India’s richest men become rural whipping boys 13 Jan 2021 New agricultural reforms will cut out middlemen and boost incomes, but some farmers are lashing out at businesses owned by Mukesh Ambani and Gautam Adani. Focusing on them is unfair, but the perception that the duo is taking over the economy makes them easy targets.
New World sets better template for climate bonds 13 Jan 2021 The Hong-Kong-based developer has sold sustainability-linked 10-year paper that carries a penalty for missing green goals. In a twist, its forfeit doesn’t go to investors via higher interest payouts but into carbon offsets. That’s better for the planet and the bonds’ credibility.
Chevron makes bet on being last man standing 12 Jan 2021 Mike Wirth, the $180 billion energy firm’s boss, thinks oil demand will stay strong. That contrasts with rivals like BP, which sees production down 40% by 2030. Chevron has the advantage of size. But plans to outlast or acquire rivals are risky in a rapidly evolving industry.
Even the 1% are poorly served by U.S. healthcare 12 Jan 2021 America overall spends heavily on medicine with little to show for it. Conventional wisdom holds that the most fortunate get world-beating care. But a new study suggests that in areas including heart attacks and maternal mortality, they lag average citizens in other countries.
Donald Trump administers tech oligopoly test 12 Jan 2021 The U.S. president said he was considering building a social media platform after his Twitter account was banned. If someone with around 88 million followers can’t find an alternative outlet, digital clout may be too concentrated. For Facebook and peers, it’s a no-win situation.
The Exchange: Sheryl Sandberg on banning Trump 12 Jan 2021 The Facebook COO sat down with Breakingviews’ Gina Chon as part of Reuters Next on Monday to explain why the social network has indefinitely blocked the U.S. president after he incited violence at the Capitol - and why it took so long for the company to come to this decision.
Sheldon Adelson’s biggest bet keeps paying out 12 Jan 2021 The casino tycoon, dead at 87, parlayed a trade show into a new Las Vegas business model by acquiring the storied Sands in 1989. A bold punt on Macau secured his fortune. Part of Adelson’s legacy will be backing Donald Trump, but his gambling ideas are spreading in Asia.
Renault overhaul requires Nissan governance grease 12 Jan 2021 CEO Luca de Meo will on Thursday launch an awkwardly named “Renaulution” to jump-start the French carmaker’s earnings. But his plan suffers from a lack of integration with its Japanese partner. Selling a stake in the Yokohama group can smooth uneven relations and rev up savings.
Corona Capital: Bond bonanza, Albertsons 12 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: U.S. companies' bond issuance in 2020 hits records across the board; and America’s No. 3 grocer continues to take advantage of the shopping habits created by Covid-19 lockdowns.
Moonpig IPO echoes last-minute Christmas card rush 12 Jan 2021 Lockdowns made the online greetings firm a hit with customers out of options. But a heady 1 bln pound valuation only looks valid if Moonpig can maintain virus-level earnings post-vaccines. That puts owners trying to cash out in a similar boat to hapless Christmas Eve punters.
Nio helps justify a little bit of the hype 12 Jan 2021 The Chinese electric-car maker unveiled a new sedan and plans for a battery pack with over 1,000 km range. That should smooth its fourth capital hike in seven months. So much needs to go right, though, to merit a $100 bln valuation that exceeds those of Ford, GM and Daimler.
Sea can pass on Southeast Asian deal frenzy 12 Jan 2021 The region’s hot tech companies, Tokopedia, Grab and Gojek, are mulling consolidation. Any of them could be swallowed by Singapore’s $106 bln gaming-to-shopping giant Sea which has a war chest of cash and rich stock. But boss Forrest Li has good reason to sit back.
Facebook’s four-point defense just about holds up 11 Jan 2021 COO Sheryl Sandberg laid out why the $730 bln social network is on the right side of history, from taking down bad actors to keeping small businesses alive. There are flaws in her argument, but Facebook has probably deflected the worst of the political fury.
Trump shows individuals’ worth to social networks 11 Jan 2021 Twitter permanently banned U.S. President Donald Trump’s account, citing the risk of further incitement of violence. That vaporized 10% of the company’s market capitalization. But as Kylie Jenner showed at Snap, social media groups are about more than any one person.
Casual-chic fad polishes Permira’s Dr. Martens bet 11 Jan 2021 The buyout firm will list the UK bootmaker after a seven-year turnaround. The IPO will also benefit from rising demand for informal wear, as workers stay home. Valued between peer Deckers and Moncler, the punk icon may be worth 3 bln pounds, roughly 10 times Permira’s investment.
Corona Capital: KKR/music, IMF 11 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Private equity giant KKR buys a stake in hip OneRepublic music royalties; and the International Monetary Fund half-heartedly bumps up its target lending cushion.
Tech and auto bosses form an awkward carpool 11 Jan 2021 Shares of South Korea’s Hyundai are up 30% on reports of a tie-up with Apple for self-driving vehicles. Selling software could ramp up margins for carmakers and alleviate technology headaches. But joining forces is a shortcut that could prove hazardous down the road.
Infrastructure funds get case of private jet envy 11 Jan 2021 GIP has outgunned rival Blackstone with a $4.6 bln bid for Signature Aviation, offering a 51% premium for the aircraft servicer. Catering to the flying habits of the mega-rich is hardly a stable business, though, and private aviation faces climate-change clouds on the horizon.
Becoming a bank would shrink but not squash Ant 11 Jan 2020 Regulators are set to treat Jack Ma’s financial group more like a regular Chinese lender. Though it has enough capital to support its online credit business, growth would be crushed. A bank-like valuation would imply it’s barely worth a tenth of its previous $300 bln price tag.
Chinese delisting push warrants some jumps too 11 Jan 2021 The dizzying reversals on what to do with three telecom operators has settled on ousting them from the Big Board. Other state-backed companies may be targeted too by Washington. Most derive little benefit any more from their NYSE presence. It’s time to pack up anyway.