Americas

Investors prescribe harsh medicine for GSK’s boss

3 Jun 2024

Shareholders wiped $9 bln off the UK drugmaker’s market value after a US judge approved lawsuits over heartburn drug Zantac. It may be an overreaction given the company’s win in another state and previous settlements. But it adds pressure on CEO Emma Walmsley’s turnaround plan.

Donald Trump verdict judged leniently by investors

31 May 2024

The former US president joins Italy’s Berlusconi and other politicians in the criminal hall of shame. He also may yet be re-elected, but there’s no extra risk being imputed to the country’s debt, currency or markets. However robust the system, sanctioned wrongdoing will erode it.

Precision-medicine IPO deserves Groupon discount

31 May 2024

Tempus helps tailor treatments with its library of DNA and other tests. In a market giddy about AI, it could be worth $6 bln. One hitch is that founder Eric Lefkofsky, who started the online coupon provider, will keep control. The marginal value of its data is also shrinking.

Change is coming to UK’s macroeconomic policy

31 May 2024

The opposition Labour Party, the strong favourite to win the upcoming election, has promised continuity in its fiscal and monetary approach. An ugly economic inheritance at home and global challenges abroad make that ambition unrealistic. Investors should prepare for a shift.

Trump’s rich backers normalize criminal behavior

30 May 2024

In a historic verdict, the property mogul became the first US president convicted in court. His outlandish behavior hasn’t cost him support from billionaires such as Blackstone’s Steve Schwarzman, whose money may help Trump get re-elected. Their collective greed is now on trial.

Salesforce 2.0 benefits will download soon enough

30 May 2024

The software developer lost nearly $50 bln of market value after its revenue outlook fell short of what analysts were expecting. Chasing growth, which has been around 20% for a decade, would be a bad idea, though. Boss Marc Benioff’s profitability quest is a solid update.

Exxon’s Darren Woods gets a Biden-era dividend

30 May 2024

The oil giant’s CEO just closed a merger with Pioneer, and slapped down a slew of ESG-related shareholder proposals. Exxon’s market value of $510 bln now nearly matches Tesla’s. All this under – and in some cases thanks to – a US president who vowed to fight climate change.

AI will power up buyout barons’ green-energy spree

30 May 2024

Brookfield offered $6.6 bln for French solar and wind firm Neoen after EQT and KKR struck renewables deals worth $4.6 bln. Buyout barons have cash to meet the investment requirements of energy-hungry artificial intelligence, and future rate cuts mean valuations may have bottomed.

Capital One scales banking’s Mount Improbable

30 May 2024

The US lender’s $35 bln bid for Discover will make it king of the hill in credit-card debt, but to realise his ambitions, boss Richard Fairbank has a lot of people to win over. That includes not just regulators and merchants but his own investors – and maybe then the world.

Niel can be less stingy to fulfil his salsa dream

30 May 2024

The French Iliad owner may buy out Millicom, a $4 bln Latin American telco in which he owns a 29% stake. His potential $24-a-share bid implies a tiny 2% premium. Even with the stock up nearly 40% this year, he can offer more for a growing, profitable company.

Breakup alarm rings at $50 bln building superstore

29 May 2024

Johnson Controls, which installs heating and cooling systems, promised growth from cross-selling fire and security services when it bought Tyco in 2016. The deal hasn’t delivered and neither has boss George Oliver. Pushy investor Elliott may help unclog its valuation filter.

Conoco’s Marathon deal is cheap and cheerful

29 May 2024

As rivals like Chevron buy premium assets at high prices, the $139 bln Conoco is bagging OK assets at a reasonable $23 bln. The return on investment of 10% is attractive, though. And it leaves the oil sector positioned for future consolidation – maybe with Conoco as a target.

CEO pay is hidden factor in US relisting trend

29 May 2024

Plumbing supplier Ferguson almost doubled its boss’s compensation after moving to New York, while $55 bln CRH is reviewing its remuneration after switching too. It’s not something boards like to talk about. But investors might support US-style pay if it attracts the best talent.

T-Mobile makes lurch into uninspiring rural US

28 May 2024

The $200 bln US telecom giant is buying struggling mini-rival US Cellular for $4.4 bln. Based on valuation, the deal rings the bell. But it’s tiny, and the tough regulatory environment will be a battle. Even for a capable buyer, the mature industry leaves few options.

Fed should be independent, not untouchable

28 May 2024

Allies of Donald Trump want to blunt the Federal Reserve’s autonomy if the former US president wins a second term. That would be economically disastrous. But a mighty central bank with a $7 trln balance sheet requires better scrutiny, especially outside monetary policy.

Live Nation breakup will leave Swifties unsated

24 May 2024

The $22 bln venue owner and ticketer is being sued by US watchdogs who link Live Nation’s grip on music concerts with sky-high ticket prices. Busting the company in two doesn’t guarantee lower fees. A separate Ticketmaster will probably do fine on its own.

Covid buyout drama will unfold in tense third act

24 May 2024

Thoma Bravo’s 2020 takeover of software developer Instructure in many ways encapsulates the tech deal boom. A quick IPO capitalized on the era’s exuberance before debt and a slowdown took hold. The latest sale effort sets the stage for other uplifting or tragic denouements.

Snowflake’s growth story is worryingly typical

23 May 2024

The $55 bln software firm’s revenue is growing rapidly, partly because of AI initiatives, and investors are rewarding it. But marketing costs and stock-based pay are high, and semiconductors costs are rising. As tech newbies show, excitement based on sales growth often thaws.

DuPont’s big breakup could be second-time lucky

23 May 2024

The chemicals giant has merged, split, bought, sold – and created, on its face, little value. But the centuries-old firm’s defining challenge has been how to shed old businesses in favor of new. A final split to create three simple, racier units is a better bet to work.

Big Macs are pricing out American shoppers

23 May 2024

The driving force of the world’s largest economy, US consumers, may be buckling under higher costs on everything from lattes to burgers. In this Viewsroom podcast, Breakingviews columnists debate whether Main Street stalwarts like Starbucks or McDonald’s face a reckoning.