China’s Xi has precious opportunity to clean up 4 Dec 2020 From property to cars to chips, President Xi Jinping is pushing new rules to defuse risks and reallocate capital. It echoes his forceful effort to deleverage the economy in 2017. With world leaders distracted by the pandemic, Xi can endure more disruption this time around.
Japan Inc confronts limit of corporate carbon cuts 4 Dec 2020 Companies including Sony are lobbying for more renewable power in Japan. They need to satisfy clients like Apple, who have committed to carbon-neutral supply chains as soon as 2030. But even an edict from the $2 trln tech titan can’t force change where policymakers lag behind.
Stripe lobs chum into Wall Street’s turbid waters 3 Dec 2020 Goldman Sachs, Citi and Barclays are all partnering with the online payment upstart to garner deposits and fees from merchants who use it. For Goldman this is a land grab; for others it’s defensive. An added attraction may be the potential to bring Stripe to market – or buy it.
Burger King’s cooks could use a new recipe 3 Dec 2020 Restaurant Brands International prospered after buying the fast food chain. But its Tim Hortons outlet, which is planning a UK push, drags on the $27 bln group’s valuation. Investors 3G and Pershing Square are experts at cooking up deals. It may be time to change the menu.
Blackstone upends bond history with Ancestry.com 3 Dec 2020 The genealogy provider is disenfranchising large creditors in a $1.2 bln debt deal helping to fund the private equity shop’s buyout. Bondholders could push back in the future, but they can’t afford to sit out in a liquidity-drenched market. Issuers will keep their upper hand.
Daimler could be Elon Musk’s Time Warner 3 Dec 2020 AOL merged with the media group back in 2000, parlaying its bubblicious share price into an old-line business. Electric-car maker Tesla, worth an eye-popping $540 billion despite a puny 0.8% global market share, could do something similar. The Mercedes owner is the best fit.
Payments is a wrinkly bow on Walmart’s India deal 3 Dec 2020 PhonePe was an afterthought when the U.S. retailer bought it with Flipkart in 2018. Now the star money-transfer app is being partially spun out of the e-tailer at a $5.5 bln price tag. It’s a deliberately conservative valuation for a business with enormous potential.
Vaccine bottlenecks are main obstacle to recovery 3 Dec 2020 Rolling out Covid-19 jabs, as the UK will do next week, protects the vulnerable and lets authorities ease restrictions. But the logistical challenge means it could take a year to immunise two-thirds of the population. Other governments, too, will struggle with a sceptical public.
Viewsroom: Biden’s money team, Bank boss shuffle 3 Dec 2020 The American president-elect has put forward a diverse and competent team of people to oversee economic policy, including Janet Yellen at Treasury. Across the pond, European banks engage in a bit of CEO and chairman musical chairs. Breakingviews columnists dig in with Rob Cox.
Corona Capital: Chevron, Boeing, OPEC, Orange 3 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Chevron cuts spending, prudently; Boeing orders are a solid step; OPEC makes up its mind; and Orange’s Belgian deal has some juice.
Tui’s third bailout puts German taxpayers in shade 3 Dec 2020 Europe’s largest tour operator has secured a state-backed 1.8 bln euro rescue to ensure it survives until 2021. Shareholders face dilution but creditors get bailed out. By taking non-voting stock and capping any future stake, the government misses out on the benefits of recovery.
Macquarie plays it safe with U.S. takeover 3 Dec 2020 The Aussie financial conglomerate is buying asset manager Waddell & Reed for $1.7 bln in Shemara Wikramanayake’s first big deal since becoming CEO two years ago. It expands a business in her wheelhouse at a reasonable price. There is cleanup work to do, but it ticks enough boxes.
China delisting plan sinks teeth into wrong places 3 Dec 2020 A proposal to boot foreign companies off U.S. exchanges if they don’t comply with auditing oversight is on its way to becoming law. It’s a fair demand, but targeting CCP members misses the mark as does giving others a free pass. The bill goes both too far and not far enough.
Gary Cohn channels Goldman minus self-awareness 2 Dec 2020 The ex-COO is sitting on $10 mln the Wall Street firm wants back as a rap for its 1MDB scandal. Even if he’s on safe legal ground it doesn’t look good for him or for Goldman, which calls its staff “culture carriers.” Cohn’s former employer at least knows when a gesture is needed.
DoorDash delivers mixed messages for Just Eat 2 Dec 2020 On the one hand, the U.S. market leader's $27 bln pre-IPO valuation suggests Just Eat got a bargain buying Grubhub. On the other, cut-throat competition led by DoorDash has cost Grubhub market share and profit. The American home-delivery recipe isn't yet long-term tasty.
Cox: Mediobanca could be UniCredit’s white knight 2 Dec 2020 Italy’s No. 2 lender was rocked by the ouster of its French CEO amid fears of government meddling. It needs new management, more fee income, scale and protection from Rome. Alberto Nagel’s smaller Milan investment bank offers all four. Come si dice “reverse merger” in Italiano?
Corona Capital: Merck sells Moderna stake 2 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: The U.S. drugmaker is banking its winnings on an investment in Covid-19 vaccine producer Moderna that dates back to 2015.
GardaWorld opens door for G4S escape 2 Dec 2020 The Canadian security firm raised its bid for the UK group to 3.7 bln pounds, having argued much less was fair on Monday. The new price is hardly a knockout either. CEO Stephan Cretier’s erratic handling of the offer and a possible counterbid give investors reason to hold out.
SoftBank derivatives U-turn fuels governance hopes 2 Dec 2020 CEO Masayoshi Son will ditch an unpopular options strategy, Bloomberg reported, only months after launching it. That’ll please investors who want the Japanese group to focus on asset sales and share buybacks. Their next target should be his $17 bln portfolio of technology stocks.
Healthcare IPO examines value of China’s big tech 2 Dec 2020 The unit of e-commerce giant JD priced its $3.5 bln offer at a reasonable 13 times sales. Virtual consultations and pharmacies are booming, supporting an official push for a healthy China. It’s a timely reminder that powerful internet platforms have valuable uses for Beijing.