Breakingviews - Corona Capital: Amazon, NYC and Trump
Corona Capital is a column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
Bernard Looney’s big moment has come. Over the next three days rival oil majors will be tuning in to hear the BP chief executive set out how the company’s pivot to renewable energy is going to work. The answer may not be totally reassuring: while credible, Looney’s plan resembles a high-wire balancing act.
Nvidia has played a risky opening chess move. The U.S. listed graphics-chip specialist led by Jensen Huang will buy UK chip designer Arm from SoftBank and its Vision Fund in a deal worth up to $40 billion. But Arm's customers and regulators may baulk, and the chunky price tag presupposes huge growth and market share gains.
Rio Tinto’s recklessness has set a welcome new bar for environmental, social and corporate governance. Boss Jean-Sebastien Jacques and two deputies, including the head of its iron ore unit which accounted for 96% of half-year earnings, will step down after outcry over the $105 billion miner's destruction of a 46,000-year-old Aboriginal heritage site in Western Australia. Local activists and shareholders, including the country’s powerful superannuation funds, h
Citigroup’s decision to choose Jane Fraser as its next chief executive shows that it is becoming the U.S. banking industry’s ESG leader. Granted, that’s a relatively low bar on environmental, social and governance criteria alike. But the $109 billion lender stands out from the crowd. Cementing that advantage will be one of Fraser’s tasks – but so will boosting the lender’s long-term earnings drag.
Policymakers want to heal the economic wounds caused by Covid-19. Unfortunately, they are driving without headlights on an unfamiliar road.
Some mergers are bold strategic gambits. Others are about stemming the bleeding. The latest outbreak of European bank M&A is firmly in the latter category. That makes it easier to spot potential targets.
Simon Thompson is in a tricky position. Rio Tinto’s, chairman attempted last month to draw a line under the company’s disastrous decision to blow up Aboriginal heritage sites to make way for iron ore mines. It didn’t work. With shareholders pushing for something tougher than axing Chief Executive Jean-Sebastien Jacques’ 2020 bonus and a chunk of his long-term incentive plan, a bigger sacrifice is needed.
Another report on the risks of climate change ought to be unnecessary as wildfires rage across America's Pacific states. But that’s what appeared on Wednesday at the behest of the Commodity Futures Trading Commission. The document's main strength is its obviousness.
Bernard Arnault is having regrets about his $16 billion jewellery purchase. But the French tycoon’s attempt to haggle down the pre-pandemic price his LVMH negotiated for Tiffany could backfire. The luxury giant on Wednesday delayed completing its takeover of the U.S. group, blaming iffy French concerns about a trade war with America. Even if Arnault succeeds in getting a lower price, his tactics risk alienating future targets.
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at http://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.