Kotak’s IT slap-down points to a system weakness 25 Apr 2024 Shares of the $44 bln bank fell 13% after the regulator barred it from acquiring new customers online following tech failures. Kotak's rich valuation is slipping away. Targeting growth is a smart punishment but the RBI may need to be tougher. Digital weakness appears widespread.
Silicon Valley models value of noncompete ban 24 Apr 2024 A new FTC rule forbids US companies from stopping employees joining a rival, or starting one. Freeing up opportunities for a fifth of the workforce should boost pay. California’s tech hub also showcases other benefits of labor mobility. Intel, for example, exists because of it.
TikTok’s fate matters only up to a point for Meta 24 Apr 2024 Under a new US law, owner ByteDance is likely to sell the app without its secret sauce, suffer a ban or win a court challenge. Mark Zuckerberg’s social-media colossus should capitalize on the first two scenarios. Even the third allows it to make decent headway against its rival.
How one firm made child’s play of tricky M&A games 24 Apr 2024 Imagine buying a company without tedious negotiations, rival bids or pricey premiums. A Saudi investor pulled it off by snapping up enough shares to gain control of US retailer The Children’s Place. The feat will be hard to replicate, but there’s now a model for deal masterminds.
New Hong Kong bourse CEO needs everyone onside 24 Apr 2024 Anaemic trading activity has halved the market operator’s share price, and first-quarter earnings show it can no longer count on investment income to cushion the blow. There are early signs Bonnie Chan may get support from Beijing to turn things around. Hong Kong can do more too.
China trading-data restrictions are self-defeating 23 Apr 2024 The Shanghai and Shenzhen bourses will cease real-time updates of when overseas investors buy and sell shares. It looks like a ploy to shore up market sentiment. Reversing the decade-long practice, though, will decrease market transparency and undermine shareholder confidence.
Netflix plots feel-good story in a horror festival 18 Apr 2024 The $260 bln streaming service’s ability to keep adding subscribers by cracking down on password-sharing is inspiring copycats. The “One Day” producer has other edges on laggards such as Disney and Paramount. A $7 bln cash pile also provides it with a chance to widen the lead.
Guess what: Boeing can be spelled without G and E 17 Apr 2024 Instead of investing in a new model, the 737-maker embraced the gospel of Jack Welch and returned $60 bln to shareholders over a decade. McDonnell Douglas suffered a similar fate before infusing Boeing with GE’s toxic ethos. It’s not too late to excise it and build another plane.
UnitedHealth shows market power is double-edged 16 Apr 2024 The insurer’s reach in the US healthcare system drew an antitrust probe – and a ransomware attack that could cost $1.6 bln. It’s grist for trustbusters: dominance may let firms take their eye off the ball on cybersecurity, and make the systems that depend on them more fragile.
JPMorgan wrestles with the tyranny of expectations 12 Apr 2024 The biggest US bank is avoiding being pinned down on where the economy will go next. Problem is, that’s now the overwhelming focus for investors gauging the banking business. Boss Jamie Dimon only stands to lose from staking a position. The best he can do is plan for the worst.
Hong Kong catches tantalising glimpse of future 12 Apr 2024 The city's airport had its busiest week since 2020 thanks to the Rugby Sevens and HSBC's inaugural investment summit. Yet many Hong Kongers spend their free time on the mainland. As the hub generates some of its old buzz, politics and pragmatism drive it closer to its neighbour.
Big banks turn inflationary lemons into lemonade 11 Apr 2024 Stubbornly high consumer prices may delay US monetary easing, a boost to lenders like JPMorgan or Citi that thrive amid high rates. Further relief could come from the dilution of tough new capital rules. For smaller banks, exposed to stressed borrowers, life tastes more sour.
Motor-racing deal faces quick antitrust pitstop 11 Apr 2024 F1 owner Liberty Media is doubling down on sports broadcasting rights with its $4.5 bln buy of MotoGP’s parent. CVC’s 2006 attempt to own both racing series got an EU antitrust black flag. The rise of streaming channels means mogul John Malone will have an easier ride this time.
Swiss too-big-to-fail rules are too timid to work 10 Apr 2024 Following the Credit Suisse disaster, Finance Minister Karin Keller-Sutter will give the country’s bank regulator more teeth and raise capital requirements for $100 bln UBS. It all helps. However, there’s no sign authorities will be any more willing to wind down a big bank.
EU tech rules bite ever-closer to Apple’s core 10 Apr 2024 As Brussels gains new powers and enforces a March music-streaming ruling, the European Union can finally force Apple to change how the iPhone works with outside developers. A US antitrust case adds pressure. Users may not like the results, which means investors should care too.
US antitrust push invites creative dealmaking 4 Apr 2024 Policymakers and trustbusters are eyeing new restrictions on mergers and acquisitions. In this Viewsroom podcast, Breakingviews columnists unpack some imaginative workarounds being used by companies ranging from Big Tech to fast food.
Remington deal fight is all about guns’ taboo 1 Apr 2024 Political backlash made gunmakers the orphans of capital markets, leaving the 208-year-old ammo brand to be fought over by unusual suspects: a Czech firm drawing national security scrutiny and a former insider. Investors’ retreat ensured a scrappy end for the military supplier.
Hermès lawsuit attacks luxury’s FOMO premium 26 Mar 2024 A suit against the $274 bln fashion house claims it’s so hard to buy a Birkin, it’s illegal, alleging the handbag’s must-have aura lets the company force purchases of unwanted extras. If successful, it could crimp both Hermès’ top growth areas and ultra-luxe goods’ mystique.
Big banks’ shock absorbers are still far too slim 26 Mar 2024 Credit Suisse and a string of US regional banks failed last year. In this Exchange podcast, Stanford Professor Anat Admati argues that lenders’ equity buffers are punier than they seem – and that fixing the problem needn’t cause a credit crunch.
Ping An and Vanke look made for each other 26 Mar 2024 Pressure is mounting on China's financial giants, including the $90 bln insurer, to support the beleaguered property developer. That is a big ask for Ping An, whose own earnings just slumped 23%. Still, helping Vanke could limit the pain for its own hefty property exposure.