Americas

Airport security fast-tracker jumps the IPO line

18 June 2021

Clear, the U.S. firm that allows people to cut security lines for $179 a year, wants to go public. With vaccine checks on the horizon and the U.S. government as a new client, it has a promising path to fly as a public company, so long as its valuation stays in the $2 bln range.

U.S. gas tax should be guzzled while it can

18 June 2021

America’s truck obsession is partly due to fuel prices that are among the lowest in the world. Upping the toll could help pay for a $1.2 trln infrastructure plan. Plus combustion engines are becoming obsolete and fuel usage is falling. Lawmakers might as well seize the moment.

Review: Pandemic saga suffers from tunnel vision

18 June 2021

Michael Lewis explores the weaknesses in America’s response to Covid-19 in “The Premonition”. Exposing missed opportunities can offer lessons for the next outbreak. But by focusing on just one country, he risks repeating the mistakes global leaders made in tackling the virus.

Big Tobacco tech offers path to partial redemption

18 June 2021

Philip Morris is tweaking its inhalers for medical drugs, rather than recreational ones. If non-nicotine sales hit their target, the unit could be worth $5 bln. That’s tiny against the Marlboro maker’s $156 bln price tag. As a genuine health benefit, the PR value may be greater.

Capital Calls: HSBC, MRNA scramble, Cable project

18 June 2021

Concise views on global finance: The UK bank’s France sale disappoints; Danaher snaps up Moderna supplier for $9.6 bln; geopolitics sinks internet cable.

CureVac’s pain may not yet have peaked

17 June 2021

The German drugmaker’s value halved to $10 bln after it said its Covid-19 vaccine may be only 47% effective. Investors’ concern is that its critical mRNA technology may not work as well. Separate trials on its cancer vaccine will be key to CureVac’s future health.

Wall Street’s finest take on the mighty sponge

17 June 2021

The $5 bln IPO of Mister Car Wash has amassed some of finance's most prestigious underwriters. No wonder: It has solid growth, is simple to understand, and shines with profit. The risk is that competition is plentiful - and includes a bucket of water and the neighbor's kid.

DraftKings’ luck tilts odds against short seller

17 June 2021

Hindenburg Research questioned the legitimacy of some of the online-betting firm’s business. Even if proven right, the revenue impact would be small. Like many digital stocks DraftKings looks overvalued right now. But in this market, it’s risky to bet against the momentum.

The Exchange: Hiro Mizuno

17 June 2021

The former chief investment officer of Japan’s $1.6 trillion Government Pension Investment Fund is now a board member at Tesla and Danone. In an interview as part of last week’s Ethical Finance 2021 summit, he tells George Hay how ESG has changed since he championed it at GPIF.

Capital Calls: JPMorgan, French SPAC, Jessica Alba

17 June 2021

Concise views on global finance: Jamie Dimon bulks up his nascent UK digital banking offer by buying Nutmeg; France boosts its lowly SPAC league-table position with two blank-cheque vehicles; the Hollywood star’s consumer packaged goods company Honest encounters growing pains.

Aon-Willis deal collapse would leave few mourners

16 June 2021

The Biden administration’s first big antitrust shot is against the $30 bln tie-up of two insurance brokers. Customers may not mind if the merger is scuppered. Neither may investors: Since it was announced, the combined firms’ market values have missed out on $20 bln of gains.

Blackstone returns to China office at good time

17 June 2021

After mooted talks fell through last year, the U.S. private equity firm is back with a $3 bln bid for Soho China. Even with a generous premium, the implied return looks decent. With real estate assets hit by the pandemic, the deal is a sensible bet on the country’s recovery.

Waymo proves moonshots work better in the dark

16 June 2021

Alphabet’s self-driving unit snagged $2.5 bln of new funding despite executive departures and slow progress on its driverless cars. Waymo dealt with its potholes in private. Speculative businesses going public through SPACs may not get the chance to learn from their mistakes.

Data IPO is bet vs. Amazon, Google and Microsoft

16 June 2021

Confluent, which helps companies knit together streams of data, is seeking an $8 bln valuation. Revenue quadrupled from 2018 to 2020. But that's not enough to justify a toppy valuation multiple when cloud competitors include three of the four biggest tech groups on the planet.

Fed’s goal is to see forest, not whipsawed trees

16 June 2021

The U.S. central bank’s sanguine attitude on inflation avoids getting lost in fickle data. Record lumber costs were a worry until they fell. Used cars may be next. The risk is the Fed misses signs of lasting price pressure. But it's still better to focus on the bigger picture.

Just Eat Takeaway risks heartburn with U.S. deal

16 June 2021

The Dutch food delivery group has swallowed Grubhub, its second big bite in just over a year. At 3 times expected 2023 sales, the $19 bln company is valued well below rival DoorDash. Boss Jitse Groen has repeatedly bested European competitors, but investors fear indigestion.

Capital Calls: Platinum Equity, FTC chair, Tui

16 June 2021

Concise views on global finance: The buyout firm acquires textbook company McGraw Hill and the maker of Singer sewing machines; Joe Biden’s pick for the Federal Trade Commission brings swagger; and another capital hike will still leave the German holiday group heavily indebted.

SPAC figureheads need to seal their deals

15 June 2021

One of Michael Klein’s blank-check vehicles may buy small-brand collector Thrasio. If that deal and another for Lucid Motors close, some 70% of his $7 bln in SPAC cash would be invested. Chamath Palihapitiya is not far behind. The market's future hinges on both gurus’ success.

The Exchange: IAC Chairman Barry Diller

15 June 2021

The media mogul has backed businesses ranging from travel to gambling to dating and more. Plus, he’s behind Little Island, a new park in New York. Diller shares his thoughts on the reopening of the world, IAC’s unique model and why Netflix has already won the streaming war.

Disney has enough magic without Hulu

15 June 2021

The Mouse House is rocketing ahead with its video service, Disney+. So it’s odd that it still owns two-thirds of the less successful Hulu. While Disney can buy the rest of Hulu from rival Comcast from 2024, it might make more sense to sell, and spend the money closer to home.