Anta bets Chinese shopping nationalism won’t last 22 Apr 2021 The controlling shareholder of the sportswear company will pocket $1.5 bln from a 30% share rally after consumers threatened boycotts of Western brands critical of Beijing’s Xinjiang policy. It’s smart timing by struggling Anta; patriotic outrage is a fickle sales driver.
China medical IPO comes with health warnings 22 Apr 2021 Tencent-backed We Doctor boasts the country's first e-hospital offering online consultations and more. A mooted $12 bln valuation looks punchy next to rivals focused on lucrative drug sales. We Doctor's mounting losses and untested business model may give investors heartburn.
Jamie Dimon is the stone in green investors’ shoe 21 Apr 2021 The JPMorgan boss runs the biggest fossil fuel financer and is one of the few bankers to spurn Mark Carney’s new group of net-zero pledgers. A strong share-price performance and ample profit buy Dimon leeway. They also set his bank up as the ultimate challenge for ESG activism.
Industry roll-up turns screws on Verizon 21 Apr 2021 Competition is fierce even after the field went from four to three bigwigs. The $240 bln telco lost more subscribers than expected last quarter. That eliminates antitrust worries about the T-Mobile US-Sprint deal. But in capital heavy industries, size is punishing in other ways.
Capital Calls: U.S. antitrust, Dyal-Owl Rock 21 Apr 2021 Concise views on global finance: Would-be U.S. trustbuster nominee Lina Khan suggests it’s not just tech companies to blame for Big Tech’s dominance; two U.S. investment firms’ planned merger and sale to a blank-check company has cleared a legal hurdle.
Soccer’s Super League zombie will rise before long 21 Apr 2021 The breakaway competition is on life support after six English teams pulled out. Yet the financial logic of a U.S.-style sporting cartel remains irresistible for the owners of clubs like Real Madrid and Manchester United. Barring a regulatory crackdown, the idea will return.
European chips champion is puzzle for M&A bankers 21 Apr 2021 The region’s leaders fret about their collective semiconductor shortcomings. An $85 bln union of Infineon and STMicroelectronics would bring heft, plus cost savings to mollify investors. The hard part is getting France and Italy to agree a structure that preserves their pride.
Piraeus faces Sisyphean task to end Greek tragedy 21 Apr 2021 The Athens-based bank wants to raise 1.4 bln euros to speed up bad debt sales. New shares sold at a steep discount to book value imply juicy upside if CEO Christos Megalou hits near-term profit goals. A history of capital hikes plus rocky GDP growth make it an uphill struggle.
New Zealand blends specially bright shade of green 21 Apr 2021 The United States and China are vowing to work together on decarbonisation. JPMorgan and Citi raised their sustainable-finance goals. Investors are pushing harder, too. A Kiwi plan to force banks and money managers to come clean about climate risks neatly ties it all together.
Huarong foreign bondholders get sweet nothings 21 Apr 2021 The market is stabilising around the troubled bad debt manager holding $21 bln in dollar bonds. Its key offshore unit says it has returned to profit; Beijing notes Huarong has adequate liquidity. It’s better than silence but thin gruel for a relief rally.
Netflix’s performance has just enough chill 20 Apr 2021 Shares fell 10% after the video-streaming firm nabbed fewer subscribers in the first quarter. It suggests that the pandemic bonanza is over. But Netflix has plenty of room to take share away from TV. Improving cash flow and a lower stock price tone down valuation, too.
Oatly’s IPO health depends heavily on China 20 Apr 2021 A partnership with Starbucks in the People’s Republic boosted the Swedish oat milk maker’s sales and profile. Major investor China Resources should help with future growth. But the state-backed group’s involvement is also a risk for buyers of its mooted $10 bln U.S. listing.
Citi’s new boss could grow or shrink to greatness 20 Apr 2021 Jane Fraser says she wants her bank to be excellent, yet much of what the $150 bln lender does is middling. If she can fix Citi’s battered image, there could be scope to buy a rival U.S. bank. Otherwise, the empire would be worth more to investors in pieces. Neither option is easy.
Capital Calls: Bank of America, WeWork, Kering 20 Apr 2021 Concise views on global finance: The bank’s shareholders voted against a deeper dive into its impact on racial inequality; the office landlord is taking bitcoin as payment, for now; the Gucci owner needs to run faster to catch arch-rival LVMH.
Next Danone CEO can serve up faux-milk spinoff 20 Apr 2021 The $50 bln Activia maker is searching for a new boss to lead its turnaround. Listing its Alpro unit would be a tasty way to tap into investor demand for dairy substitutes. Even at half the sales multiple that rival Oatly is seeking in an IPO, the unit could be worth $11 bln.
Meituan loads cash bazooka for e-commerce fight 20 Apr 2021 The $220 bln Chinese delivery app has raised $10 bln to take on larger Alibaba. Investors are sceptical of boss Wang Xing's money-losing bets; shares are down 36% since mid-February. Replenishing the war chest eases financial stress but raises pressure to deliver quick results.
Thai tycoon roams strangely from power to telecom 20 Apr 2021 A $5.4 bln bid for Intouch by Sarath Ratanavadi’s Gulf Energy is a wild and opportunistic attempt to diversify. It’s awkward for the target’s Singaporean owners, whose controversial investment has gone well. The low-premium deal also hangs on a critical regulatory decision.
UiPath’s $28 bln IPO may be as hot as Snowflake 19 Apr 2021 The company's revenue from software robots that replace humans doing boring back-office tasks is growing 80% annually. A valuation of over 40 times last year's sales looks feverish in objective terms, but cheap relative to in-demand technology peers like data outfit Snowflake.
Credit Suisse woes give UBS boss chance to shine 19 Apr 2021 Ralph Hamers is emerging publicly as his cross-town rival is imploding. Poaching disgruntled clients is a no-brainer. But a broader strategy to focus UBS on avoiding existential risks, including those in the ESG realm, would distinguish it as the major Swiss bank with purpose.
Capital Calls: SXSW 19 Apr 2021 Concise views on global finance: Rolling Stone publisher Penske Media is taking a 50% stake in hipster arts festival South By Southwest.