Reunited and it Feels...Tense - As tensions rise across just about every facet of international relations, the leader's of the world's preeminent powers, The U.S. and China, held a digital meeting to (hopefully) avoid military conflict...among other things.
The talks began later in the evening last night lasting no less than three hours. While no groundbreaking deals or ambitions are expected to be announced, the two plan to focus on "intense competition" with China while sidestepping any escalation of conflicts. Specific matters brought up in the discussion were not entirely disclosed, although political analysts anticipate climate, military, and technology would almost certainly arise.
Regardless, the Biden administration did reveal that keeping communication lines open would be of the utmost importance. As difficult as cooperation can be between these two nations, literally anything is better than nuclear war.
Breakup Szn - Bigger is better, size matters, the more the merrier - f*ck all that. At least, that's what some of the world's once great conglomerates are saying of late. Recently, a flurry of companies have opted to split up certain business units in favor of a more specialized, focused strategy. Let's take a loot.
General Electric, aka GE, announced plans to end it's days as the conglomerate of conglomerates by splitting into three separate businesses, energy, aviation, and healthcare. Not too sure how building military aircraft engines supports the drug discovery business, but with shares down over 70% since the dotcom bubble, I guess they finally realized this too.
Johnson & Johnson too is closing out the era of gigantism and domination over the world of healthcare, becoming Johnson and other, separate Johnson. That may not be true, but if any execs like it, feel free to give me a call. Anyway, JnJ is splitting into two separate units, one being the legacy healthcare unit while the other will maintain the CPG business. Like with GE, I guess management realized there's not much synergy between baby powder and medical diagnostic equipment, no matter how hard you cross your fingers.
Lastly, Toshiba, amid vocal activist calls to go private said f*ck that, and is doing literally the opposite, splitting into three separate publicly traded entities. For now, the very creatively named units include; Device Co., which will maintain the hard drive and semi business, then there's Infrastructure Services Co., which will operate the firm's energy systems, and finally, Toshiba, which will continue to manage the firm's flash memory business as well as the other miscellaneous lines of revenue.
It's an interesting trend that flies directly in the face of the conglomeration of the late 20th century. Any number of factors could be driving this trend, but one thing that's for sure is investors will be pretty pleased. Historically, the parts of the sum are worth more than the sum of the parts.