Apple departure points to wider mystery 6 Feb 2019 Retail chief Angela Ahrendts was one of the firm’s best-paid executives. Was she worth it? It’s impossible to know, because Apple doesn’t say how its stores are doing. It’s one of several important data points the company holds back. Opacity weighs on Apple’s valuation.
Hyperactive Elliott leaves Arconic in disarray 6 Feb 2019 The parts maker has a new CEO - its fourth since Paul Singer’s hedge fund first invested in 2015. The activist pushed out ex-boss Klaus Kleinfeld, helped pick most directors and backed a failed buyout by Apollo. Its minority stake has made it a force for agitation, not stability.
Trump World Bank pick would be fox in the henhouse 5 Feb 2019 The U.S. president is set to nominate David Malpass to lead the global lender. He’s skeptical of multilateralism and of closer ties to China. A challenger for the job – usually America’s choice – hasn’t yet emerged. Some World Bank priorities, like climate change, could fade.
Barclays’ activist investor faces moment of truth 5 Feb 2019 Edward Bramson has nominated himself to join the UK bank’s board. Barclays shares are down by a quarter since he disclosed a 5.5 pct stake; his listed vehicle has lost more. But shifting the lender’s strategy requires winning over regulators and directors as well as shareholders.
Bill Gross sends last missive on bonds – and fees 4 Feb 2019 The Pimco co-founder is leaving Janus Henderson, where he managed money in less-than-stellar style since 2014. He’s entitled to retire, but the move follows the end of a decades-long bull run for bonds and underscores the decline of funds which charge too much for their returns.
New-look Ryanair follows familiar flight path 4 Feb 2019 The budget airline will split into four units overseen by CEO Michael O’Leary. The changes, including a replacement for Chairman David Bonderman, look encouraging. But given that O’Leary will remain in charge and large-scale acquisitions are unlikely, they are mostly cosmetic.
Deutsche Bank reprieve is only temporary 1 Feb 2019 The German lender’s first net annual profit in four years and plans for bigger cost cuts are welcome. But revenue fell, partly because its trading business did worse than U.S. peers in the final quarter. CEO Christian Sewing needs top-line growth to deliver even mediocre returns.
Tesla CFO exit news is flashback to bad old days 31 Jan 2019 The electric-car maker’s new board chair and directors may be helping to tone down CEO Elon Musk’s overwrought promises and tweets. But his decision to wait until the end of an earnings call to disclose that Tesla’s finance chief is leaving shows Musk remains firmly at the wheel.
Nomura’s messy quarter begs for faster tidy-up 31 Jan 2019 An estimated $120 mln fee from SoftBank bolstered the broker’s earnings but failed to offset abysmal performance across wholesale, retail and asset management divisions. Job cuts and improved incentives are steps in the right direction, but thin padding against tough markets.
Mark Zuckerberg still doesn’t get the message 28 Jan 2019 The Facebook founder may knit together the technology behind communication tools including WhatsApp and Instagram. That could help bolster user numbers but would risk aggravating privacy concerns. Moves to strengthen the company’s dominance are unlikely to regain people’s trust.
Howard Schultz’s D.C. ambition may burn Starbucks 28 Jan 2019 The former coffee chain chief is mulling a White House run. Democrats worried that would help President Donald Trump called for a Starbucks boycott. Schultz’s pro-China views could help sales there, but that’s one more reason his candidacy could backfire on the firm’s homefront.
Chinese markets may wait longer for bold changes 28 Jan 2019 The head of the nation’s securities regulator was replaced over the weekend. Liu Shiyu was more pragmatic than ambitious, an approach that achieved mixed results. His successor, ICBC Chairman Yi Huiman, hardly seems like the type to take big steps like reforming the IPO process.
Downbeat Davos is still short on introspection 25 Jan 2019 Corporate and political leaders in the Swiss resort fretted about slowing economies, angry citizens, and clashes over technology. The gloom contrasted with last year’s misplaced optimism. Yet delegates remain bafflingly confident about their ability to predict what’s next.
BlueMountain is tardy with PG&E activism 24 Jan 2019 The hedge fund firm wants to oust the California utility’s directors, who are heading toward bankruptcy. It has a point: The hit from wildfires is not yet defined, and PG&E has stumbled in other ways. But BlueMountain is running out of time to rouse bigger, longer-term owners.
Hadas: Larry Fink can’t reshape capitalism 24 Jan 2019 The BlackRock boss wants big firms to think long term and balance the interests of all stakeholders. That’s noble, but passive investors are poor strategic guides, while active fund managers have other priorities. Also, BlackRock's profit margins and Fink’s pay are bad examples.
Ghosn successors may further strain Nissan ties 24 Jan 2019 Renault has well-qualified successors lined up to replace its former CEO and chair, who resigned. They have the French state’s implicit backing. The political association could, however, raise hackles at its Japanese partner, making it harder to resolve the crisis in the alliance.
Pernod Ricard takes baby step towards Elliott 24 Jan 2019 The French spirits maker has named a lead independent director. The increased focus on corporate governance is a welcome start and one of the demands of the activist investor. More radical changes and cost cuts will be needed to close its operating margin gap with rival Diageo.
WeWork offers glimpse of conflicts to come 23 Jan 2019 The shared-office upstart and potential IPO candidate rents buildings part-owned by its co-founder and CEO. Private-company trends arguably encourage such blurred lines, but public investors tend to distrust them. It’s another reason to doubt WeWork’s high-rise valuation.
Patisserie Valerie has a way out of collapse 23 Jan 2019 The cake chain called in administrators KPMG, but buyers have expressed interest. To make the numbers stack up, the acquirer would likely wipe out most of the unsecured creditors, including chairman Luke Johnson. If this happens, the battered baker could yet have a future.
Ford’s real reveal adds pressure on Jim Hackett 22 Jan 2019 The CEO’s ho-hum VW alliance made the carmaker the talk of a sluggish Detroit auto show. But Ford also disclosed that trucks and vans generate 135 pct of earnings. That highlights the need for speedier fixes to other, sputtering units – or a full merger that Hackett rejects.