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Americas

Bill Ackman will never be the next Warren Buffett

1 Aug 2024

The hedge fund boss wanted to replicate his idol’s success, starting by raising money from the investing masses. The message failed to register: he pulled his IPO after originally aiming for $25 bln. There’s far more to the Oracle of Omaha than his returns.

Carmakers strain to navigate the next swerves

1 Aug 2024

After responding to the unexpected success of $720 bln Tesla, older manufacturers now face rising China exports amid slower EV growth. In this Viewsroom podcast, Breakingviews columnists discuss how GM, VW and others – including governments – are handling the nascent trade war.

Green hydrogen fever gets needed doses of reality

1 Aug 2024

Over the past five years, supporters argued the low-carbon gas would be a big fossil fuel killer. Cost and science makes much of that fanciful. Fortescue nixing production goals and EU targets being dubbed too ambitious suggest the industry is getting more practical and smaller.

Boeing’s new CEO has vital copilot training to do

31 Jul 2024

The $120 bln plane-maker recruited former Rockwell Collins boss Kelly Ortberg to lead a tortuous turnaround. His engineering and aviation experience will help, as should some newly hired deputies. Along with the many operational challenges, a solid succession plan is a priority.

Microsoft gives peek into tech-stock takedown

31 Jul 2024

The software giant’s earnings weren’t bad – although its cloud business slowed slightly. But as interest rate expectations shift downwards, investors are looking for reasons to exit highly-valued stocks - especially big tech firms. Even a minor miss becomes a reason to sell.

Soaring coffee prices foretell a financial grind

30 Jul 2024

Robusta futures are off the boil, but near record highs. Espresso drinkers needn’t fret just yet: baristas use more popular arabica, and a $5 cup contains just 7 cents of beans. Rising demand and climate effects, however, are brewing trouble for the $200 bln industry.

Ether ETFs spotlight crypto’s big ask for Trump

30 Jul 2024

Mainstream investors now have access to the second-largest cryptocurrency after a slew of new funds raised $100 mln. But they don’t yet match the perks of owning ether outright. As the presidential contender cozies up to the crypto crowd, it offers a clear deregulatory target.

Jilted M&A target opens books on data room angst

29 Jul 2024

Oil giant Phillips 66 is due in court over charges it stole trade secrets while deep in talks to buy Propel Fuels. Penalties could be as high as $3 bln. Just as punitive would be greater suspicion from future prey. Even before money changes hands, dealmaking is riddled with risk.

Fed’s next challenge: the unemployment boogeyman

26 Jul 2024

The central bank’s steady hand on rates has solidly given the economy a soft landing. Strong 2.8% second-quarter growth provides a cushion as inflation, at 2.5%, melts away. But joblessness can become a tipping point for wages, consumption, and GDP. Risks are creeping in.

Casino buyout puts new spin on public vs. private

26 Jul 2024

Hedge fund Standard General is offering Bally’s investors a $4.6 bln deal that looks less than generous, but with the option to take risky, semi-liquid over-the-counter stock instead of cash. Unappealing as that is in this case, it shows how the lines between worlds are blurring.

Rose-colored Ray-Bans shade brand rehab realities

26 Jul 2024

EssilorLuxottica is paying $1.5 bln for Supreme, whose cachet suffered under Vans owner VF. Streetwear strays from the buyer’s eyewear expertise and the imputed return on capital looks modest. American Apparel also serves as one of many cautionary tales on fashion after it frays.

Hyundai’s extra gear is short on staying power

26 Jul 2024

Earnings at Korea’s largest carmaker jumped 23% last quarter, bucking a trend that had rivals from Tesla to GM to Nissan stalling. Yet investors have wiped almost 6% off the share price. Robust hybrid and SUV sales may not offer lasting protection as consumer confidence falters.

Donald Trump may dent but not dethrone King Dollar

26 Jul 2024

The US currency’s long-predicted demise has so far failed to materialise. The former president’s possible return to the White House is a reason to reconsider. While the greenback remains unassailable as the de facto global standard, its days of cyclical strength may be numbered.

Meta AI strategy: give something to get something

25 Jul 2024

As tech firms invest hand over fist in artificial intelligence, the Facebook owner’s plan to let developers tweak and freely use its models sounds like a giveaway. CEO Mark Zuckerberg hopes Meta will be long-term richer for it. Google’s Android success suggests he might be right.

Murdoch media galaxy would be better with one sun

25 Jul 2024

News mogul Rupert Murdoch reportedly wants to entrench his son Lachlan at Fox and News Corp, rather than spreading power among four siblings. For other shareholders, stability matters; Fox has beaten peers with Lachlan as CEO. Better an emperor than a squabbling committee.

Carmakers drive efficiency hopes into a ditch

25 Jul 2024

The shares of carmakers Nissan and Stellantis fell around 7% after weak results. The tough US market is hurting sales, erodes the European group’s high margins and hinders its Japanese peer’s turnaround. Unsold cars and cautious consumers mean any recovery will take time.

Ford and GM cushioned by economic safety features

24 Jul 2024

Detroit’s $100 bln automaking duo hit some bumps, but they’re mostly humming along. Even so, delinquent loans and growing inventories have spooked investors about vehicle prices. Bloated dealer profit, ageing cars and lower borrowing costs should smooth out the road ahead.

Euro-banks offer glimpse of possible bad-debt wave

24 Jul 2024

Deutsche upped its forecast loan-loss charge, contributing to a 7% share-price fall. BNP’s default provision spiked, and UniCredit’s has too in Germany. Most of the bad news relates to just a few specific corporate clients. But there will be more if rates stay higher for longer.

CrowdStrike in cursed grip of corporate klutz club

24 Jul 2024

The cybersecurity company’s 20%, or $17 bln, loss in value after a botched software update echoes those of bumblers from Chipotle to Citigroup. Many factors determine how long the stain lasts. Foremost among them is a CEO’s ability to persuade shareholders the slip was a one-off.