Deutsche Bank is the last heavyweight contender. While the other European investment banks — Barclays, UBS and Credit Suisse among them — retreat to retail and private banking amid investor discontent and a regulatory squeeze, it is doing the opposite. It wants to become more like Goldman Sachs, not less.
Like previous student-led boycotts of tobacco companies and banks with operations in South Africa, the global fossil fuel divestment campaign is rumbling into action. With high profile backing from the Guardian newspaper and a student blockade of the university administration at Harvard this week, its supporters want to cripple the world’s oil and gas companies by striking where it hurts — at their finances.
By stepping into the furore over Indiana’s religious freedom law, in defence of gay rights, Tim Cook is boldly taking Apple where companies have been wary about going before. But he is not the only US business leader advocating for a deeply-held personal belief — so have Marc Benioff of Salesforce.com on the same issue, and Howard Schultz of Starbucks on racial discrimination and violence.
The San Francisco trial pitting Kleiner Perkins Caufield & Byers, one of Silicon Valley’s oldest and most venerable venture capital firms, against Ellen Pao, a former junior partner who claims that she faced sexual harassment and discrimination, has forced an institution that prefers to remain private into the public gaze. Among other things, it has raised questions about how well John Doerr, its de facto leader, knows his own firm.
On the 50th anniversary of Berkshire Hathaway, the investment fund-cum-industrial conglomerate that now employs 341,000 people and is the fourth most valuable company in the US, the question is: is Warren Buffett inimitable? Or could the Sage of Omaha be cloned?
Stuart Gulliver’s crisp explanation this week of why he once held his annual bonuses in a Swiss private bank account via a Panamanian company was plausible yet somehow more puzzling than if he had been evading tax.
Here is a quiz: with which big three auto companies has Google partnered to build a self-driving car? If you guessed Ford, General Motors and Fiat Chrysler, you are wrong. The correct answer is Bosch, Continental and Delphi, three of the industry’s global suppliers.
Money laundering is when someone channels the cash from robbery, fraud or expropriation into a Swiss bank account, or an expensive apartment in Manhattan, to make it look clean. So what is the term for sullying profits from legal enterprise with tax evasion and shenanigans? Money staining, perhaps.
Nicolas Brusson, the founder of BlaBlaCar, the French ride-sharing start-up that in June raised $100m to expand across Europe, got the biggest laugh of the week at the DLD technology conference in Munich. Asked about operating in a “single market” with 28 sets of laws and regulations, he replied: “When you start from France, everything looks simple.”
© Charlie Bibby
It was a kinder, gentler and more strategic Travis Kalanick, founder of Uber, who took to the stage at the DLD technology conference in Munich on Sunday to offer the mayors of European cities a “new partnership” with the ride-hailing network, rather than a bitter legal and regulatory battle. Read more
There comes a time in most people’s lives, usually very late in the lives of self-made billionaires, when they settle their affairs and divide up their assets to put everything in order for the family. It has the added benefit for business moguls of pleasing the shareholders.
Goldman Sachs caused a bit of a stir this week by issuing an analysts’ report suggesting JPMorgan Chase might want to break itself up. I believe in the independence of investment bank research as much as the next person, but it is hard not to notice that the major beneficiary of such a step would be Goldman Sachs.
This has been the year of Uber. “Everyone is starting to worry about being Ubered,” Maurice Lévy, chief executive of advertising group Publicis, told the Financial Times this week. The sharing economy in which online platforms co-ordinate hundreds of thousands of freelancers to drive cabs, rent rooms (Airbnb), clean laundry (Washio) and perform other services has arrived.
Any good consultant can produce a report giving the answer the client prefers, and Kevin Mandia, the man hired by Sony’s film studio to investigate its embarrassing hacking attack, did so this week. Michael Lynton, Sony Pictures’ chief executive, emailed his staff Mr Mandia’s assessment that it was “an unparalleled and well-planned crime” involving “undetectable” malware.
Ana Botín has wasted little time since becoming chairman of Banco Santander in September, last week appointing a new chief executive. Like Abigail Johnson, installed as chief executive of Fidelity in October, she worked hard for her job, but it is inescapable that both are members of founding families. For women lacking a birthright, the route to the top in financial services is tough.
The price of oil keeps on falling; the shale gas boom has reduced the price of natural gas in the US to a third of that in France; Germany has appealed to Sweden for its support in expanding two coal mines; and the EU’s effort to switch to clean energy is troubled. For companies wondering where to locate, the world has turned upside down.
Some years ago, I was feeling anxious and went to talk to a psychiatrist. After I had explained my worries and how I felt like responding, he paused for thought and asked: “Have you considered doing nothing?
After the spectacular chaos of the last time that regulators and governments scrambled to rescue banks in the US and Europe, they have hammered out a plan for the next time. It is better than the absence of one in 2008 but who knows if it will work?
Taylor Swift, the singer-songwriter, has removed her entire catalogue from Spotify, the music streaming service founded in Sweden. Ms Swift’s new album 1989 sold nearly 1.3m copies in the US this week, and she has written that: “Valuable things should be paid for. It’s my opinion that music should not be free.”
Traditionally, one thing upon which the British could rely was that they never heard anything about, or from, the security services, apart from in James Bond films. That has changed. First, Sir John Sawers, the new head of MI6, has Lunch with the FT and now Robert Hannigan, left, the new head of GCHQ, has written an op-ed for the paper.
Apart from indicating that the FT has become the communications channel of choice for British spies, it shows that the security services have decided that it is no longer enough to fight in the shadows. They have to get their message across loudly, in parliament and in public. Read more