BREAKINGVIEWS

China’s art market paints a clearer picture

27 March 2019

Sales in the mainland and beyond dipped in 2018, to $13 bln. There was still exuberance: a monumental abstract triptych sold for a record $65 mln. But the mood ahead of Hong Kong’s Art Basel is subdued. For buyers, that may be good news, auguring less volatility and lower prices.

Apple Card puts customer first, Goldman second

26 March 2019

The remarkable thing about the iPhone maker’s new status symbol isn’t its titanium sheen, the cash back or promises to protect user data. It’s that partner Goldman Sachs has eschewed many features that make the credit card business so lucrative for issuers. That’s no bad thing.

WeWork shows benefit, and cost, of SoftBank vision

26 March 2019

The shared-office giant’s loss in 2018 more than doubled to $1.9 bln, outpacing the growth – and amount – of revenue. Backer SoftBank believes in investing heavily in expansion. Potential IPO investors must square that breakneck spending with a $47 bln private valuation.

Ditching Obamacare would be self-defeating

26 March 2019

The Trump administration wants a court to throw out all of the Affordable Care Act. That’s dubious politically as past attempts helped flip the House to Democrats. And success would actually undermine the White House’s main healthcare goals, including reducing costs.

Activists target messy retailer for spring clean

26 March 2019

A trio of pushy investors wants to strip Bed Bath & Beyond of its CEO and board, and replace them with a fresh sheet of directors. The $2.4 bln chain is beset by poor governance, lackluster results and a plunging stock price. It’s long past due a thorough shake-out.

Wirecard’s relief surge has gone too far

26 March 2019

The 15 billion euro payment group’s shares rose more than a quarter after a review found no evidence of any misconduct that would have a material financial impact. Its valuation is now uncomfortably close to sector stalwarts Visa and Mastercard. A bigger discount is merited.

Fizzy Fevertree valuation depends on global surge

26 March 2019

The maker of fancy tonic boosted sales by 40 pct last year. Discerning spirits drinkers have helped lift its valuation to 3 bln pounds, a frothy 33 times forward EBITDA. To justify that premium, Fevertree has to replicate its UK success elsewhere - or find an optimistic buyer.

Uber gets an IPO boost from Middle East deal

26 March 2019

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.

Rare-earth bid reverts Aussie conglomerate to type

26 March 2019

After spinning off supermarkets and selling coal, $27 bln Wesfarmers is back adding to its sprawl with a $1.1 bln offer to buy Lynas. The attraction of owning the only major producer of speciality ingredients outside China is clear, but the financial and strategic cases less so.

Second-hand $4 bln colostomy bag LBO may get messy

26 March 2019

Medical-kit maker ConvaTec’s value rose 9 pct after a report that buyout group EQT might be interested. Its shares are down a third since it was floated by private equity in 2016. A new owner could slash costs to rip out cash, but risks sacrificing more market share to rivals.

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.