Consumer Products and Services

Aramco sale would grease Mukesh Ambani’s tidy-up

18 April 2019

The Saudi oil giant is eyeing a stake in the energy assets of the tycoon’s $127 bln Reliance Industries. That would aid Aramco’s strategic ambitions. It would also mean India’s biggest listed group could keep expanding its consumer-to-oil businesses without adding too much debt.

Unilever could use a few Nestlé diet tips

18 April 2019

Decent first-quarter revenue growth at both consumer giants means their 2020 margin goals can live another day. But Unilever’s foods business expanded just 1.5 percent organically compared to 3.4 percent overall at Nestlé. The Anglo-Dutch group needs to overhaul its pantry.

Danone leaves itself little room for error

17 April 2019

The 48 bln euro yogurt maker’s first-quarter sales rose 0.8 pct organically, in line with expectations. Danone expects that to accelerate, but missteps could threaten the company’s full-year target of 3 percent. Any shortfall could encourage attention from activists.

Nippon Paint buys pricey pot of Aussie gloss

17 April 2019

The Japanese brand is paying $2.7 bln for DuluxGroup, sending its Australian peer’s shares to record highs. The hefty premium reflects a shortage of targets and the buyer’s eagerness for expansion. Given a cooling economy Down Under, it may have been better to keep the brush dry.

BofA boss’s next challenge is to ditch mediocrity

16 April 2019

It has taken Brian Moynihan almost a decade to shake off the $280 bln mega-bank’s crisis hangover. He has turned BofA into one of the country’s most efficient banks. While it’s now solidly profitable, though, matching JPMorgan’s bumper returns is a whole other level of difficulty.

Apple supplier’s rescue leaves Japan red-faced

15 April 2019

An investor group is buying two thirds of Japan Display for $714 mln, an embarrassingly low price for a former national champion. The company will fall into foreign hands, some of them Chinese, which could raise red flags. Managers have little choice but to pray the deal closes.

Africa phone king is China’s tech star in waiting

15 April 2019

Little-known Transsion stands out among those waiting to IPO on Shanghai's new board. The Chinese handset maker has strong Belt and Road credentials as the top brand in the last frontier. With striking similarities to Xiaomi’s early years, there’s plenty to get excited about.

Viewsroom: Wells Fargo searches for a leader

11 April 2019

The U.S. bank may be tempted to recruit from splashy peers like Goldman Sachs. But there are better reasons to poach from smaller firms. Meanwhile, the $170 bln Chinese liquor maker Kweichow Moutai is worth more than Diageo. Breakingviews columnists discuss the firewater’s draw.

LVMH sales fizz is sign of strong getting stronger

10 April 2019

Like-for-like sales at the 165 bln euro luxury giant grew a chunky 11 pct in the first quarter. The “buoyant” performance defies both slowing global economic expansion and trade tensions. It’s a good omen for other fashion conglomerates, but not for weaker single-brand rivals.

Levi Strauss schools Big Tech on IPO success

10 April 2019

The $9 bln jeans maker reported a healthy profit in its first results since going public last month, giving the stock a fresh boost. It now trades 35 pct above its initial offering price. Levi’s may not be flashy, but the company delivers the goods better than the likes of Lyft.

Dan Loeb can help Sony handily sharpen its picture

10 April 2019

The activist’s return to the $60 bln PlayStation-maker provides a catalyst to break the company into a pure-play chips business and a more-focused entertainment group coveted by Apple, Amazon and Netflix. By exiting phones and selling insurance, it can also better compete.

China’s firewater punch diluted by a political put

9 April 2019

The $170 bln Kweichow Moutai is now worth about as much as Diageo, Pernod, Campari and Remy combined. Eye-popping earnings and foreign interest have fuelled a 50 pct stock price surge this year. But officials in Beijing keep its valuation from reaching maximum intensity.

Japan Post’s insurer returns with better packaging

9 April 2019

The postal operator is offloading $3.5 bln of Japan Post Insurance stock. It gives funds to a seller known for dubious M&A. Investors are offered a company at a cheaper valuation and in better health than when this fiddly privatisation process kicked off in 2015.

British fintech shows perils of pioneer status

5 April 2019

Funding Circle shares fell 7 pct after investors in the peer-to-peer lender’s listed fund asked for their money back. The reaction seems excessive, as the vehicle accounts for a fraction of loans. The $1.5 bln group’s short record and lack of listed rivals makes investors jumpy.

Toyota takes Prius joyride to eventual dead end

4 April 2019

The $170 bln Japanese automaker will open some 24,000 hybrid-related patents to rivals. Such technology may be headed for obsolescence as policymakers push for even cleaner options. For now, Toyota puts itself in better position to navigate the tortuous road to electrification.

Two big clouds eclipse Samsung’s silver lining

3 April 2019

South Korea's $270 bln chipmaker already flagged a dismal first quarter because of a glut. Fewer competitors mean supply cuts could more readily lift prices. But Samsung investors may be underestimating the risks of both stockpiled inventory and weaker demand from new industries.

Airbnb’s Indian rooms alliance checks out

1 April 2019

The $31 bln home-sharing app is investing in no-frills lodging chain Oyo. Both are flourishing in the world’s two largest emerging markets, clipping at the heels of established operators. Joining forces will add zest to Airbnb’s mooted IPO, and gives its smaller peer a U.S. lift.

Shareholders suffer in EssilorLuxottica civil war

28 March 2019

Chairman and top shareholder Leonardo Del Vecchio is taking his conflict with the eyewear giant’s management to an arbitration court. The open warfare will slow merger integration at the 41 billion euro company. Investors are already counting the cost of infighting.

Lyft takes Japanese backer Rakuten on new ride

28 March 2019

An IPO valuing the U.S. taxi app at up to $24 bln warrants a fresh look at its biggest shareholder. Lyft will now account for about a fifth of the sprawling Rakuten’s market value. Even with a SoftBank-lite investment success, however, the scattershot approach looks shaky.

Equifax and FICO give hackers a bigger target

27 March 2019

The U.S. credit-scoring firms are teaming up to offer banks new ways to judge borrowers’ soundness. Fresh metrics could help some get credit more easily. But a wider trove of data collected without its subjects’ consent, and Equifax’s record of breaches, suggest plenty of risk.