Companies & Funds

Cox: Trans-ocean travel has zombie apocalypse vibe

5 June 2020

A flight this week from Zurich to JFK reveals empty airplanes, airports devoid of people, limited services and a glimpse into the emerging protocols that surely await when more normal travel flows resume. It’s unsettling in a plague-times way, but surprisingly hassle free.

Battle for Russia’s Amazon crown is heating up

5 June 2020

The country’s biggest lender Sberbank may buy a 30% stake in online marketplace Ozon after untangling itself from rival Yandex. The deal could value it at more than $2 bln. There’s room for both players in a market enjoying a Covid-19 boost, but the usual political caveats apply.

Corona Capital: Marijuana

5 June 2020

Concise views on the pandemic’s corporate and financial fallout: Cannabis retailers in California miss out on pandemic surge in vices.

Airline shares’ relief rally fails safety check

5 June 2020

Groups like IAG and easyJet are soaring on hopes that the worst of the crisis is over. Rising air passenger traffic is welcome given the sector’s near-death experience. But with empty seats and cut-price tickets, getting planes in the sky does not mean a return to profits.

U.S. response to Hong Kong calls for precision

5 June 2020

Politicians want to swat China for ramming through draconian security laws in the restless city. The likely targets are Chinese banks. Starving them of dollars is a harsh option but risks collateral damage to foreign firms. Naming and shaming individuals is smarter and cheaper.

JD stock sale helps illuminate China’s have-nots

5 June 2020

The $70 bln Beijing-based online retailer will be next with a second listing, in Hong Kong. Others are bound to follow, but not all 175 trading on New York exchanges can access this safety valve from a U.S. backlash. Some may need to go private and hibernate for a while.

The “Trump option” still has value for U.S. CEOs

4 June 2020

Corporate chiefs who left White House councils in 2017 are speaking up again over racial injustice. Their ability to challenge the president is constrained, since they still need help on trade and other issues. The value of being inside the tent, though, is less than it was.

U.S. testing firms aren’t having a great pandemic

4 June 2020

With no vaccine, finding Covid-19 cases is key. But it’s not lucrative. Extra revenue is being offset by falls in other tests for Quest and rival lab companies and in unrelated businesses for test makers like Abbott. There's little time to cash in and plenty of competition.

BlackRock is becoming the new, old Goldman Sachs

4 June 2020

Before and during the financial crisis, Goldman seemed to have a finger in every pie. Now it’s as if Larry Fink’s asset manager, wielding $7 trillion of investor cash, is slipping into that role. For all BlackRock's efforts, brickbats and more regulation could follow.

Viewsroom: Not the same as it ever was

4 June 2020

After the Covid-19 pandemic has passed, will we still shake hands, ride elevators, go to sports matches and go on dates? Will taxes surge to pay for massive government budget deficits? Breakingviews editors chew over some highlights from their new e-book on what will change.

Corona Capital: ZoomInfo IPO, U.S. trade

4 June 2020

Concise views on the pandemic’s corporate and financial fallout: ZoomInfo goes public with a big pop despite Covid-19; and America’s goods-trade deficit with Europe will test Washington’s mood.

HSBC Hong Kong tightrope walk comes with huge fall

4 June 2020

The $102 bln bank publicly backed a Chinese security law opposed by many of the city’s residents. HSBC has little choice but to toe Beijing’s line. But the risks to its Hong Kong business, and of being caught in the China-U.S. stand-off, will continue to weigh on its shares.

Make-up artist’s star power tested by $1 bln tag

4 June 2020

That’s how much Puig is close to paying for Charlotte Tilbury’s cosmetics company, Bloomberg reports. Famous friends and e-commerce helped the entrepreneur boost sales. To justify the price, the Spanish perfumer needs to lift margins after Covid-19, without smudging the brand.

Reliance makes clever use of buy now, pay later

4 June 2020

Purchases by installment are hot in retail but the Indian conglomerate is bringing them back to capital markets. Investors buying into a $7 bln rights issue can settle up through November 2021. It sidesteps a Covid-19 cash crunch and boss Mukesh Ambani’s backstop covers up flaws.

Warner Music is opening act for mini IPO-palooza

3 June 2020

The record label’s shares climbed more than 20% after the biggest U.S. IPO this year. It suggests there is investor demand for companies resistant to pandemic disruption. Current market conditions make good mood music for companies that offer stability, growth, or both.

Tiffany share drop offers LVMH a bargaining chip

3 June 2020

Fears that Bernard Arnault may pull his $16.2 bln bid amid U.S. unrest have hit the jeweler’s shares. The French billionaire may see an opportunity to renegotiate, but it’s not without risk. Buying Tiffany shares on the market would be a less aggressive way to meet a similar end.

Even Zoom’s lockdown boom needed Amazon delivery

3 June 2020

The $60 bln videoconferencing service had an astonishing first fiscal quarter as revenue surged 169% and profit rocketed. Zoom’s ability to rent thousands more servers daily from Jeff Bezos' company shows the flexibility and earnings leverage possible from operating in the cloud.

Europe’s frenzied mall openings hide harsh reality

3 June 2020

Shares in landlords like Unibail-Rodamco-Westfield and Klepierre jumped after they reopened shopping centres. Queues outside IKEA suggest pent-up demand. But fewer shoppers and shorter visits will mean lower retail rents. Investors appear to be pricing in a 50% decline.

Fintech superstars face brutal financial comedown

3 June 2020

Digital banks like Chime and Monzo have millions of customers but are tackling their first big crisis with scant revenue. Online lenders from Kabbage to Klarna face rising defaults, less new business, and funding concerns. Valuations, business models, even survival, look shaky.

Corona Capital: Crisis loans, Jet fighting

3 June 2020

Concise views on the pandemic’s corporate and financial fallout: Bank customers are no longer making a dash for cash, loan drawdowns suggest. Meanwhile, a U.S. block on Chinese passenger flights suggests domestic battles haven’t dimmed President Trump’s desire to make China pay.