Management & Leadership

Toshiba rejig goes long pragmatism, short vision

7 Feb 2022

The $18 bln Japanese titan now intends to split into two, not three. Ditching its earlier plan as too costly makes some sense, while buybacks and more asset sales may somewhat placate its most vocal critics. What’s lacking, though, is a longer-term strategy – and leadership.

Italy’s top banks raise stakes in shareholder duel

4 Feb 2022

Intesa Sanpaolo CEO Carlo Messina pledged to lift the lender’s return on tangible equity to 14% by 2025, topping a bold target set by new UniCredit boss Andrea Orcel. Intesa starts from a strong base but lacks M&A options. Rising interest rates could give both an extra boost.

Siemens Gamesa’s new Mr. Fixit can take his time

3 Feb 2022

The wind turbine maker has ousted its second CEO in two years. As another German, Jochen Eickholt may get a frosty reception from Spanish bits of the firm. Parent Siemens Energy won’t mind. The longer Gamesa’s woes drag on, the easier it will be to buy out minority investors.

The Exchange: UniCredit’s Andrea Orcel

3 Feb 2022

The Italian banker wants to return 16 bln euros to investors by 2024. Choppy markets and growing geopolitical risks raise the bar for European banks’ promised returns. UniCredit CEO Andrea Orcel tells Breakingviews how his $35 bln lender can navigate through uncertain times.

Santander’s U.S. clinginess has a share price cost

2 Feb 2022

The 55 bln euro bank is keeping its American unit, unlike rivals BBVA and BNP. Full-year results show Chair Ana Botín is running it well, and she has plans to keep it growing. But investors give her scant credit. If that persists, the pressure to sell will become overwhelming.

Italy energy firm dive is Rome’s latest hot potato

1 Feb 2022

Oil services firm Saipem may need at least 1 bln euros of fresh equity after warning of a loss just three months into a new business plan. The shock puts pressure on new CEO Francesco Caio. Given the uncertainty, top investors Eni and the Italian state may foot most of the bill.

UBS’ Morgan Stanley impression could use more work

1 Feb 2022

CEO Ralph Hamers’ job is to get a valuation closer to the U.S. group’s 2.5 times tangible book value multiple, compared with his $68 billion bank’s 1.2. New buybacks help, but the missing ingredient is growth. Investors are understandably sceptical that Hamers can change that.

Nomura’s better numbers still need a new narrative

1 Feb 2022

The Japanese bank posted quarterly net profit of $525 mln, helped by the absence of hefty provisions for the first time since March. Boss Kentaro Okuda has been pushing into private markets and steadier earnings streams. But weak shares suggest he has work still to do.

Boris Johnson’s fate is an economic sideshow

26 Jan 2022

The partygoing prime minister’s antics have cast doubt over his political future. Past upheaval had far-reaching consequences, particularly for Brexit. But Britain’s direction is now mostly fixed. And a new leader would have to grapple with the same contradictions as Johnson.

Italian CEOs’ Putin call exposes European discord

26 Jan 2022

Rome is pushing the firms to scrap their virtual chat with the Russian leader. With their varying degrees of investment, trade and energy dependence, Europeans have more to lose from sanctions against Moscow than the United States. That lets Putin pit them all against each other.

India Insight: Narendra Modi’s sale of the century

24 Jan 2022

The prime minister is taking a calculated risk with a record IPO of $200 bln Life Insurance Corp. It will attract millions of first-time investors and boost the country’s spending power. How, and whether, that will affect the financial system’s shock absorber is a big question.

Viewsroom: Credit Suisse chair, Unilever’s GSK bid

20 Jan 2022

As António Horta-Osório quits the Swiss lender after less than a year, Liam Proud explains what happened and offers career advice. And Unilever’s 50 bln pound offer for the pharma giant’s consumer unit puts both CEOs on the spot, say Aimee Donnellan and Dasha Afanasieva.

Capital Calls: Dan Loeb’s gadfly circles again

18 Jan 2022

Concise views on global finance: The U.S. activist’s activists up the ante with call for independent director.

How António Horta-Osório can bounce back (again)

18 Jan 2022

The tennis-loving Credit Suisse chair resigned after flouting quarantine rules. He’s survived a past personal scandal and is one of a small number of Europeans with a strong track record of running a big bank. Breakingviews imagines some advice from an optimistic headhunter.

Demographic flatline will test China’s generosity

18 Jan 2022

The population may have peaked in 2021, far earlier than expected. Beijing might prefer to continue to tackle root causes including high living costs, but a desire to prop up the economy in a key political year makes less disruptive, clumsy fixes like cash subsidies practical.

The Exchange: Xpeng boldly goes

18 Jan 2022

The Chinese electric-car maker has navigated everything from shrinking subsidies to Covid-19. Embracing new ways of working is critical, President Brian Gu tells Katrina Hamlin. Future forays into Europe, the metaverse and flying cars will test the Tesla rival’s resilience again.

New Credit Suisse chair has grim streak to break

17 Jan 2022

António Horta-Osório has resigned from the Swiss bank after flouting Covid-19 rules. It’s less than a year since he arrived to steady the lender following CEO Tidjane Thiam’s ousting. Incoming Chair Axel Lehmann, formerly of UBS, has to hope his reputation is more durable.

Unilever can still avoid Danone’s fate

14 Jan 2022

The $137 bln Dove maker’s stock has lagged rivals, activist Nelson Peltz may be circling, and other investors are grumbling. The recent ouster of the French yoghurt maker’s boss is a warning. CEO Alan Jope could pre-empt any revolt with clearer targets to sell struggling brands.

Capital Calls: BlackRock gets an active boost

14 Jan 2022

Concise views on global finance: A renaissance in active strategies at the world’s largest investment manager helped vault it past $10 trillion in assets under management.

Capital Calls: UK housebuilder tumble

13 Jan 2022

Concise views on global finance: Countryside Properties shares fell as much as 26% after it failed to capitalise on a UK housing boom.