Picture this: Netflix and Amazon buy cinema chains 22 Dec 2020 The tech giants’ streaming services have become more powerful with people cooped up at home. But competition has intensified, and theatres remain an important marketing channel. To extend their leads, bundling box office access with a subscription serves as a key differentiator.
Big Tech’s gaming gamble will call for M&A 22 Dec 2020 Google and Amazon want to do to video games what Netflix has done to television. Their cloud-based gaming services face technical challenges, but the bigger test is luring gamers from established platforms like Microsoft’s Xbox. Acquisitions are the fastest way to the next level.
China’s economic triumphalism gets harder to take 22 Dec 2020 Quick Covid containment let the People’s Republic restart factories ahead of other countries. That helped its companies grab export share at others’ expense. A resurgence of overseas M&A could come next, and struggling economies will find it harder to resist Beijing’s capital.
Face-to-face business habits will die hard 22 Dec 2020 Zoom and its ilk have helped virtual deals and roadshows cost less in cash and jetlag. Going digital also should expand the pool of board directors and make shareholder meetings more inclusive. Even so, plenty of work that moved online in 2020 will revert to the real world.
Hainan luxury license rubs salt in Hong Kong wound 22 Dec 2020 Top marques are betting affluent Chinese tourists will stick around the island province’s new duty-free stores after the pandemic. That shift would probably come at the expense of nearby Hong Kong, long favoured by mainland shoppers. Unfortunately Beijing doesn’t seem to care.
MRNA is a $120 bln bet on platform, not vaccines 21 Dec 2020 This emerging biotechnology has delivered two Covid-19 jabs with miraculous speed, pushing firms like Moderna and BioNTech to big valuations. The new year will see these companies doused with even more money, which will help efforts to treat cancer or rare diseases post-pandemic.
The Exchange: American banks and the urge to merge 21 Dec 2020 U.S. financial institutions have increasingly been teaming up to take on the big four: JPMorgan, Citigroup, Bank of America and Wells Fargo. Bruce Van Saun, chief executive of Citizens Financial, one of the top regional lenders, discusses post-pandemic banking with Rob Cox.
China Inc will recycle used white guys 21 Dec 2020 American firms are pushing to make rosters more inclusive. That, plus downsizing, will shove skilled – if Caucasian – older male managers and experts into the job market. Chinese firms seeking IP and insight into U.S. markets will scoop them up. It could work better than M&A.
Bank buybacks are a Fed gift nobody needs 21 Dec 2020 The central bank will let lenders resume some stock repurchases, but with limits on how much. It’s no great sacrifice: buybacks are good for earnings per share, but they don’t obviously create value. And it’s not like investors can obviously spend the money better themselves.
Corona Capital: Vaccine dibs 21 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Vaccine prioritization is about to get competitive.
Governments are new activist investor on the block 21 Dec 2020 The pandemic has freed states to roll back decades of reduced investment in business. Bailouts have bequeathed stakes in distressed companies, while security concerns are encouraging politicians to inject capital into startups. Good governance needs to be on the agenda in 2021.
Big Oil will cash in on sun and wind 21 Dec 2020 Covid-19 and ESG have crushed the stock prices of companies like Total and BP. Listing their growing renewables businesses would help capitalise on inflated valuations. There’s a hedge of sorts: if the spinoffs don’t work they can be bought back on the cheap, Iberdrola-style.
Rusal’s Deripaska discount makes partial return 21 Dec 2020 The aluminium group’s Hong Kong shares fell after a Bloomberg article claimed former controlling shareholder Oleg Deripaska still exerts influence. Rusal and holding company En+ deny that he does. So far, investors are not taking fright like they did in April 2018.
Grab CEO will step into 2021’s tech limelight 21 Dec 2020 Anthony Tan has steered his $15 bln super-app through the pandemic. With growth in digital payments booming across Southeast Asia, Grab is now charging into wealth management and digital banking. A mooted merger with rival Gojek will only cement Tan’s rising star status.
Next Hong Kong bourse boss should resist deal urge 21 Dec 2020 Stock exchanges are buying each other and data giants like $27 bln Refinitiv, activity that tempted outgoing HKEX chief Charles Li. Providing a gateway to China, however, is the company’s special sauce. Capital and attention are best focused on the rising threat from Shanghai.
Big Tech pile-on could block future moon shots 18 Dec 2020 Google is now deluged by three U.S. lawsuits, claiming it’s abusing market power. Facebook faces its own challenges against government prosecutors. The duo may beat back the charges but, like Microsoft in the 1990s, too much distraction could make them miss the next big thing.
Corona Capital: Holiday Zoom 18 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: The video call company is removing the 40-minute time limit on free calls for the holidays – a gift it can easily afford, and one that may not be appreciated.
Big Pharma’s vaccine immunity will be fleeting 18 Dec 2020 Groups like Pfizer and AstraZeneca are emerging as pandemic heroes. Their ability to rapidly test, make and distribute vital doses will help quiet the industry’s critics. However, universities and governments also played a big part. Pressure to slash drug prices will soon return.
Philips’ cardiac deal carries heart-stopping price 18 Dec 2020 CEO Frans van Houten agreed to buy U.S. group BioTelemetry for $2.8 bln including debt. It’s wise to push further into “telehealth”, where doctors treat and monitor patients remotely rather than in hospital. But the valuation he’s paying will make it hard to earn a good return.
Ominous iron ore seam opens in Aussie trade row 18 Dec 2020 Chinese state buyers are griping about how the steel ingredient is priced as officials Down Under debate an export tax. Beijing already has targeted wine and other imports. The idea that miners BHP and Rio might get dragged into the spat can no longer be discounted.