The Exchange: Finance far away from Wall Street 11 May 2021 It’s not often we hear from the boss of a finance business based in Milwaukee. Even more unusual is to find one that is owned by its customers. Rob Cox chats with Northwestern Mutual CEO John Schlifske about investing, interest rates, ESG and the benefits of mutual ownership.
Capital Calls: Uber, Roblox 11 May 2021 Concise views on global finance: Free rides for Covid jabs won’t help the ride-hailing app’s labor battle with Washington; the online games platform’s year-on-year growth decelerated sharply in April.
Breakdown: Net zero goals demand zero tolerance 10 May 2021 Only a fifth of the world’s top public companies have promised to eliminate greenhouse gas emissions by 2050. Among those that have, promises are tricky to compare and rely on ambitious offset schemes. Breakingviews helps investors find the substance behind the hot air.
Tweaked SocGen will still have BNP Paribas envy 10 May 2021 The 21 bln euro French bank wants to cut 450 mln euros in costs to boost returns at its trading unit. Still, CEO Frederic Oudea’s 70% efficiency ratio goal by 2023 is well behind his Gallic banking rival. To boost his shares’ lowly valuation, he will need to go further.
Capital Calls: Sabers down for Project JEDI 10 May 2021 Concise views on global finance: The Pentagon may end the $10 billion cloud project to consolidate U.S. military data after exhausting worse options.
CEO candor would help destigmatise mental health 7 May 2021 Many companies are mercifully taking stress and other psychological ailments more seriously. Few bosses discuss personal struggles, however, the way incoming Credit Suisse Chairman António Horta-Osório has. There’s a lot to gain from employees, and the top brass, from opening up.
AB InBev’s new CEO will inherit debt hangover 6 May 2021 The $120 bln brewer picked insider Michel Doukeris to replace Carlos Brito. He’ll lead a shift to investing in brands, away from the M&A and cost control that defined his predecessor’s 15-year tenure. Any stumbles will threaten AB InBev’s plan to halve net debt of 4 times EBITDA.
GSK CEO’s best defence is a graceful exit 5 May 2021 The $93 bln drug company is under pressure after activist Elliott took a stake. Boss Emma Walmsley is splitting the group into two, but its struggling pharma unit faces a lengthy turnaround, and may benefit from a new leader. Walmsley could run the new consumer business instead.
Capital Calls: Peloton, Honest Co, Office Depot 5 May 2021 Concise views on global finance: Treadmill recall leaves investors in the workout app stranded; shares in Jessica Alba’s consumer packaged goods company opened more than 30% above their IPO price; the office-supply company paper-shuffles its way to a higher valuation.
Bolloré makes tactical retreat in Italian foray 4 May 2021 The French billionaire has buried the hatchet with Silvio Berlusconi’s Mediaset, ending a wasteful five-year row. Bolloré’s Vivendi may not fully recoup its 1.2 bln euro investment in the broadcaster. At least the tycoon now has a freer hand to pursue his Italian telecom bet.
Capital Calls: Pfizer, ConocoPhillips 4 May 2021 Concise views on global finance: About $6 bln of additional earnings from Covid vaccines at the U.S. drug giant should mean more capital returned to investors; the independent oil group is offloading stock in Canada-based Cenovus it collected as part of a deal four years ago.
BT keeps eye on the ball by giving soccer the boot 29 Apr 2021 The UK telecom group may sell some or all of its sports broadcast unit. Where live matches once helped lure broadband customers, the battleground has switched to super-fast fibre connections. Falling subscribers and dubious profitability make TV sport an unnecessary distraction.
Soccer’s U.S. owners stuck relying on golden goal 29 Apr 2021 The aborted Super League was a way for Manchester United, Liverpool and Arsenal’s American proprietors to control player wages. They now lack a clear alternative for boosting earnings. To sell out profitably, they’ll have to find buyers more focused on glory than the bottom line.
Guest view: A qualified opinion on UK audit reform 28 Apr 2021 Corporate collapses like Carillion and Thomas Cook highlight flaws in accounting for capital and dividends, argues Natasha Landell-Mills of Sarasin & Partners. Proposals to restore trust in accounts fall dangerously short. The government should focus on enforcing existing laws.
Deutsche salvation lies in traders’ slippery hands 28 Apr 2021 CEO Christian Sewing seems closer than ever to reaching his ambitious 8% return on tangible equity goal. Ironically for a group that wanted to rely less on investment banking, that requires more blowout performances from his bond-trading stars. Investors are rightly sceptical.
Lloyds CEO leaves everything but a good valuation 28 Apr 2021 António Horta-Osório is departing after a decade at the UK lender. He cut costs and expanded fee-based units to offset low rates. Yet the shares trade at 80% of tangible book value, the same as rivals. Changing that requires big ideas, and maybe M&A, from successor Charlie Nunn.
Capital Calls: Jerome Powell, Shopify 28 Apr 2021 Concise views on global finance: The clock is ticking on the Fed boss’s taper timeline; the e-commerce firm grew even as it warns of a post-pandemic lull.
Capital Calls: Hella/Hueck, Evolution Gaming, 3M 27 Apr 2021 Concise views on global finance: A big block trade is good news for investors of German car parts maker Hella if it presages industry consolidation; Swedish gaming group enjoys a double whammy from locked-down punters and states jonesing for casino cash; 3M could use a pruning.
UBS’s benchmark is across Atlantic not across town 27 Apr 2021 Ralph Hamers’ bank is more profitable and valuable than rival Credit Suisse. His strategy for the $55 bln group is heavy on verbiage and light on specifics, though. Investors might prefer him to take a second look at the cost base, which looks bloated compared with U.S. peers.
Darktrace’s cut-price IPO still looks risky 26 Apr 2021 The cyber firm’s $2.6 bln float values it at around 10 times 2020 revenue, well below listed CrowdStrike and Zscaler. But the loss-making business is vulnerable to rivals. Close links with investor Mike Lynch, who’s facing U.S. fraud charges, could also leave investors exposed.