Corona Capital: China on Wall Street, Wind power 20 May 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. senators want Chinese firms to share their audited accounts – or face being kicked off American stock exchanges. Plus: why wind energy is the key to an economic and social, as well as environmental, resurgence.
Diageo can go on India bender for virtual pittance 20 May 2020 The liquor giant has built up a 56% stake in $5 bln United Spirits, which accounts for almost a fifth of its global sales and is growing fast. With the virus hitting the Indian firm’s valuation, Diageo has a chance to buy out minorities - even if it might cost its dividend.
Spotify’s $2.5 bln Joe Rogan bump has sound logic 20 May 2020 The Swedish music-streaming service’s shares surged after it signed an exclusive deal with the controversial podcast host. Rogan’s audience, probably about 10 mln strong, makes a mooted $100 mln licence fee seem reasonable, and even helps justify the huge rise in Spotify’s value.
Index makeover sets fresh benchmark for Hong Kong 20 May 2020 The main Hang Seng tracker is welcoming companies with secondary listings and dual-class shares, opening the door to Alibaba, Xiaomi and more. That will help diversify baskets overstuffed with banks and such. It also underscores the local bourse’s plight to attract tech startups.
Sony embraces its inner conglomerate 20 May 2020 The Japanese giant is buying the rest of its financial arm for $3.7 bln as part of a broader shakeup. A new holding company structure clumsily tries to reposition Sony beyond its electronics roots. At least it’s managing the sprawl while thumbing its nose at activist Dan Loeb.
To win, U.S. Treasury needs to be ready to lose 19 May 2020 The Fed’s $600 bln Main Street bailout is still not up and running. Among the hurdles are terms that banks may not like, partly due to the Treasury’s conservativism. Steven Mnuchin told senators he was willing to take losses. It's a necessary investment to reduce future trouble.
Jamie Dimon returns to a changed investor climate 19 May 2020 Shareholders fired warning shots at the JPMorgan boss, recently back from surgery. An investor’s push for better information on climate risk is close to passing. The largest minority ever wants an independent chairman. Dimon’s remaining years in charge might not be easy.
Moderna puts stock-sale opportunism to test 19 May 2020 The biotech pitching a Covid-19 vaccine joins a rapidly growing list of firms selling more shares to investors. It makes sense, given the market rebound, and some issuers’ need for cash. But the rush to sell by more speculative companies like Moderna should give buyers pause.
TikTok’s new boss will be hitting the road to D.C. 19 May 2020 Former Disney streaming-video exec Kevin Mayer is to become boss of ByteDance’s popular video app. He was the M&A maestro behind the Magic Kingdom’s acquisitions of Fox and the Star Wars empire. But he may have to learn some new moves to navigate U.S.-China tensions.
Walmart deserves credit for toilet-paper readiness 19 May 2020 Its biggest rival Amazon is still better at delivery services, which is key right now. But Walmart is ahead of the grocery game, and curb-side pickup will get a boost, too, even after lockdowns ease. And yet its stock is up half as much. Being in Jeff Bezos’ shadow has a price.
Corona Capital: Natural gas, Disney, Brazil 19 May 2020 Concise views on the pandemic’s corporate and financial fallout: Investors are too optimistic about natural gas; theme-park veterans take key roles at Disney; and Sao Paulo’s idea of bringing forward holidays to improve social distancing proves confusing.
Thyssenkrupp’s ‘bad bank’ needs speedy euthanasia 19 May 2020 The ailing German conglomerate is carving out loss-making units it can either sell or shut down. Such frank self-assessment is a solid step towards recovery. But with 2020 losses set to dwarf last year’s 400 mln euros, the quicker they’re put out of their misery the better.
Nomura circulates an awkward startup pitchbook 19 May 2020 Boss Kentaro Okuda unveiled his plan for a digitally savvy investment bank catering to entrepreneurs. Buzzwords like AI and disruptive growth accompanied slides full of arcs and arrows. The clunky approach only makes it harder to believe Nomura can pull off this belated strategy.
Uber-Grubhub’s big obstacle is delivery not price 18 May 2020 Some to-and-fro over value is normal in a potential merger. But for two money-losing companies with volatile stocks, financial tweaks are a second-order issue. The more critical question about combining their meal-delivery operations is whether antitrust watchdogs would block it.
Buyout barons will keep getting cake and eating it 18 May 2020 Private equity blowups like retailer J. Crew take on extra frisson in a crisis, because buyout firms themselves are benefiting from subsidized credit, low asset prices and tax loopholes. The cycle can continue while investors keep coming, and politicians have bigger fish to fry.
Carmakers’ green future gets revved up by Covid-19 18 May 2020 The virus has added pollution fears to climate-change concerns. That should be a boon for electric vehicles when production restarts. But cheap oil makes gas guzzlers look even more economical. State incentives like trading in clunkers for EV discounts would help tip the balance.
SoftBank’s clouds come with some silver linings 18 May 2020 A record $12.7 bln annual loss surpassed its warnings. But activist Elliott’s push is yielding results, funds are being spent less giddily and asset sales are on. The board is getting a revamp too, as Alibaba’s Jack Ma exits. The taming of boss Masayoshi Son is gaining traction.
JAB can go further to ease caffeine addiction 18 May 2020 At-home drinking has helped the group’s 25 bln euro coffee arm, JDE Peet’s, hold its value despite Covid-19. Listing a chunk will help pay down the unit’s debt. Still, JAB could sell further equity and use the money to build a portfolio less reliant on three big companies.
Corona Capital: Travel companies, Oil 18 May 2020 Concise views on the pandemic’s corporate and financial fallout: Travel companies have sunnier days; oil traders have triumph of hope over experience.
Sustainable investing’s virus halo is premature 18 May 2020 Environmental, social and governance-focused funds outperformed peers in the first quarter, new BlackRock research suggests. Steady inflows are encouraging given the fear investors would ditch ESG in a crisis. But one quarter alone is not enough to judge the sector.