Kim Jong Un unnerves the world equally in absentia 29 Apr 2020 The North Korean leader is rumoured to be sick, comatose or dead due to heart problems at around 36. Ill or healthy, Kim has identified no successor, and an internal power struggle would destabilise the region. Investors should pray for his health now, and reformist heirs next.
China’s tough Luckin line faces deaf U.S. ears 29 Apr 2020 Authorities raided the embattled coffee chain’s office, partly to limit collateral damage from the accounting scandal. Beijing also may be trying to placate impatient U.S. regulators. It will take far more, though, to satisfy hawks demanding China Inc delistings and divestments.
AT&T shows boring CEO transitions are needed 24 Apr 2020 The U.S. telecom firm is elevating John Stankey to replace long-time CEO Randall Stephenson. The transition has been in the works since Elliott came calling last year. But the pandemic has upended the world. Having a 30-year vet at the helm is now required C-suite experience.
Review: The legal battle for Hong Kong’s future 24 Apr 2020 In "City on Fire", lawyer Antony Dapiran offers a riveting account of the 2019 protests. While demonstrators took to the streets, Beijing and the local government used Hong Kong’s rule of law to silence opponents. Coming court battles will help determine the financial hub’s fate.
Tesla gets board street cred it sorely needs 23 Apr 2020 Hiro Mizuno, former investment chief at Japan’s $1.5 trln pension fund is joining the electric-car maker as a director. He and Tesla boss Elon Musk may bond over their views on short sellers. But it’s Mizuno’s ESG clout that will serve the governance-challenged manufacturer best.
Corona Capital: Merger bans, Moelis, Domino’s Pizza 23 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. politicians plan a curb on opportunistic M&A, advisory boutique Moelis cuts its dividend, and Domino's delivers.
ValueAct nudges Nintendo to ditch the joystick 22 Apr 2020 The U.S. investor disclosed a $1 bln stake in the maker of Super Mario. Unlike the typical activist target, Nintendo is well run and outperforms rivals. But its focus on consoles looks short-sighted. As it did with Microsoft, ValueAct can push Nintendo in the right direction.
Virgin Australia could struggle to regain altitude 21 Apr 2020 The carrier has gone into administration with over $3 bln of debt after a bailout failed to materialise. Australia is loath to leave Qantas a monopoly, which should help spur a solution, maybe with local pension funds. Remaking Virgin into a success is a different story, though.
Singapore oil trading mess creates a long slick 20 Apr 2020 The founder of Hin Leong Trading, O.K. Lim, fessed up to hiding $800 million in losses. That’s bad for auditors and the banks holding $3.9 bln of related debt. It’s also tricky for the city-state’s status as an energy hub, and perceptions of privately held commodities firms.
Japanese hospitality has a long way to go in M&A 20 Apr 2020 Lone Star is buying Unizo, ending a process marred by murky disclosures, a lack of engagement with bidders and conflict of interest allegations. Lawmakers last year introduced guidelines to make takeovers fairer, but the tussle suggests boards may need a bigger kick.
India’s Tatas crack open $84 bln piggy bank 17 Apr 2020 Tata Consultancy is nearly quintupling its dividend, handing $685 mln to the Tata Sons parent company. The money could help fund charities and other weaker parts of the empire. Cash-rich and with no plans to cut jobs, the IT services provider can afford to try and have it all.
Wall Street pay shows early resistance to virus 16 Apr 2020 Goldman, JPMorgan and Morgan Stanley only modestly cut the compensation pool last quarter, even though pandemic costs hit shareholders hard. Unlike 2008, protecting staff makes sense. And there's plenty of time left to slash bonuses the more the Covid-19 rout eats into profit.
Chancellor: Economic Consequences of Mr. Johnson 16 Apr 2020 Winston Churchill’s biographer Boris Johnson deemed Britain’s 1925 return to the gold standard a “catastrophic error”. The Great Lockdown may be another economic disaster in the making. The recovering leader must hope that the experts haven’t misled him as they did his hero.
Buffett may end up Occidental’s owner-by-accident 15 Apr 2020 The Sage of Omaha struck a clever deal with the shale driller by investing $10 bln through preferred shares. Now the oil price has halved, and on paper Occidental’s regular equity may be almost worthless. The true price of Buffett’s help is becoming clear.
Morgan Stanley gives Covid-19 a materiality test 9 Apr 2020 Boss James Gorman has recovered from the virus investors didn’t know he had. Companies have huge leeway when it comes to disclosing the boss’s ill health; Warren Buffett and Steve Jobs show extremes. Privacy is important, but there are advantages to radical transparency.
CEO pay sacrifices could use a pinch of altruism 9 Apr 2020 Disney, HSBC and Solvay are just a few big companies where bosses are volunteering pay. Solidarity with staff, prudence ahead of government bailouts and dwindling cash are the key motivators. Real generosity will need to come from those that are thriving amid the crisis.
Treasury Wine’s posh-plonk split calls for a toast 9 Apr 2020 The $5 bln Australian winemaker could spin off its prized Penfolds business. That should deliver a higher valuation for the upmarket label and separate it from a ragbag of other brands that need restructuring. A coronavirus-induced glut of luxury grapes will eventually help, too.
For staff, Jeff Bezos is more CEO than trailblazer 8 Apr 2020 The Amazon founder has transformed shopping. But the way the $950 bln firm treats its workers is not so futuristic. Like Walmart, it only recently provided protective gear to warehouse employees. That might fit with short-term profit, but not with long-term innovation.
Centerview picks risky moment for Parisian push 8 Apr 2020 The U.S. advisory firm hired Matthieu Pigasse to open its French office. Luring the ex-Lazard star is a coup, though he and 14 other bankers won’t have come cheap. With the coronavirus dampening corporate spirits, Centerview needs a V-shaped recovery for its bet to pay off.
Cox: How long can you last in this environment? 7 Apr 2020 That’s really the only question that CEOs need to answer when they start releasing quarterly earnings, penning shareholder letters and holding virtual annual meetings in the coming weeks. Cash is the king of metrics. Employee welfare comes next. Avoid predictions. And no whining.