Chinese visitors can hit nerve tariffs don’t reach 5 Apr 2018 Levies on imports will slow the flow of TVs and medical devices into the United States. They could also thin the already-falling influx of tourists from China. America collects more from them than from all its exports of soybeans, and that number could pass $50 bln by 2022.
Smucker places a risky bet on dogs 5 Apr 2018 The Jif peanut-butter maker is moving deeper into the pet-food aisle by buying the maker of Rachael Ray pet food for $1.9 bln. Premium pet-food sales are growing fast, but the modest returns on this high-priced deal may not justify the debt. Smucker may find itself on a PB&J diet.
Meituan deal sets pace in Chinese bicycle-sharing 4 Apr 2018 The food-delivering, ticket-booking, ride-sharing app is buying Mobike for $2.7 bln. Given the competitive and cash-burning realities, investors should be relieved at the sale. For rival Ofo, which just raised nearly $900 mln more from Alibaba and others, the riding gets tougher.
Spotify and its direct listing win popular vote 3 Apr 2018 The music service earned a stonking $29 bln valuation in its early moments as a public company. Its non-traditional float scored insiders more liquidity, while saving on fees. Was it a real success, either for the company or for its unusual method? Ask this time next year.
China’s soybean trade card is difficult to play 3 Apr 2018 New tariffs target $3 billion worth of U.S. imports. But they don’t touch a big American pressure point: soybeans. This first round is a warning shot, to be sure. But retaliating against this commodity would hurt Chinese farmers and consumers, so Beijing might save it for last.
China’s business culture sabotages its art culture 29 Mar 2018 Art Basel’s Hong Kong fair kicked off on Thursday. Mainland sales rose 14 pct to $13.2 bln in 2017; exhibitors hope enthusiasm will prove contagious. But Chinese art prices and volumes are unreliable. An excess of auction houses draws speculators and deters real collectors.
Shareholders could upset Hyundai overhaul 29 Mar 2018 South Korea’s second-largest conglomerate is finally moving to simplify its elaborate corporate structure. But the first stage of the rejig short-changes minority investors in a key unit. The controlling Chung family might have to improve the terms to get this done.
Unilever-FTSE standoff is test of index power 28 Mar 2018 The benchmark compiler must decide whether to keep the Marmite maker in the FTSE 100 after it opted for a Dutch head office. Recent tax changes and activist pressure may prompt similar rejigs at heavyweights Shell and BHP. The index may have to bend its rules to retain its clout.
Drug companies take the anti-Amazon pill 27 Mar 2018 Novartis is selling its consumer health assets to GSK for $13 bln. It makes sense for the former to focus on traditional drugs given the threat from e-commerce. For the latter, the purchase is less risky than a Pfizer deal and may still allow investment in its core business.
Mukesh Ambani’s music deal could get a remix 27 Mar 2018 India's richest man is merging two music-streaming services into a $1 bln group. That will help attract users to the telecoms arm of his Reliance Industries. With the conglomerate poised to start throwing off cash again, Ambani could take his content ambitions to another level.
China’s Gen Z app has a lot of growing up to do 27 Mar 2018 Bilibili, a popular video site for anime-obsessed teens, wants to list at a $3 bln-plus valuation. That’s hefty considering a single mobile game accounts for 60 pct of sales. Losses may be narrowing, but Bilibili's amateur business plan doesn't warrant a premium price tag.
Market jitters accentuate M&A regulatory risk 26 Mar 2018 Dealmaking sprees are prone to extinction events. Market panics erode the value of buyers’ stock, make bankers reluctant to lend, and change the outlook violently. Recent tumult doesn’t yet qualify, but it makes it harder to overlook deals that push the regulatory limits.
Uber races towards IPO with Southeast Asian deal 26 Mar 2018 The U.S. ride-hailing giant is exiting another cut-throat market. It will hand its regional business to Grab, a $6 bln local rival, and take 27.5 pct of the enlarged group. This is a sensible step to prepare Uber for public life – provided Grab can hold onto its leading position.
Reckitt may yet benefit from Pfizer’s poor timing 22 Mar 2018 The Dettol maker’s shares jumped after it pulled a bid for the U.S. group’s consumer arm. The auction coincided with CEO Rakesh Kapoor’s struggle to digest a big deal, and rival GSK’s need to focus elsewhere. If Pfizer delays the sale, Reckitt could limber up for a second shot.
China’s 5G ambition is China Mobile’s punishment 22 Mar 2018 The country's biggest wireless group grew earnings 5 pct in 2017. This year will be tougher. Beijing wants the carrier to deliver a world-beating, ultra-fast network in a jiffy, and sell access cheaply. That will be tough on shareholders, but the state-owned group has no choice.
Chinese drone giant DJI charts a risky flight path 22 Mar 2018 The world’s top maker of unmanned aircraft is raising money at a $15 bln valuation, Reuters says. Sales are soaring and DJI has a commanding market lead. Given drones’ data-gathering ability and military potential, though, DJI could easily hit turbulence in major foreign markets.
Failed MBO leaves Nordstrom in a jumble 21 Mar 2018 The board's rejection of the founding family's $8 bln offer for the retailer makes both sides look too stubborn. Nordstrom is a middling performer in a struggling industry. Compromise would have suited shareholders well. Instead, they face an ill-fitting future.
Kingfisher’s refurbishment has a sloppy finish 21 Mar 2018 The DIY merchant’s good 2017 results fail to cover up other problems. Softening demand in Britain chimes with other UK retailers’ experience. But there’s less excuse for poor stock management and underperformance in France. The company’s turnaround plans may be prone to cracks.
Tencent wisely prepares for post-“Kings” era 21 Mar 2018 Hits like "Honour of Kings" powered another blockbuster quarter for the $565 bln web titan. Yet Tencent's incredible run in online games may tail off, as overall market growth in China slows. Pushing into videos and music is vital, despite high upfront costs and distant returns.
Private equity goes back to dangerous superlatives 20 Mar 2018 Strong buyout returns have investors putting more money than ever into funds that acquire companies with loads of debt. But deal multiples are nearing record highs, too. As legacy LBOs like Toys R Us and Claire’s go bust, it’s a reminder of the industry’s tendency to overheat.