Asia’s richest banker makes a meal of succession 4 Sep 2023 Uday Kotak has quit early as CEO of his $43 bln lender. He seems to be pitching it as a way for Kotak Mahindra Bank to appoint a replacement free from his interference. But he’s on the board and the firm’s biggest shareholder. And his legacy is tied to whoever takes his spot.
Climate change turns US utilities grimly exciting 31 Aug 2023 Hawaii’s biggest electricity provider is at risk of bankruptcy after wildfires destroyed a town. Increased capital expenditure can mitigate, but not eliminate, damage from storms and heat. Little wonder investors are slowly waking up to the dangers posed by litigious customers.
Capital Calls: Microsoft in the EU, Dollar General 31 Aug 2023 Concise views on global finance: The software giant will sell its Teams communications app separately from other software in the European Union; the discount retailer’s poor results reflect a more resilient US economy.
Republican hopefuls’ deficit goals are all talk 24 Aug 2023 Conservatives vying for the Republican nomination vowed to slash the deficit in a debate. After years of spending under conservative leadership, it’s a throwback. Yet tax cuts and other costly projects are still key talking points. Worsened US finances make the agenda impossible.
Prigozhin exit leaves Putin’s weakness alive 24 Aug 2023 The apparent death of the former convict-turned-chief mercenary comes two months after his mutiny against the Kremlin. Prigozhin’s actions had raised doubts about the stability of the Putin regime and its capacity to get out of the Ukrainian morass. His exit leaves those intact.
DeSantis chose wrong Disney battle, right war 22 Aug 2023 Homing in on the $157 billion entertainment company was politically foolish. But the Florida governor is right that Disney's sweetheart deal doesn't make sense. Other similar arrangements are finite and fairer, and still end up bad for states' finances.
Telecom Italia debt legacy outlasts its initiator 22 Aug 2023 Two decades after the Italian telco’s landmark leveraged takeover its architect, Roberto Colaninno, has passed away. His bold acquisition ended up saddling the ex-monopolist with a huge debt pile. A KKR-led deal, blessed by Rome, may finally end the sorry saga.
CFOs are stepping into a rapidly revolving door 14 Aug 2023 From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.
WeWork multitasked when it had just one job 9 Aug 2023 The office subletter conceded it might collapse, just months after a debt-for-equity recapitalization and four years since a funding round valued it at $47 bln. Mismanagement, hype and debt-fueled growth are to blame. Rival IWG suggests the business model works if kept in check.
Uday Kotak is wanting for the market’s support 9 Aug 2023 Asia’s richest banker wants to stay on his $44 bln lender’s board when he steps down as CEO. India’s regulator will weigh that up as it decides if an insider also can be the new boss. A cosy arrangement may be tolerable but Kotak Mahindra’s stock is starting to work against him.
Jho Low could create a new world of 1MDB pain 8 Aug 2023 The fugitive at the centre of Malaysia’s sovereign fund scandal, is in China. In this Exchange podcast Billion Dollar Whale co-author Bradley Hope explains why Beijing may soon give him up and how his return could be difficult for all involved, from global banks to celebrities.
Next job-market challenge: the Great Unresignation 4 Aug 2023 Recent labor shortages pushed up hiring costs for US companies. But firms including Wells Fargo and State Street now say fewer staff quit than they expected, so they’re having to give them a push. It’s the kind of wrinkle that makes seemingly healthy jobs data harder to read.
France wins more than Kretinsky in Atos breakup 1 Aug 2023 Billionaire Daniel Kretinsky will buy the IT group’s older assets for 2 bln euros including debt. Paris will be pleased that the other, sexier cybersecurity division stays French. Meanwhile the Czech tycoon gets the ailing unit with little relevance to his other recent purchases.
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.
NatWest goof is a boon for sketchy bank clients 21 Jul 2023 The UK lender’s CEO apologised to right-wing talking head Nigel Farage amid an account-closure row. Britain will now force banks to respect freedom of expression. Yet that may make it harder to ditch other, more problematic clients – and weaken the fight against money laundering.
Megalomania runs in the Disney DNA 13 Jul 2023 The $165 bln media company is letting boss Bob Iger stay until 2026 despite a sagging stock price. Iger’s predecessor Michael Eisner stuck around forever, too, and that didn’t end well. With Disney in a serious transition, Iger isn’t doing himself – or shareholders – any favors.
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.
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.
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.
‘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.