South Korea Inc heaps added pressure on Samsung 28 Apr 2022 The Galaxy maker’s 51% rise in quarterly operating profit, to $11 bln, only underscores its dependence on memory chips. Despite its ambitions in autos, biotech and other areas, peers Hyundai, SK and LG are moving faster to capitalise on new markets. Idle cash is a growing risk.
Capital Calls: GM electrifies executives’ pay 27 Apr 2022 Concise views on global finance: The Detroit automaker’s move to tie boss Mary Barra’s pay to electric vehicles goals is a new spin on pledges to shift away from combustion-engine cars.
Energy efficiency starts to attract the big bucks 25 Apr 2022 Brookfield’s potential $4 bln pitch for UK boiler repair group HomeServe sounds like small fry for a group with $690 bln of funds. But decarbonising buildings is a key growth area in the energy transition. Institutional investors are manoeuvring to ensure they don’t miss out.
P&G’s savvy inflation remedy has its limits 20 Apr 2022 The Braun razor maker’s sales rose 10% in the third quarter. And cuts to marketing spend helped prop up its operating margin even as commodity and freight prices surged. But some input costs filter through with a lag. CEO Jon Moeller may struggle to keep delivering good news.
Just Eat Takeaway faces humiliating U.S. exit 20 Apr 2022 The food delivery group may sell Grubhub, a business it bought last year for $7.3 bln, an embarrassing U-turn for CEO Jitse Groen. Expanding into the tough U.S. market always looked tricky. Getting out when there are few buyers, just as consumers are squeezed, will be harder.
Capital Calls: KKR and Australia, Danone 20 Apr 2022 Concise views on global finance: The private equity firm’s offer for Ramsay Health Care would almost double Down Under M&A by value this year; the French consumer group’s sales growth boost is offset by inflation fears.
Twitter can afford to refuse Musk’s $41 bln bid 14 Apr 2022 The world’s richest man says he’ll pay $54.20 a share for the social network, but may sell his 9% stake if the “best and final” but non-binding offer is rejected. It’s less than a week since Musk walked from a deal to join the board. Twitter has multiple reasons to demand more.
JPMorgan rolls with early 2022 punches 13 Apr 2022 The giant lender took hits from a slump in financial-market activity and Russia’s invasion of Ukraine, reporting a 42% dive in quarterly profit. Wall Street peers are likely to sport similar bruises. But a strong U.S. economy and rising interest rates will soften the blows.
Biden may pay big price for surging grocery bills 13 Apr 2022 The U.S. president is trying to mitigate the pain of soaring gas costs. But he has fewer tools to address dearer food. Grocery prices rose 10% in March from a year ago, with meat jumping 15% and milk up 13%. That might add up to an expensive midterm loss for Democrats.
Capital Calls: Thoma Bravo plays favorite PE tune 13 Apr 2022 Concise views on global finance: The private equity firm sells cybersecurity company Barracuda Networks to KKR.
Warner-Discovery combo deserves benefit of doubt 12 Apr 2022 Netflix’s stock is off 40% so far this year while Discovery, which just merged with AT&T's media unit, is up. The new $60 bln company needs to combine its assets successfully. But even if boss David Zaslav only does a so-so job, HBO can shine without its former AT&T shackles.
Central banks pay cost of rear-view-mirror driving 12 Apr 2022 U.S. consumer prices leapt 8.5% in March from a year ago, the biggest jump since 1981. The Fed is playing catch up as its policy framework was designed for a low, not high, inflation world. That’s the danger of thinking the future will resemble the past.
China’s “bulletproof” coffee IPO is full of holes 12 Apr 2022 Star Plus Legend banks on the founder's pop-star son, Jay Chou, hawking butter-infused, or bulletproof, java and other diet fads. Beijing's crackdown on celebrity influence, however, threatens $57 mln of revenue. Using consumers as a sales force raises another red flag.
Flighty Musk exposes Twitter’s flaky governance 11 Apr 2022 The world’s richest man bailed on joining the social media firm’s board, days after agreeing to become a director. His run-ins with regulators and inflammatory tweets were well known. Appointing Musk the day he unveiled a 9% stake reflects how poorly the $37 bln company is run.
Hypebeast finds SPAC shortcut to dual listing 4 Apr 2022 The Hong Kong-listed lifestyle, advertising and e-commerce firm is selling a stake to a blank-check vehicle, thereby collecting a U.S. listing as well. The implied valuation, despite being at a premium, is sober by SPAC standards. The novelty is involving two stock exchanges.
Capital Calls: U.S. truck drivers go missing 4 Apr 2022 Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.
Capital Calls: Microsoft’s Activision deal 31 Mar 2022 Concise views on global finance: The software giant’s $69 bln acquisition of the “Call of Duty” publisher comes with a ton of baggage. That could be why Activision shares are trading at a wide discount to the deal price.
Buy gas now, pay later is a hard tiger to ride 1 Apr 2022 Fintech firms Klarna and Zip are offering U.S. punters interest-free instalments as a way to manage higher fuel bills. The fact that consumers use loans to afford mere essentials raises the risk of defaulted payments. And unlike discretionary sales, Klarna isn’t getting a fee.
Capital Calls: Chip supply chain bites own tail 31 Mar 2022 Concise views on global finance: Semiconductor factories rely on machines made by ASM International. Paradoxically, the firm is having trouble finding the chips it needs. Untangling the mess will take a while.
Carl Icahn is attempting to rewrite his legacy 30 Mar 2022 From a favorable documentary to campaigns criticizing how McDonald’s and Kroger treat pigs, the activist is crafting his final chapter. Icahn changed the course of many companies and his investment prowess is undeniable. But a full evaluation of his impact demands a broader lens.