Acquisitive CEO’s pay push belongs in scrap heap 7 Aug 2023 After beating back unhappy shareholders to complete a $7 bln junkyard deal, RB Global boss Ann Fandozzi sought to accelerate her equity grants. When the board said no, she apparently quit. It’s a welcome case of directors swinging the wrecking ball on runaway CEO rewards.
PayPal pays price for prolonged CEO hunt 3 Aug 2023 Despite 7% quarterly revenue growth under retiring boss Dan Schulman, the company’s adjusted operating margin fell short of its 22% projection. Bad small-business loans also contributed to another 11% drop in the share price. Vital strategic plans are in a costly holding pattern.
Capital Calls: Uber’s road trip to redemption 1 Aug 2023 Concise views on global finance: The $95 bln ride-sharing firm notched its first operating profit and more than doubled free cash flow, but its valuation is lagging.
Capital Calls: Sequoia, Heineken, Moneyball 31 Jul 2023 Concise views on global finance: The venture capital firm issues a refund to cryptocurrency investors; the $57 bln brewer slashes its operating profit outlook; Steve Cohen’s New York Mets baseball team and its whopping $364 mln payroll is a mess, but in sports beta is the alpha.
Capital Calls: Bank of Japan, StanChart 28 Jul 2023 Concise views on global finance: Governor Kazuo Ueda shook markets by introducing a more flexible approach to controlling government bond yields, but he can easily retreat if inflation drops. Meanwhile, Bill Winters’ lender is improving but the heavy lifting is far from over.
Shell may as well try green plug for valuation gap 27 Jul 2023 The $204 bln group’s shares have outperformed US rivals since it flagged a renewed focus on oil, but still lag Chevron and Exxon Mobil. New boss Wael Sawan could try to close the gap by listing his green energy bits. It’s not certain to work, but is better than more buybacks.
Barclays CEO fiddles while valuation droops 27 Jul 2023 Despite earning adequate returns, the $32 bln UK bank has long traded at a big discount to rivals. Boss C. S. Venkat’s plan so far boils down to more of the same. Without clearer targets to move capital out of investment banking, the shares risk remaining stuck in the doldrums.
Capital Calls: LVMH’s US dip, Rolls-Royce revival 26 Jul 2023 Concise views on global finance: Shares in the 413 bln euro luxury conglomerate fell 4% as investors fretted about weakness in its once booming US business; the UK airplane engine maker raised its profit forecast for 2023 as its new CEO benefits from travel tailwinds.
Government’s NatWest meddling crosses risky line 26 Jul 2023 The UK bank ditched CEO Alison Rose hours after backing her, amid pressure from its 39% state shareholder. It’s right for Rose to go. But voters may now wonder why politicians can’t also intervene in setting mortgage rates, and NatWest may find it hard to find a top replacement.
Royal Mail owner may have a breakup on the way 20 Jul 2023 Parent company IDS chose international-parcels boss Martin Seidenberg as its new CEO. The struggling UK unit doesn’t show up in the near-$3.5 bln group’s share price. But Seidenberg has a window to fix it. If that works, he could boost value by splitting the company in two.
Capital Calls: Netflix, Thailand 20 Jul 2023 Concise views on global finance: The streaming giant warned its revenue will fall short of Wall Street’s expectations; a court’s move to suspend the leader of the election-winning Move Forward Party as a lawmaker raises the stakes in the underperforming $500 bln economy.
BlackRock’s Aramco embrace makes sense in a vacuum 18 Jul 2023 The $109 bln asset manager added the state-owned Saudi oil giant’s CEO Amin Nasser to its board. BlackRock boss Larry Fink may invite a political firestorm at home, but he needs a competitive advantage. Diversity of opinion helps, as does the ability to unlock new investments.
Capital Calls: Cathay, Telecoms kit makers, Byju’s 14 Jul 2023 Concise views on global finance: The Hong Kong carrier expects to turn a profit; a push into 5G has caught European telecoms gear makers like Nokia and Ericsson short; India’s troubled ed-tech giant appoints a top former banker to a newly formed advisory council.
Capital Calls: Illumina, Domino’s Uber delivery 12 Jul 2023 Concise views on global finance: The EU fines the $30 bln genetic test maker 432 mln euros for closing its 2021 Grail deal prematurely; the pizza chain known for its own delivery app is expanding its service with Uber Eats, a smart move to nab more orders from fickle customers.
Winklevoss twins take strike two with crypto hype 11 Jul 2023 The founding brothers of crypto investment firm Gemini are suing the parent of bankrupt crypto lender Genesis over a soured deal that led to almost $1 bln in losses. The twins, known for their spat with Meta’s Mark Zuckerberg, are a bellwether of another messy tech hype cycle.
Capital Calls: Uber’s new task 11 Jul 2023 Concise views on global finance: Under boss Dara Khosrowshahi, the company’s departing finance chief helped deliver Uber’s original vision of dominating ride-hailing. His replacement can finish the job by dialing back spending and opening a spigot of cash flow.
BT’s vacant CEO job will only appeal to masochists 10 Jul 2023 Less than two months after releasing a turnaround plan that failed to convince investors, boss Philip Jansen said he will leave. There are no clear alternatives to his strategy of laying fibre broadband and cutting costs. Tricky shareholders will only add to the new broom’s pain.
Capital Calls: China’s central bank, Generali 3 Jul 2023 Concise views on global finance: The People’s Bank of China plays it safe by earmarking Pan Gongsheng as its new governor; the Del Vecchio family gets the green light to own more than 10% of the 30 bln euro Italian insurer.
Bank of Italy pick will give Italy an EU headache 28 Jun 2023 ECB member Fabio Panetta is heading home to lead the national central bank. That will remove a dove from Europe’s rate-setters, just as they pursue a hard line on inflation. To send another Italian to Frankfurt, premier Giorgia Meloni may need to compromise on Brussels issues.
Tesla vs. Meta cage fight already has a winner 23 Jun 2023 The tech giants’ bosses are planning a literal fistfight. But in a corporate throwdown between the $800 bln automaker and the slightly smaller Facebook parent, which would win? On balance, Elon Musk’s bid to reshape the physical world beats Mark Zuckerberg’s promised virtual one.