Capital Calls: Uber, Roblox 11 May 2021 Concise views on global finance: Free rides for Covid jabs won’t help the ride-hailing app’s labor battle with Washington; the online games platform’s year-on-year growth decelerated sharply in April.
Meituan learns limits of poetic licence 11 May 2021 The Chinese food-delivery giant lost 7%, or $16 bln, of its market value after an ancient verse posted by boss Wang Xing was construed as criticism of Beijing. Even if this is just a literary misunderstanding, regulators will be forcing the business model to be less creative.
India’s food delivery IPO arrives lukewarm 10 May 2021 Unprofitable Zomato is charging higher delivery fees and cutting discounts. At the same time, the pandemic hasn’t catalysed fortunes for the Ant-backed firm the way it did for peers such as U.S.-based DoorDash. That makes a $5.4 bln valuation from February look stuffed full.
Capital Calls: U.S. jobs miss, Elon Musk goes live 7 May 2021 Concise views on global finance: Fed boss Jay Powell has his work to do as America adds far fewer jobs than anticipated; drawing an audience of crypto-nerds, Tesla gearheads and regulators won’t be hard for the electric-car maker boss when he hosts SNL. Drawing laughs will be.
Nintendo half-heartedly looks beyond games 6 May 2021 After a bumper year, the Japanese giant expects its next annual operating profit to drop 22% to $4.6 bln. Peak Switch also means console sales are due to fall. A new theme park and Super Mario film are promising, but boss Shuntaro Furukawa is dragging his feet on bolder ideas.
Thailand previews difficult life without tourists 6 May 2021 The country looks ill-prepared for its fresh wave of viral contagion. With a slow vaccine rollout, foreign visitors won’t return anytime soon. It needs to wean itself off this economic crutch, but political unrest deters overseas investment. That’s a trying combination.
Meatless Manila IPO offers something to chew on 6 May 2021 Quorn owner Monde Nissin is set to go public. But its control of the Beyond Meat rival has so far been only a side dish in the vegan alternatives boom. The real protein supporting a properly cooked $5 bln valuation is the company’s Philippine snacks unit.
Capital Calls: KKR 6 May 2021 Concise views on global finance: The private equity firm is investing in Charter Next Generation in an employee-friendly deal.
GSK CEO’s best defence is a graceful exit 5 May 2021 The $93 bln drug company is under pressure after activist Elliott took a stake. Boss Emma Walmsley is splitting the group into two, but its struggling pharma unit faces a lengthy turnaround, and may benefit from a new leader. Walmsley could run the new consumer business instead.
Capital Calls: Peloton, Honest Co, Office Depot 5 May 2021 Concise views on global finance: Treadmill recall leaves investors in the workout app stranded; shares in Jessica Alba’s consumer packaged goods company opened more than 30% above their IPO price; the office-supply company paper-shuffles its way to a higher valuation.
Capital Calls: Pfizer, ConocoPhillips 4 May 2021 Concise views on global finance: About $6 bln of additional earnings from Covid vaccines at the U.S. drug giant should mean more capital returned to investors; the independent oil group is offloading stock in Canada-based Cenovus it collected as part of a deal four years ago.
Ping An finds suitable rebound deal 4 May 2021 The Chinese insurance giant plans to buy most of Peking University’s bankrupt corporate empire, Founder Group, for up to $7.9 bln. Potential synergies will be welcome after a recent property investment mess. There are reasons to be wary, but Ping An also bounced back post-Fortis.
Capital Calls: Robinhood vs. Munger, Meredith deal 3 May 2021 Concise views on global finance: Warren Buffett and his investing sidekick takes on Robinhood, and vice versa; and the U.S. media company is selling its local TV stations to Gray Television for $2.7 bln.
Vaccine prince exposes India’s best and worst 3 May 2021 The Serum Institute, the world’s top vaccine maker, is under heavy pressure, with owner Adar Poonawalla complaining of “unprecedented” threats from politicians and tycoons trying to secure jabs. India’s flawed procurement policy is straining fraught ties with the private sector.
Nestlé’s vitamin push is $5.8 bln placebo 30 Apr 2021 The Swiss food giant is buying brands such as Solgar from KKR-owned supplement maker Bountiful. The wish to boost immunity during Covid-19 pepped up sales. To make a healthy return, CEO Mark Schneider needs consumers to keep swallowing pills, and the hype that they actually work.
Nio and rivals take their race off-road 30 Apr 2021 China’s Tesla is revving R&D spending back up after slamming on the brakes last year. BYD and others are scrambling to do the same. Investing in new ideas is crucial for growth down the road. But it also makes it harder to know when Nio will fit into its $64 bln valuation.
South Korean digital comics sketch animated future 30 Apr 2021 Content giants have lapped up Japanese storytelling, spurring on Korean “webtoon” makers. Kakao Entertainment’s boss reckons the unit might be worth $18 bln in an IPO. Compatriot Naver is eyeing a similar course. The fast-growing, quirky genre could draw up creative valuations.
Capital Calls: Endeavor’s Hollywood ending 29 Apr 2021 Concise views on global finance: The entertainment conglomerate’s IPO flipped the script on opening day.
Ford gives investors a sense of crisis déjà vu 29 Apr 2021 The $49 bln automaker powered earnings last quarter by turning the global chip shortage to its advantage. It’s also touting ways to become more efficient. The situation evokes a 2008 turnaround effort. Newish CEO Jim Farley’s job is to ensure Ford stays the course this time.
Kweichow Moutai distills a governance discount 29 Apr 2021 The $396 bln Chinese baijiu maker’s bottom line rose just 6.6% in the first quarter, far slower than sales, while rivals boosted profitability. Unusually high tax payments are to blame, as local officials milk Moutai. The deteriorating trust could erode further value.