Siemens Energy’s vicious circle becomes virtuous 13 Nov 2024 The $35 bln German group surged 20% after it revealed punchy 2028 targets. For years, troubles in its wind unit obscured Siemens Energy’s status as a green transition winner. While these aren’t all fixed, the company looks cheap if CEO Christian Bruch can hit his new goals.
Vodafone M&A spree leaves German problem untouched 12 Nov 2024 CEO Margherita Della Valle has spent the past 18 months remodelling the $23 bln telco by striking deals in Britain, Spain and Italy. But the shares have trailed European rivals’. To change that, the former finance chief will have to tell a better Teutonic growth story.
Europe lacks scope for fiery Trump trade riposte 8 Nov 2024 With a self-styled tariff man in the White House, the bloc may face blanket export levies. A vast trade surplus, and reliance on the US for key goods like gas, limit the scope for Brussels to respond in kind. Plan B may be to placate Donald Trump by pledging to boost US imports.
German government meltdown has a silver lining 7 Nov 2024 Chancellor Olaf Scholz has fired Finance Minister Christian Lindner after a budget dispute. It’s a bad time for political upheaval in Europe’s biggest economy. But making it more possible to loosen the absurd ‘debt brake’ may give Germany a freer hand on key areas like defence.
HSBC can stand strong in a fragmenting world 7 Nov 2024 The $170 bln bank is uniquely dependent on East-West linkages at a time when global tensions are rising. Yet it weathered the last US-China tit-for-tat fairly well. And supply-chain shifts could even boost the lender, if CEO Georges Elhedery can help it adapt to new trade flows.
Saudi megafund’s success rests on fuzzy local bets 5 Nov 2024 The kingdom’s $950 bln Public Investment Fund is best known for outlandish construction schemes and flashy foreign forays. But its biggest and fastest-growing division houses young domestic firms. While some may thrive, it’s less clear they can guarantee the vital pivot from oil.
Schneider fails first test of CEO succession plan 4 Nov 2024 The French electric equipment maker ousted Chief Executive Peter Herweck after finding him slow in the execution of his strategy. The $150 bln group needs to be fast in hot markets like data centres. But firing its boss after 18 months shows its decision-making is also wanting.
China consumer is epitome of delayed gratification 4 Nov 2024 Beijing says it wants to boost consumption’s 53% share of GDP as investment-led growth fades. Yet central planning is hard to square with free-spirited spending. Rebalancing without a period of stagnation is not easy. Recent policies also suggest the old model is hard to ditch.
Vivendi activist’s critique falls on deaf ears 1 Nov 2024 Pushy fund CIAM reckons a planned carveup of the 10-bln-euro media empire favours the controlling Bolloré clan. That’s true. Yet the split at least eases a conglomerate discount. And since voting it down would be a leap into the unknown, investors will probably just stay in line.
Samsung’s diminishing tech edge is in full glare 31 Oct 2024 The South Korean giant has lost over $100 bln of market value this year as it falls behind rivals in making chips used for AI. The company may be paying the price for one giant distraction: Boss Jay Y. Lee's never-ending legal troubles. Shareholders are voting with their feet.
Axel Springer boss is media’s key consolidator 28 Oct 2024 Mathias Döpfner will soon have up to 4 bln euros to spend on M&A. If the long-term Axel Springer boss is just after storied brands, Murdoch assets like Dow Jones may be in play. But with the obvious targets tricky to pull off, he may equally train his sights on AI or data.
Founder’s syndrome gets a new enabler 25 Oct 2024 Shares in $25 bln WiseTech soared 14% after the software firm dropped its scandal-hit CEO Richard White only to keep him on as "founder and founding CEO". Faced with a classic key-man risk problem, the board chose a farcical workaround. It sets them up poorly for the long run.
Danone’s yogurt bounty can spur M&A spree 24 Oct 2024 The $47 bln company once lagged rivals like Nestlé and Unilever. But its portfolio of nutrition and dairy products is now driving stronger growth as it caters to health-conscious consumers. With a stronger balance sheet, CEO Antoine de Saint-Affrique can start splurging on deals.
Deutsche hits bad-debt snag on road to growth 23 Oct 2024 The German lender returned to profit in the third quarter but also said its full-year loan-loss provision would jump to 1.8 bln euros. It’s the second quarter in which CEO Christian Sewing has surprised investors on bad debt. The shock distracts from investment-banking growth.
New CEO clicks HSBC Rubik’s cube into right place 22 Oct 2024 The $160 bln lender’s new boss is tackling the bank’s unwieldy structure. Separating the top performing UK and Hong Kong units from everything else globally looks smart. But it may one day invite questions about why these retail units are inside HSBC in the first place.
Walt Disney takes mouse-sized governance step 21 Oct 2024 The $175 bln Magic Kingdom named ex-Morgan Stanley CEO James Gorman as its next board chair. Finding boss Bob Iger’s successor has been a disaster, but at least the man in charge of the job has shown himself capable of doing it. Minimizing the drama, though, will be tough.
Nestlé’s CEO needs to ride two horses at once 17 Oct 2024 Laurent Freixe, the new boss of the $260 bln KitKat maker, inherits a group with stalling sales growth. Longer term he will have to shuffle an outdated food portfolio. But right now he needs a splurge on marketing, or risk Nestlé’s market share withering on the vine.
Return-to-office gets leg up on work-from-home 17 Oct 2024 A stern back-to-the-desks missive from tech giant Amazon.com represents a new salvo in the battle over post-pandemic norms. In this Viewsroom podcast, Breakingviews columnists discuss the weakening position for employees as hiring slows, and the possible unintended consequences.
EU champions’ hope will slam into hard M&A reality 16 Oct 2024 Brussels bigwigs, like new antitrust boss Teresa Ribera, want to create US-style corporate giants. Yet possible options, like a 160-bln-euro Orange-Deutsche Telekom deal, make no industrial sense. The risk is that even if politicians get on board, shareholders won’t.
Elliott takes flyer with elite intimidation status 14 Oct 2024 The hedge fund escalated its battle with $18 bln Southwest and CEO Bob Jordan by calling for a shareholder meeting to shake up the board. It’s a rare public clash as companies increasingly acquiesce to pushy investors. If the airline prevails, it may embolden others to push back.