Thailand previews difficult life without tourists 6 May 2021 The country looks ill-prepared for its fresh wave of viral contagion. With a slow vaccine rollout, foreign visitors won’t return anytime soon. It needs to wean itself off this economic crutch, but political unrest deters overseas investment. That’s a trying combination.
Meatless Manila IPO offers something to chew on 6 May 2021 Quorn owner Monde Nissin is set to go public. But its control of the Beyond Meat rival has so far been only a side dish in the vegan alternatives boom. The real protein supporting a properly cooked $5 bln valuation is the company’s Philippine snacks unit.
Capital Calls: KKR 6 May 2021 Concise views on global finance: The private equity firm is investing in Charter Next Generation in an employee-friendly deal.
Uber’s path to profitability runs through rides 5 May 2021 Food-delivery sales helped plug holes left by a 65% decline in revenue for the rides division. Yet carting people has been profitable through the pandemic while delivering food has not. As the recovery takes hold, the app’s core business will put it in the black.
Apple’s App battle has only slightly epic ending 5 May 2021 A ruling against the $2 trillion tech behemoth in the case brought by video game company Epic could optically be bad for Apple and have global implications. But even if App Store sales fall in half, it would shave just 3% from Apple’s market value. Being a giant has privileges.
Facebook Trump ruling is step towards consistency 5 May 2021 An oversight board upheld the $900 bln social network’s ban on the former U.S. president, its biggest call to date. As in other cases, it's a transparent decision, but it applies only to Facebook – a reminder that Washington has not yet grappled with content limits for Big Tech.
The Exchange: The green transition’s financing gap 5 May 2021 Plenty of capital is focused on creating the next Tesla. Less is directed towards medium-sized players doing vital but less flashy stuff like insulating buildings. Tikehau Capital co-founder Mathieu Chabran tells George Hay how some asset managers are stepping into the breach.
Africa’s digital payments race becomes a scramble 5 May 2021 The pandemic has brought the region’s mobile-based money networks and their 159 mln users to a crossroads. Airtel and MTN may spin off their payment arms. Banks and card giants like Mastercard are joining in. The victors will hold sway over an increasingly cashless continent.
GSK CEO’s best defence is a graceful exit 5 May 2021 The $93 bln drug company is under pressure after activist Elliott took a stake. Boss Emma Walmsley is splitting the group into two, but its struggling pharma unit faces a lengthy turnaround, and may benefit from a new leader. Walmsley could run the new consumer business instead.
Capital Calls: Peloton, Honest Co, Office Depot 5 May 2021 Concise views on global finance: Treadmill recall leaves investors in the workout app stranded; shares in Jessica Alba’s consumer packaged goods company opened more than 30% above their IPO price; the office-supply company paper-shuffles its way to a higher valuation.
China’s population peak hastens fiscal reckoning 5 May 2021 Officials enforced harsh birth limits and underfunded pensions based on overly rosy estimates for years. Beijing’s decision to delay releasing 2020 figures highlights the sensitivity. The government must now contemplate radical changes to policy far earlier than expected.
SJM is only edging out of Stanley Ho’s shadow 5 May 2021 A year after the death of its founder, the $7.2 bln Macau casino company has yet to open a new flagship resort, its market share is the lowest among peers and the board needs a shake-up. Daughter and Chair Daisy Ho has her work cut out to make sure the house wins again.
Long-suffering GE shareholders flex muscle on pay 4 May 2021 Most of the U.S. conglomerate's owners voted against top bosses' 2020 packages. That included $73 mln for CEO Larry Culp whose incentives the board repriced last August, showing the hollowness of giving up some of his base pay and bonus. It's a rare rebuke, richly deserved.
Customers can win, too, in big U.S. mergers 4 May 2021 It’s easy to doubt trustbusters’ ability to hold giant companies to account. But as railroads have shown, consolidation doesn’t mean that end users are gouged. Shareholders have won out, too, suggesting there is give-and-take. That’s the best regulators can hope for.
Bolloré makes tactical retreat in Italian foray 4 May 2021 The French billionaire has buried the hatchet with Silvio Berlusconi’s Mediaset, ending a wasteful five-year row. Bolloré’s Vivendi may not fully recoup its 1.2 bln euro investment in the broadcaster. At least the tycoon now has a freer hand to pursue his Italian telecom bet.
Drug giants offer pandemic recovery sleeper trade 4 May 2021 While vaccine makers flourished, companies like GSK, Novartis and Sanofi suffered during lockdown as fearful citizens postponed tests and avoided hospitals. The reopening should mean a surge in delayed treatments and give their depressed share prices a booster shot.
Ping An finds suitable rebound deal 4 May 2021 The Chinese insurance giant plans to buy most of Peking University’s bankrupt corporate empire, Founder Group, for up to $7.9 bln. Potential synergies will be welcome after a recent property investment mess. There are reasons to be wary, but Ping An also bounced back post-Fortis.
Evergrande breakup keeps banks’ fee party going 4 May 2021 The embattled Chinese developer paid Credit Suisse, UBS and others at least $275 mln since 2016, mostly to borrow heavily. That made it the region’s fourth most lucrative investment-banking client. Now its rush to cut debt by spinning off assets enables them to rake in more fees.
SPAC flips coin for $7 bln on biotech “platform” 3 May 2021 Roivant has built more than a dozen subsidiaries buying bigger companies' unwanted compounds. Results have been mixed. Now it's going public by merging with a blank-check vehicle. That may speed up its drug process, but the odds and rewards of success remain unknowable.
Blackstone fights time more than Oaktree for Crown 3 May 2021 It’s hard to see value in Oaktree’s plan to fund a buyback of founder James Packer’s 37% stake in the Aussie casino operator. And yet Blackstone is willing to absorb more regulatory risk. That suggests concern that as Crown’s crisis ebbs, the $6 bln bid’s appeal may too.