Management & Leadership

What Masayoshi Son can teach us about investing

11 Oct 2024

The Japanese tech tycoon backed future giants like China’s Alibaba as well as spectacular flops like office-sharing startup WeWork. A new biography likens him to a high-stakes gambler. But Son’s chequered career also reveals some of the skills of a successful venture capitalist.

Sanofi sale is critical health check for mega LBOs

10 Oct 2024

The French pharma company is deciding whether to sell its consumer drugs unit to Clayton Dubilier & Rice or PAI for $17 bln, says Bloomberg. It helps that volatile equity markets make an alternative listing riskier. A successful deal could give large buyouts a shot in the arm.

HSBC cost cuts expose new CEO’s bigger problem

10 Oct 2024

Georges Elhedery may slash $300 mln of expenses in a plan to combine investment and commercial banking, the FT says. Yet the savings are modest and a new super-division may have downsides. Investors will be more interested in how Elhedery keeps the top line growing as rates fall.

Hey team: Weaker hiring means back to the office

8 Oct 2024

About 100 mln people in North America and Europe now work remotely at least some days. More CEOs, like Amazon’s Andy Jassy, want to end the practice altogether. The tension is upsetting staff and spurring defections, but a rise in joblessness would shift power back to employers.

Decoding the puzzle of SoftBank’s Masayoshi Son

8 Oct 2024

The Japanese tycoon shaped global technology while building and losing vast fortunes. How does he keep going? In the first episode of Breakingviews’ new podcast, The Big View, former FT editor Lionel Barber discusses what he uncovered in his biography of Son, ‘Gambling Man’.

Murdoch leaves Rightmove little room for error

1 Oct 2024

The Australian tycoon’s REA Group walked away after four rejected bids for the UK property listings portal, prompting the latter’s shares to slump. Rightmove can get to the offer price if it grows revenue at 11% a year and keeps its 75% margin. But that’s not simple to do.

Autos’ car crash ups the likelihood of EU airbags

30 Sep 2024

Stellantis and Volkswagen delivered big profit warnings, amid falling demand for cars. Their woes may encourage policymakers to vote through tariffs on Chinese rivals and go easy on EU carbon fines. But falling output and strained consumers mean carmakers need self-help too.

Southwest’s new flight plan carries excess baggage

27 Sep 2024

The $18 bln airline expects seat fees to help lift its operating margin to 10%, but not until 2027. Captain Bob Jordan and his crew also have consistently missed targets. A tough overhaul and a weak track record will weigh them down in the dogfight with pushy investor Elliott.

OpenAI pushes limits of tech pivoting

26 Sep 2024

As part of a fundraising at a $150 bln valuation, ChatGPT’s maker may weaken its humanity-protecting nonprofit board and instead focus on profit. Boss Sam Altman also would get a big stake, in a rare case of equity misaligning incentives. Unless, that is, AI doomsayers are wrong.

Hong Kong property tycoons enter brave new world

26 Sep 2024

Embattled developer New World may replace its CEO, the third-generation scion of the founding Cheng clan, amid a deepening real estate slump. Such a move is nearly unheard of in the city dominated by family-run conglomerates. It will put peers like Henderson Land on notice.

Commerz ills make M&A a question of when not if

25 Sep 2024

The German government backed the $20 bln bank’s quest to stay independent amid UniCredit’s approach. But lower rates and a lack of scale mean new CEO Bettina Orlopp will struggle to earn a good return, and so need a merger partner. Patience may reward would-be buyer Andrea Orcel.

New consumer CEOs start life in the slow lane

24 Sep 2024

Nike joined Campari, Nestlé and Starbucks in abruptly ditching its boss. There’s plenty of scope for the new CEOs to remedy their predecessors’ missteps. But a common thread at the four groups is slowing sales amid consumer weakness, making the turnaround jobs much tougher.

Campari can win back drinkers with marketing binge

18 Sep 2024

The $10 bln Aperol maker’s shares fell after the abrupt departure of CEO Matteo Fantacchiotti. He had a gloomy outlook because consumers aren’t splurging on pricey spirits. The next boss will have to position the company for the next bounce by leaving their card behind the bar.

Europe headed to muscular industrial policy

17 Sep 2024

The new European Commission marks a power grab by President Ursula von der Leyen, who enjoys more control of key departments. France, meanwhile, gets a tighter grip on industry and markets. The body may be tougher on trade, looser on competition matters and more interventionist.

Telegram and X expose tech platforms’ new reality

12 Sep 2024

The arrest of Pavel Durov, founder of the controversial messaging app, and the ban of X in Brazil shows state officials are not afraid to intervene in Big Tech. In this Viewsroom podcast, Breakingviews columnists debate what it means and how CEOs should manage the threat.

Rentokil’s US bug invites management fumigation

11 Sep 2024

The $13 bln pest controller’s shares fell 18% amid a new warning on growth. CEO Andy Ransom’s depleted credibility will embolden activist Nelson Peltz. A new boss or a private equity owner might better protect Rentokil’s US market share amid its tricky Terminix integration.

Orcel uses hammer to unpick UniCredit-Commerz lock

11 Sep 2024

The Italian bank’s CEO is eyeing a full takeover of the $16 bln German lender. Andrea Orcel is taking a blunter route than past M&A talks between the two banks, which used structures like a Frankfurt-listed subsidiary to appease Berlin. His way is more rewarding, but riskier.

Nestlé L’Oréal sale would add sugar to sour fix

5 Sep 2024

The Kit Kat maker’s new CEO Laurent Freixe may have to sacrifice profitability to claw back market share. Flogging part of the consumer group’s 20% stake in the $234 bln beauty giant could help fund buybacks or special dividends, taking the sting out of a painful turnaround.

Telegram’s route to profitability looks dubious

3 Sep 2024

The troubled app’s CEO Pavel Durov runs a lossmaking enterprise. The easiest path to profitability is to echo Facebook, but content moderation costs would further hit Telegram’s finances. The main alternative is to be a messaging app, but WhatsApp implies that’s hard to monetise.

Murdoch’s UK property gambit has a price ceiling

2 Sep 2024

Australian property listings site REA Group is eyeing $6 bln UK peer Rightmove. The News Corp-backed suitor can use cash and higher-valued shares to pay a 30% premium. Beyond that, Rupert Murdoch’s outfit might struggle to combine a successful bid with keeping him in control.