Branson space caper may have airline economics 16 Jul 2021 The British tycoon has lined up punters paying $250,000 each for his sub-orbital joyride. To hit profit targets, though, his Virgin Galactic needs to hike prices as rivals lift off. If it can’t, the $8 bln firm’s financial trajectory may resemble loss-making Virgin Atlantic.
Airbus sprints past Boeing in two-horse race 3 Jun 2021 The European plane-maker’s short-haul jet is flying off the shelves, helping Airbus close the revenue gap as Boeing’s 737 MAX woes drag on. Yet the U.S. giant’s valuation premium is as big as it has been. Airbus’s recent surge could last. It’s about time the market catches on.
Capital Calls: Uber union 26 May 2021 Concise views on global finance: UK union’s success in representing drivers may hit potholes in the United States.
Capital Calls: Christine Lagarde, Bernie Madoff 14 Apr 2021 Concise views on global finance: The European Central Bank president’s quest for inflation will take a while to achieve its goal; investor gullibility will live on after the death of the Ponzi schemer in a U.S. federal prison.
Capital Calls: LVMH surges back to full health 13 Apr 2021 Concise views on global finance: The 300 billion euro luxury conglomerate’s first-quarter sales surpass pre-Covid-19 levels.
Capital Calls: Defence IPO, ViacomCBS and GameStop 24 Mar 2021 Concise views on global finance in the Covid-19 era: Italy’s Leonardo postpones the initial public offering of its U.S. unit; ViacomCBS and GameStop's rising stocks give them both a chance to raise fresh cash.
Boeing stares down a future that’s a bit like GE 22 Feb 2021 The $127 bln aircraft maker run by General Electric alum David Calhoun now has problems with some engines it uses. It comes just as 737 MAX issues are in the rear view. Boeing's future is burdened by inertia and a growing debt load. As GE shows, that can take decades to unwind.
Outer space may be best place for SPAC craze 3 Feb 2021 Rocket-making startup Astra is launching into public markets at a $2.1 bln valuation through a blank check company. So-called SPACs are a frothy frontier, but they’re well suited to businesses that rely on long-term future projections. A bet on the space industry fits the bill.
Boeing’s kitchen sink lacks a plug 27 Jan 2021 The company posted a record loss in 2020 and took a $6.5 billion write-down on a new jet program that has been delayed. Problems with its MAX model are giving way to ongoing Covid-19 issues. Given a lack of visibility on how those will resolve, Boeing’s valuation looks too high.
Co-pilot Bill Gates can swing private-jet dogfight 8 Jan 2021 The Microsoft founder has checked in with Blackstone to offer $4.3 bln for Signature Aviation, which runs small airports for the mega-rich. Rival Carlyle may trump that. But Gates’s 19% stake and the already-high price makes it harder for a counter-bid to get off the ground.
Boeing’s question is not how much but how long 28 Oct 2020 The $86 bln aerospace firm jettisoned $5.1 bln of cash in the latest quarter, not much better than the three months before. Other airborne industries are suffering too, but despite a reasonable balance-sheet cushion, Boeing is even less suited to endure prolonged disruptions.
GE boss reaches milestone in Sisyphean trial 28 Oct 2020 Larry Culp managed to offset damage from grounded planes and declining power-sector demand with helpfully timed payments to report positive cash flow in the third quarter. Other challenges remain, from debt to GE’s insurance business. Then there’s the existential part.
Boeing has got a bigger than MAX problem 16 Oct 2020 Europe’s aviation regulator said the troubled 737 is safe to fly, sending the $92 bln aircraft producer’s shares up 5%. Even when sales return, ongoing reductions of flight schedules due to Covid-19 will make Boeing’s woes linger. There’s a chance they become permanent.
UK plc puts its money where Rolls-Royce’s mouth is 1 Oct 2020 Boris Johnson’s government is backstopping the struggling jet-engine maker with nearly 1 bln pounds in loan guarantees. Yet the support hinges on shareholders coughing up double that. It’s a reasonable way to prop up a vital British business while minimising taxpayers’ exposure.
Richard Branson is late arrival at SPAC party 17 Sep 2020 The billionaire Brit is touting his Virgin brand to raise $400 mln via a blank-cheque company. Jumping on the well-trodden bandwagon is hardly disruptive. After recent setbacks, the 70-year-old may struggle to persuade potential investors and targets he has still got his mojo.
Corona Capital: PizzaExpress, Aerospace pain 4 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: The UK restaurant chain’s restructuring is not that tasty a meal for creditors; Airplane-parts maker Spirit’s reliance on Boeing’s 737 MAX has it heading into worse turbulence.
Rolls-Royce flies closer to credit-card max-out 9 Jul 2020 The British jet engine maker led by Warren East incinerated 3 bln pounds in the last six months due to aviation lockdowns. At least another 1 bln may disappear in the next. Extra credit lines look increasingly like bandages over a balance sheet in need of serious surgery.
GE institutionalizes outsider executive culture 15 Jun 2020 John Slattery is the first non-legacy GE employee in decades to run Aviation, the U.S. firm’s crown jewel. It’s a bold move by fellow outsider, CEO Larry Culp. Among Slattery’s challenges is to manage GE’s ties with Boeing – which just snatched another job from under his nose.
Corona Capital: Goldman, Vroom, Deutsche Bank 9 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Goldman does too well in Britain; shares in online used-car sales outfit Vroom double on their market debut; and Deutsche Bank gets another shot at redemption in the U.S. market.
SpaceX mans up in private planetary race 31 May 2020 Elon Musk’s reusable rockets have slashed the price of sending cargo into orbit, but his private $36 bln firm has yet to show that lower costs unleash untapped demand. Successfully launching humans delivers additional cash and political capital to chase bigger dreams.