Sign In

Management & Leadership

Elon Musk’s $44 bln Twitter challenge begins

3 Nov 2022

The Tesla boss is now the proud owner of the social media platform. In this Viewsroom podcast, Breakingviews columnists discuss the billionaire’s plans to boost revenue, the implications for the electric carmaker’s shareholders, and what the saga tells us about mega-deals.

BNP defies French banks’ interest-rate malaise

3 Nov 2022

The 60 bln euro lender’s top line is rising handily. That’s partly because CEO Jean-Laurent Bonnafé has tilted BNP Paribas away from Gallic retail banking, where regulations restrict its ability to earn more as rates rise. A valuation premium to local rival SocGen looks assured.

Michael Klein’s fourth act may be his toughest

28 Oct 2022

The former Citigroup rainmaker who went solo and then launched $5 bln of SPACs is now set to run Credit Suisse’s advisory unit. It’s odd for a director to parachute into the C-suite, but the bank had no better pick. The bigger issue is CS First Boston’s clunky ties to its parent.

New Shell boss has scope for a green power splurge

27 Oct 2022

The $190 bln oil major could double net income to $40 bln in 2022. Rather than launching more buybacks, incoming CEO Wael Sawan could eye up a mid-sized European renewables player like $19 bln SSE. It would speed Shell’s green energy mission without messing up its finances.

China’s chairman of everything wins again

26 Oct 2022

President Xi Jinping dramatically consolidated his political power at the recently concluded Communist Party Congress. In this episode of the Exchange, Dan Rosen of the Rhodium Group and Pete Sweeney delve into the role Xi-style socialism will play in China’s economic future.

HSBC ditches its cost-cut tsar before job is done

25 Oct 2022

Boss Noel Quinn is replacing CFO Ewen Stevenson with investment bank co-head Georges Elhedery. It’s odd timing, since the $100 bln lender has not finished slashing expenses, which is Stevenson’s speciality. Elhedery will have to wield the axe quickly to avoid spooking investors.

Rishi Sunak offers only temporary fix for UK woes

24 Oct 2022

Britain’s borrowing costs fell as the ex-chancellor won the race to become prime minister. Sunak is the least-bad option for restoring Britain’s battered finances and credibility. It’s less obvious he can unite a chaotic party or sort out a longer-term cost-of-living crisis.

Italy’s new boss is missing a trick on tax evasion

24 Oct 2022

Public debt at 147% of GDP and a slowing economy limit Prime Minister Giorgia Meloni’s scope to curb an energy crisis and keep spending promises. Tackling endemic tax evasion would give her more fiscal ammunition. Yet promoting the use of cash and tax amnesties will not help.

Britain’s next leader will be on a short leash

20 Oct 2022

Prime Minister Liz Truss is out after just 44 days in office. Whoever replaces her will have to endorse fiscal discipline or risk a similar fate. The ruling Conservatives have little in common except fear of an early election. But only a national vote can restore political order.

Time for Britain to try technocratic government

18 Oct 2022

Liz Truss’s authority has shrivelled and her government is under intense scrutiny from investors. In similar crises, Italy and Greece turned to non-political leaders to restore calm. After four prime ministers in just over six years, Britain should consider the same approach.

Credit Suisse legal tab is wildcard for investors

17 Oct 2022

The bank settled an old mortgage case without having to set more money aside. But the bill for future litigation, up to $1.6 bln on its own estimates, will erode earnings. The risk for investors in a looming rights issue is that further nasties bog down the bank’s restructuring.

Total’s Russia foot-dragging is investor problem

18 Oct 2022

The French energy giant owns a stake in gas group Novatek, and is in theory entitled to a $430 mln dividend. CEO Patrick Pouyanné won’t say whether he’s selling. He may hope that long-held Kremlin ties can secure a clean exit, but the uncertainty is a shareholder concern.

China’s next big trade is nationalism

17 Oct 2022

President Xi Jinping opened the twice-a-decade Party Congress with a speech focussed more on security and stability than in the past. That means state-led, inward-looking policies like self-sufficiency and zero-Covid will trump economic growth. Investors need a new playbook.

Xi Jinping has silver linings for rest of world

17 Oct 2022

A third term for China’s nationalistic leader would risk a cold war or even a hot one. But Xi’s policies are hurting the globe’s second-largest economy. That will make it harder for China to throw its weight around – and helps fight climate change, says Hugo Dixon.

Renault, Nissan messy breakup is least-bad option

10 Oct 2022

Signs that the $9 bln carmaker might cut a 43% stake in its Japanese partner hiked its share price. Renault CEO Luca de Meo’s gambit could mean more EV investment, but the French state would have to OK any reduction in its influence. Still, Renault has few good alternatives.

How Cowen’s golden parachutes landed with a thud

7 Oct 2022

Canada’s TD Bank had to negotiate twice in its $1.3 bln bid for the U.S. investment bank: first with the board, then with executives armed with fat severance packages. The $200 mln retention bill is high, but just half what it could have been. Dealing with dealmakers is costly.

Capital Calls: Buffett’s Berkshire successor

4 Oct 2022

Concise views on global finance: The Omaha oracle owns $100 bln of stock in his conglomerate. His potential successor Greg Abel’s purchase of $68 mln of stock last week – after selling shares in a subsidiary for $870 mln in June – is too small a move toward Buffett’s standard.

Credit Suisse selloff throws wrench into revamp

3 Oct 2022

The bank’s shares fell 8% on Monday and the cost of insuring its debt soared. Chair Axel Lehmann may struggle to sell assets amid the turmoil, undermining a strategic overhaul. A sustained rout could even force him to raise capital fast – at a painful valuation for shareholders.

SocGen’s new insider CEO requires outsider mindset

3 Oct 2022

The French lender trades at a third of tangible book value – lower than almost all its rivals. Next boss Slawomir Krupa previously ran investment banking and eastern Europe, both of which arguably drag down its shares. Breaking with the past may require shrinking his old charges.