BREAKINGVIEWS

Puppy love keeps IPO investors on the leash

21 July 2017

Snap's stumble, Blue Apron's disastrous debut and YogaWorks' yanked listing spelled doom for trendy, fast-growing businesses. Then shares of PetIQ jumped some 30 pct. More sensible pricing helped the maker of dog treats and medicine, but it also remains vulnerable to competition.

GE’s new boss may find inspiration from Honeywell

21 July 2017

Jeff Immelt’s weak earnings swan song underscores the challenge for John Flannery atop the $222 bln industrial giant. Making quick progress on early goals is key, as Darius Adamczyk is doing several months in at Honeywell. With activists in both stocks, it should be a no-brainer.

White House creates its very own jobs crisis

21 July 2017

Press Secretary Sean Spicer quit after the hiring of financier Anthony Scaramucci. Donald Trump also fired his FBI director, undercut his Treasury secretary and regrets his attorney general pick. Just as U.S. employers wrestle with labor participation, so too does the president.

Telecom Italia loses out in Vivendi lottery

21 July 2017

Flavio Cattaneo will step down as CEO of Telecom Italia after clashing with shareholder Vivendi. Cattaneo was an effective cost cutter and only in place a year. Investors may be used to Vivendi calling the shots, but such unexplained upheaval is another reason for TI’s discount.

IPO baggage weighs heavier on ZTO

21 July 2017

A U.S. pension fund is suing the Chinese courier and its underwriters for inflating profit margins in its $1.4 bln New York debut last year. Shares have traded poorly since, and the company faces rising costs and fierce competition. Winning over sceptics will be even harder now.

Buyout firms bet $3.7 bln on fintech’s dicier side

21 July 2017

Blackstone and CVC’s bid for Paysafe fits with an M&A rush for financial technology. The UK-based payment processor has a penchant for the racy world of online gambling. Those risks may be better handled in private ownership. In exchange, the buyers stand to make a decent return.

Euro rally will only speed its own reversal

21 July 2017

The single currency has hit a two-year high against the U.S. dollar. That will depress import prices when inflation is still too low. Any hint that a stronger exchange rate will prompt the European Central Bank to leave monetary policy loose for longer will push it down again.

Toshiba’s Swiss cast-off pits hope over experience

21 July 2017

The stricken Japanese group is flogging loss-making Landis+Gyr in a Zurich offering. The maker of smart meters is a technology leader in a growth market. Yet so far financial performance lags engineering expertise. The $2.4 billion price tag depends on a swift turnaround.

ACS and Benettons pitch patriotism against brawn

21 July 2017

The Spanish construction firm is eyeing a bid for toll-road operator Abertis, rivalling a 16 bln euro offer from the Benetton family’s Atlantia. ACS is smaller and has less firepower, though would keep Abertis Spanish. But the financial logic of a bid is stretched, whoever wins.

Free phones power Mukesh Ambani’s tech ambitions

21 July 2017

India's richest man has seriously upped the ante in the country’s mobile war. His Reliance Jio network is offering free internet-enabled handsets, potentially reaching 500 mln more people. A strong oil refining business means he can worry about recouping the investment later.

Air India fix would give Modi reform miles

21 July 2017

The carrier is a travelling advertisement for India's inefficiencies. It has made losses for nine years and turnaround efforts have failed. A sale may push a multi-billion dollar writedown on lenders, but would validate Prime Minister Modi's reform credentials.

Blackstone’s Asia move shows Eastern promise

21 July 2017

Blackstone plans to raise its first Asia private equity fund, Reuters reported, catching up with rivals like KKR. The timing looks smart, as toppy U.S. values make Asia look more attractive. Still, a correction in the region could give the global fund's investors a nasty shock.

China’s new carbon market faces pricing pratfall

21 July 2017

China is about to launch the world’s biggest carbon market, after sharply reducing its scope to a few core sectors. The scheme can help foster cleaner, leaner industry. But success is likely to be limited by dodgy data, distorted pricing, and Beijing's distrust of market forces.