Management & Leadership

StanChart M&A theory will finally become reality

19 Dec 2023

For years, the bank run by Bill Winters was cheap but dysfunctional. Now, it’s producing significantly higher returns on tangible equity but the valuation remains low. If that persists in 2024, it will be hard for suitors like First Abu Dhabi Bank to resist launching a bid.

Capital Calls: Ryanair

18 Dec 2023

Concise views on global finance: The 21 bln euro budget airline’s potential 100 mln euro bonus for its CEO looks all the more awkward given the board’s decision last year to tweak the conditions.

Altice’s best hope will be a Middle East lifeline

18 Dec 2023

Telecoms tycoon Patrick Drahi is dismantling his empire to cope with a $60 bln debt wall. Attracting new investors may be tricky given low growth and a corruption scandal. Luckily Gulf states like the UAE and Saudi Arabia are flush with cash and keen to grab Western assets.

Stellantis will cruise with GM and Ford

18 Dec 2023

The maker of Jeeps and Opels run by Carlos Tavares is one of Europe’s lowest-valued carmakers. Yet it generates much of its income in the US, and boasts industry-leading profit margins. Keeping a single New York listing could see its valuation match Detroit rivals.

Polls may imperil emerging Asia’s policy stability

18 Dec 2023

India and Indonesia have had a decade of relative predictability under leaders Narendra Modi and Joko Widodo. Elections in 2024 could upend that and undermine the lofty valuations of local stock markets. Global investors, and 1.7 bln people, should temper expectations.

New Hong Kong bourse CEO picks up unfinished task

15 Dec 2023

Under Nicolas Aguzin, the $42 bln market operator failed to win big IPOs and the stock lagged its Singapore rival. His successor Bonnie Chan needs to diversify the business. She is starting from a low base in ropey markets and faces investor aversion to China. It’s a tough job.

Capital Calls: Entain/gambling M&A

13 Dec 2023

Concise views on global finance: The CEO of the $5 bln UK-listed betting group has stepped down, making it more vulnerable to a takeover.

Wanda tycoon pays price for overexpansion

13 Dec 2023

Once Asia’s richest man, Wang Jianlin has been forced to give up control of his mall operator to avert a $4.1 bln funding crunch. To avoid further problems at China’s biggest landlord, Dalian Wanda now needs to prove its assets are attractive to both shoppers and investors.

AI firms lead quest for intelligent business model

12 Dec 2023

Automating a swathe of tasks could help startups capture $140 bln in revenue. But even sector darling OpenAI is deeply unprofitable. To justify the billions invested by backers like Microsoft and Amazon, artificial intelligence will have to deliver lasting productivity gains.

Big College is ripe for the full Bill Ackman

8 Dec 2023

Harvard, Penn and MIT presidents were hauled before Congress over campus antisemitism, after the hedge fund boss helped bring attention to the cause. The lack of accountability displayed suggests Ivory Towers would benefit from being stormed the same way as corporate boardrooms.

Capital Calls: ASML’s new CEO

30 Nov 2023

Concise views on global finance: Peter Wennink has delivered a 1,000% shareholder return during his tenure at the Dutch group that is a key player in chip manufacturing. His successor, Christophe Fouquet, faces a more challenging future.

Everybody could use a Charlie Munger

28 Nov 2023

Warren Buffett’s deputy and self-dubbed cheerful pessimist has died a month shy of his 100th birthday. He was witty, smart and a fixture at Omaha gatherings. But his chief asset, as a sounding board to the one who got fame and fortune, was also his boss’s best value investment.

Warner Bros Discovery boss’s payday is toast

27 Nov 2023

David Zaslav has to boost the HBO operator’s value by $79 bln to collect stock options worth $200 mln. That’s a stretch even if better parts such as video games and streaming services pick up. His compensation, like the dealmaking that created the company, evokes a bygone era.

Foxconn is still running with difficult status quo

27 Nov 2023

Terry Gou’s exit from Taiwan’s presidential election race may shield the $45 bln firm he founded from immediate political crossfire from Beijing. However, the Apple supplier’s push to move production outside of China leaves it firmly on frontlines of rising cross-strait tensions.

OpenAI’s boardroom drama is far from over

23 Nov 2023

Sam Altman will return to the helm of the artificial intelligence firm after a torrid week of resignations. In this Viewsroom podcast, Breakingviews columnists explain how the saga has raised concerns about governance, the future of AI and an alarming cult of the CEO.

OpenAI calls time on alt-governance experiment

22 Nov 2023

Sam Altman’s return as CEO cements the failure of the ChatGPT owner’s attempt at shareholder-second capitalism. The board’s mandate to protect humanity was no match for the will of its biggest backer Microsoft. OpenAI is now more like a regular company – for better or worse.

Binance mega-fine fits go-big-or-go-home vibe

21 Nov 2023

The cryptocurrency exchange will pay $4.3 bln for violating US laws, and its founder will stand down. It’s more than HSBC and Goldman Sachs paid for big financial transgressions, and racked up in a fraction of the time. Crypto is precocious in its lows as well as its highs.

“Ex-Japan” title may take a final bow with Goldman

21 Nov 2023

The retirement of Japan President Masanori Mochida gives the US firm the option to follow its rivals and have his successor report into the Asia CEO. After a long lull, Japan’s markets are hot. But shape-shifting foreign banks may opt to bring the country into the regional fold.

Microsoft will struggle to clean up ugly AI mess

20 Nov 2023

The software giant hired ousted OpenAI boss Sam Altman to run a new in-house artificial intelligence hub. It creates fresh confusion about strategy and brainpower, as CEO Satya Nadella scrambles to preserve his company’s $13 bln investment. There’s probably more upheaval to come.

Capital Calls: Walmart, HelloFresh

16 Nov 2023

Concise views on global finance: Although the US retailer lost nearly 8% of its market value after it indicated that price increases are starting to ease, it should be able to navigate the challenge; the 2.7 billion euro meal-delivery company has become a tasty buyout target.