Consumer Products and Services

Battle for Russia’s Amazon crown is heating up

5 June 2020

The country’s biggest lender Sberbank may buy a 30% stake in online marketplace Ozon after untangling itself from rival Yandex. The deal could value it at more than $2 bln. There’s room for both players in a market enjoying a Covid-19 boost, but the usual political caveats apply.

JD stock sale helps illuminate China’s have-nots

5 June 2020

The $70 bln Beijing-based online retailer will be next with a second listing, in Hong Kong. Others are bound to follow, but not all 175 trading on New York exchanges can access this safety valve from a U.S. backlash. Some may need to go private and hibernate for a while.

Make-up artist’s star power tested by $1 bln tag

4 June 2020

That’s how much Puig is close to paying for Charlotte Tilbury’s cosmetics company, Bloomberg reports. Famous friends and e-commerce helped the entrepreneur boost sales. To justify the price, the Spanish perfumer needs to lift margins after Covid-19, without smudging the brand.

Europe’s frenzied mall openings hide harsh reality

3 June 2020

Shares in landlords like Unibail-Rodamco-Westfield and Klepierre jumped after they reopened shopping centres. Queues outside IKEA suggest pent-up demand. But fewer shoppers and shorter visits will mean lower retail rents. Investors appear to be pricing in a 50% decline.

Kylie Jenner teaches Coty celeb value is cosmetic

1 June 2020

The perfume maker’s stock fell after Forbes suggested the TV star, who sold 51% of her makeup brand to Coty last year, had exaggerated her wealth. Coty had overpaid either way. But the drama exposes the folly of companies buying brands whose value they can’t really control.

Corona Capital: Saving/not spending, Pandemic Pig

29 May 2020

Concise views on the pandemic’s corporate and financial fallout: what to make of falling spending and the growing taste for meat alternatives.

Boohoo’s shopping spree needs to nail more looks

28 May 2020

The $5 bln UK online fashion group is buying out minority investors in peer prettylittlething for $400 mln. The fair price counters short-seller warnings of an overly generous payout. Yet the retailer will need to stretch beyond skin-tight tat to justify its own rich valuation.

JAB’s $23 bln coffee unit is priced to take away

26 May 2020

The investor is offering shares in JDE Peet’s at a decaffeinated 20% discount to Nestlé. Consumers stuck at home are giving packaged brands like Kenco a boost, but prices per cup can still grind higher when cafes reopen. Europe’s biggest float this year can brew a robust return.

Corona Capital: Perpetual WFH, Macy’s

21 May 2020

Concise views on the pandemic’s corporate and financial fallout: Facebook and its peers consider making working from home the new normal, while Macy’s gives an insight into a corner of the retail market that was struggling even before the pandemic.

Xiaomi making the most of the crisis

21 May 2020

Rolling out a 5G model during China's lockdown paid off for the online-savvy handset maker. First-quarter sales increased 14% from a year earlier, to $7 bln. Serious setbacks for rival Huawei and virus-powered interest in home gadgets should help sustain the impressive growth.

J&J talc is a dry run for pandemic product risk

20 May 2020

The U.S. firm will stop selling talcum powder in the U.S. amid what it calls misinformation about its safety. That’s no big loss. But avoiding lawsuits can also deter companies from taking risks that aid the common good. Vaccines are an example, but the line isn’t always clear.

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.

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.

Credit card habits show rich vs. poor conundrum

15 May 2020

JPMorgan’s average U.S. cardholder spends 40% less since Covid-19 struck, with the wealthiest cutting back most. Richer borrowers will return, though. A bigger problem is lower-income customers who lean on plastic for essentials. They may find credit even more elusive in future.

Las Vegas Sands exit indicts Japan’s gaming plan

14 May 2020

Sheldon Adelson's firm is scrapping a $10 bln project to open a casino in the country. Short licensing periods, tough government requirements, high costs and reluctant banks are deterring the best operators. It’s a bad omen for Tokyo’s gambling tourism ambitions.

Tencent’s post-pandemic vision looks too normal

13 May 2020

Mobile games sales surged 64% to $5 bln in the first quarter. That one-off gain will fade as Chinese people return to offices and schools. Yet where rivals Alibaba and ByteDance are betting on new opportunities, Tencent seems overly focused on returning to business as usual.

Sony gets an extra life from bored video gamers

13 May 2020

Quarterly operating profit fell 57% as the coronavirus hit everything from electronics to financial services. But its gaming unit beat forecasts thanks to people on lockdown playing Marvel's Spider-Man. News that the PlayStation 5 is on track will be welcomed by investors too.

Coty applies KKR’s cash to cover deal scars

11 May 2020

The private-equity firm will pay $3 bln for a majority stake in brands Coty bought from P&G for $12.5 bln. A direct investment of $1 bln in Coty will further tone down its crushing debt load. It's a loss of face – but not quite of control – for parent JAB.

Corona Capital: Tequila sales, U.S. healthcare

11 May 2020

Concise views on the pandemic’s corporate and financial fallout. Sales of Mexico’s famous liquor soared in April – though not enough to take more than an edge off as the country’s economy falters. And the Amazon-Berkshire Hathaway-JPMorgan healthcare venture may need a new boss.