. And a new leader would have to grapple with the same contradictions as Johnson.
Italian CEOs’ Putin call exposes European discord 26 Jan 2022 Rome is pushing the firms to scrap their virtual chat with the Russian leader. With their varying degrees of investment, trade and energy dependence, Europeans have more to lose from sanctions against Moscow than the United States. That lets Putin pit them all against each other.
India Insight: Narendra Modi’s sale of the century 24 Jan 2022 The prime minister is taking a calculated risk with a record IPO of $200 bln Life Insurance Corp. It will attract millions of first-time investors and boost the country’s spending power. How, and whether, that will affect the financial system’s shock absorber is a big question.
Viewsroom: Credit Suisse chair, Unilever’s GSK bid 20 Jan 2022 As António Horta-Osório quits the Swiss lender after less than a year, Liam Proud explains what happened and offers career advice. And Unilever’s 50 bln pound offer for the pharma giant’s consumer unit puts both CEOs on the spot, say Aimee Donnellan and Dasha Afanasieva.