Activist investors give Japan a wake-up call

Key takeaways

The UK is struggling to effectively regulate illegal crypto adverts, raising concerns about enforcement challenges.
Japan experiences a significant shift in shareholder activism, reflecting a growing readiness of companies to adapt to investor demands.
The US venture capital landscape is consolidating power among a few large firms, making it harder for smaller startups to secure funding.
Christine Lagarde emphasizes the Eurozone's cautious approach to economic recovery and the complexities involved with inflation.

Summary

Illegal Crypto Ads in the UK

The UK’s Financial Conduct Authority (FCA) has faced challenges in removing illegal crypto advertisements, with over 1,700 promotions identified, yet only half were taken down. Despite the new laws imposing strict requirements for crypto marketing, the FCA has not penalized non-compliant companies, leading to questions about the regulatory effectiveness.

Shareholder Activism in Japan

Amid a record year for shareholder activism in Japan, significantly more funds have targeted companies, with the belief that no entity is too large to be contested. Rising interest rates and shifting corporate governance codes have poised companies to be more receptive to changes demanded by these investors, marking a shift in the long-held complacency within Japanese business culture.

Challenges in US Venture Capital

With more than a quarter of US venture capital firms becoming dormant since their peak in 2021, the landscape has shifted, leaving smaller firms struggling for survival while larger ones thrive. The focus on funding mega VCs has altered the dynamics of the entire venture market, raising barriers for new startups.

Christine Lagarde Discusses Economic Recovery

In an insightful interview, Martin Wolf spoke with European Central Bank President Christine Lagarde about the Eurozone's economic trajectory post-COVID. Lagarde expressed cautious optimism towards inflation, signaled a need for vigilance in wage and profit developments, and contrasted the recovery dynamics with the US, emphasizing energy dependencies and fiscal policy differences.

Show notes

The UK’s financial watchdog has failed to remove illegal crypto adverts, and in Japan, shareholder activists are waking companies up from decades of slumber. Plus, the number of active US venture capital firms has dropped by more than a quarter since 2021, and the FT’s Martin Wolf interviews European Central Bank president Christine Lagarde on the bloc’s economic recovery from Covid-19.

Mentioned in this podcast:

FCA fails to hit firms after half of banned crypto adverts remain online

Activists push Japan Inc to its ‘great tipping point’, says Suntory head

Number of US venture capital firms falls as cash flows to tech’s top investors

Martin Wolf interviews Christine Lagarde: Whither Europe?

The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Joseph Salcedo. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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