New breed of central bankers is harder to read 11 Jul 2019 Jerome Powell at the Fed and Christine Lagarde, nominated to be the next ECB chief, are lawyers by training. Their thinking is more fluid than predecessors whose economic tenets informed a world view. That has benefits, but also means it’s harder to predict how they will react.
Deutsche Bank accidentally boosts boutique model 10 Jul 2019 The lender’s enforced decision to shut its cash equities business raises the question of whether investment banks need armies of traders and analysts to back up stock offerings. A leaner platform could show they don’t. That would be a shot in the arm for smaller rivals.
Next BMW CEO’s best bet is greener cars 8 Jul 2019 The 44 billion euro automaker’s current boss Harald Krueger will in 2020 vacate one of the more attractive jobs in a tough industry. The company’s valuation and profitability put rivals to shame. To hold onto that lead, the new boss will have to focus more on electric vehicles.
Global central bank assault claims Turkish victim 7 Jul 2019 Desperate to boost growth, President Tayyip Erdogan has fired the country’s central bank chief. He’s the latest casualty of a worldwide attack on independent monetary authorities. The blow to confidence makes any cut in the main rate, held at 24% since September, more damaging.
Andrea Orcel could benefit from his own advice 5 Jul 2019 The former UBS investment bank boss is suing Santander for 100 million euros after the Spanish bank yanked an offer to make him CEO. A lengthy battle will further cloud the rainmaker’s future career. Breakingviews imagines what counsel the hard-charging banker might give himself.
ChemChina vexes Beijing’s bureaucrat dealmakers 4 Jul 2019 In an odd display of buyer’s remorse, the country’s envoy to Switzerland has slammed the $43 bln takeover of Syngenta in 2017. It hints at the complex politics of such M&A. The reaction also calls into question the many orchestrated mega-mergers involving state-owned giants.
Time to look beyond Europe for next IMF boss 3 Jul 2019 The international lender’s chief has always been European. Christine Lagarde’s exit will be a chance to drop the outdated convention. Any hope of salvaging the multilateral system means giving emerging and developing economies more clout. Competence matters more than nationality.
Credit Suisse succession goes back to square one 2 Jul 2019 The abrupt departure of international wealth management chief Iqbal Khan removes a potential heir to boss Tidjane Thiam. That’s partly because the CEO wants to stick around after years of painful restructuring. Still, the Swiss bank’s board needs to prepare for his eventual exit.
Safaricom should hunt for its next CEO in Africa 1 Jul 2019 Kenya’s government wants a local to replace the telecom firm’s respected British boss, who has died of cancer. That’s too narrow a remit for an $11 bln outfit which is also big in fintech. But with neighbouring Ethiopia opening its vast market, African expertise is essential.
Smith & Nephew U.S. pay wheeze hides deeper logic 25 Jun 2019 The British artificial-knee maker is considering moving its listing across the Atlantic, the FT reports. American investors’ tolerance for high wages might help keep CEO Namal Nawana happy. S&N’s business, its M&A ambitions and lowly valuation are better reasons for jumping ship.
CLSA exodus leaves owner Citic with an empty shell 20 Jun 2019 The brokerage's star analysts are being poached by rivals like Credit Suisse and Jefferies. They take with them much of the brand value China's Citic Securities paid $1.3 bln for in 2013. Such mergers are always tough. But the state-owned group missed opportunities to do better.
Vision Fund may be Hotel California for investors 19 Jun 2019 SoftBank’s $100 bln vehicle is almost spent, and CEO Masayoshi Son’s Gulf sponsors are mulling whether to back a sequel. High returns help; toppy valuations don’t. The problem is that tightening Saudi and Emirati purse strings may dent confidence in current cash-burning startups.
Second front opens in Vivendi’s Italian campaign 19 Jun 2019 Silvio Berlusconi’s plan to create a 4 bln euro pan-EU broadcaster from Mediaset could mute the influence of its French media rival in the new group. Vincent Bolloré’s firm, which may also be diluted by Rome in Telecom Italia, is getting a taste of its own cooking in Italy.
Gender pay gap deserves GAAP accounting 19 Jun 2019 Alphabet is the latest to oppose a shareholder call for it to report the difference between median male and female pay. Many companies publish data by job categories to deny sexism, but that sidesteps a lack of women at the top. Fuller numbers would help get at the real problem.
Wells Fargo needs more than a new CEO 18 Jun 2019 There are obstacles to getting an external replacement for interim chief Allen Parker. But getting Wells Fargo back on course is more than a one-person job. The answer might be to keep Parker on, sandwiched between an executive chair and a seasoned second-in-command.
Rome can get edge on Paris with network M&A 17 Jun 2019 Telecom Italia may buy rival network provider Open Fiber. A deal could revive its fortunes by taking out a competitor. And a valuation of over 2 bln euros would allow the government, a shareholder in both, to secure control of the telco, at the expense of French rival Vivendi.
Philip Green escape is bad omen for UK high street 13 Jun 2019 The British retail baron saved his empire by pushing through an aggressive restructuring. Landlords agreed to cut rents by up to half, despite the risk that other tenants will demand similar discounts. The deal shows the fragility of UK retailers – and the property they occupy.
Reckitt’s new face has a lot to prove 12 Jun 2019 The maker of Nurofen and Durex has chosen PepsiCo executive Laxman Narasimhan to be Rakesh Kapoor’s successor as boss of the 45 billion pound group. An outsider may bring fresh remedies. But the first-time CEO will have his work cut out to fix the problems facing his new employer.
Irish central banker job glitch may be a blessing 11 Jun 2019 The government was thrilled to recruit a New Zealand Treasury official as its new governor. Now he faces an investigation about how he handled early accessing of budget information. If things go wrong, Ireland has a second chance to give Deputy Governor Sharon Donnery the job.
Foxconn leaves room for governance improvement 11 Jun 2019 Taiwan's $32 bln iPhone assembler has missed an opportunity with its first investor day. A management rejig is encouraging, but stops short of a succession plan. Worse, it fails to clarify departing boss Terry Gou’s future role. Shareholders will be left only a little wiser.