Elon Musk can make Tesla a national champion 5 Jan 2024 The billionaire’s $745 bln car company faces rising rival BYD, growing backlash in Europe, and a deal landscape that’s impossible. Attempts to diversify rest on far-out ideas like dabbling in AI and robots. It has a better path: becoming a cornerstone of US infrastructure.
Harvard ouster is a win for activists, not activism 5 Jan 2024 Corporate cage rattler Bill Ackman won his bid to oust President Claudine Gay from the elite US university. The process was different from activism at companies, where boards rather than CEOs are the natural target. Corporate change is laborious; investors should be glad of it.
Aussie tycoon will blaze new green activist trail 2 Jan 2024 Atlassian co-CEO Mike Cannon-Brookes has already used some of his billions to tackle climate change, like battling the country’s top carbon emitter. Quitting the software firm would make him more effective. Other wealthy moguls may then join him in the activist trenches.
Breakingviews readers’ year of living dangerously 29 Dec 2023 Our best-read stories of 2023 reflect an audience trying to navigate a complex world of conflict, unpredictable interest rates and novel inventions. Familiar obsessions, including dramatic deals and the risks of a rocky energy transition, held your attention too.
Kim Kardashian will be kicked off Instagram 22 Dec 2023 The influencer is worth $1.7 bln, which could climb with her shapewear brand’s IPO. That’s value that doesn’t flow to the owners of platforms sustaining content creators’ fame, like Elon Musk or Mark Zuckerberg. The best way for them to pull some back: suspend her privileges.
The Li clan will deal their way out of value trap 20 Dec 2023 The Hong Kong-based empire founded by Li Ka-shing is unloved by investors. Despite his son Victor’s efforts to boost value, the $20 bln CK Hutchison trades at a big discount to its net assets. With 80% of revenue outside Greater China, it makes sense to explore a sale or breakup.
Saudi’s best foreign investment will be in Gaza 19 Dec 2023 The kingdom is known for flashy punts on Western sports and blue chips. But its real need is foreign cash to help diversify away from oil. If Crown Prince Mohammed bin Salman were to use Saudi money to help Palestinians rebuild post-war, US goodwill may prompt an FDI spike.
StanChart M&A theory will finally become reality 19 Dec 2023 For years, the bank run by Bill Winters was cheap but dysfunctional. Now, it’s producing significantly higher returns on tangible equity but the valuation remains low. If that persists in 2024, it will be hard for suitors like First Abu Dhabi Bank to resist launching a bid.
Polls may imperil emerging Asia’s policy stability 18 Dec 2023 India and Indonesia have had a decade of relative predictability under leaders Narendra Modi and Joko Widodo. Elections in 2024 could upend that and undermine the lofty valuations of local stock markets. Global investors, and 1.7 bln people, should temper expectations.
Baseball star’s payday channels Goldman’s Gus Levy 12 Dec 2023 Shohei Ohtani is deferring 97% of his $700 mln deal with the Dodgers and will cash checks until 2043. The structure gives the team co-owned by Guggenheim’s CEO financial wiggle room. This aspect of Moneyball embraces a long-term greedy ethos that’s extreme even for Wall Street.
Big College is ripe for the full Bill Ackman 8 Dec 2023 Harvard, Penn and MIT presidents were hauled before Congress over campus antisemitism, after the hedge fund boss helped bring attention to the cause. The lack of accountability displayed suggests Ivory Towers would benefit from being stormed the same way as corporate boardrooms.
James Gorman makes a good sketch for a Disney CEO 30 Nov 2023 The outgoing Morgan Stanley boss is joining the Magic Kingdom’s board. He’s also not a bad blueprint of what Disney needs in a replacement for boss Bob Iger. The next CEO should be a specialist in solid shareholder returns, strategic pivots and bloodless succession planning.
Everybody could use a Charlie Munger 28 Nov 2023 Warren Buffett’s deputy and self-dubbed cheerful pessimist has died a month shy of his 100th birthday. He was witty, smart and a fixture at Omaha gatherings. But his chief asset, as a sounding board to the one who got fame and fortune, was also his boss’s best value investment.
Silicon Valley saw OpenAI with eyes wide shut 19 Nov 2023 The Microsoft-backed artificial intelligence darling’s board ousted boss Sam Altman on Friday. He may yet return. Weekend antics aside, unproven technology, governance risks and regulatory uncertainty remain, as does an $86 bln valuation that always seemed hard to justify.
Weak Biden-Xi handshake would send strong message 10 Nov 2023 The US and Chinese presidents may meet next week in San Francisco as tit-for-tat retaliations pressure trade. Beijing remains combative towards Taiwan while Americans coalesce on anti-China issues. De-escalating tensions can benefit both sides but is not politically expedient.
Bezos makes third losing bet on real estate 3 Nov 2023 The founder of $1.4 trln Amazon is relocating to Miami from Seattle, in part to be closer to his space venture. His new neighborhood could be underwater before he turns 90. Like hampered plans for a HQ in Virginia and conquering the cosmos, this latest move is a dud.
Piyush Gupta: Asia’s most disrupted digital banker 2 Nov 2023 The CEO of Singapore’s DBS is often feted as the region’s top financier and a candidate to lead rivals. Yet following repeated tech fails, the regulator has banned the bank from activities including M&A. It puts dividends at risk and will attract the eye of watchdogs overseas.
Capital Calls: McDonald’s resilience 30 Oct 2023 Concise views on global finance: The Golden Arches’ global same-store sales rose 9% thanks to both selective menu-price increases and smaller meals in different markets. It demonstrates the company’s ability to keep pace with disparate economies’ stretched consumers.
Li Keqiang death dilutes China reform promise 27 Oct 2023 The premier’s 10-year tenure began with hopes for a market-friendly revamp. Efforts to make state firms more efficient through private capital had all but reversed course as he left office. His sudden passing will further weaken the case against Beijing’s sprawling interference.
Morgan Stanley CEO shift pleases all, thrills none 26 Oct 2023 Ted Pick is an easy choice: steeped in markets, long-serving and unlikely to upset James Gorman’s strategic direction. Promotions for two CEO also-rans may keep the handover civil. It’s an utterly underwhelming transition which – given Wall Street’s record – is a good thing.