Beyond Meat readies for a difficult second course 3 Jan 2020 The meatless burger maker was a capital markets star in 2019, and sports triple-digit revenue growth. But it also bears the risks of uncertain demand, dependence on retailers and fierce rivals. Founder Ethan Brown could learn from another once-racy consumer brand: Under Armour.
Argentina debt do-over is even chancier than usual 3 Jan 2020 The country will need to restructure at least $100 bln of its borrowings, not just tweak terms as the Fernandez government favors. The novel features attached to Argentine debt after its last default may bring unexpected twists. The results will shape future sovereign debt deals.
Middle East strife’s market toll is just beginning 3 Jan 2020 Oil prices rose more than 3% and global bourses fell after a U.S. air strike killed Iran’s top military leader, Qassem Soleimani. The Islamic republic may well follow up its rhetoric of revenge with action. Investors now have a real war, not just a trade one, to fret about.
West African monetary union expansion is high risk 3 Jan 2020 The region is rebranding its CFA franc as the eco and watering down French influence in how the currency is managed. True, Paris will still guarantee a peg with the euro. But a potential new member, Ghana, is already militating for the link to be ditched. That would be a mistake.
Deutsche, Commerz get 30-year reunification bonus 3 Jan 2020 New businesses flourished after East Germany rejoined the West in 1990. Their founders are now approaching retirement, and heirs may have no interest in running the family firm. That’ll spark a Mittelstand M&A boom, bringing much-needed fees for the country’s embattled banks.
HSBC’s Hong Kong headache looks like its worst 3 Jan 2020 Demonstrators vandalized bank branches after police froze a protest-related account. HSBC earns over half its profit in the former British territory, so boycott threats and the current recession are big risks. With Beijing on his back, interim CEO Noel Quinn has few good options.
Underdog will take home Japan’s casino jackpot 3 Jan 2020 Malaysia’s Genting is not the bookies' favourite as it competes for a coveted licence in the new market, worth $10 bln or more. But while it lacks Galaxy’s glitz or the scale of Las Vegas Sands, the betting group’s success in super strict Singapore will give it a winning edge.
NBA legend’s globalization lesson still unfinished 2 Jan 2020 David Stern, who died on Jan. 1, revamped a flailing U.S. basketball league by turning athletes into billion-dollar brands. The star system he created as commissioner is a slam dunk, but the spirit of cross-border openness that helped the NBA go global has lost some bounce.
Viewsroom: Green M&A in 2020 2 Jan 2020 CEOs increasingly talk a good game on climate change, but the financial implications of global warming have played a small role in dealmaking so far. That will change in the year ahead. Also: why the video-game industry should be bracing for a political backlash.
Hotter inflation is the best surprise to hope for 2 Jan 2020 The absence of much price pressure is a head-scratcher for the Fed given the tight U.S. labor market. It’s behind debilitating negative interest rates in Europe and Japan. It’s a problem for pension funds, insurers, savers and banks. A mild return would be unexpected but welcome.
Carlos Ghosn helps the 1% end decade on-brand 2 Jan 2020 Nissan’s ex-boss didn’t like Japan’s justice system, and so arranged an escape to his former home Lebanon. The grotesque use of wealth ties a bow on a lucrative 10-year run for the ultra-rich. Leave it to a man who once partied at Versailles to rally the anti-plutocracy movement.
Politics cripples shaky China-UK stock link 2 Jan 2020 Irritated by British attitudes towards Hong Kong, Beijing has suspended the scheme that connects equity markets in London and Shanghai. Already struggling, the initiative will be hard to revive. The UK loses potential new business, while China ends up more dependent on New York.
Greta Thunberg will clog EU budget-airline engines 2 Jan 2020 Climate change will make regulators rethink free carbon credits and impose fuel taxes, hitting easyJet and Norwegian Air hard. More pain would come if the teen activist-inspired drop in Swedish air travel spreads across Europe. All in, 48 bln euros of industry value is at risk.
Investors warming to Putin’s Russia will go cold 2 Jan 2020 Inbound retail and technology deals suggest the business climate is improving. It helps that U.S. lawmakers are too busy with impeachment proceedings and an election to enact major new sanctions. But big, if hollow, spending plans aren’t taking off. Economic torpor will persist.
Mukesh Ambani’s empire will be cast in fresh light 2 Jan 2020 India’s richest man can reap two big benefits from carving up his sprawling Reliance Industries. First, he would fulfill a promise to make the $130 bln oil-to-telecom conglomerate almost free of debt. It also should help achieve a higher, tech-like valuation from investors.
A health craze for 2020: Chinese medicine 2 Jan 2019 A locally-developed cancer therapy from the People's Republic has won U.S. approval for the first time. For pharmaceutical giants, discovering a made-in-China blockbuster drug may be within reach. Cross-border deals will follow, as will some unexpected side effects.