BREAKINGVIEWS

Uber gets an IPO boost from Middle East deal

26 March 2019READY SOON

The ride-hailing giant will pay $3 bln to acquire Dubai-based rival Careem. It shows the group, which is burning through $1 bln a year, can still spend to grow as it prepares to go public. Amid intense overseas competition, the move gives Uber one less thing to worry about.

Chaotic Thai result is near investors’ worst case

26 March 2019

A vote to end direct military rule has slid into confusion, with accusations of cheating and both sides claiming they can form a government. A clear outcome may be weeks away. With foreign funds already ditching shares, that's a poor prospect for a cooling $460 bln economy.

Hostile Indian IT bid does not compute

26 March 2019

Larsen & Toubro’s $2 bln tilt offers a measly premium for outsourcer Mindtree. The buyer’s vow to keep the outfit separate to its existing IT businesses seems odd, and deprives the target of a higher-performing parent. A sweeter price and a clearer plan could seal a better deal.

Apple stretches to take on Netflix, Amex, Disney

25 March 2019

It unveiled a dizzying array of new services aimed at disrupting sectors like media and finance. They range from the confusing to the mildly innovative. The $880 bln tech giant’s launches used to strike fear, but this time boss Tim Cook is paving a trail of mediocrity, not havoc.

Economy will displace Mueller in U.S. headlines

25 March 2019

The special counsel’s verdict that President Trump didn’t collude with Russia removes a layer of political risk. But markets have other anxieties like flagging earnings and investment. Ending trade wars would help, and Trump’s renewed political capital gives him room to maneuver.

Extra! Newspaper bidder flubs credit test

25 March 2019

MNG, owner of the Denver Post, is waving a “highly confident” financing letter from Oaktree to advance its hostile bid for publisher Gannett. Yet MNG isn’t clear if the debt specialist will even bother to lend it $1.7 bln. The tactic is as unconvincing as it is unconventional.

“Japanisation” of ECB will blight Europe’s banks

25 March 2019

Weak economic activity is raising the chances of the European Central Bank copying its Japanese counterpart, which has kept rates ultra-low for two decades and adopted ever more radical measures to boost inflation. Lenders in Japan show European peers the heavy toll that takes.

ING offers savvy alternative to cross-border M&A

25 March 2019

The Dutch bank wants to add 1 million profitable customers per year through 2022. Using a single technology platform and fewer branches helps boss Ralph Hamers grow efficiently, without resorting to risky acquisitions. Investors aren’t giving ING’s model enough credit.

Peugeot needs FCA more than the other way around

25 March 2019

Carlo Tavares is reading from Sergio Marchionne’s script. A $45 bln merger would, in theory, deliver massive cost savings which could be invested in new technology. But politics makes that hard. And while PSA would gain a U.S. foothold the Agnellis would be pulled back to Europe.

Naspers relocates its Tencent discount to Europe

25 March 2019

The Johannesburg group is shifting internet investments, including a $134 bln stake in the Chinese web giant, to an Amsterdam-listed unit. That might tempt investors wary of South African risks. But it does little to address fears that Naspers will squander its Tencent windfall.

Inmarsat buyout is $3.4 bln punt on airplane Wi-Fi

25 March 2019

The UK satellite operator is a logical target for private equity firms Apax and Warburg Pincus: the hard-to-value group could throw off loads of cash in a few years. Yet that depends on widespread take-up of in-flight broadband. Rivals may prevail, or flyers might not cough up.

Pinterest’s future relies on pegging global sales

25 March 2019

The scrapbooking app has a healthier balance sheet than other startups going public. Ad growth has outpaced expenses, shrinking its net loss by 65 pct over two years to $63 mln. But most new users are overseas, and still far less lucrative than U.S. crafting counterparts.

Chinese champions need a harder dividend squeeze

25 March 2019

Beijing wants to help balance its books by making stingy state companies hand over more of the $500 bln they earned last year to shareholders. It’s a good idea, but the economic effect will be modest until deeper reforms are put back on the table.