India’s richest man closes in on Jeff Bezos 30 Jul 2019 Mukesh Ambani’s Jio has defied expectations. Three years in, the upstart has become the country’s top mobile telco. That puts $111 bln parent Reliance Industries, an oil giant with retail ambitions, on track to conquer consumers with its heady blend of AT&T and Amazon.
Beyond Meat backers take the money while it’s hot 30 Jul 2019 The meatless-burger maker's CEO and other insiders are selling shares early. That looks like a signal that the near-800% jump in the stock since May's IPO is overcooked. Since Beyond Meat is still serving lashings of revenue growth, investors are unlikely to pay much heed.
Breakdown: Silicon Valley privacy caught in a jam 29 Jul 2019 IBM is the latest to call for changes to a 23-year-old law that exempts the likes of YouTube and Facebook from lawsuits over content on their sites. The provision no longer encourages the kind of policing their platforms need. Yet scrapping it wouldn’t solve that, either.
JPMorgan shows fintech lender who’s boss 29 Jul 2019 Shares in online upstart On Deck plummeted more than 25% after Jamie Dimon’s $377 bln bank decided it no longer needed help sourcing small-business loans. That may be an overreaction. But it’s a reality check: Supposed financial disruptors need banks more than banks need them.
Pfizer’s old-drug disposal merits a warning 29 Jul 2019 The $240 bln pharma outfit is spinning its off-patent arm and merging it with Mylan. Combining brands like Lipitor and Viagra with EpiPen creates scale but generic price pressure makes for a poor financial prognosis. Pfizer at least gets $12 bln to spend on innovative new drugs.
Only taxes can close aviation’s carbon gap 29 Jul 2019 The industry wants its 2050 emissions to be a third those of today. With traffic set to treble by then, that’s unlikely. Electric airliners remain a pipedream and relying on biofuels would mean ploughing up a third of the U.S. Curbing demand via taxes may be the only solution.
LSE’s $27 bln data deal is bold independence bid 29 Jul 2019 The London exchange owner has long been a takeover target. Now CEO David Schwimmer is looking to buy financial information outfit Refinitiv. That would tap new growth and business lines and diversify outside the UK. It’s a big, complex and highly leveraged attempt to go it alone.
Just Eat satisfies hunger for takeaway Dutch CEO 29 Jul 2019 The leaderless UK food delivery group is selling to rival Takeaway.com in a 5 billion pound all-share deal. Just Eat gains a new boss and ally in the battle against Uber and Deliveroo. The Dutch company, meanwhile, uses its highly-valued equity to join the UK food fight.
How China turned wine into vinegar for Remy 29 Jul 2019 Remy Cointreau spotted China’s wine potential too soon. Its 1980 joint venture proved a ground-breaking disaster. The venture’s shares, halted for six years amid fraud allegations, have resumed trade at half the closing price. Sometimes it’s worst to be first.
Heineken outlook only stacks up after a few pints 29 Jul 2019 The $62 bln brewer saw first-half operating profit rise only 0.3% year-on-year, but still assumes mid-single digit growth in 2019. Higher prices used to offset changing drinking trends. They will need to once again for CEO Jean-François van Boxmeer to avoid a new year hangover.
China slowly clarifies its bank bailout message 29 Jul 2019 Two months after officials seized one regional lender, state-backed financiers are taking stakes in Bank of Jinzhou, which holds a roughly $100 bln balance sheet. Mixed signals plagued the last round. The trick now will be sticking to a message that keeps investors a bit nervous.
Macau’s medium-big spenders are spoilt for choice 29 Jul 2019 Las Vegas Sands says revenue from wealthy middle-class punters in the Chinese gambling enclave is falling – the first slump since 2016. Local rivals like Melco and MGM, as well as other Asian competitors, invested heavily in serving them. They may have over-built.
Asia can lead an equity research rethink 29 Jul 2019 Thin capital markets, opaque companies and the diversity of a region stretching from Tokyo to Karachi makes it even harder for banks to make money from analysing stocks. But schemes like Singapore's analyst grants suggest Asia may also be a testing ground for new business models.
Blackstone’s quick data flip is a paper two bagger 27 Jul 2019 Less than 12 months after buying Thomson Reuters’ financial data unit, the buyout firm is in talks to sell Refinitiv to London Stock Exchange in a $27 bln deal. There are risks, notably what Brexit could do to LSE shares, but an implied money doubling provides plenty of cushion.
Chinese IPOs get a red card from foreign investors 26 Jul 2019 Wanda Sports raised $190 mln in a downsized New York listing, following DouYu and other companies that have shelved or valued offers cheaply due to poor demand. The U.S.-China trade war is making buyers wary of mainland issuers, and better returns can be found elsewhere.
Dish pulls tiny rabbit out of T-Mobile US deal hat 26 Jul 2019 Charlie Ergen’s satellite firm bet the farm on spectrum but faces a tight deadline for using it. Acquiring $5 bln of assets to allow Sprint to merge with its rival buys him time. But Dish faces legal challenges and a tough wireless market. Ergen will need more help to succeed.
Savvy T-Mobile US bet caught in political warfare 26 Jul 2019 The DOJ has approved CEO John Legere’s $26 bln merger with SoftBank’s Sprint, with concessions. But victory is not yet assured. Most of the 13 states suing to block the deal are sticking to their guns. The tie-up could yet be collateral damage in a divided America.
UBS’s high-court loss puts rivals in crosshairs 26 Jul 2019 Swiss judges are letting French authorities have details on thousands of the bank’s clients. How much it helps Paris secure a 4.5 bln euro fine in its current UBS fraud case is unclear. But it opens the door for overseas agencies to target the entire Swiss banking industry.
Trump’s economy becoming increasingly like Obama’s 26 Jul 2019 Consumers and Uncle Sam drove last quarter’s modest 2.1% GDP growth. But investment slumped, making a Fed rate reduction likely next week. The president wanted tax cuts to energize the economy. Instead he heads into election year with a tepid showing akin to his predecessor’s.
Santander’s Orcel offensive is double-edged sword 26 Jul 2019 The Spanish bank accused Andrea Orcel, the ex-UBS banker it backed out of appointing as CEO, of “dubious ethical and moral behaviour”. That calls into question Chairman Ana Botin’s original decision to hire him. This increasingly bitter battle will only produce losers.
Nestlé’s recipe is good enough to keep Loeb sweet 26 Jul 2019 The $309 bln maker of Nespresso reported strong first-half organic sales growth. Higher commodity prices make for a trickier second half but CEO Mark Schneider is doing enough to keep activist Third Point happy. That reduces pressure to sell the company’s prized L’Oréal stake.
Indian mogul’s ode to Anglo ends on duff note 26 Jul 2019 Anil Agarwal is dumping his roughly 20% stake in miner Anglo American. The complex holding structure, dubbed “poems” by creator JPMorgan, meant he only partly profited as the target’s shares soared. The bigger prize, meshing it with his Vedanta empire, also proved elusive.
Vodafone adds salve after ripping off plaster 26 Jul 2019 The UK telco is looking to put its European masts into a separate company. The higher multiples awarded to infrastructure assets should help unlock value, and listing the towers could help Vodafone cut debt. That ought to soothe investors reeling from an earlier dividend cut.
Tencent may be Nintendo’s best console accessory 26 Jul 2019 The video-games giants are partnering to launch the Japanese group's devices in China. The benefits of deeper ties appear irresistible. Nintendo can tap Tencent’s mobile expertise and user base, while coveted characters like Super Mario can boost Tencent's reach outside China.
Del Vecchio’s grand M&A vision needs clearer focus 26 Jul 2019 Having merged his Luxottica frames empire with lens maker Essilor, Leonardo Del Vecchio is offering 7 bln euro for retailer GrandVision. A deal will double his share of Europe’s eyewear market. But it brings few savings and adds extra complexity to a group with messy governance.
SoftBank’s new $108 bln vision is broader, fuzzier 26 Jul 2019 Vision Fund 2 so far lacks endorsement from prior investors Saudi Arabia and Abu Dhabi. It has plenty of heft, though, and less Saudi money might relieve wary investees. Focus is an issue: targeting anything “tech-enabled” gives Masayoshi Son a very long spending leash.
Hong Kong fills best worst job in central banking 26 Jul 2019 As the new head of the HKMA, Eddie Yue is on track to get a salary that puts U.S. Fed chief Jay Powell in the shade. A pegged currency means he needn’t fret much about rate-setting or attacks on his independence. The catch: if problems really escalate, he has fewer tools.
Review: Fighting the second Cold War, lab by lab 26 Jul 2019 U.S. scientific power is a potent diplomatic weapon. Greg Whitesides's new book details how Washington used research largesse to reward friends and punish the Soviet Union. Now a similar conflict is brewing with China, a more formidable rival. This time, there can be no winner.
Google ad slowdown opens lane for Amazon 25 Jul 2019 The Alphabet unit posted another quarter of slower revenue growth, while ad sales at Jeff Bezos’s firm jumped 37%. That suggests the e-tailer is taking market share from the search engine. A $25 bln share buyback highlights Alphabet’s mounting challenges as investment falls.
U.S. car-pollution pact cuts through D.C. smog 25 Jul 2019 California’s deal with BMW, Ford, Honda and VW shows the auto industry can cut U.S. emissions despite White House intransigence. The better match with overseas standards should aid progress and profitability. Add incentives to invest in electric vehicles and it’s a smart mix.