Netflix will gain from Facebook and Google pain 19 Jan 2023 The TV-streaming service is rolling out an ad-supported plan just as the tech titans lose digital market share. Making the strategic shift work will now be partly up to new co-CEO Greg Peters. At least Reed Hastings helped put the company in position to nab social-media spending.
Indian IT reboots in time for an easy recession 19 Jan 2023 Quitting workers hurt profitability at service providers from Tata to Cognizant. But the drying up of startup funding has reduced job hopping. That will make any slowdown in spending by global clients easier to manage, leaving India to keep taking market share, at least for now.
Capital Calls: Activism, Bond spat, Airline M&A 18 Jan 2023 Concise views on global finance: Aggressive shareholder campaigns picked up in 2022, but activism is becoming an overcrowded strategy. Meanwhile, M&A machine Melrose takes on a fight that might not be worth winning, and German airline Lufthansa eyes a stake in Italy’s ITA.
Emerson’s hostility tests aggressive M&A tools 17 Jan 2023 Disclosing its unsolicited $6.9 bln offer for NI ends a quiet eight-month standoff. Going public forces the issue, but along with the target’s strategic review also inflates the price. A bid battle threatens the potential value of a deal and may inform takeover tactics elsewhere.
Expansionist dreams threaten ECB digital euro plan 17 Jan 2023 As the European Central Bank develops its own online currency, politicians want a big say. Hostility from some rubs against the ECB’s cautious enthusiasm. Yet if political forces push a digital euro to be more global than the ECB is ready for, it may weaken financial stability.
Capital Calls: BlackRock, Tim Cook’s pay 13 Jan 2023 Concise views on global finance: The asset manager edges closer to its Blackstone roots by expanding in private investments; compensation for Apple’s CEO re-enters Earth’s atmosphere.
Capital Calls: Prices down, jobs saved? 12 Jan 2023 Concise views on global finance: New data shows U.S. prices falling 0.1% in December, marking the largest drop since early 2020. With inflation in retreat, the Fed can focus more on keeping Americans employed.
India can credibly push digital currencies to talk 11 Jan 2023 The e-rupee will be a hard sell at home but it could slash costs of overseas transfers. As a receiver of $100 bln annual household remittances and champion of interoperable payments, New Delhi can use its G20 presidency to foster global cooperation to tap the compelling use case.
Microsoft’s AI bet: heads I win, tails I also win 10 Jan 2023 If the software giant’s mooted $10 bln investment in ChatGPT's maker goes well, it could reshape Microsoft’s business. If it flops, CEO Satya Nadella will have stopped a rival getting hold of a hot AI property. Creative financial structuring cuts Microsoft’s risk even further.
Capital Calls: McDonald’s ex-CEO fine 10 Jan 2023 Concise views on global finance: The Security and Exchange Commission’s decision to slap former fast food chain boss Stephen Easterbrook with a penalty is a convoluted way to the right outcome.
YouTube runs risky new play to capitalize on NFL 9 Jan 2023 Alphabet’s video service is paying some $14 bln over seven years to let fans watch nearly any game they want. The pricey Sunday Ticket package has been diluted, however. It would take 60% subscriber growth to break even, but user-generated clips give the deal a sporting chance.
Capital Calls: AstraZeneca 9 Jan 2023 Concise views on global finance: The drug giant is to pay up to $1.8 bln for U.S. group CinCor Pharma to beef up its kidney and heart businesses.
Jack Ma’s Ant is China tech’s tiniest bellwether 9 Jan 2023 The founder is ceding control of his fintech giant, sending shares of affiliate Alibaba up 7%. The move was expected, yet investors clearly see Ant's rehabilitation as symbolic. That may be misguided, but any excuse to reevaluate China’s beat-down internet sector will do.
Fitness firms’ regime: lots of brands, few assets 6 Jan 2023 Gym chains from boutiques like Barry’s to the no-frills Planet Fitness are reinventing how people get and stay in shape. Yet as the $100 bln fitness business faces competition, the fight for dollars has become much more bruising. The dominant firms are diversified and nimble.
China’s TikTok wins while U.S. dillydallies 6 Jan 2023 The social media app has stopped hiring people that would help appease U.S. regulators. Congress is slow – a reflection of Americans apathetic about sharing data. But impaling companies with taxes and tariffs happens regularly. As politicians delay, China tiptoes into homes.
Crypto bank run vindicates watchdogs’ vigilance 5 Jan 2023 Silvergate Capital, which takes deposits from digital-asset companies like FTX, had to raise funds and flog assets fast after customers pulled $8 bln. It’s a disaster for investors and the ambitions of CEO Alan Lane. For regulators who’ve kept crypto on a tight leash, it’s a win.
EU is stuck playing catch-up with Amazon and Apple 5 Jan 2023 Antitrust tsar Margrethe Vestager wrung concessions from the $880 bln e-commerce giant, while the iPhone maker could open to third-party app stores. That sounds like progress, but the giants could have other tricks up their sleeves. Enforcers will be left racing to keep up.
Capital Calls: Meta’s fine problem 4 Jan 2023 Concise views on global finance: The social networking giant was penalized nearly $800 million last year in a series of European charges over how it treated user data. While 2023 is young, Meta has just been fined half as much. It's just a start.
Starbucks will go grande on workforce-lite future 4 Jan 2023 The $120 bln latte purveyor is fighting off unions as workers seek better benefits and higher wages. In 2023, it will throw a few concessions. That will tide over employees long enough for it to streamline coffee-making. It’s a playbook for those looking to trim their workforce.
Disney’s next 100 years hinges on a metaverse 3 Jan 2023 A century ago, the media giant crafted theme parks that withstood decades of changing technology. It isn’t a huge leap from a real Disneyland to a virtual one that melds brands and streaming. Innovation is necessary, but for it, boss Bob Iger’s days need to be numbered.