Lloyds CEO switch has message about HSBC strategy 30 Nov 2020 The UK lender’s next boss will be Charlie Nunn, who runs wealth and personal banking at its rival. He’s well-versed in technology and fee-based units – key priorities for Lloyds. The move may also reflect the challenges of overseeing HSBC’s global retail sprawl.
Sabadell takeover is still only a matter of time 27 Nov 2020 The Spanish lender broke off takeover talks with larger rival BBVA after rejecting an offer worth 2.5 bln euros. Cost savings potentially worth double that mean a deal still makes sense. Boss Jaime Guardiola must hope a vaccine-led rebound allows him to demand a higher price.
EDF shares’ power surge need not be a one-off 26 Nov 2020 The $44 bln state-owned utility has outperformed rivals in the last six months. A deal to secure higher nuclear prices would repair EDF’s main arm and enable CEO Jean-Bernard Levy to mull a renewable energy spinoff. That could boost the company’s value by over a half.
Trump could box Biden into a corner on China 25 Nov 2020 The U.S. president’s mainland-bashing will go on until he steps down. He could impose sanctions on financial firms linked to a Hong Kong blacklist, expand a ban on investment or even restart a trade war. His successor would be left with little room to leave his own mark.
Corona Capital: Record Dow, Basketball, GoCompare 25 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Vaccine optimism shunts the blue-chip Dow Jones index through 30,000; U.S. college basketball gets back on the court; and UK publisher Future snaps up the bargain-hunting website.
Musk passes Gates, but not yet in impact 24 Nov 2020 The Tesla mogul’s wealth edged past the Microsoft founder’s, at just under $128 bln. That’s because Gates has given vast sums to charity and supercharged vaccine development, especially for the poor. Helping out humanity beats amassing wealth. Musk may one day achieve that too.
Corona Capital: Tiffany, Biden, Vaccines, Cash box 24 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: The cut-price jeweller issues less-than-sparkling results; the U.S. president-elect gets to start tackling the pandemic; Russia touts its discount vaccine; and UK firms gorge on shareholder-unfriendly equity issues.
Corona Capital: Cash stockpiles, Empty real estate 23 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. companies hoard money; retailer rout causes real estate double whammy.
Credit Agricole pays modest price for Italy Plan B 23 Nov 2020 The French bank’s 737 mln euro cash bid for Credito Valtellinese values the regional lender at less than half its tangible book value. The combination is smaller than a mooted deal with rival Banco BPM. At least CEO Philippe Brassac is not overpaying for Italian expansion.
Review: A premature declaration of fintech victory 20 Nov 2020 In “Banking on It” Anne Boden, founder of digital lender Starling, sketches a plausible theory of why her business model will triumph. Score-settling with arch-rival Monzo disrupts the story. And until Starling turns a meaningful profit, Boden’s argument lacks evidence.
Italian sovereign fund is a force to reckon with 20 Nov 2020 Fabrizio Palermo has turned 170-year-old CDP into a deal machine. Through his activism, Rome snagged stakes in Euronext and fintech star Nexi. If he gets another term as CEO, the urge to build champions won’t ebb. But the fund must prove it can keep politics at arm’s length.
Panasonic pushes limits of rewiring circuitry 20 Nov 2020 The $26 bln electronics empire is yet again shuffling around its fax machines and electric-vehicle batteries. This latest restructuring should help streamline operations and boost profitability. If it clears the way for new boss Yuki Kusumi to lead a broader breakup, even better.
Corona Capital: Brexit curveball, Sonos 19 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: a Covid-19 scare for European Brexit negotiators puts an already-optimistic deadline to the test; and wireless-speaker maker Sonos joins the list of companies profiting from consumers being stuck indoors.
Hut Group’s long-term pay plan is far too short 19 Nov 2020 The recently listed beauty tech firm’s boss Matthew Moulding is 900 mln pounds richer after meeting bonus targets. But the company’s shares only needed to rise 30% for him to do so, and he can sell his shares in March. It’s a pretty odd way to design a long-term incentive plan.
Deutsche Boerse jumps on ESG train with ISS deal 18 Nov 2020 CEO Theodor Weimer is spending $1.8 bln on 80% of the U.S. proxy adviser after missing out on Italy’s bourse and an FX trading platform. Accurately scoring companies’ environmental, social and governance credentials is a growth business. But it’s also a crowded field.
Chieftain’s golden cuffs put Wells Fargo in a bind 16 Nov 2020 Charlie Scharf got a $44 mln package for joining the scandal-plagued bank as CEO a year ago. As the company’s stock has halved, so has the value of his sweet hello. Other bosses are in similar pickles, but few have so much on their plate, or so little room for renegotiation.
Weak bank CEO benches will be hard to strengthen 12 Nov 2020 Headhunter Heidrick & Struggles reckons top bankers lack experience in other sectors, like tech, and few have run full business units. The latter problem is solvable. But wooing digitally savvy talent from elsewhere is tricky given lenders’ miserable financial prospects.
Siemens’ slow-moving trains are puzzle for new CEO 12 Nov 2020 Joe Kaeser is departing after seven years at the controls of the 96 bln euro German engineer. Following several big spinoffs, new boss Roland Busch may want to pause. Yet a strong performance from high-tech robotics bolsters the case for cutting the train unit loose as well.
Corona Capital: Salvatore Ferragamo 10 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Faded heels-and-loafers brand Salvatore Ferragamo could benefit from a coronavirus vaccine-induced return to airport shopping, but the Florentine fashion house would still need a makeover.
Turkey’s new economy team will face fresh problems 9 Nov 2020 President Tayyip Erdogan installed a new central bank boss while his son-in-law quit as finance minister. Credible policymakers are more likely to hike rates. Just as well: without President Donald Trump, Ankara’s foreign policy – and the lira – are more vulnerable to sanctions.