James Murdoch headlines broader ESG challenges 2 Aug 2020 The one-time heir apparent to his father’s media empire quit the board of Wall Street Journal publisher News Corp. He cited clashes over content and strategy. If the ultimate insider can’t have much sway at a company, imagine how hard it is for outsiders such as BlackRock.
Corona Capital: Baseball, Gas cloud, Luxury goods 28 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Baseball’s Covid-19 cases put popular college sports competitions in jeopardy; a recovery in drilling for gas is bad news for the environment; Gucci and other luxury retailers finally embrace the digital revolution.
Ant IPO will clear Tencent’s low bar on governance 28 Jul 2020 A Hong Kong-Shanghai debut of Jack Ma’s $150 bln fintech giant could put dual class shares and Alibaba’s quirky partnership structure out of reach. Ant may even need to follow a stricter listing code than its local arch-rival. That would be a win for minority shareholders.
Walgreens Boots CEO goes back to the future 27 Jul 2020 Stefano Pessina is to step down as boss of the $34 bln pharmacy chain and become executive chairman. He had similar roles in predecessor companies, which gave free rein to his penchant for dealmaking. And he remains Walgreens’ biggest shareholder. More M&A could be in play.
Corona Capital: Precious metals, Share sales, Toys 27 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: The virus and central banks’ response to it is a rich seam for gold and silver prices; UK companies’ growing preference for bonds rather than stock is a warning sign; Hasbro and Mattel vie to see who loses less.
Corona Capital: Movies, Sports 24 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Walt Disney is pushing back the highly anticipated movie “Mulan,” with a domino effect for “Avatar” and “Star Wars” sequels; and sport stars are still making it rain when it comes to pay.
Viewsroom: Europe’s big money moment and baijiu 23 Jul 2020 The 750 bln-euro stimulus package agreed to by EU leaders this week was a test of the region’s political resiliency, may be a big deal for the single currency and could lead to more capital markets and M&A activity, EMEA Editor Peter Thal Larsen explains. Plus, a shot of Moutai.
Corona Capital: LatAm pensions, Activism 23 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Pension reform in Mexico and Chile gets a coronavirus makeover; UK chief executives catch a break during lockdown as the number of activist campaigns collapses.
Tesla’s wacky valuation has a link to reality 22 Jul 2020 At $295 bln, Elon Musk’s firm accounts for a third of the market worth of the world’s big carmakers. Its surge has helped upstarts like Rivian, Nikola and Fisker raise cash, too. Tesla is way overpriced. But as a proxy for overall electric-vehicle success, it’s not far off.
N.Y. Times’s next boss may not have Trump to thank 22 Jul 2020 The Gray Lady named Meredith Kopit Levien as its new CEO during an auspicious time: It’s enjoying a market value not seen in nearly 20 years. The upswing coincided with President Trump’s election and a surge of subscribers. The streak may be broken after the election.
Melrose will need more than cost cuts to cut debt 22 Jul 2020 The $7 bln UK engineer’s shares fell 15% after quarterly sales slumped. CEO Simon Peckham plans $126 mln in savings. But net debt is worth 3 times 2019 operating profit and the aerospace arm is struggling. A sale of its Nortek air conditioning systems unit is even more urgent.
Carlyle completes the first of two bake-offs 21 Jul 2020 The investment firm has gone from co-CEOs down to one, naming Kewsong Lee to run the business. That’s helpful – with its founders also sharing control, Carlyle looked crowded. It might also help in another, wider contest: Carlyle’s stock has trailed peers KKR and Blackstone.
The Exchange: Brave new credit world 21 Jul 2020 The crisis unearthed land mines in the fixed-income market – many of which Arena Investors Chief Executive Dan Zwirn had previously identified. He now explains how to navigate this opaque universe with deep dives on leveraged finance, liquidity crunches and an activist Fed.
Equality is failing at shareholder ballot box, too 17 Jul 2020 Investors rarely push for votes advocating greater diversity and garner little support when they do, in part due to financial-industry demographics. George Floyd’s death may change that. But firms have a lot of latitude to downplay investor votes – unless they’re about pay.
Toshiba mistakes activist opportunity for a threat 17 Jul 2020 The $15 bln conglomerate says that allowing pushy Effissimo to install directors would create conflicts of interest. Since overhauling the board, however, Toshiba’s performance has underwhelmed. Adding its biggest investor would be a confident move for the company and Japan Inc.
Mukesh Ambani flaunts Jio’s global tech ambitions 15 Jul 2020 Reliance Industries’ boss unveiled a home-grown 5G solution with export potential at a meeting held on the Indian company’s answer to Zoom. His push is bad news for Huawei. And the latest investment in Jio, $4.5 bln from Google, points to a formidable competitor for all rivals.
Ubisoft’s #MeToo blindness leaves it in M&A bind 13 Jul 2020 Shares in the $10 bln French video game developer tumbled after senior managers left amid allegations of harassment. In 2017, other shareholders helped CEO Yves Guillemot ward off suitor Vivendi. Recent underperformance means the “Assassin's Creed” maker has fewer lives left.
Corona Capital: Nursing homes, Airlines, Walgreens 9 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Nursing home investments will get a rethink; airline travelers get the upper hand; and Walgreens’ LBO heyday is in the past.
New Aviva CEO can break more than one mould 6 Jul 2020 The $13 bln UK insurer that dates back to 1696 has got its first female boss. Amanda Blanc could revive the group by carving out general cover from life insurance. With Covid-19 pressuring costs, it’s a risky move. Sticking with the same conglomerate model is even less appealing.
Lloyds CEO leaves the big thinking to successor 6 Jul 2020 António Horta-Osório will step down in 2021, when incoming Chairman Robin Budenberg will pick a replacement. It’s a tidier handover than most banks manage. The new broom will inherit a low-cost base, but will have to boost fee income and test regulators’ appetite for UK M&A.