Wall Street cues a lesson in Ivory Tower finance 20 Oct 2023 Billionaires Marc Rowan and Bill Ackman are angry about Middle East positions taken by their alma maters, UPenn and Harvard. The backlash inadvertently spotlights the power big donors wield on campus. It’s a chance to revisit the business model and make college a freer market.
Elon Musk could use X to settle old PayPal spat 18 Oct 2023 The site formerly known as Twitter is testing a $1 fee for users. Its billionaire owner says it’s to fight spam, but customer credit card information also could help turn it into a super-app. Adding payments would challenge a company that unceremoniously dismissed him long ago.
Rainmakers find political hedge in Chris Christie 16 Oct 2023 Stanley Druckenmiller, David Tepper and Paul Tudor Jones have backed the former New Jersey governor for US president. Entrepreneur Vivek Ramaswamy raised cash from the Winklevii. Donald Trump is still Republican front-runner. But at this stage, it makes sense to spread cash.
US grand strategy can prop up the global order 16 Oct 2023 The horror in Israel and Gaza is a new blow to a fragile world. But the United States can prevent the rules-based order from collapsing by continuing to steer a steady course with regards to Russia and China. The biggest risk would be the return of Donald Trump as president.
Elections will test Indonesia’s economic progress 16 Oct 2023 President Joko Widodo’s second and final term ends next year. His administration has brought stability and fostered investment in everything from EV metals to infrastructure. A domestic and global slowdown and a potential China backlash could taint matters for his successor.
Capital Calls: BlackRock, Dollar General 13 Oct 2023 Concise views on global finance: Boss Larry Fink squares off with Uncle Sam; Dollar General bets on its ex-boss’s old magic.
Staley-Epstein probe goes too easy on Barclays 12 Oct 2023 A UK watchdog fined the bank’s old boss $2 mln for ‘misleading statements’ over his ties to the late sex offender. Barclays escapes blame despite naïvely taking Jes Staley’s account on faith. The troubling message is that boards needn’t challenge scandal-hit CEOs too hard.
Capital Calls: Birkenstock flop 11 Oct 2023 Concise views on global finance: The sandal maker took a tumble, as its shares opened more than 10% below the IPO price, leaving questions about its venue and valuation.
Sports teams’ trophy status boosts private equity 10 Oct 2023 A stake sale could value the NBA’s Golden State Warriors at $7 bln, making it one of the world’s most valuable teams. Billionaires’ scramble for trophy assets is pumping up price tags. That makes sports one of the safest bets around for buyout shops taking a piece of the action.
Dating apps can embrace gamification of hookups 6 Oct 2023 Tinder is rolling out a $500-a-month service to keep pace with other matchmakers who cater to premium users. That might help $12 bln parent Match bring in more revenue. But a better way to capitalize on scale would be to charge per swipe. If gamers will pay, so will players.
Covid-induced Nobel Prize is on brand 2 Oct 2023 Two scientists won the award in a relatively quick 18 years after publishing seminal work for vaccines that helped stop the pandemic. Global disasters often speed up scientific advances. The balance in pushing for rewards and possible consequences changes when more is at stake.
Lithium merger is charged up by tycoon fever 27 Sep 2023 Gina Rinehart, Australia’s richest person, has bought 11% of Liontown, which is sizing up a $4 bln takeover by Albemarle. Whether she makes a full bid or not, she’s only the latest mining billionaire forcing a strategic buyer to dig deeper for an energy transition commodity.
How Ukraine’s banks can survive another war 19 Sep 2023 The country’s former central bank Governor Valeria Gontareva explains on The Exchange podcast how the radical steps implemented in 2014 helped Ukrainian lenders withstand the Russian invasion and kept the financial system afloat, and why Ukraine needs to keep reforming.
Detroit profit engine could screech to a halt 14 Sep 2023 Years-long employment contracts meant auto workers missed out on post-pandemic gains. New demands could halve Ford and GM profit. The companies may prefer one-off rewards. But unions have little incentive to accept. Instead, transition plans may be wounded, and both sides pay.
BP succession fail puts spotlight on its board 14 Sep 2023 Chair Helge Lund and his colleagues could have lined up a replacement for now-departed boss Bernard Looney when issues over his conduct surfaced last year. They didn’t. Before rushing to appoint a new CEO at the $110 bln oil group, they should interrogate their own performance.
Apple investors grow fat on iPhone’s thinning buzz 12 Sep 2023 The tech giant’s latest handset, to be unveiled Tuesday, may offer incremental improvements. Sharper pictures and faster charging won’t spur many upgrades. The $2.8 trln group’s main innovation is persuading investors to pay a higher multiple for slower-growing revenue.
American economic power is potent but unstable 8 Sep 2023 Washington weaponized the country’s dominance in tech and finance, evidenced by restrictions on Chinese chip imports and Russia sanctions. Such policy power has invited backlash, most recently against Apple’s iPhones. The dynamic makes valuable interdependence harder to sustain.
Pinault’s Hollywood foray is untimely distraction 8 Sep 2023 The French tycoon will buy a majority stake in talent agency CAA, valued at $7 bln. The Tinseltown escapade offers diversification from luxury giant Kering. But it may complicate CEO François-Henri Pinault’s attempt to revive star brand Gucci while digesting other large deals.
Apple’s high valuation exposes it to China’s whims 7 Sep 2023 The $2.8 trln tech giant's shares lost 7% in two days after reports said Beijing will impose a ban on officials using iPhones. Current retaliatory measures shouldn’t matter much to valuation. But more draconian assumptions show a problem, especially at Apple’s elevated multiple.
New boss will be EIB’s chance to stay relevant 7 Sep 2023 The European Investment Bank will soon appoint a successor to Werner Hoyer. Like peer the World Bank, it needs to find ways to take more risk with its 65 bln euros of annual lending and help the green transition. The challenge will be keeping member states and markets onside.