Panic buying scrambles tech circuitry 16 Oct 2020 The world's top contract chipmaker, TSMC, expects a 30% rise in sales this year. That’s flattered by customers from Apple to Huawei stockpiling semiconductors amid supply chain disruptions and U.S.-China tensions. Such hoarding makes it harder than usual to discern future demand.
Guest view: Latin America has a Covid-19 cash gap 16 Oct 2020 Economic weakness has helped make the region’s health crisis one of the world’s worst, write former Citibank Chairman William Rhodes and epidemiologist Cristina Valencia. Even if a vaccine arrives, the recovery will demand more direct funding from the international community.
Morgan Stanley dares to share with bankers’ pay 15 Oct 2020 As trading and deals revenue soared 24%, the sum earmarked for pay so far this year shot up 26%. Coughing up big bonuses in a pandemic is a perk of not being a giant retail bank. And when it comes to boss James Gorman’s rewards, Morgan Stanley looks comparatively restrained.
Teaching apps confront elephant in the classroom 15 Oct 2020 SoftBank’s call to buy a 9.7% stake in Kahoot! reflects a surge in demand for educational tech. But given users of the $2.7 bln Norwegian group’s app access it using Google, the U.S. tech giant may decide to develop its own version. That could at least limit stateside growth.
Corona Capital: Kazakhs, Norwegians, Airlines 15 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: Kaspi gives ECM bankers something to smile about; Norway’s sovereign wealth fund has a so-so third quarter; and United Airlines has more bad news on jobs.
Unibail activist riot leaves leaky roof exposed 15 Oct 2020 Telecom mogul Xavier Niel and the mall operator’s former CEO want to block its $4 bln rights issue. Their plan to sell the U.S. business instead would save money but is trickier if Covid-19 persists. Doubling down on Europe also leaves the group more at risk from online shopping.
Franco-Italian dance puts UniCredit on the spot 15 Oct 2020 Credit Agricole is in talks with 2 bln euro Milan-based lender Banco BPM. The French bank’s presence in Italy makes it a fitting partner. Yet political opposition to a foreign owner and the threat of a stronger rival may force the bank run by Jean Pierre Mustier to the table.
CICC seeks edge in increasingly cutthroat market 15 Oct 2020 The investment bank leading Ant’s IPO is planning a $1 bln secondary listing in Shanghai. It could fund mergers as officials push industry consolidation and help fend off Wall Street rivals. Local peers are also angling for super-broker status, making more capital essential.
Australia’s Crown trapped inside its gilded cage 15 Oct 2020 The $4 bln casino empire is facing intense regulatory scrutiny for allegedly dodgy dealings involving Chinese high-rollers. It puts a new resort licence in jeopardy. Billionaire James Packer also has conceded the ownership structure may need changing, but it could be a hard sell.
P&G learns climate rebuke is no longer glacial 14 Oct 2020 BlackRock joined other shareholders to reject the $359 bln firm’s claim that it does plenty to protect forests. Reporting on efforts to save trees is an easy ask that companies, like Exxon, have worked around. Still, it gives investors a launching pad to push for more.
Bank of America gets lemonade, makes lemons 14 Oct 2020 Volatility boosted profit across Wall Street. While Goldman Sachs made the most of it, Brian Moynihan’s bank missed the updraft. Trading securities is a minor part of the giant U.S. lender’s business. But as banks wrestle with low interest rates, keeping up with the pack matters.
VW bid for Tesla’s crown rests on shaky optimism 14 Oct 2020 The German carmaker has launched its first mass-market electric SUV to take on Elon Musk and hit CEO Herbert Diess’s goal of selling 3 mln EVs by 2025. VW has scale and is big in China. But Tesla has 15 years of battery know-how and no legacy auto business. It gives Musk an edge.
Corona Capital: Black Friday, JPMorgan’s new tower 14 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: Walmart’s Black Friday rejig makes for a curious experiment; JPMorgan goes all-in on New York real estate.
UniCredit spinoff offers a 3 bln euro reward 14 Oct 2020 CEO Jean Pierre Mustier may split the 16 bln euro bank’s German lender from its Italian business. A demerger could boost UniCredit’s stock by 20%, Breakingviews calculations show. In a deal with Commerzbank or outright sale to BNP or Santander, the returns could be even higher.
Aramco pipeline spinoff plan is born of necessity 14 Oct 2020 The $1.9 trln oil giant is echoing Abu Dhabi-based peer ADNOC by discussing a part-sale of its distribution network with BlackRock and others. Aramco’s foreign investors’ dividend is safe. But financing state payouts and other activities requires the $10 bln it could raise.
China Evergrande starts running low on options 14 Oct 2020 The property developer lost a fifth of its market value after a discounted stock sale raised only half the targeted $1.1 bln. Creditors also just cut the highly indebted company some slack. Boss Hui Ka Yan may be forced to accelerate asset sales to raise the capital he needs.
Bidders could bust G4S investors out of value jail 14 Oct 2020 Canada’s GardaWorld made a 3 bln pound hostile bid for the mishap-prone security group. U.S. rival Allied Universal is also interested. Either could pay over 4 bln pounds and earn a decent return, Breakingviews calculations show. Shareholders can hold out for a higher offer.
Ant’s IPO delay flags a recurring headache 14 Oct 2020 The Chinese fintech behemoth is being probed for using its Alipay app to collect subscriptions for mutual funds set up for its $35 bln listing. That’s unlikely to derail the process, but it’s a reminder of the risks Ant runs by constantly testing regulatory grey areas.
Chinese discount chain Miniso sells upscale IPO 14 Oct 2020 Now more than ever consumers should be attracted to the retailer’s fast-changing inventory of cheap-and-cheerful items. Overseas growth also looks promising despite the pandemic hit. A potential $6.2 billion valuation, however, would put a luxury price on designer dollar stores.
Disney cannibalizes its history to feed streaming 13 Oct 2020 The $226 bln entertainment giant is centralizing responsibility for the distribution and profitability of all content. That knocks powerful movie studios and sports channels down a few pegs. Theme parks will balance Disney's digital ambitions with a stake in the real world.