Consumer Products and Services

Evergrande contagion tests Beijing’s generosity

26 February 2021

China’s $10 bln retailer Suning.com threw a financial lifeline to the troubled property developer. Its founder is now selling a controlling stake as the embattled group faces $5 bln of debt due this year. A government bailout, which may be imminent, would send the wrong message.

AT&T clumsily cuts the cord on DirecTV

26 February 2021

The U.S. telecom titan is spinning off its pay-TV business in a $16 bln deal, six years after buying it for $67 bln. TPG will share control while kicking in just $1.8 bln for a 30% stake that includes a 10% cash coupon. It’s a pricey way to ease out of a disastrous acquisition.

Viewsroom: Electric cars share some market fever

25 February 2021

Toyota, Ford and GM are all trading at their highest level in years as investors start to pick some winners among traditional automakers. Fear of missing the next Tesla, though, means shareholders are keeping the heady valuations for upstarts like latest SPAC target Lucid Motors.

Afterpay zealots buy now and will pay later

25 February 2021

The $30 bln Aussie fintech champ reported more impressive growth as installment-plan purchases swell. A deal to buy out its U.S. business raises fresh valuation questions, however, as do bigger losses, PayPal’s entry and regulatory concerns. A reckoning for investors awaits.

ViacomCBS’s streaming dream comes with a catch

25 February 2021

The U.S. broadcaster’s market value is up by $16 bln since it put a launch date on its streaming service, suggesting the hype enjoyed by Disney and Netflix is contagious. That’s justified if ViacomCBS can hit its subscriber targets, but boss Bob Bakish faces other pressures too.

Capital Calls: Pharma, Volvo delay, Hotels

24 February 2021

Concise views on global finance in the Covid-19 era: Big Pharma’s new popularity could give it leverage in Congress; China’s Geely can profit from Volvo IPO delay; and boutique hotels feel the heat.

Aussie jobs firm careers into a messy overhaul

24 February 2021

Shares in $8 bln Seek tanked 14% on plans to break in two, lose its founder-CEO and cut its prized stake in Zhaopin. At 14 times EBITDA, the sale values the Chinese unit in line with rivals but lower than Seek’s frothy multiple. Management and investors both deserve a bad review.

Capital Calls: WeWork, HSBC offices, Wells Fargo

23 February 2021

Concise views on global finance in the Covid-19 era: Co-founder Adam Neumann may get a big payment for failure after all; The bank’s plan to shrink its property footprint recalls an earlier effort; And the scandal-plagued lender takes another small step towards rehabilitation.

HSBC’s renewed Asia focus goes only so far

23 February 2021

Boss Noel Quinn is aiming for more savings and an extra $6 bln of investment in the faster-growing region. Even if all goes to plan, it will remain a high-cost, low-return bank with global sprawl. More radical steps, like spinning off the UK business, would alter the equation.

JD offers peek into China’s e-commerce machine

23 February 2021

The $160 bln web retailer is spinning off its logistics arm. Upgraded delivery systems have supported an online shopping boom that is driving yet more growth in the sector: a virtuous cycle. JD's high-tech operation and shrinking losses should excite investors.

Boeing stares down a future that’s a bit like GE

22 February 2021

The $127 bln aircraft maker run by General Electric alum David Calhoun now has problems with some engines it uses. It comes just as 737 MAX issues are in the rear view. Boeing's future is burdened by inertia and a growing debt load. As GE shows, that can take decades to unwind.

Capital Calls: Petrobras CEO, Kohl’s

22 February 2021

Concise views on global finance in the Covid-19 era: Brazilian President Jair Bolsonaro nominates a former general to replace the oil group's market-friendly boss, tanking the shares; and U.S. department store Kohl’s has some unhappy shareholders.

India Insight: Soy sauce flavours global finance

22 February 2021

Century-old Kikkoman recently served its signature condiment to Mumbaikars as part of a rollout campaign. This latest overseas expansion evokes its post-war U.S. strategy. Despite rampant protectionism, the Japanese company offers a glimpse of the next wave of foreign investment.

Capital Calls: Petrobras

19 February 2021

Concise views on global finance in the Covid-19 era: Brazil's president becomes Petrobras' activist.

Danone CEO upsets activist’s Nestlé-fication hopes

19 February 2021

Artisan wants the $47 bln yoghurt maker to dump food and water laggards and prioritise higher-margin lines. A focus on medical nutrition echoes the health science push of the Swiss giant, which has outperformed under pressure from Dan Loeb. But boss Emmanuel Faber is in the way.

New Honda CEO seeks fix for mediocrity

19 February 2021

R&D boss Toshihiro Mibe is taking the wheel at the $52 bln Japanese carmaker. Current chief Takahiro Hachigo slashed costs and forged an important alliance with GM. But shareholders didn’t benefit much. Without a spark of fresh inspiration from Mibe, margins will underwhelm.

Investors can’t have GameStop cake and eat it too

18 February 2021

U.S. lawmakers want it both ways for consumers: cheaper trading and protection from sharp losses. Additional transparency and less game-like software from Robinhood and other trading platforms might help. But risks remain and could rise with more retail access to private markets.

Capital Calls: Walmart, Buffett/Chevron

18 February 2021

Concise views on global finance in the Covid-19 era: Walmart gets an unfair ding from investors over its latest earnings report; and the Sage of Omaha takes another bet on the profit still to be made from fossil fuels.

Facebook and Google flaunt dominance Down Under

18 February 2021

The social network blocked news in Australia in defiance of Canberra’s effort to make it pay publishers. The search titan’s deals with Rupert Murdoch’s empire and others may protect it from wider oversight. Government and media have only chipped off fragments of Big Tech’s clout.

Aussie banks balance above topsy-turvy economy

18 February 2021

ANZ is the latest of the big-four lenders to post good earnings. Australia’s pandemic management has helped, but a mix of low interest rates, underemployment and a housing boom could spell trouble down the line. They are wisely keeping higher capital buffers largely in place.