BREAKINGVIEWS

Big Ski is a boon for investors, if not for skiers

22 July 2019

Vail Resorts’ $264 mln deal for Peak Resorts brings 17 mostly bunny hills to the operator of some of North America’s sweetest slopes. Like all things ski-related, the price is high. But Vail can justify the 100%-plus premium by jamming skiers into its premier mountains.

Hedge funds just can’t cope with rising markets

22 July 2019

The industry has become a chronic investing laggard as most assets rise. Even the flagship fund of Ray Dalio’s Bridgewater was down some 5% this year. Ex-Harvard whiz Jack Meyer is closing shop after years of bad results. Hedge funds’ $3.2 trln of money looks under threat.

Disney movie mojo is tight squeeze on small screen

22 July 2019

The $250 bln media giant’s “Avengers: Endgame” is now the No. 1 grossing film in the world. The Mouse House is home to another six of the top 10 movies, too, thanks to boss Bob Iger’s savvy deals. Transferring the magic to its forthcoming video-streaming services may be hard.

Equifax shows how little it values consumers

22 July 2019

The credit-scoring firm gathers troves of sensitive financial information, making it systemically important. Yet it’s paying less than $3 in compensation for each of the nearly 150 mln Americans affected by its 2017 data breach. That provides little incentive to tighten security.

Ted Baker offers tricky embrace for private equity

22 July 2019

Shares in the seller of colourful shirts rose 15% on hopes of a buyout. A low valuation, and the opportunity to expand in Asia may appeal. But the likely involvement of hug-loving founder Ray Kelvin could deter some buyers. And the group’s sluggish growth will limit returns.

Swiss currency ticks towards new showdown

22 July 2019

The franc hit a two-year high against the euro. Policy interest rates are already negative so cutting them further may fail to dent its strength. A return to major intervention risks U.S. ire. Traders will take advantage of central bank boss Thomas Jordan’s bind.

New Julius Baer CEO will start on lean note

22 July 2019

The $10 billion Swiss wealth manager reported weak first-half net profit. Outgoing boss Bernhard Hodler has worked on fixing some of its problems by cutting costs and ditching potentially dodgy clients. Successor Philipp Rickenbacher’s main job will be to attract more new money.

Philips will grow into its healthier valuation

22 July 2019

The 37 bln euro medical-technology group has erased its valuation discount to Siemens Healthineers. That is justified by strong orders unveiled in second-quarter results. CEO Frans van Houten’s company offers the same growth story as its German rival, but with fewer distractions.

China’s new tech bourse too much of a good thing

22 July 2019

Shares of all 25 firms on China’s answer to the NASDAQ at least doubled on their debut. Dig beneath the speculative mania, though, and there is a lot to like about the new board. Letting more companies list, and sticking to reforms, may be the best way to tame the price swings.

Asahi Aussie deal passes all but one sobriety test

22 July 2019

The Japanese brewer is buying AB InBev’s Australian unit for $11 bln. It’s a highly profitable business that ticks lots of boxes for Asahi, but justifying the price requires clever cost savings. Asahi will have to take a more proactive approach than usual to make the deal work.

Abe’s so-so victory is good for Japan’s economy

22 July 2019

Shinzo Abe’s coalition won upper house elections, but a slack turnout denied him the majority needed to amend the pacifist constitution. As other central banks prepare to cut rates, presenting Japan with a fresh currency challenges, that clears away an unhelpful distraction.

India unlocks a $200 bln stressed debt market

22 July 2019

The country’s first comprehensive bankruptcy code has hit bumps with cases like the drawn-out takeover of Essar Steel. But the framework is starting to offer better recovery, prompting creditors to act sooner. That’s good news for lenders and investors like Apollo and Oaktree.

Santander’s Andrea Orcel story doesn’t add up

19 July 2019

The Spanish lender offered the former UBS banker up to 35 mln euros for lost compensation when he joined as CEO, a letter seen by Breakingviews says. That clashes with the bank’s subsequent explanation for withdrawing the offer. Chair Ana Botin owes investors an explanation.