Goldman Sachs will spend 2019 in velvet handcuffs 18 Dec 2018 New boss David Solomon starts the year with a mission to grow, lots of ambition and a crosstown rival that has steadily upped its game. A big deal – say, buying an asset manager – could help Solomon vault ahead of Morgan Stanley. That’s if the 1MDB scandal doesn’t bind his hands.
Wanda takes a deft detour into Party nostalgia 18 Dec 2018 The property conglomerate said it will build a $1.7 bln “red tourism” destination, even as it sells off other theme parks. Wang Jianlin’s outfit may be shedding assets to pay back jittery creditors, but officials are the constituency he really needs to placate.
SoftBank writedown will cloud Son’s way forward 17 Dec 2018 The group and its $97 bln Vision Fund paid toppy prices for the likes of ARM and WeWork. With tech valuations and growth under pressure, CEO Masayoshi Son may have to mark down some valuations in 2019. Financial backers and fund staff could struggle to maintain the momentum.
Viewsroom: French misery gives Italy some company 13 Dec 2018 President Macron hopes a 10 bln euro splurge from state coffers will mollify rioters calling him the “president of the rich.” But it’ll worsen the country’s deficit, risking an EU rebuke. It may, though, offer cover for Italy, whose debt load is causing friction with Brussels.
Peugeot boss has better option to running Renault 13 Dec 2018 Carlos Tavares may be the most obvious European car executive to fill the Ghosn gap. But buying 22 bln euro Fiat Chrysler may be a more appealing alternative, so long as the Agnellis are looking to hand things over to the leader who best resembles the late Sergio Marchionne.
Glasenberg successor will run a different Glencore 13 Dec 2018 The commodities giant’s combative boss says he will retire in 3 to 5 years. It’s unclear who will replace him, even after a recent reshuffle. With a U.S. subpoena and other woes weighing heavily on the stock, Ivan Glasenberg may yet be tempted to consider a much bolder overhaul.
Vincent Bolloré will break up Vivendi 12 Dec 2018 The 66-year-old tycoon is smarting from a drubbing by Elliott in Italy, and his media group suffers from a huge conglomerate discount. A partial sale of Universal Music may help. But dismantling the whole group would release $10 bln in value, and keep potential activists at bay.
Hyundai heir is tightening his grip on the wheel 12 Dec 2018 A radical shake-up in the upper ranks of the Korean autos conglomerate should help de facto boss Euisun Chung repair multiple dents. Flagging sales and restructuring demands from activist Elliott are top of his to-do list. A firmer hand should drive progress on both.
General Electric can go from bad to worse in 2019 11 Dec 2018 The industrial group led by Larry Culp is mostly being propped up by its aviation arm as its power business sucks wind and its finance unit consumes cash. The risk is that cyclical, financial and competitive headwinds kick the strongest leg of the stool out from shareholders.
“Pere Noel” Macron won’t cheer marchers or markets 11 Dec 2018 France’s president pivoted from Teutonic austerity to Matteo Salvini-ish populism in response to violent protests over inequality. He pledged state cash to help the underpaid and pensioners. That may push up French borrowing costs without pleasing those in yellow vests.
WPP’s new investor pitch contains too much hot air 11 Dec 2018 CEO Mark Read wants to slash costs and get the $13 bln ad group growing in line with rivals by the end of 2021. That’s the right idea. But his growth plan looks heavier on jargon than detail, while cuts are modest. Overall it’s less convincing than one of WPP’s whizzy campaigns.
Yelp activist push is worthy of five stars 10 Dec 2018 The $3 bln online review site has gone through management fumbles, fierce competition and a slumping share price. No wonder investor SQN is calling for fresh thinking. With Google and Facebook fighting bigger battles, Yelp should be doing better at winning over small advertisers.
The Exchange: Joe Kaeser 10 Dec 2018 It’s hard to imagine a company embodying as many of the challenges and opportunities of 21st century capitalism as Siemens. The German conglomerate’s CEO swings by Times Square to discuss trade, breakups, power, automation, labor, Saudi Arabia and lots in between with Rob Cox.
Governor’s exit kills myth of India’s central bank 10 Dec 2018 Urjit Patel's resignation after a spat with New Delhi makes him the second chief to leave in almost as many years. That removes the illusion of independence. Finding a successor will be tough too. Investors will now significantly reprice risk as India hurtles into elections.
Och-Ziff truce and rejig are small mercies 6 Dec 2018 Daniel Och is finally giving up his pioneering listed hedge-fund creation. After massive value destruction and a power struggle, he is ceding control and a big ownership stake. The firm will also be taxed as a corporation, not a partnership. For investors, the road back is long.
Sears gets right kind of message from wrong person 6 Dec 2018 Chairman Eddie Lampert is offering $4.6 bln to buy the U.S. retailer out of bankruptcy and save 50,000 jobs. Focusing on employees is laudable. But Lampert failed to turn Sears around in more than a decade of trying. Its staff and advisers would be better off with new ideas.
Albert Frere’s heirs can eliminate market discount 5 Dec 2018 The death of Belgium’s richest man casts a spotlight on GBL, the 13 bln euro group he co-founded. Despite past canny investments, it’s valued at a hefty discount to stakes in companies like Adidas and Pernod Ricard. Selling assets and beefing up private deals could change that.
China hangs corruption sword over tech giants 5 Dec 2018 The arrest of a senior executive at Alibaba, the head of its video-streaming unit, suggests an anti-graft crackdown will not spare web titans. For investors, a tighter grip on tycoons like Tencent’s Pony Ma will be costly. Poor disclosure is adding to the problem.
Ted Baker is stuck in a bear hug trap 4 Dec 2018 Ray Kelvin’s habit of embracing employees has become a liability for investors. If an internal probe shows he is culpable of more than unwanted coziness, the fashion brand could push its largest shareholder away. Even if he holds on, Ted Baker will grapple with other challenges.
Ghosn’s jail time risks poisoning alliance talks 4 Dec 2018 Nissan's former boss, accused of understating his pay, could see out the year behind bars, a local paper says - without being charged. His harsh treatment widens the gulf between Paris and Tokyo, making a deal on future ties between the Japanese carmaker and Renault even tougher.