Americas

Power brokers lose their grip on US politics

4 Nov 2024

Billionaires like Jeff Bezos or Larry Fink are tiptoeing around Tuesday’s vote for good reason. A Kamala Harris victory offers thin hope of easing tough policy. Donald Trump promises tax cuts but threatens unpredictable backlash. Fear is trumping hope, even in the boardroom.

Oil glut renders industry’s appeal purely relative

1 Nov 2024

A record 5 mln bpd of spare OPEC+ capacity helps explain lower profit at Exxon, Chevron and Conoco. The titan run by Darren Woods has positioned itself better to handle the surfeit. Nevertheless, the next decade of returns from US crude producers will be even worse than the last.

Saudi’s Davos is no longer such a desert

1 Nov 2024

Around 8,000 CEOs and financiers flocked to the Future Investment Initiative in Riyadh, twice the number at its inception in 2017. Western bosses were keener to talk about artificial intelligence than investing in the kingdom. But Saudi’s progress suggests that may yet change.

Gold surge adds glitter to tarnished miners

31 Oct 2024

The yellow metal is up 35% this year as investors fret about inflation. Gold miners like Newmont and Barrick have repeatedly failed to capitalise on the ore’s rising value. But new-found financial discipline and modest valuations present investors with a rare opportunity.

AI venture shapes up to be glue for the Muskiverse

31 Oct 2024

Tesla boss Elon Musk is in talks to raise money for his year-old xAI at a whopping $45 bln valuation. From satellites to cars to social media, his holdings have access to gobs of differentiated data. Self-dealing concerns aside, the OpenAI rival might just turbocharge the empire.

Uber’s deal chest would be well spent on groceries

31 Oct 2024

The $150 bln ride-sharing firm’s rich stock price gives boss Dara Khosrowshahi good reason to go shopping, especially amid the threat of robotaxis. Slower growth this quarter adds to the anxiety. A mooted Expedia tie-up would send the wrong message. Instacart is a better fit.

Siemens AI deal is baby step to higher share price

31 Oct 2024

The German trains-to-robot maker is buying simulation group Altair for $10 bln. The rich transaction will take years to pay off. But Siemens’ fast-growing software unit gains scale. Shareholders may give Siemens a higher valuation if CEO Roland Busch opts for a bigger breakup.

Global banks are nearing peak regulation

31 Oct 2024

Sixteen years after the financial crisis that triggered bailouts and new rules, CEOs like JPMorgan’s Jamie Dimon are pushing back. Sympathetic politicians and competition from shadow banks help their case. The best hope for watchdogs is to stop the system from fragmenting.

Robust banks impair pleas for lighter regulation

31 Oct 2024

Lenders on both sides of the Atlantic are doing relatively well, despite concerns over the effect of shifting rates. In this Viewsroom podcast, Breakingviews columnists debate what is driving growth, and why CEOs are simultaneously bemoaning increased scrutiny from watchdogs.

It’s safe to count chickens even before they hatch

30 Oct 2024

Bigger and faster-growing fowl keep pushing prices lower and consumption higher. The $50 bln US industry is cooking, evidenced by Pilgrim’s Pride’s profitability, Chick-fil-A’s entertainment app, and more. None of it, though, will end a cyclicality that runs like cluckwork.

Lilly’s weight loss let-down is all about timing

30 Oct 2024

The obesity drug maker shed $50 bln of market value after sales disappointed the assumption that rising supply would meet endless demand. It may be a blip due to slow marketing. But a valuation triple industry norms leaves Eli Lilly no room to fumble its window to extract value.

Big Tech’s AI spending isn’t crazy, in a vacuum

29 Oct 2024

Microsoft, Meta and Alphabet are all ramping investment by 40% or more this year. Each decision seems defensible, as an 8% revenue increase might justify the expense. Sitting out also could push businesses into extinction. But too many firms want pieces of the same pie.

Ford’s ride-the-brakes strategy is hard to steer

29 Oct 2024

The Detroit carmaker has trimmed electric vehicle plans that nonetheless lost $1.2 bln last quarter. Meanwhile, the airbag of gas-guzzler profit is deflating on quality and supply issues. Boss Jim Farley says it’s safer to forestall the future. He’s struggling to prove it.

Voters and markets put left-wing leaders in a bind

29 Oct 2024

The world must reduce debt by 3.8% of GDP by 2029 – four times more than planned – the IMF says. That’s bad news for social democratic governments, which lose elections when they are fiscally tough. But if they keep running chunky budget deficits, investors will make them pay.

How the US election affects the rest of the world

29 Oct 2024

Next week, voters will choose between Donald Trump and Kamala Harris. Their decision will impact governments, companies and investors outside the US. In this episode of The Big View podcast, geopolitical strategist Tina Fordham explains why markets misjudge the possible turmoil.

Crypto election gusher has bipartisan payoff

28 Oct 2024

Digital currency businesses spent $200 mln in political donations, an absurd amount even compared to unions and Big Oil. Harris and Trump have different approaches, but both are friendlier than Biden. The spending will give crypto regulation legitimacy after the election.

Many roadblocks delay journey to zero carbon world

28 Oct 2024

While solar power and battery supply have grown massively, the same is not true of electricity grids, green hydrogen and carbon removal. Money is more expensive. This means demand for oil, gas and coal has not yet peaked. The setback will cost the planet dearly.

Biden trustbusters get free rein to accessorize

25 Oct 2024

A US judge agreed to halt the $8.5 bln sale of Michael Kors owner Capri to Kate Spade parent Tapestry. Shares buoyed by overconfident traders halved. Others should take heed: the ruling adds substantial heft to novel theories pushed by this administration’s deal hawks.

Elon Musk creates a must-win election

25 Oct 2024

The Tesla chief’s $840 bln EV maker would fare well or better under a Democratic president. But the temptation to become a global mastermind outside of autos is too strong — enough for Musk to back Donald Trump and gamble on the future of his federal contracts.

China robotaxi IPOs may struggle to find their way

25 Oct 2024

Pony AI and rival WeRide are prepping US listings. But shares in fellow autonomous-vehicle pioneers like Mobileye and Hesai have lost half their value or more in the past year, and the road to profitability for driverless cabs looks long. That makes these deals a harder sell.