Good morning and we start today with a looming fight between an activist investor and Walt Disney.
Nelson Peltz, the head of New York-based Trian Partners, is planning to force his way on to Disney’s board after it declined to nominate him as a director.
Peltz, who owns a $900mn stake in Disney through his fund, plans to appeal directly to investors, setting up a confrontation with Bob Iger just months after his return for a second stint as chief executive of the sprawling entertainment group.
Disney late yesterday named Mark Parker, who spent 13 years at the helm of Nike, as its next chair in an apparent attempt to get ahead of the battle with billionaire investor Peltz.
Trian published a blistering attack on Disney after it announced the appointment of Parker, attacking its M&A strategy, cost management and its succession planning.
Peltz’s proxy fight with Disney would be one of the biggest boardroom battles since he forced his way into a director’s seat at consumer products group Procter & Gamble, which captivated Wall Street in 2018.
Five more stories in the news
1. Computer glitch leads to flight chaos The US Federal Aviation Administration blamed a damaged database file for the failure of a critical flight safety system that led to more than 10,000 flight cancellations and delays yesterday. The chaos comes on the back of widespread problems over the holiday season that resulted in the biggest number of flight cancellations in a decade.
Go deeper: FT reporters spoke to industry observers yesterday who said the problems illustrate how fragile the US flight management system is.
2. A ‘brutal’ day at Goldman Sachs Staff in New York, London and Hong Kong were told yesterday they were no longer needed by the Wall Street bank, with some being given only 30 minutes to clear their desks before their building access cards were deactivated. Read more on how what one manager described as a “horrendous” day unfolded.
In other financial services news: BlackRock, the world’s biggest asset manager, plans to cut 500 positions as it grapples with the fallout from last year’s market sell-off.
3. FTX identifies $5bn of liquid assets Andrew Dietderich, a partner at Sullivan & Cromwell who is representing FTX, which filed for bankruptcy in November, said at a court hearing in New York yesterday that the $5bn includes cash, securities and liquid cryptocurrencies. But Dietderich said the restructuring team being led by chief executive John Ray still cannot determine the gap between the companies’ assets and what it owes to creditors.
2. Russia demotes ‘General Armageddon’ Russia has replaced Sergei Surovikin after barely three months as head of its Ukraine campaign following battlefield setbacks and failure to turn the war in Moscow’s favour. Surovikin, nicknamed “General Armageddon”, will be replaced by Russia’s highest-ranking military officer, Valery Gerasimov.
5. EU draws up plans to stockpile scarce medicines The EU is seeking to end a Europe-wide medicine shortage by stockpiling drugs and obliging manufacturers to guarantee supplies. The bloc will also try to reduce reliance on China and increase domestic production capacity, the European Commission told the Financial Times.
The day ahead
Economic data Investors and policymakers will be closely watching the release of the US inflation numbers later today. The annual rate of inflation is set to have fallen in December to its slowest pace in more than a year, according to a consensus forecast compiled by Bloomberg. Here’s a preview.
Monetary policy Philadelphia Fed president Patrick Harker will discuss the economic outlook before the Main Line Chamber of Commerce which represents the interests of more than 900 companies located primarily in the Pennsylvania counties of Delaware, Chester and Montgomery.
The FT will be at the World Economic Forum Annual Meeting in Davos next week and will be hosting a number of in-person and digital events. Register here.
What else we’re reading
Saudi Aramco doubles down on oil Some western energy companies have been preparing for a future less reliant on fossil fuels, but the world’s biggest supplier is betting on being the last oil major standing. State-owned Saudi Aramco, which already produces about 10 per cent of the world’s oil, is boosting production — while claiming it can make the “lowest carbon” barrel of oil in the industry.
Wall Street’s top cop trains his sights on crypto Damian Williams made history well before he brought criminal charges against FTX founder Sam Bankman-Fried. In late 2021, the Brooklyn-born son of Jamaican immigrants became the first black person to be sworn in as the US attorney for the Southern District of New York. His tactics in the SBF case have already drawn scrutiny.
What if 2023 is not the reset that investors are pining for? Last month marked the slowest rate of US inflation in almost a year and the pace of consumer price rises have fallen back for two months in a row. So why are investors not dancing in the streets? Party-poopers, perhaps humbled by a cruel 2022, have nagging doubts about this year, writes Katie Martin.
EU corruption probe: Spies, cash and luxury hotels Pier Antonio Panzeri has emerged as a central figure in the corruption probe that shocked the Brussels establishment in December. Qatar, prosecutors believe, used Panzeri and his network to improve its image in Brussels ahead of the Fifa World Cup. But the 67-year-old Italian was not new to the game.
How do you move on from professional failure? In the first Working It podcast of the year, host Isabel Berwick hears from a journalist about what went on behind the scenes of her very successful career, and the FT’s US financial editor and associate editor, argues that blaming your boss is not the answer. If you want to read more about workplace trends sign up for the Working It newsletter.
Take a break from the news
Our lifestyles have changed over the past two years, but our wardrobes are still catching up. Tiffanie Darke offers advice on how to crack the new workwear code. Are you interested in fashion? Sign up to Fashion Matters, a new weekly newsletter on the industry.
Source: Economy - ft.com
