Volkswagen valuation merits shift to higher gear 16 Mar 2021 The German automaker’s shares rose on plans to double electric vehicle deliveries this year. Were they separate entities, the value of VW’s software arm and its battery car unit could exceed its 110 bln euro market cap. While spinoffs look unlikely, VW shares can climb higher.
Capital Calls: Elon Musk, AstraZeneca 15 Mar 2021 Concise views on global finance in the Covid-19 era: The electric-vehicle maker’s jocular new title of “Technoking of Tesla” tests the theory that deeds matter more than words; fears over the drugmaker’s vaccine risk further delaying the re-opening of Europe’s economy.
Danone CEO exit gives France governance upgrade 15 Mar 2021 Boss Emmanuel Faber is leaving the 42 bln euro yoghurt maker after pressure from activist investors. It shows even French companies once declared strategic by the government are not safe from uppity shareholders. Underperformers whose chair is also CEO are now potential targets.
Review: Fund manager’s fall reveals larger flaws 12 Mar 2021 Neil Woodford was once one of Britain’s best-known stock-pickers. Owen Walker’s “Built on a Lie” catalogues his spectacular demise, but also explains how changing pensions and supine regulation enabled his rise. Ultimately, the saga is another argument for index funds.
Capital Calls: T-Mobile US, Ulta Beauty 12 Mar 2021 Concise views on global finance in the Covid-19 era: The U.S. telecom is benefiting from its merger with SoftBank’s Sprint; the U.S. cosmetics retailer revealed a tidy succession plan, but its business still faces lingering pandemic side-effects.
SoftBank financial innovation fails at Greensill 12 Mar 2021 The Japanese investor’s Vision Fund seems to love byzantine funding structures as much as disruptive technology. Its involvement with the supply-chain lender, which supported other investees, has backfired. It’s another cautionary tale for the ex-bankers in the fund’s ranks.
VW drives for second place in Tesla-led tech race 12 Mar 2021 Boss Herbert Diess wants to steer the $128 bln German automaker into the thick of the fast-growing market for in-car software. Closing the gap on Elon Musk’s outfit will be tough. But even a podium finish behind the leader would jump-start Volkswagen’s analogue valuation.
Capital Calls: Digital art 11 Mar 2021 Concise views on global finance in the Covid-19 era: A blockchain-protected work by Beeple sold for $69 million at Christie's.
Hong Kong’s rich confront Chinese socialism 11 Mar 2021 The central government is changing the city’s electoral system and side-lining the local business elite. That might clear the way for a new pro-Beijing party to attack economic inequality at tycoons’ expense. Yet the Communist Party has failed to do so at home, or anywhere else.
Utilities could use more Sage, less spice 10 Mar 2021 Activist Carl Icahn just jolted the U.S. power sector with a stake in $19 bln FirstEnergy. Paul Singer’s Elliott popped in and out, too. Yet utilities need to make grid investments that won’t immediately help shareholders. Warren Buffett's buy-and-hold approach fits better.
Capital Calls: McKinsey, Celebrity SPACs 10 Mar 2021 Concise views on global finance in the Covid-19 era: McKinsey’s new boss isn’t new enough; the SEC tells investors to be careful of celebrities bearing SPACs.
Greensill exposes perils of Credit Suisse strategy 10 Mar 2021 The supply-chain financier’s collapse affects almost every division of the Swiss bank. While the financial hit appears manageable, cooperation between its fund, wealth and lending arms increases risk. That’s worrying as CEO Thomas Gottstein’s growth plans hinge on collaboration.
SocGen’s sober revamp could use Russian vodka shot 10 Mar 2021 The 19 bln euro lender is overhauling its retail business to boost profitability. A bolder move would be to sell the Russia unit, which might fetch up to 2.9 bln euros from a rival like Gazprombank. CEO Frederic Oudea could then focus on more lucrative eastern Europe and Africa.
Strong chairman is best way to fix BT board mess 9 Mar 2021 The UK telecom operator is seeking a replacement for Chairman Jan du Plessis, who stepped down under pressure from CEO Philip Jansen, Sky News reported. The fracas comes at a critical time for BT. Investors, directors and Jansen himself would benefit by recruiting a heavy hitter.
Capital Calls: TV’s royal boost, Shared offices 9 Mar 2021 Concise views on global finance in the Covid-19 era: Oprah Winfrey’s interview with Prince Harry and his wife Meghan is a boon for ViacomCBS’s streaming ambitions; IWG’s revamp depends on a workplace revolution.
Fund stragglers offer own post-crisis value punt 9 Mar 2021 UK asset managers Standard Life Aberdeen and M&G are shaking off the pandemic, helped by better stock picking. The challenge is to keep assets and profit growing in an industry shaken by passive funds, and find new businesses. Their low valuations at least provide a cushion.
Home offices risk a diversity disaster 8 Mar 2021 Women are likely to embrace flexible work policies in the post-pandemic new normal. That could threaten prospects for promotion, an earlier study of China’s $24 bln Trip shows. Employers need to manage the bias, or efforts to be enlightened will deliver the opposite result.
UK’s Pearson listens to its own online lessons 8 Mar 2021 The 6 bln pound firm is doubling down on a year of virtual learning by selling education directly to individuals. Winning mass-market adherents will take time and is not a given. Yet anything that reduces its reliance on declining textbook sales is a step in the right direction.
Capital Calls: Shutterfly’s touch-up 5 Mar 2021 Concise views on global finance in the Covid-19 era: A SPAC may give photo-sharing firm Shutterfly a shiny new frame.
Viewsroom: Wall Street CEOs’ pay, Sea, Greensill 4 Mar 2021 A plague year for the world was a relatively rich one for the heads of Morgan Stanley, JPMorgan and Wells Fargo; Southeast Asian tech conglomerate Sea navigated choppy waters to a $127 bln market value; Greensill’s problems may not be systemic, but they’re worth watching.