Super-app Grab rides high into New York debut 1 Dec 2021 The Southeast Asian giant held firm in a difficult year. It’s on track to hit targets set from its record $31 bln SPAC merger, supporting a rich 13 times sales valuation multiple. Margins in its ride-hailing business show the promise of its food-delivery-to-fintech ambitions.
Macau mogul’s downfall is good news for casinos 1 Dec 2021 China’s investigation into an illegal gambling group casts a shadow over Alvin Chau’s Suncity, which once helped high rollers fund as much as $8 bln in wagers each year in the betting hub. But the VIP market is a drag on earnings. Ending it can help strengthen recovering casinos.
Capital Calls: Volkswagen, Turkey 1 Dec 2021 Concise views on global finance: The German carmaker may take mining stakes to secure electric-vehicle raw materials, echoing Henry Ford, the U.S. production-line pioneer; the Turkish central bank is resorting to old tricks to prop up the lira but it’s an unsustainable strategy.
Transitory isn’t the only thing Fed should retire 30 Nov 2021 Chair Jay Powell reckons it’s time to stop using this adjective to describe current high inflation rates. That’s welcome, if overdue. Rate-setters could also usefully retire forward guidance. In such uncertain times, it’s counterproductive to appear to commit to a policy path.
Manscaped SPAC shaves public investors’ consent 30 Nov 2021 The “below-the-belt” grooming company is offering cheaper shares to private investors in its deal with a blank-check firm, which can close even if shareholders pull their cash out. SPAC sponsors are incentivized to keep deals flowing at all costs. This adds to the overall look.
The Exchange: Making nukes greener and friendlier 29 Nov 2021 The fight to reduce CO2 emissions is forcing a rethink about the role of nuclear power, says Rafael Grossi, head of the International Atomic Energy Agency. But convincing holdouts like Greta Thunberg will take more than turning Homer Simpson into a paragon of nuclear safety.
Capital Calls: Wise, Swedish oil 30 Nov 2021 Concise views on global finance: The 8 bln pound money-changer raised its revenue targets; $10 bln Swedish oil company Lundin Energy may be considering M&A options.
Inditex injects doubt into smooth-running machine 30 Nov 2021 Spain’s $100 bln fast fashion group replaced Executive Chairman Pablo Isla with founder Amancio Ortega’s daughter, Marta. Its valuation reflects investor faith in Isla’s digital strategy, which helped Inditex weather Covid-19. The abrupt pivot to untried leaders will test that.
Cox: French finance will take an electoral pause 30 Nov 2021 Parisian executives who want President Emmanuel Macron to win another term will avoid deals that could become political hot potatoes for the former M&A banker. Shopping abroad is chic but domestic takeovers and synergy-squeezers are out for now. After the election, le déluge.
Glencore’s activist is misguided but not unhelpful 30 Nov 2021 Bluebell is pushing the $63 bln miner-trader to spin off coal. Thungela’s plans to dig up more of the mineral after its Anglo spinoff weaken the argument, and prices are at record highs. Still, if it makes Glencore quit coal quicker than its 2050 target, it’s a job well done.
Nissan’s green drive hits yellow light 30 Nov 2021 Shareholders booed the Japanese automaker’s plan to invest $18 bln in clean cars over the next five years and make half its fleet electric by 2030. The erstwhile electric-car leader wants to regain ground, but it’s a financial stretch with profit weak and the stock overvalued.
China property bond rejig is destined to fail 30 Nov 2021 Developer Kaisa wants holders of $400 mln in notes to extend for 18 months. They’d get no real sweetener and would be pushed behind $3.6 bln of other maturing debt. Boss Kwok Ying-shing went through a $2 bln restructuring in 2015. Now he seems on course for a $12 bln repeat.
Retail has golden opportunity to stay in the black 29 Nov 2021 American consumers are on track to spend record amounts during the holiday season, despite scarce discounts and low confidence. That suggests retailers have some pricing power, which at least gives them some room to offset the squeeze they’re facing from workers and suppliers.
Jack Dorsey leaves one company, helps out two 29 Nov 2021 Twitter is better off without its co-founder, who was also busy being CEO of fintech firm Square. The $38 bln social network hasn’t set a clear strategic direction, unlike rival Facebook. Square, meanwhile, could use the extra attention as it faces a growing crowd of rivals.
Omicron may give inflation a chance to bed in 29 Nov 2021 The new coronavirus variant could ease short-term price pressures if it triggers wider lockdowns that curb consumption. But if it prolongs supply-chain problems the reverse will be true in the longer term. Especially if cautious central bankers delay tightening monetary policy.
Telecom Italia will keep bankers busy in 2022 29 Nov 2021 KKR’s $12 bln proposal has put the telco in play. The process is likely to involve multiple bidders and key actors including French shareholder Vivendi and the Italian government. As with Telecom Italia’s 1999 leveraged takeover, it’s a boon for bankers, lawyers and consultants.
Mukesh Ambani BT bid would struggle for clear line 29 Nov 2021 His Reliance would earn a so-so return buying the UK telco’s enterprise for 38 bln pounds. It’d be a distraction for his energy-to-retail conglomerate’s huge India ambitions too. He can more comfortably get a taste of a rich market by narrowing his focus to BT’s broadband unit.
Capital Calls: Moderna’s $40 bln shot gain 29 Nov 2021 Concise views on global finance: News of a spreading Covid-19 variant added $40 bln to the biotech’s market value. Investors are pricing in about 3 billion extra jabs. That’s rosy given competition and uncertainty.
China’s bet on Covid-zero worsens odds for Macau 29 Nov 2021 Beijing’s draconian restrictions are a growing problem for Wynn, Sands, and other casino operators in the gambling hub. Resorts sit half-empty with gaming at 30% of pre-pandemic highs. They can live without foreign tourists, but local visitors are their lifeblood.
Review: House of Gucci’s broken family capitalism 26 Nov 2021 A sprawling dynasty can lead to corporate disaster. Ridley Scott’s star-studded movie is a kaleidoscopic portrait of the infighting that saw the Gucci family lose control of their namesake brand. Stepping aside at the right time can make all the difference.
New Covid-19 variant raises risk of recovery limbo 26 Nov 2021 Britain and others have revived travel bans on South Africa amid a new viral mutation. Countries with low vaccination rates are most vulnerable. But if the virus evades vaccines, new lockdowns may be necessary at a time when governments and central banks have depleted firepower.
UK energy shakeout will hit price comparison sites 26 Nov 2021 Britain is pumping $2.3 bln into collapsed gas and electricity provider Bulb, the latest in a string of bankruptcies. The clear-out should mean a healthier array of UK energy suppliers. But having fewer operators will hurt the firms that make their money from customers switching.
Capital Calls: Software AG logs onto buyout boom 26 Nov 2021 Concise views on global finance: A subdued valuation and eager bidders increase the 3 billion euro German company’s chances of a possible sale.
SenseTime IPO could help HSBC gain recognition 26 Nov 2021 It’s the only Western lead adviser on the AI dragon’s mooted $2 bln Hong Kong market debut. The issuer’s spot on a U.S. blacklist adds a degree of difficulty to the large Chinese stock sale. That makes it an especially bold way to showcase renewed investment banking ambitions.
Succession mess turns Orange into governance lemon 25 Nov 2021 The $30 bln French phone firm is seeking a new chairman and CEO after incumbent Stéphane Richard received a criminal conviction. A previous trial in 2019 should have prodded the board to line up a replacement. Splitting the top jobs is a first step to smoother future transitions.
Cox: Telecom Italia and the curse of the euro era 25 Nov 2021 The 1999 buyout of Italy’s phone monopoly baptised Europe’s new single currency. The years since have been terrible for the company and its many trophy-seeking owners, who have lost some $23 bln. Here’s why the latest offer from private equity firm KKR offers hope for redemption.
Viewsroom: Barbarians invade Rome; Biden’s Fed 25 Nov 2021 The board of Italy’s phone monopoly has a golden opportunity to end years of creeping control, poor governance and dismal performance by considering a sale following the unsolicited $12 bln bid from KKR. And Gina Chon explains why Jay Powell has the hardest job in finance.
Capital Calls: Remy Cointreau, African petrol 25 Nov 2021 Concise views on global finance: With profits soaring, the cognac maker will face mounting pressure for M&A; commodity trader Vitol buys out minority shareholders in London-listed fuel distributor Vivo.
Pinduoduo’s strategy sows further seeds of doubt 25 Nov 2021 The Chinese e-commerce company rocketed to relevance by single-mindedly challenging Alibaba. Following policy crackdowns and rising costs, it’s expected to swing back to a quarterly operating loss. New boss Chen Lei would benefit from looking beyond farming for additional growth.
Japan Inc swallows Shinsei’s bitter poison pill 25 Nov 2021 Despite backing from proxy advisory firms, the $4 bln bank is dropping its defence plan. Without support from Tokyo as a big owner to block it, SBI can now lift its stake to 48% and effective control. It’s a stark reminder of how exposed the country’s minority shareholders are.