People

Jack Ma’s Ant is China tech’s tiniest bellwether

9 Jan 2023

The founder is ceding control of his fintech giant, sending shares of affiliate Alibaba up 7%. The move was expected, yet investors clearly see Ant's rehabilitation as symbolic. That may be misguided, but any excuse to reevaluate China’s beat-down internet sector will do.

Being ready for anything is top priority for 2023

3 Jan 2023

After the global pandemic and the outbreak of war in Europe, the world faces a vast array of possibilities this year. Little wonder that executives, policymakers and financiers are planning for many scenarios. Though the choices remain difficult, there’s value in thinking ahead.

Female fans will fuel Formula One in 2023

23 Dec 2022

Liberty Media’s testosterone-powered franchise is ready to shift gear. A docuseries following its drivers was among Netflix’s best-watched shows and lured more women to the racing stands. Forget Lewis Hamilton: finding a Louise Hamilton could rev up that trend and boost revenue.

Putin’s Russia will look more like North Korea

22 Dec 2022

The Kremlin leader will strengthen his hold over the ailing economy, from banking to industrials. Massive nationalisation, along with the end of U.S. and European investments, could soon be followed by strict capital controls. The complete closure of the Russian economy is next.

How Ana Botín can defeat the Santander sceptics

21 Dec 2022

The Spanish bank suffers from a lower valuation, relative to its return on tangible equity, than rivals. If its executive chair can keep costs low and show the group is worth more than the sum of its parts, that might change. If not, it’s time to sell assets, starting in the U.S..

Vietnam’s Elon Musk challenger turns heads in 2023

21 Dec 2022

Le Thi Thu Thuy is steering VinFast onto Western roads to race the entrepreneur’s premium marque, Tesla. She’ll have to convince investors in its New York IPO to look past niggles at its powerful parent. It’s a complex route, and puts the former Lehman banker in the spotlight.

China property gets $650 mln vote of no confidence

13 Dec 2022

Controlling shareholder Yang Huiyan is shedding 7% of Country Garden's services arm, a first. She doesn’t seem to need the money given state support for the developer, and it’s an odd time to sell. It suggests deep scepticism about Beijing’s real estate rescue package.

Sam Bankman-Fried lacks cover of systemic risk

13 Dec 2022

The former boss of bankrupt crypto firm FTX has been arrested. That hasn’t happened to financial hall-of-shamers that are more mainstream. The decentralised nature of crypto makes isolating people easier. The more complex the institution or blow-up, the harder it is to pin blame.

Democracy remains vulnerable despite a good year

12 Dec 2022

Autocrats like Xi Jinping and Vladimir Putin have suffered setbacks. So have demagogues like Donald Trump. But the tough economic outlook presents further challenges for democratic systems. So does the fact that many people feel their lives have little meaning, says Hugo Dixon.

China’s reopening will come with big late fees

9 Dec 2022

Strict quarantine rules have helped authorities to keep money onshore, including $760 bln in travel spending. If China fully relaxes, capital outflows could be Beijing’s next headache. But the damage to outward-facing parts of the economy from keeping borders closed is worse.

Jiang Zemin made China richer and more unequal

30 Nov 2022

China embraced entrepreneurs, developed markets and alleviated poverty under former President Jiang Zemin, who has died aged 96. His pragmatism probably saved the Communist Party. But the inequality his era spawned still haunts his successors.

Private equity’s pay boom may have peaked

29 Nov 2022

The average European buyout partner has 20 mln euros of outstanding carried interest in their current fund, reckons Heidrick & Struggles, up a quarter from 2021. Junior wages soared. Yet a possible fundraising slowdown and layoffs elsewhere in finance will slow the gravy train.

Ackman’s Hong Kong short is logical, not likely

24 Nov 2022

The hedge fund boss is wagering the local currency’s dollar peg will snap. The economic case is stronger than during his last try in 2011: the peg is forcing rate hikes even as the highly-leveraged city’s economy contracts. But the risks of alternatives might stay Beijing’s hand.

Piyush Gupta might be banking’s boldest boss

15 Nov 2022

Buying banking assets is complex at the best of times. Singapore’s $65 bln DBS added a geopolitical twist when it agreed to acquire Citi’s Taiwan consumer bank. As tensions rise, Gupta is holding his nerve on the deal due to close next year. Then again, he has little choice.

Buffett places classic chips in $4 bln Taiwan bet

15 Nov 2022

His Berkshire Hathaway now owns 1.2% of TSMC. The semiconductor giant’s stock has taken a beating this year, in part on fear China might invade Taiwan, its HQ. But the company has a near-monopoly in cutting-edge tech. Such traits have long appealed to the Oracle of Omaha.

Capital Calls: Cross-border M&A, Riches to rugs

9 Nov 2022

Concise views on global finance: The market reaction to U.S.-based Chart Industries’ $4.4 bln deal to buy Scotland’s Howden reinforces the idea that it’s a bad time to shop overseas, while Peloton’s founders are shifting gears with a new bespoke carpet business.

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.

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.

Adidas’s Kanye West bet is still in credit

27 Oct 2022

The 18 bln euro sportswear maker severed ties with the musician over offensive comments. In this Viewsroom podcast, Breakingviews columnists discuss how the financial benefits to Adidas nevertheless outweighed the costs. That may spur other brands to pursue outspoken stars.

Adidas-Kanye split leaves investors in the money

25 Oct 2022

The $18 bln sportswear group cut ties with the musician, now called Ye, after he made offensive comments. Its sluggish response risks a boycott. But given Yeezy sneakers’ high profit margins in recent years, shareholders may already have won more than they stand to lose.