Nio’s affordable cars carry luxury baggage 25 Aug 2022 Founder William Li is rolling China’s $32 bln electric-vehicle maker into the mass-market. It will be tempting to hitch cheaper products with premium services like battery-swapping to win market share. A similar strategy has served him well so far, but risks driving up costs.
Gautam Adani’s tycoon rivalry spills into the news 24 Aug 2022 The Indian infrastructure tycoon has grabbed a 29% stake in $300 mln NDTV, a move to match the influence Mukesh Ambani enjoys thanks to his Reliance group’s TV channels, watched by half the country. The broadcaster may be a trophy asset but there are decent returns to be made.
Long arm of China law reaches today from Tomorrow 22 Aug 2022 Xiao Jianhua, the man behind the dismembered investment colossus, has been convicted of graft and illegal use of funds five years after he was snatched from Hong Kong. His fate is a timely reminder that Beijing is determined to show that no company or person is too big to fail.
Anshu Jain’s influence still lingers at Deutsche 15 Aug 2022 The Indian banker, who has died aged 59, was an industry icon who pushed the German group to go toe-to-toe with Wall Street. His stint as CEO was beset by solvency and conduct woes. But Deutsche Bank’s latest strategy is about as reliant on trading as Jain’s plan a decade ago.
Strong market an apt tribute to India’s Big Bull 15 Aug 2022 Billionaire investor Rakesh Jhunjhunwala, who has died aged 62, led the way for first-time buyers. This horde is now propping up Indian stocks at rich valuations, muting the impact of foreign selling amid U.S. rate hikes. If the enthusiasm holds, it will mark a coming of age.
Capital Calls: Illumina, Peloton 12 Aug 2022 Concise views on global finance: Growth is stagnating at the $30 bln DNA sequencing company, and regulatory problems with its Grail deal are also coming into view; a class action lawsuit against the virtual fitness outfit provides an unlikely reminder of its former glory days.
Ray-Ban heirs inherit wasteful Mediobanca feud 9 Aug 2022 Eyewear tycoon Leonardo Del Vecchio, who died in June, bought nearly 20% of the Italian bank as part of a fight with CEO Alberto Nagel. Making a return on the $1.5 bln stake will test his successors. Backing Nagel in his hunt for a target may be the more prudent choice.
Gautam Adani takes new tycoon risk to next level 9 Aug 2022 The world’s fourth-richest man is using the $220 bln empire he founded to amass critical energy and infrastructure assets. Financial profligacy broke many of his Indian rivals. Politics, complexity and opacity are bigger concerns for a billionaire starting to get too big to fail.
Capital Calls: Nelson Peltz under pressure 8 Aug 2022 Concise views on global finance: A group of shareholders has replaced the chairman of a London fund managed by the legendary activist investor.
Jack Ma’s exit would smooth Ant’s IPO march 29 Jul 2022 The Alibaba founder may cede control of the fintech giant. This could mark a big advance in Ant's efforts to clean up governance and placate the officials who derailed its $37 bln float in 2020. A simpler ownership structure puts the company one step closer to a revived listing.
Review: Lex Greensill epitomised post-2008 finance 22 Jul 2022 The Australian’s firm was one of many loosely regulated shadow banks that sprang up after the last crisis. Duncan Mavin’s “The Pyramid of Lies” explains how Greensill duped big lenders, investors and politicians. As interest rates rise, he’s unlikely to be the last failure.
Capital Calls: Citi’s luck, BlackRock’s blues 15 Jul 2022 Concise views on global finance: Citigroup’s second-quarter earnings were buoyed by its focus on trade flows and helping companies. Meanwhile, the world’s largest asset manager thinks investments will shift further into bonds but that business is less lucrative.
Japan’s post-Abe future, Europe’s currency problem 14 Jul 2022 The assassination of former Prime Minister Shinzo Abe is an end of an economic era. In this Viewsroom podcast, Breakingviews columnists debate how his party’s success could bring about big spending. Also, the euro’s decline is a problem for central bank chief Christine Lagarde.
Capital Calls: Delta’s earnings are bad and worse 13 Jul 2022 Concise views on global finance: Shares in the company fell 7% after the company missed earnings expectations. That’s bad, but worse is that its main strength – pricing power – has limits.
Shinzo Abe’s assassination leaves Japan undone 8 Jul 2022 The polarising politician who dragged the country out of decades of deflation was gunned down in the street on Friday. His Abenomics agenda will outlive him, as most of the challenges he tried to solve endure. Without Abe’s charisma, however, tackling them may get harder.
Capital Calls: Swedish Match, FCA 8 Jul 2022 Concise views on global finance: Elliott’s stake-building in Swedish Match may delay Philip Morris’s takeover of the oral tobacco company; the Hong Kong brain drain gathers pace with Ashley Alder’s move to Britain’s financial regulator.
Ray-Ban tycoon leaves behind unfinished business 27 Jun 2022 EssilorLuxottica Chairman Leonardo Del Vecchio has died at 87 without publicly anointing an heir. That raises questions about the eyewear giant’s future and investments in Mediobanca and Generali. Though trusted lieutenants may reassure investors, they lack his track record.
Hong Kong’s last governor on dealing with China 21 Jun 2022 Chris Patten was Britain’s top representative in the colony before its handover 25 years ago. In this edition of The Exchange podcast he talks about his newly published diaries, businesses sucking up to the People’s Republic, and whether the West will defend international rules.
Macron has narrow path to avoid domestic stalemate 20 Jun 2022 His party’s poor showing in parliamentary elections diminishes the French president’s authority and casts doubt on planned reforms like a pensions overhaul. He could still govern if he forms a coalition with the conservatives. But any deal will come with substantial concessions.
Missing Chinese tourists augur hard economic treks 14 Jun 2022 From Phuket to Paris, destinations that banked on the $255 bln mainlanders spent in overseas hotels, shops and restaurants each year are awakening to the possibility they might be gone indefinitely. It will challenge governments to find new and more sustainable sources of growth.