Review: GE’s decline is the story of corporate BS 25 Sep 2020 This is the main lesson from “Lights Out”, an account of how America’s once-admired industrial conglomerate lost its way. GE bosses from Jeff Immelt on down believed they, and the company they worked for, were infallible. Mistaking a story for a strategy is how companies die.
Corona Capital: Vaccines, Olive Garden, Oil 24 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Vaccine concerns are bad for the economy; cravings for never-ending pasta bowls return; and oil practitioners tell sad truths.
Joe Biden has edge in assembling economic talent 22 Sep 2020 If the former vice president wins in November, he’ll have a bevy of business execs and ex-bureaucrats to help him. Rival President Donald Trump has cycled through dozens of aides, leaving him a hollow bench. Breakingviews imagines their economic roster in an interactive graphic.
Goldman M&A moves suggest times aren’t a-changing 21 Sep 2020 Despite CEO Solomon’s goal of banking companies with diverse boards, his new crop of M&A heads and chairmen is predictably white and male. Goldman may want to be an agent of change, but making a break with the past is hard – especially when the M&A top spot is Solomon’s to lose.
Founder’s exit shines headlights on Nikola backers 21 Sep 2020 Trevor Milton is stepping down at the "pre-revenue" zero-emissions vehicle maker. Investors have nixed almost half the company's worth since fraud claims surfaced. Proving Nikola is worth its remaining $9 bln value falls on partners like GM and CNH and on new Chair Steve Girsky.
Richard Branson is late arrival at SPAC party 17 Sep 2020 The billionaire Brit is touting his Virgin brand to raise $400 mln via a blank-cheque company. Jumping on the well-trodden bandwagon is hardly disruptive. After recent setbacks, the 70-year-old may struggle to persuade potential investors and targets he has still got his mojo.
Natixis split could create a European BlackRock 17 Sep 2020 The $8 bln French lender has suffered trading losses and blowouts at its asset management arm. New CEO Nicolas Namias needs to fix these and sever the investment bank. If he can, the funds business could be worth $11 bln and create a tasty potential partner for Amundi or UBS.
Beauty IPO is risky test for UK governance retreat 16 Sep 2020 The Hut Group’s shares soared after a $7 bln float. The skincare and clothing retailer’s fast growth meant investors shrugged off shaky voting rights and a watered-down listing. Its success opens the door for others, if founder Matthew Moulding can grow into his rich valuation.
Cox: Bernard Arnault is acting like a spoiled brat 15 Sep 2020 Europe’s richest man had to have Tiffany when times were good and agreed to pay too much for the American jeweller. When Covid-19 hit the fan, LVMH’s boss got buyer’s remorse. Now he's throwing all the toys out of his cashmere-lined crib to get his way. Which he probably will.
Corona Capital: Kraft Heinz, U.S. poverty 15 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: The food giant is boosting advertising outlays, even as it continues cutting costs; and the poverty rate in the United States hit a low at the end of 2019, according to new data, only to run into a Covid reversal.
Rio Tinto gets bad recruitment steer from Canberra 15 Sep 2020 Australia’s treasurer wants the miner’s next CEO to be Australian, after Frenchman J-S Jacques stepped down over the destruction of an Aboriginal site. Cultural sensitivity is a priority, but the goal can be achieved in other ways. Shareholders deserve the best boss Rio can find.
Son’s largesse may finally help SoftBank investors 14 Sep 2020 The CEO is selling chip group Arm to Nvidia for little more than he paid in 2016. It’s a poor return for the Japanese group’s investors during a tech boom. Yet if Son decides to take SoftBank private, as news reports suggest, shareholders could cash out while valuations are high.
Japan needs more than caretaker prime minister 14 Sep 2020 Yoshihide Suga has been tapped to replace outgoing Prime Minister Shinzo Abe. He inherits an ugly hand. The aging, tight-lipped technocrat was behind some of Abe’s better economic initiatives, but he will need to develop more charisma to fend off the spectre of stagnation.
Drahi’s Altice debt pile may hinder cheeky buyout 11 Sep 2020 The Franco-Israeli billionaire wants to take his European telco private. His offer, which values Altice’s equity at 4.9 bln euros, looks low. But the company’s eye-watering leverage, with 30 bln euros of debt, makes it hard for Drahi to pay a more respectable valuation multiple.
Rio Tinto rebellion sets new ESG bar 11 Sep 2020 CEO J-S Jacques and two deputies will step down after an outcry over the miner's destruction of Aboriginal heritage sites. Aussie shareholders led a charge that may inspire other socially conscious investors. Bosses and boards hiding behind strong returns have been given notice.
Rio Tinto board can choose CEO – at expense of ESG 10 Sep 2020 Many shareholders want harsher punishments for the mining giant’s destruction of Aboriginal heritage sites. Robust returns are one reason to stop short of axing boss Jean-Sebastien Jacques. If he stays, though, Rio’s responsible investing credentials will be deeply discounted.
Corona Capital: Palantir presents 9 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Potential shareholders have had their first look at the data company ahead of its planned direct listing later this month. One of the more memorable moments was boss Alex Karp making his pitch from a nature trail.
The Exchange: Netflix’s Reed Hastings 8 Sep 2020 The co-chief executive of the video-streaming firm is out with a new book, “No Rules Rules.” Hastings zoomed in with Jennifer Saba to discuss Netflix’s unorthodox approach to management – like unlimited vacation – and how it sets up the company nicely in a post-Covid world.
Aussie finance scandal offers universal truths 3 Sep 2020 Storied wealth management giant AMP put itself on the block days after Chairman David Murray quit over the promotion of an executive accused of sexual harassment. The firm has been lurching from problem to problem for years. Fixing culture and regaining trust is hard to do.
Abenomics will live on in a post-Abe Japan 28 Aug 2020 The long-serving prime minister has resigned. Local equities and the yen are rattled, but the fiscal and monetary arrows of Shinzo Abe's eponymous reforms are well established. The growth arrow has flown less high, and the pandemic and demographics will challenge Abe’s successor.