ByteDance will bust a softer groove without TikTok 21 Jul 2020 Political pressure from Washington could prompt a sale of the video app, curtailing the global ambitions of $140 bln Chinese parent ByteDance and erasing a fifth or more of its value. TikTok’s local equivalent, plus news, music and other apps, will help it retain viral appeal.
Crisis forces Australia and China closer 21 Jul 2020 Despite diplomatic tension, miners BHP and Rio are cashing in on Beijing's infrastructure stimulus. Supply disruptions in Brazil and weak global demand have left the two trading partners even more dependent on each other. Politics can’t change facts under the ground.
Rosetta Stone cracks code as autopay pusher 20 Jul 2020 Though the $500 mln online language tutor’s shares peaked 10 years ago, the stock has been on a tear since mid-March, helped by deal rumors. Like gyms, users ignore small monthly payments once they sign up for an improved or enlightened self. That is, until wallets get squeezed.
Chevron snags Noble deal thanks to Anadarko miss 20 Jul 2020 The oil giant, which let Occidental impale itself on Anadarko last year, is lobbing a scant 7% premium for Houston’s $5 bln Noble Energy. While driller shares have rebounded, savings alone will account for half the bid’s value. Chevron can even afford to keep interlopers at bay.
Ant IPO puts Chinese bourses on collision course 20 Jul 2020 Jack Ma's $200 bln fintech group wants to list in Hong Kong and on Shanghai's hot STAR market. Ant can find global investors and hard currency in the former, and higher valuations in the latter. Having to share coveted tech listings, however, ups their rivalry several notches.
Seller wins in eBay’s $9 bln classifieds auction 20 Jul 2020 Norway’s Adevinta, controlled by media conglomerate Schibsted, won the race to buy the U.S. group’s online-listings business, Reuters reported. It may struggle to make a decent return. EBay, however, gets a good price and the chance to gain from likely consolidation in Europe.
Corona Capital: Uber, Tokyo Olympics 20 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Uber’s contact-tracing program could help stem Covid-19’s spread and mend relationships with municipalities; and Japan PM Shinzo Abe faces discontent over his handling of both the virus and the postponed Olympics.
Intesa’s UBI sweetener may be just enough 20 Jul 2020 Italy’s largest bank added an 18% cash top-up to its unsolicited offer for the smaller lender, lifting the price to 4.2 bln euros. Even after the hike, Intesa should make an attractive return. UBI shareholders hoping for more also have to consider the downside if the deal fails.
Wirecard’s red flags offer lessons for investors 20 Jul 2020 Shareholders couldn’t have known that $2 bln of the payments group’s cash was missing. But its seemingly unnecessary reliance on debt finance raised questions. A weak board and short-term executive pay packages were further warning signs. All three serve as a teachable moment.
Natixis buyout would be poor pandemic hedge 20 Jul 2020 French lender BPCE says it’s not planning to buy the remaining 29% of the investment bank. Offering for less than Natixis’s 13.6 bln euro book value could give its owner an extra buffer against Covid-19 losses. But the deal lacks synergies and any capital benefits would be small.
Indian syndicate’s sprawl smells of desperation 20 Jul 2020 A $42 bln housing lender, HDFC, hired a record 19 banks to raise $1.9 bln, says IFR. It suggests the well-capitalised issuer is worried liquidity flows might dry up soon as India’s pandemic keeps burning. The fee-starved advisers are settling for scraps. Neither is a good sign.
Huawei might starve overseas before it sells 20 Jul 2020 The Chinese telecoms kit maker is under renewed attack from Downing Street to Washington. Founder Ren Zhengfei has mulled divesting intellectual property, but buyers for that, or for overseas handset or network units, are few. Nor will Beijing permit a sale that looks like defeat.
Review: Market twists and turns, unraveled 17 Jul 2020 In a new book, “The Long Good Buy,” Goldman Sachs’ top equity strategist breaks down investment cycles and offers much needed historical perspective. It helps make sense of today’s head-scratching market and the asset total gyrations at the likes of giant fund manager BlackRock.
Equality is failing at shareholder ballot box, too 17 Jul 2020 Investors rarely push for votes advocating greater diversity and garner little support when they do, in part due to financial-industry demographics. George Floyd’s death may change that. But firms have a lot of latitude to downplay investor votes – unless they’re about pay.
Wall Street pay heads towards danger zone 17 Jul 2020 Morgan Stanley, Goldman Sachs and JPMorgan socked away at least 33% more for investment-bank bonuses after bumper results last quarter. It looks reasonable given revenue gains. But huge paydays on the back of Fed largesse in an economic slump risk a return to public opprobrium.
Corona Capital: Newspapers, 747s 17 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Congress may dangle newspapers a lifeline; British Airways brings its fleet of jumbo jets in for a final landing.
Cox: Happy anniversary to Breakingviews readers 17 Jul 2020 It was 20 years ago today Hugo Dixon taught the band to play. Finance has changed. The media business been turned upside down. Yet punchy, agenda-setting commentary has only become more relevant to professionals. We’ve gone global and expanded our coverage but kept our values.
Chip champ jumps into Shanghai-Hong Kong value gap 17 Jul 2020 Dual-listed SMIC's mainland shares debuted at four times the price of its Hong Kong equivalent. Other peers trade at similarly ridiculous premiums. Mainland traders still struggle with valuing companies, while Beijing’s incomplete reforms keep the markets out of sync.
Toshiba mistakes activist opportunity for a threat 17 Jul 2020 The $15 bln conglomerate says that allowing pushy Effissimo to install directors would create conflicts of interest. Since overhauling the board, however, Toshiba’s performance has underwhelmed. Adding its biggest investor would be a confident move for the company and Japan Inc.
Netflix is still the pointiest FAANG 16 Jul 2020 Subscriber growth is slowing and Reed Hastings has decided to share the CEO role. After a 60% share-price rise this year — well ahead of Facebook, Alphabet and Apple – that clashed with sky-high expectations. But Netflix remains well placed, even if TV-viewing is reaching a peak.