Panasonic pushes limits of rewiring circuitry 20 Nov 2020 The $26 bln electronics empire is yet again shuffling around its fax machines and electric-vehicle batteries. This latest restructuring should help streamline operations and boost profitability. If it clears the way for new boss Yuki Kusumi to lead a broader breakup, even better.
Video IPO live-streams cost of ByteDance rivalry 20 Nov 2020 Chinese app Kuaishou wants to go public at a $50 bln valuation. The Tencent-backed company swung into the red in the first half as growth slows and fierce competition with TikTok’s owner takes a toll. It’s a preview of the costly battles playing out across the industry.
Cox: Donald Trump is the new Benjamin Harrison 19 Nov 2020 The president’s refusal to concede electoral defeat raises the ghost of Grover Cleveland, who served two non-consecutive terms in the 19th Century. Trump’s punishing tariffs and profligate budgets make him more like Harrison, the mostly forgotten man that Cleveland bookended.
BuzzFeed draws Verizon exit map for dying brands 19 Nov 2020 The digital media firm is merging with once-hot HuffPost, and getting cash from the latter’s telecom-giant owner in the process. The deal is tiny for Verizon, which ends up with a minority stake in BuzzFeed. Yet it could be a template for a bigger clear-out of Yahoo and AOL.
Viewsroom: Vaccines suggest light at tunnel’s end 19 Nov 2020 Moderna and Pfizer came out with encouraging news on the fight to immunize the world against Covid-19, giving hope the pandemic’s end is near. Meantime, China’s Sinovac finds its trials are undermined by a puzzling governance disaster. Breakingviews columnists weigh in globally.
Nvidia has limits to supercharged growth 19 Nov 2020 The $326 bln firm is riding a wave of demand for gaming and data center chips. But its own suppliers are struggling to keep pace, which crimps its current potential while putting future sales at risk. Nvidia’s future is bright, but there are limits to how much it can shine.
Congress repeats Zuckerberg show at its expense 19 Nov 2020 The Facebook boss has been grilled by U.S. lawmakers six times in over two years. Other Big Tech chiefs have also made multiple appearances. Yet politicians have failed to pass any new rules on privacy, content or antitrust. Ineffective hearings cut at Congress’s credibility.
Turkey gives investors early Thanksgiving treat 19 Nov 2020 The new central bank chief hiked a key interest rate to 15% from 10.25%, the biggest tightening in more than two years. He vowed to bear down on inflation and improved transparency by reducing the number of policy rates that matter. It’s a good start at rebuilding market trust.
Russia is blessing and curse for e-commerce IPO 19 Nov 2020 Online marketplace Ozon’s New York offering values it at up to $5.6 bln. A big and underpenetrated market is a plus, as are barriers to foreign rivals. But subsidising deliveries in the world’s biggest country means it’s burning cash. The $1 bln fundraising may not be its last.
Thyssenkrupp is acid test of German green resolve 19 Nov 2020 The ailing giant’s steel arm lost 950 mln euros last year and is a major carbon dioxide polluter. Right now it would cost a bomb to convert the division into a hydrogen-powered, low-carbon star. Still, extending subsidies would chime with Berlin’s commitment to a green recovery.
Corona Capital: Brexit curveball, Sonos 19 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: a Covid-19 scare for European Brexit negotiators puts an already-optimistic deadline to the test; and wireless-speaker maker Sonos joins the list of companies profiting from consumers being stuck indoors.
Hut Group’s long-term pay plan is far too short 19 Nov 2020 The recently listed beauty tech firm’s boss Matthew Moulding is 900 mln pounds richer after meeting bonus targets. But the company’s shares only needed to rise 30% for him to do so, and he can sell his shares in March. It’s a pretty odd way to design a long-term incentive plan.
Bond defaults hand Beijing a timely oversight test 19 Nov 2020 A surprise default by a state-owned coal miner has undermined confidence in the $2.7 trln triple-A market. Without tougher supervision of credit agencies, local officials, and company executives, President Xi Jinping’s fight against excessive leverage will pile on systemic risk.
Baidu gets useful M&A advice from unlikely source 19 Nov 2020 Days after the Chinese search-engine operator agreed to buy a video-streaming app for $3.6 bln, short-seller Muddy Waters has accused owner Joyy of fraud. It’s a blessing in disguise. YY is losing users and lagging rivals. The allegations may give Baidu room to rethink the deal.
Revlon may take shareholder rights full circle 18 Nov 2020 The cosmetics company controlled by Ron Perelman became a case study on shareholder value maximization following a 1980s lawsuit. Last week it narrowly avoided bankruptcy. Its business and stock price have been sliding for several years. A sale looks like the best final chapter.
Duolingo’s $2.4 bln valuation is a tongue twister 18 Nov 2020 The language-tuition app’s latest fundraising values it at $2.4 bln, a 60% jump from last year. That assumes it can turn freeloading users into paying ones. Doing that, and justifying a valuation twice as rich as Spotify’s, sounds about as easy as learning to speak Klingon.
Boeing’s next big hurdles are out of its control 18 Nov 2020 The aircraft maker got a lift after regulators approved returning its 737 MAX planes to the skies. While an important step for CEO David Calhoun’s turnaround, a pandemically challenged travel industry awaits. Further delivery delays will exacerbate Boeing’s worrisome cash burn.
Deutsche Boerse jumps on ESG train with ISS deal 18 Nov 2020 CEO Theodor Weimer is spending $1.8 bln on 80% of the U.S. proxy adviser after missing out on Italy’s bourse and an FX trading platform. Accurately scoring companies’ environmental, social and governance credentials is a growth business. But it’s also a crowded field.
Pandemic makes bold M&A infectious for insurers 18 Nov 2020 British group RSA has agreed a 7.2 bln pound offer from Danish and Canadian peers Tryg and Intact. The price is rich, and the plan to break up the firm risky. Yet with insurance rates set to rise thanks to Covid-19, companies have an extra reason to pursue aggressive deals.
Corona Capital: Dimon weighs in, Gen Z 18 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: JPMorgan’s chief executive calls for U.S. politicians to “just split the baby” on stimulus; and Generation Z deals a new body blow to the idea that office life will emerge from the pandemic unscathed.
UK green revolution takes baby-step beyond slogans 18 Nov 2020 Britain is to ban new petrol car sales by 2030 and invest in hydrogen to hit its 2050 decarbonisation goal. The sums cited are modest and the targets lack detail. The plan’s success hinges on Prime Minister Boris Johnson convincing private investors to pick up the slack.
Indian bank rescue moves in right direction 18 Nov 2020 Singapore’s $47 bln DBS will supersize its branch network by absorbing stricken Lakshmi Vilas under an RBI plan. It’s a small deal with larger implications. Welcoming a foreign owner suggests regulators are ready to look beyond weak state entities for the country’s lending needs.
Nio mania reaches Tesla’s extra gear 18 Nov 2020 The Chinese electric-car maker narrowed its quarterly loss as sales surged. Even without the production of its U.S. rival or a bombastic boss like Elon Musk, its shares have rocketed up by 1,000% this year. Nio, too, has a long way to go to grow into a racy $63 bln valuation.
Haier’s $14 bln deal gives up simplicity for speed 18 Nov 2020 The Shanghai-traded appliance maker will add a Hong Kong listing so it can issue stock to buy out its electronics unit. But the paid shares will only trade after the deal, and a cross-border valuation gap makes it hard to assess their value. That could rile minority investors.
Gunmakers and social networks are due a defrocking 17 Nov 2020 Mark Zuckerberg’s Facebook and Smith & Wesson have something in common: unusual legal shields that protect them from users’ actions. Without this legislative Kevlar, both would have to rethink their business models. At least Silicon Valley seems to realize change is coming.
Lael Brainard could be Goldilocks Treasury chief 17 Nov 2020 The Fed governor’s left-friendly views are in plain sight – she has stressed inclusion and climate risks. Just as important are her pragmatism, crisis experience and ability to get tough tasks done. Those qualities ought to appeal to lawmakers, whichever their side of the aisle.
The Exchange: Investing in a new macroeconomic era 17 Nov 2020 The U.S. faces a paradigm shift, as the era of monetary policy dominance ends and fiscal action becomes the major driver of growth. So argues Greg Jensen, co-chief investment officer at Bridgewater Associates. He says this means rethinking one’s approach to asset classes.
Gatecrashers join Europe’s telecom tower M&A bash 17 Nov 2020 Vodafone’s mobile mast unit might be worth 14 bln euros when it lists. Telefonica, Orange and Deutsche Telekom are carving out their businesses. With half of Europe’s 700,000 towers still potentially up for grabs, acquisitive Spanish operator Cellnex faces some stiff competition.
Walmart explores perks of being second best 17 Nov 2020 The retailer’s online sales are soaring, and it has rolled out a membership model akin to Amazon Prime. Jeff Bezos’s firm is miles ahead. But like Disney, whose streaming service is quickly catching up to Netflix, there are benefits for Walmart in riding a rival’s coattails.
Corona Capital: Home Depot 17 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Home Depot will benefit as DIYers move inside.