CoComelon owner faces channel-changing risk 22 Oct 2021 The producers of the hit toddlers’ show may list with a $3 bln valuation, according to the Wall Street Journal. Fresh cash would help them spot the next big sensation. The risks are clients like Netflix cutting out the middleman and kids getting hooked on a rival’s rhymes.
Altice Portugal sale would fuel Drahi M&A machine 22 Oct 2021 CVC and Blackstone are eyeing a 7 bln euro deal for the telecom tycoon’s Iberian unit, Bloomberg reported. They could net a tidy return since it has already done the heavy lifting on fibre investment. A sale would give the Sotheby’s owner cash to fund a tilt at France’s Eutelsat.
Evergrande payment wins some restructuring credit 22 Oct 2021 The developer has wired an $84 mln coupon to bondholders just days before a potential default. It suggests goodwill ahead of an inevitable debt rejig. If boss Hui Ka Yan is prepared to actively work with creditors, he could set standards for other distressed situations in China.
Capital Calls: Australian coal, Liquor groups 22 Oct 2021 Concise views on global finance: An Australian goods transporter’s effort to reduce its coal exposure is very underwhelming; Rémy Cointreau and Pernod Ricard leave less inflation-cushioned groups like Unilever crying into their drams.
Lockdown scars will linger Down Under 22 Oct 2021 With a 70% vaccination rate, Melbourne is ending its record run of strictly confining a fifth of Australia’s population. A burst of consumer spending should help the economy bounce back. The tab for mental health strains, closed borders and related issues keeps growing, however.
Intel moves one nanometer forward, two back 21 Oct 2021 The U.S. chip champion has dialed down ambitions to spend $20 billion this year to regain its manufacturing leadership, though stopped the bleeding at one of its core businesses. There is a long way to go, and Intel needs to regain credibility on delivering its promises.
Trump app is ultimate art of the SPAC deal 21 Oct 2021 The former president’s social network ticks many boxes for a blank-check firm. He has a checkered business history, would struggle to launch a regular stock offering, and is valuing the yet-to-be-launched service at up to $1.7 bln. It’s also a huge test for securities regulators.
Chancellor: Time to inflation-proof portfolios 21 Oct 2021 As consumer prices and interest rates rise, financial markets will become more volatile. Investors can protect themselves by reducing duration, their exposure to rates, and even by holding cash. That may sound boring, but it provides a means to buy assets when they become cheap.
Viewsroom: Oz goes green-ish; “Squid Game” 21 Oct 2021 Australian climate policy is a work in progress, and Antony Currie fears the country’s net-zero plans may yet prove to be a damp squib. On the other hand, the South Korean drama is anything but: Jennifer Saba explains why the show is a major victory for Netflix and its investors.
Barclays’ strength belies investor indifference 21 Oct 2021 The UK lender’s dealmakers are outperforming U.S. giants and generating good returns. Yet Barclays’ valuation discount persists. Boss Jes Staley’s successor will need busy markets to endure, or investors to lose a downer on the stock which has now lasted a long time.
Mario Draghi can play hardball with Andrea Orcel 21 Oct 2021 UniCredit’s boss wants the Italian premier to inject 7 bln euros into bailed-out bank MPS before he buys it. The state needs to sell its stake to meet EU rules, but taxpayers may balk at another large handout. Seeking an extension from Brussels may work to Rome’s advantage.
UK’s net-zero bill is less painful than it looks 20 Oct 2021 Britain’s pre-COP26 investment pledges augur ill for securing up to 60 bln pounds a year of mostly private capital to cut CO2 emissions. Yet unlike peers, it now has a solid net-zero strategy. If that wins over investors, other states may decide to offer similarly clear roadmaps.
Capital Calls: WeWork listing, Polish games maker 21 Oct 2021 Concise views on global finance: The battle-scarred office-sharing outfit finally started trading on the NYSE after its deal with a blank-check company closed; CD Projekt delays chunky updates to its flagship “Cyberpunk” video game, avoiding a repeat of last winter.
Elon Musk’s promises are getting more realistic 20 Oct 2021 Tesla’s boss reckons production will jump 50% a year and that the Model Y will soon be the world’s best-selling vehicle. He has a history of missing his targets. But recent performance, not least during a chip shortage, means his predictions deserve to be taken more seriously.
Chinese inflation sneaks closer to global shoppers 21 Oct 2021 The country’s consumer prices stayed flat despite soaring commodity costs. That’s due to volatile pork prices and weak local spending. But the energy crisis and strong exports raise the risk that stretched manufacturers pass the higher costs on to customers at home and beyond.
PayPal-Pinterest deal plays wallet long game 20 Oct 2021 Reports that the $320 bln payments firm may bid some $45 bln for the social network sent the former’s shares down 7%. Its spinout from eBay is a reason for skepticism. But payments companies and banks are racing to own online consumer gateways, and Pinterest has valuable land.
Powell could redeem index-fund trading blot 20 Oct 2021 The Fed chair sold a $1 mln-plus holding last year. Owning broad market funds avoids many conflicts, but the move still looks bad amid intense scrutiny of other officials' trading and Powell's possible renomination. He could set an example by putting his assets in a blind trust.
Facebook’s new name: grandiose, banal or honest? 20 Oct 2021 Rebadging the social network could be a chance for Mark Zuckerberg to style Facebook as a powerful empire. Or he may simply plump for something hard to hate. A more straightforward move would be to name the whole after its most valuable part, which is now Instagram, not Facebook.
J&J’s Texas two-step may not soothe talc risk 20 Oct 2021 The healthcare giant took a $1.4 bln third-quarter charge for litigation. It has tried to limit claims to a unit that just declared bankruptcy. That would mean a cap on its liabilities and quicker payouts. But J&J, and others that try the legal tactic, aren't assured of success.
Jens Weidmann’s best replacement is another hawk 20 Oct 2021 The Bundesbank president has unexpectedly resigned. Weidmann criticised Mario Draghi’s bond-buying plan, and a more dovish rate-setter could help the ECB keep policy loose in tricky times. But having an articulate and critical representative also helped keep German voters happy.
Facebook name-change alone would miss the point 20 Oct 2021 The $959 bln social network may rename itself. The eponymous brand is both sullied and slow-growing. But it's about substance, not what it's called. Instilling greater transparency would be a more meaningful step, starting with following Alphabet’s breakout of division finances.
Airlines’ constraints send investors to the tarmac 20 Oct 2021 Southwest’s network melted down earlier this month with thousands of canceled flights. It in part reflects a faster recovery, thanks to a domestic focus. But a disproportionate rebound has shown up in stock prices. Now efficient airlines are butting up against self-made problems.
Capital Calls: Spanx’s “velvet ghetto” 20 Oct 2021 Concise views on global finance: Blackstone’s investment in the undergarments company was closed by an all-woman team. That’s progress, but not the best kind.
Credit Suisse’s exorcism has only just begun 20 Oct 2021 Chair António Horta-Osório banished one demon by settling a Mozambican scandal for $475 mln. The Swiss bank also closed the book on a spying saga. Yet a U.S. deferred prosecution agreement prolongs the haunting. And the ghosts of clients Greensill and Archegos still linger.
Burberry’s new boss revives upmarket hopes 20 Oct 2021 The UK maker of chic trench coats poached Versace boss Jonathan Akeroyd to be its next CEO. He pushed up the Italian brand’s sales by focusing on high-margin products. Burberry is eager for a similar luxury glow. Yet the $10 bln group’s scale makes it a much bigger challenge.
Evergrande vultures swoop into moral hazard 20 Oct 2021 The Chinese developer’s deals to sell its headquarters and property management arm may have hit political snags. Overpay and it looks like a bailout; a lowball bid invites cries of opportunism. Quick deals preserve value in a crisis. Hesitant governments hurt more than they help.
China is missing wildcard in $2.5 bln casino SPAC 20 Oct 2021 Japan’s Universal Entertainment plans to float its Okada Manila resort through a shell company run by former Sands director Jason Ader. A modest valuation will hold appeal for such a fast-developing market. China’s closed borders, however, make it a deceptively risky bet.
“Squid Game” powers Netflix earnings in two ways 19 Oct 2021 Its South Korean smash hit helped net 4.4 mln new subscribers. But “Squid Game” also shows a potential path to lower content costs. Finding cheap international gems as an alternative to pricy Hollywood content could change Netflix’s financial math for the better.
First bitcoin ETF is test for fans and watchdogs 19 Oct 2021 ProShares’ new U.S. fund based on bitcoin futures lacks the direct holdings enthusiasts might prefer. But it's a way to get tradable exposure without the hassle of digital wallets and such. An orderly debut could ease regulators' resistance to ETFs that buy crypto directly.
Inflation is one product P&G isn’t pushing 19 Oct 2021 The $346 bln consumer goods company increased prices 1% across divisions that sell razors and toothpaste in its latest financial quarter. But its own costs jumped 13%. Inflation will take its toll, but P&G has profit and cash to spare. In tough environments, it pays to be big.