Samsung boss verdict softens chaebol reform push 18 Jan 2021 Jay Y. Lee has been sentenced to 30 months in prison for bribery, less than what prosecutors requested. The lenient outcome fuels fears that protecting jobs takes priority over reining in South Korea’s powerful conglomerates. Regardless, governance upgrades might be delayed.
Corona Capital: Satellites, Shoes 15 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: SoftBank pours cash into satellite startup; and footwear winners and losers.
UniCredit CEO race is deceptively crowded 15 Jan 2021 Senior bankers including Andrea Orcel are in the run to lead the $21 bln bank. The new boss will need to navigate Italy’s intricate political and financial landscape, have clear international standing and a collegiate approach. That rules quite a few of the contenders out.
Germany’s female executive quota is hard to export 15 Jan 2021 The government will soon require the country’s top 70 companies to have at least one woman on their management boards. The long overdue move will force firms to quickly identify a raft of female talent. But Germany’s unusual corporate structure makes it difficult to replicate.
Billionaire donors outrank companies in Washington 14 Jan 2021 Firms from JPMorgan to AT&T are rethinking political donations after last week's Capitol violence. That will dent lawmakers' coffers. But it’s people like the late Sheldon Adelson and Mike Bloomberg who have far deeper pockets, and the power to make politicians sit up and listen.
Corona Capital: Inflation, Poshmark 14 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Breakingviews panel predicts the end of the free-money era; and Poshmark’s IPO looks overdressed.
Merkel exit may give German economy a Green jolt 14 Jan 2021 The chancellor’s party is picking a new leader. None of the candidates want to really ramp up much-needed infrastructure investment. A saving grace is that Merkel’s exit may weaken her Christian Democrats, empowering the bigger-spending Greens in any future coalition government.
Biden’s SEC pick is ominous sign for Wall St 13 Jan 2021 Former banker-turned-industry critic Gary Gensler will be a thorn in the finance industry’s side if he takes the helm at the U.S. watchdog. He rammed through Dodd-Frank reforms when he was CFTC chair. In his new post, tougher enforcement is likely, which will cheer progressives.
ECB mantle will cloak Italy’s new political crisis 13 Jan 2021 The country’s government is collapsing amid internal squabbling. That may complicate tapping some 200 bln euros of EU funds, hurting the recovery, or even lead to messy elections. Central bank boss Christine Lagarde’s monetary bazooka should cushion debt market jitters, for now.
Intel CEO switch brings $25 billion of hope 13 Jan 2021 VMware boss Pat Gelsinger will replace Bob Swan at the chipmaker, adding 12% to the stock price. It could help Intel regain its technology focus and open the way to changes proposed by activist Dan Loeb. Gelsinger now has the weight of those expectations on his shoulders.
Corona Capital: Target, IPOs keep coming 13 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Retailer Target gets an extra sales boost from its earlier e-commerce efforts, while buy-now-pay-later company Affirm continues one of 2020’s less-hated features – a smoking hot IPO market.
Donald Trump administers tech oligopoly test 12 Jan 2021 The U.S. president said he was considering building a social media platform after his Twitter account was banned. If someone with around 88 million followers can’t find an alternative outlet, digital clout may be too concentrated. For Facebook and peers, it’s a no-win situation.
Sheldon Adelson’s biggest bet keeps paying out 12 Jan 2021 The casino tycoon, dead at 87, parlayed a trade show into a new Las Vegas business model by acquiring the storied Sands in 1989. A bold punt on Macau secured his fortune. Part of Adelson’s legacy will be backing Donald Trump, but his gambling ideas are spreading in Asia.
Renault overhaul requires Nissan governance grease 12 Jan 2021 CEO Luca de Meo will on Thursday launch an awkwardly named “Renaulution” to jump-start the French carmaker’s earnings. But his plan suffers from a lack of integration with its Japanese partner. Selling a stake in the Yokohama group can smooth uneven relations and rev up savings.
Corona Capital: Bond bonanza, Albertsons 12 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: U.S. companies' bond issuance in 2020 hits records across the board; and America’s No. 3 grocer continues to take advantage of the shopping habits created by Covid-19 lockdowns.
Trump shows individuals’ worth to social networks 11 Jan 2021 Twitter permanently banned U.S. President Donald Trump’s account, citing the risk of further incitement of violence. That vaporized 10% of the company’s market capitalization. But as Kylie Jenner showed at Snap, social media groups are about more than any one person.
Yellen can kick off Biden’s more open government 7 Jan 2021 The $7 mln the former Fed chief earned giving speeches to Wall Street and other firms could haunt Janet Yellen as Treasury secretary. For one, she’ll need progressives to back her policies. Transparency, like releasing transcripts of those talks, could help set the right tone.
The Exchange: The personal risks in short-selling 5 Jan 2021 Muddy Waters shorted stocks like health provider NMC and forest plantation group Sino-Forest, aiding their collapse. But founder Carson Block tells Dasha Afanasieva he almost quit due to the stress of facing a criminal investigation. For him, politics may be an alternative path.
Corona Capital: Commercial real estate, IBM 5 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Commercial office real estate is Zoom’s mirror image; IBM taps former Goldman-exec Gary Cohn.
Jack Ma’s absence feeds into China Inc fears 5 Jan 2021 The Ant and Alibaba founder has not been seen in public for two months. Amid Beijing’s crackdown on both the fintech and e-commerce empires, keeping a low profile seems prudent. A history of Chinese tycoons mysteriously disappearing, though, is enough to warrant some concern.