Vaccine shoves open door for year-end capital rush 10 Nov 2020 Hopes of Covid-19 immunity lifted markets, giving stricken companies like Lufthansa and Carnival a new chance to tap investors for funds. With December looming, there’s little time for prolonged equity offerings. Instead, firms may raise smaller sums or issue convertible bonds.
Corona Capital: Salvatore Ferragamo 10 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Faded heels-and-loafers brand Salvatore Ferragamo could benefit from a coronavirus vaccine-induced return to airport shopping, but the Florentine fashion house would still need a makeover.
Activists shove Unibail towards chastening Plan B 10 Nov 2020 French mogul Xavier Niel blocked the mall owner’s planned $4 bln rights issue. That’s embarrassing enough for Unibail boss Christophe Cuvillier. But the only realistic way to fix the balance sheet holes from the Westfield acquisition he masterminded is to sell valued U.S. assets.
China hangs its sharpest sword over online giants 10 Nov 2020 Hot on the heels of a regulatory halt to Ant’s IPO, antitrust watchdogs unveiled draft rules targeting e-commerce and other sites owned by Alibaba and peers. The details cover everything from offshore structures to big data. Beijing’s reckoning with tech titans could be bloody.
Aramco-Reliance is one deal too strategic to fail 11 Nov 2020 The Saudi oil giant’s imputed $75 bln valuation of Mukesh Ambani’s oil-to-chemicals unit last year now looks rich given weak demand and crude prices. That could mean terms get tweaked for the 20% stake sale. But the long-term significance for both sides will help get it done.
Chinese vaccine developer flags corporate disease 10 Nov 2020 Sinovac’s promising tests to confer Covid-19 immunity just hit a snag. Investors are stuck because the shares have been halted since last year amid an epic saga featuring a buyout attempt, boardroom coup and poison pill. These governance trials are worth watching closely too.
Beyond Meat serves up double helping of ineptitude 10 Nov 2020 The plant-based burger maker posted a surprise loss, as an earlier sales surge turned out to be partly due to panic buying. Beyond Meat also can’t say whether a new venture with McDonald’s is a threat or an opportunity. The company could end up as lunch, in more ways than one.
Pfizer’s valuation boost is more hope than science 9 Nov 2020 Good news over its Covid-19 vaccine added over $20 bln to the drugmaker’s market valuation in a day. That would only make sense if 40% of the world receives it and pays full price. Still, Pfizer may now get a kinder hearing next time politicians take aim at high drug prices.
The Donald Trump show will continue broadcasting 9 Nov 2020 The president may have lost the White House. But an army of Twitter followers and right-wing media will ensure him a platform. That will serve his many interests, from boosting his businesses and staving off looming debt payments to acting as a thorn in the side of his successor.
Corona Capital: Warren Buffett, Burger boost 9 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Rising share prices take the sting out of Berkshire Hathaway’s Covid-19 profit hit; and McDonald’s reports a good quarter for American nugget-lovers.
SoftBank $97 bln cash pot is activist battleground 9 Nov 2020 That’s how much firepower CEO Masayoshi Son reckons his company will have after selling assets. He favours investing in artificial intelligence while pushy investor Elliott might prefer buybacks. Given the $130 bln company’s persistent discount, the latter makes far more sense.
Foxconn hitches bumpy ride with electric vehicles 9 Nov 2020 The $39 bln iPhone-assembler wants to supply parts for 10% of the world’s green cars by 2027. The stakes are high as the company weans itself from a dependency on Apple. Founder Terry Gou’s electronics expertise and deep pockets, though, puts it in a strong starting position.
Look past Chinese makeup IPO’s glossy sheen 9 Nov 2020 Unprofitable Yatsen wants to raise money for deals and data analysis. Its hot Perfect Diary line reflects tech nous targeting millennials and their growing appetite for local brands. Comparable sales multiples imply a $7 bln valuation, but that’s before applying a fad discount.
Corporate America prepares for life in purple 7 Nov 2020 From finance to tech to weed to transport, companies have had plenty of time to consider what a Joe Biden presidency means. Without a clear Senate shift one way or the other, legislative gridlock appears likely. Here is what the 2020 election will mean industry by industry.
Corona Capital: Cars, Kalashnikovs, Houses 6 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Japanese carmakers put their feet down thanks to China’s bounceback; Russia’s Kalashnikov gets a new owner; and rich-country housing markets look surprisingly cheery.
Richemont hedges online bets with Farfetch stake 6 Nov 2020 The Cartier owner is investing $550 mln in the deluxe fashion e-tailer, alongside Alibaba. That should help Richemont grab a larger share of China’s booming e-commerce market. But betting on a competitor of its own struggling online unit also looks like an admission of failure.
Bank investors blithely bet on benign EU lockdowns 6 Nov 2020 Shares in lenders like Deutsche Bank, Lloyds and BNP are higher than a month ago despite new restrictions in Germany, Britain and France. Short, mild quarantines may indeed leave them unscathed. Yet that’s a risky bet since past predictions of a “V-shaped” recovery were wrong.
Alibaba will feel the Ant sting 6 Nov 2020 The e-commerce giant’s close ties with the fintech company are now weighing on its $780 bln valuation. Ant’s yanked IPO and Beijing’s new credit rules come as growth at Alibaba’s core shopping business slows. Boss Daniel Zhang will have to start pulling harder on other levers.
Macquarie hits limits of diversification 6 Nov 2020 The $34 bln Aussie financial conglomerate suffered a 32% fall in half-year net profit as its investment bank generated a rare loss. Boss Shemara Wikramanayake likes to trumpet the array of revenue sources, but even done well, the business model provides only so much of a buffer.
Fox-Disney deal creates a new greater fool 5 Nov 2020 Sinclair has written down the value of sports networks it bought from Walt Disney by over $4 bln. The Magic Kingdom had acquired them in its overpriced carve-up of Rupert Murdoch’s media empire. That leaves a wily Fox, a lucky mouse, and a hapless Sinclair holding the bag.