Starbucks CEO brings warm skills to hot problems 2 Sep 2022 The $98 bln coffee chain named Reckitt boss Laxman Narasimhan as its next leader. He’s expected to deliver more and faster Frappuccinos with a restless workforce and rising costs. Narasimhan’s track record is promising. But with Howard Schultz still around, he is under the gun.
Capital Calls: Lululemon stretches inventory logic 2 Sep 2022 Concise views on global finance: The $41 bln company raised annual profit and revenue forecasts, but is a little too relaxed about its growing stockpiles of yoga gear.
China’s test kit stock bubble loses air 2 Sep 2022 Officials have tested citizens for Covid-19 nearly 12 billion times, blowing up sales at firms like Daan Gene, where profit popped 130% in the first half. But rising capacity, price caps and payment delays are making investors anxious. This corporate welfare party is winding down.
CEO exit gives Reckitt suitors a narrow window 1 Sep 2022 Shares in the $55 bln Durex condom maker fell amid Laxman Narasimhan’s sudden departure. Naysayers can cite Reckitt’s half-done rejig and inflation risks. Yet with a valuation lagging the likes of Colgate Palmolive, a bidder could point to other positives to justify a swoop.
Water crisis investing is glass not even half-full 1 Sep 2022 Companies like Danone, Ecolab and Coke paraded some smart, profitable ways to adapt to flood and scarcity at an annual Stockholm confab. But those are often just pilot projects. And funding from VCs to governments is scarce. Preparing for global warming requires opening the taps.
Global economy can thank U.S. consumers 30 Aug 2022 After the 2008 financial crisis, China helped prop up the world. Now, it’s the United States doing the heavy lifting. Despite lockdowns and war, shoppers are buying more foreign goods while booming visits to Europe propel travel close to the sector’s 10% global GDP contribution.
Zendesk’s deal ping-pong favors caution 29 Aug 2022 Hedge fund Light Street is using Icahn-esque tactics to fight the software maker’s $10 bln LBO. It’s pitched as a way for public investors to take part in a turnaround. But financing, governance, growth, and cost uncertainty make the plans look like a pipe dream.
Moderna patent fight about feathers, not goose 29 Aug 2022 The $53 bln biotech firm says Pfizer’s Covid-19 vaccine uses its intellectual property. The drug may bring in $30 bln this year, so it’s potentially a giant suit. Moderna’s direct claim is probably tiny. But mRNA technology is its lifeblood and worth fighting to protect.
Powell gives markets tough medicine they needed 26 Aug 2022 The Fed chair’s Jackson Hole speech came with a blunt message: The U.S. central bank will tame inflation by hook or by crook. That’s a dose of reality for investors searching for dovishness. It’s convincing households and businesses that really matters now.
Richemont finds tolerable way to refocus 24 Aug 2022 The $60 bln Cartier owner has finally sold part of e-commerce unit YNAP to Farfetch. Richemont gets a lower price than it could have last year, but keeps online presence via payment in its U.S.-listed rival’s shares. And cutting its stake helps it focus on more promising sectors.
Chinese consumers catch long-Covid mindset 24 Aug 2022 Results from retailers like JD and Xiaomi show shoppers eschewing discretionary items like smartphones, dashing hopes of a quick rebound. Covid fears and economic malaise could be entrenching a pessimistic reflex. Japan’s example shows such attitudes can take decades to change.
Capital Calls: Food fight 23 Aug 2022 Concise views on global finance: Retailers like E-Mart are cutting food prices amid surging costs, risking a sector-wide race to the bottom.
Once people ditch oil, they won’t come back 22 Aug 2022 The 1973 crisis sent oil prices spiraling and knocked U.S. demand onto a permanently lower trajectory as economic growth became less energy intensive. High prices three decades later caused gasoline demand to stall entirely. This time around the result will be lasting shrinkage.
Musk’s Twitter subpoena storm gets everyone wet 19 Aug 2022 The Tesla boss is dragging Salesforce and others into his $44 bln M&A fight against the social network. It could reveal embarrassing communications. Twitter too has legal requests to Musk co-investors like Larry Ellison. That’s more incentive to settle and part the clouds.
Capital Calls: Cineworld needed AMC’s apes 19 Aug 2022 Concise views on global finance: The U.K.-based cinema chain is preparing for bankruptcy, according to the Wall Street Journal, while similarly debt-beleaguered AMC is still standing – an object lesson in the power of becoming a favorite of retail traders.
D.C. turf war opens crypto regulatory arbitrage 18 Aug 2022 The Fed issued the latest salvo in a regulatory tussle, requiring banks to alert the agency when they offer services for bitcoin and its ilk. The SEC and CFTC are also fighting to oversee the $1 trln market. It’s an opportunity for digital currency outfits but hurts token owners.
Capital Calls: Taiwan, Meme stocks 18 Aug 2022 Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.
Target’s smaller grocery aisle will take a toll 17 Aug 2022 The $80 bln retailer led by Brian Cornell benefited from pandemic shopping until inventory piled up – to $15 bln in the second quarter. Rival Walmart confronts similar problems, but it sells more food as a percentage of revenue. Sticky inflation makes things harder for Target.
Bank living wills could rise from the dead 16 Aug 2022 New U.S. watchdogs may be tougher on how lenders unwind in a crisis. A breakup is one penalty for failing the exercise. But it’s odd timing given JPMorgan and others just increased capital buffers. Resurrecting the stick would make Wells Fargo the most vulnerable.
Anti-Beijing bandwagon sideswipes Biden’s EV push 16 Aug 2022 Only cars with a good chunk of U.S. battery parts and critical minerals qualify for a $7,500 tax credit passed by Congress. A global supply chain that relies on China means few vehicles will qualify. The race against climate change takes a back seat to the America First drive.