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.
China plus one is best glue for India-US romance 23 Jun 2023 Prime Minister Modi’s largely successful state visit points to how India can help US firms like Tesla and Micron rejig supply chains. In sensitive areas like defence, trust is growing but remains in short supply. It keeps any hope of prising India away from Russia out of reach.
Alibaba shakeup hints at changing China tech role 20 Jun 2023 Boss Daniel Zhang will step down to run the e-commerce group’s cloud business. Replacing him at the parent group with veterans like globe-trotting financier Joe Tsai looks sensible amid a tricky breakup. It also implies that newer ventures, like cloud, are gaining strategic heft.
Pirelli boss turns de-risking into opportunity 19 Jun 2023 Rome has limited the power of the $5 bln tyremaker’s Chinese shareholder, without forcing it to sell. Pirelli and Italy get to de-risk China ties without burning too many bridges. But the real winner is CEO Marco Tronchetti Provera, who has again found a way to come out on top.
Nissan needs new intrigue like a hole in the tyre 16 Jun 2023 The $16 bln carmaker hired Ashwani Gupta as COO to help move past the Carlos Ghosn scandal. Once seen as a potential CEO, he’s leaving amid reports of more internal shenanigans. With profit margins still low and its Renault alliance in flux, Nissan can’t afford such distractions.
Comcast rejigs media script after falling from Sky 16 Jun 2023 The $173 bln cable giant is discussing a cash dowry to lure buyers for its pay TV operator’s German arm. That would remove a distraction as CEO Brian Roberts hunts for a new deal. A sale may be hard to reach. But it’s better to cut the cord sooner than later.
Capital Calls: Oil M&A, Bud backlash, L&G’s CEO 15 Jun 2023 Concise views on global finance: Two oil-well servicers find a way to make decline more palatable, while brewer Anheuser-Busch discovers that money doesn’t always buy friends in politics. In the UK, insurer L&G picks a new CEO to try and address its Brexit discount.
Biogen conflicts cry out for boardroom therapy 15 Jun 2023 The departure of pushy investor Alex Denner as a director, with his romantic partner tipped to step in, adds to the $44 bln biotech’s struggles. Even in a cozy industry, such a brazen idea beckons another activist. It doesn’t help Denner’s case at Biogen-partner Alkermes either.
JPMorgan fails Jeffrey Epstein stress test 15 Jun 2023 The mega-lender sails through its yearly financial exams, but lawsuits and a $290 mln settlement over its sex-trafficking client suggest operational lapses. Boss Jamie Dimon says he’d barely heard of Epstein until 2019. If so, it’s a sign his bank is too big to manage.
Private equity risks gorging on its secret sauce 14 Jun 2023 Public-market investors prefer steady management fees over lumpy buyout profit. As a result, KKR and others funnel more so-called carry to employees instead. Peers Blackstone and Carlyle could recalibrate similarly, but taking a bigger cut also might irritate dealmakers.
‘Love Island’ maker can be saved by bold coupling 14 Jun 2023 ITV CEO Carolyn McCall is under pressure amid a scandal and a depressed share price. A breakup of the $4 bln broadcaster might help, but looks tricky. Bulking up the studio unit could create more value, if McCall can find a way to keep dividend-loving investors on side.
Shell makes risky pitch for the middle ground 14 Jun 2023 The $195 bln group’s new CEO Wael Sawan boosted shareholder payouts and refrained from new oil output cuts. His bet is that Shell can echo US peers by lingering in oil, while placing its green bets on less tricky low-carbon areas than European rivals. It’s not certain to work.
Capital Calls: Zee, Embracer 13 Jun 2023 Concise views on global finance: India’s securities regulator banned the media group’s CEO from holding any key managerial positions, putting its merger with Sony’s local unit under a cloud; the $3 bln video-game group’s new strategy hits the right buttons.
To relinquish Grail, Illumina should fight for it 12 Jun 2023 A departing CEO and an ousted chairman signal an end to the gene-sequencing company’s effort to retain the $7 bln cancer detection business it bought without regulatory approval. The best way to secure a good price may be to keep battling US and EU trustbusters in court.
Odey brokers’ belated rethink is a cautionary tale 12 Jun 2023 JPMorgan, Morgan Stanley and others are reviewing links to the fund manager. Odey’s 2021 firing of his executive team should have been a red flag to do so even before further sexual assault allegations emerged. Brokers’ tardy responses just raise questions about their processes.
Casino’s fate rests on billionaires whack-a-mole 9 Jun 2023 Tycoon Xavier Niel and Czech investor Daniel Kretinsky are vying for control of the hard-pressed French retailer, which needs to restructure some 3 bln euros of debt. Founder Jean-Charles Naouri may be pushed out. Creditors’ backing will determine who will come out on top.
Man United takeover drama may end up in court 9 Jun 2023 The $3 bln soccer giant is up for sale. Hedge funds are preparing to fight any attempt by the controlling Glazer family to exclude minority investors from a deal. The club’s relatively low valuation, compared with recent takeovers, suggests a high chance of that happening.
GoTo’s new CEO has one key job: bring stability 9 Jun 2023 Patrick Walujo is replacing Andre Soelistyo atop the $10 bln Indonesian superapp. The private equity boss may want to more closely knit together GoTo’s disparate businesses. But after several high-level changes, cost cuts and stake sales, providing a steady hand comes first.
Diageo’s Ivan Menezes was all-round exception 7 Jun 2023 The CEO of the $94 bln drinks giant, who has died at 63, defied corporate stereotype. He helped engineer a successful merger of equals, delivered index-beating returns while promoting diversity, and seamlessly stepped aside after a decade. It’s a record others should aspire to.
Capital Calls: Turkey, Indivior 5 Jun 2023 Concise views on global finance: President Tayyip Erdogan’s new treasury minister will struggle to steer the $900 bln economy towards orthodox monetary policies; shares in the London-listed drugmaker jumped after it settled a lawsuit, making it more appealing to potential buyers.