Management & Leadership

COP background chatter supports Greta’s bad vibes

8 Nov 2021

The young activist declared the global climate shindig in Glasgow a failure at a weekend protest. In public, financiers and policymakers are bullish about the scope of new private-sector pledges to drive decarbonisation. In private, they fret mightily about energy security.

Credit Suisse bland revamp has a valuation penalty

4 Nov 2021

Chair António Horta-Osório is moving $3 bln of capital from the investment bank to wealth management. But he’s keeping most of the error-prone unit, which chews up capital and has few synergies with the rest of the bank. The clunky structure cements a share price discount to UBS.

Capital Calls: BT’s fibre, Ford vs. Toyota, SocGen

4 Nov 2021

Concise views on global finance: Leaner broadband rollout boosts the UK telco’s defences against uppity investor Patrick Drahi; the two carmakers trade at similar multiples despite the Japanese outfit’s racier performance; the next leg of the French bank’s revamp will be harder.

E-brokers are big reach for Beijing’s long arm

4 Nov 2021

A Chinese central banker chided trading apps that cater to rich investors with money abroad. That suggests new restrictions are in the works. Barring an awkward crackdown on banks that help move capital overseas or a complete ban, however, $9 bln Futu and its peers can thrive.

Mark Carney is key-man risk for bank net-zero club

3 Nov 2021

Finance firms with $130 trln of assets are pledging green targets thanks to the former BoE governor’s arm twisting. That’s good, but Carney’s job is only half-done while JPMorgan and co decide detailed goals. Were he to head off to run Canada, the momentum might get lost.

Jes Staley strengthens Barclays by leaving

1 Nov 2021

The American is exiting the UK bank after a regulatory probe into his relationship with sex offender Jeffrey Epstein. His six years as CEO brought better results but repeated questions over his judgment. New boss C.S. Venkatakrishnan will target the same strategy with less drama.

Shell’s Loeb parry uses cash, capex and chutzpah

28 Oct 2021

The $190 bln oil major needs to deflect activist Third Point’s call to split itself up. High crude prices make it easier to promise fat cash returns and invest more in green energy. Given Shell should have done that anyway, fending off Dan Loeb also requires a certain brass neck.

Stellantis has chance to close in on Volkswagen

28 Oct 2021

Hit by a chip shortage, quarterly sales at the Jeep maker fell harder than at the $140 bln German giant. But its operating margin is better, and boss Carlos Tavares is tackling a weakness in battery electric cars. That should help Stellantis narrow a valuation gap with its rival.

Novartis’ generic surgery will improve its health

26 Oct 2021

The $207 bln drugmaker is considering the future of its ailing copycat-drugs unit. With few obvious buyers, CEO Vas Narasimhan may have to accept a knockdown price or sell it in pieces. Either option should deliver a better prognosis for the rest of his business.

UBS’s U.S. wealth management push lacks oomph

26 Oct 2021

The Swiss bank plans to lend more to wealthy clients while reaching new ones through a digital service. That should boost margins in the region but faces competition from rivals like Morgan Stanley. CEO Ralph Hamers would be better off bulking up through M&A, or selling out.

Capital Calls: Fantasy-sports group M&A flop

26 Oct 2021

Concise views on global finance: DraftKings has walked away from Entain but the UK target may still attract interest.

India Insight: Climate fight goes way beyond coal

26 Oct 2021

A green agenda supports Narendra Modi’s goal to boost the nation’s self-sufficiency. India’s tycoons aim to develop and export the cheapest, solar-generated hydrogen. Private capital will help renewables power economic growth, but coal and net zero are the elephants in the room.

Capital Calls: Spanx’s “velvet ghetto”

20 Oct 2021

Concise views on global finance: Blackstone’s investment in the undergarments company was closed by an all-woman team. That’s progress, but not the best kind.

Credit Suisse’s exorcism has only just begun

20 Oct 2021

Chair António Horta-Osório banished one demon by settling a Mozambican scandal for $475 mln. The Swiss bank also closed the book on a spying saga. Yet a U.S. deferred prosecution agreement prolongs the haunting. And the ghosts of clients Greensill and Archegos still linger.

Burberry’s new boss revives upmarket hopes

20 Oct 2021

The UK maker of chic trench coats poached Versace boss Jonathan Akeroyd to be its next CEO. He pushed up the Italian brand’s sales by focusing on high-margin products. Burberry is eager for a similar luxury glow. Yet the $10 bln group’s scale makes it a much bigger challenge.

Wise’s profit-purpose balancing act may get harder

19 Oct 2021

The $13 bln fintech that wants to disrupt currency transfers is cutting foreign-exchange fees to win more users. Yet meeting investors’ revenue expectations while slashing prices looks tricky. CEO Kristo Käärmann may eventually have to irk either shareholders or customers.

Capital Calls: Klarna, French vaccine, Philips

18 Oct 2021

Concise views on global finance: The $46 bln Swedish buy-now-pay-later company tries to outrun Britain’s financial watchdogs; Valneva’s Covid-19 shot may prove better than the UK’s home-grown version; the industrial giant sees light at the end of the supply-chain tunnel.

London’s IPO revamp gets its cautionary tale

18 Oct 2021

THG’s founder is giving up his golden share in the stricken online retailer, just as regulators prepare to make it easier for executives to keep control after listing. It’s a timely reminder of the benefits of “one-share-one-vote” governance. It’s not too late to turn back.

Glencore CEO’s top M&A pick is Glencore

15 Oct 2021

With a strategy set under predecessor Ivan Glasenberg, new boss Gary Nagle has few ways to make his mark. Record coal and copper prices and unique cobalt assets mean his own shares look cheap. He could buy them back, but a more striking gambit would be a full sale to Rio or BHP.

Viewsroom: IMF’s big brouhaha, European retailing

14 Oct 2021

The multilateral lender’s boss, Kristalina Georgieva, rode out data-rigging charges. Now she has got a lot to prove. Swaha Pattanaik ticks through how she can remake her legacy and reform the institution. Aimee Donnellan walks through the aisles of French supermarket finance.