Coupang’s next delivery: better disclosures 2 Mar 2021 South Korea's e-commerce darling is seeking a $50 bln valuation. It boasts heady growth and hefty losses. Metrics such as fulfillment costs, reported by peers like Amazon, are missing from its prospectus, though. Scant detail on new bets also makes the IPO math hard to justify.
Swelling Sea mostly flows in sound new direction 2 Mar 2021 Worth quintuple what it was a year ago, the $127 bln tech outfit is buying an Indonesian lender and won a digital bank licence in Singapore. Expanding in finance brings new risks but sensibly deploys capital to diversify. Venturing into Mexico, though, is a nouveau-riche misstep.
Walmart’s fintech gain hints at Goldman’s loss 1 Mar 2021 Omer Ismail is leaving the Wall Street bank for a job at the $368 bln retailer, just two months after becoming head of Goldman’s consumer bank. Walmart could become a force in finance. But it’s also a sign that Goldman’s retail bank is losing some shine.
Danone has plenty more cash cows to milk in China 1 Mar 2021 Chief Executive Emmanuel Faber has unveiled his latest plan to placate activist investors. He wants to sell its $2 bln stake in China Mengniu Dairy. It means pulling out of a growing firm. But peddling Danone’s own brands to thirsty Chinese consumers will keep the cream flowing.
Unizo mess could make Japan M&A less hospitable 1 Mar 2021 Less than a year since the hotelier’s $2 bln takeover battle, it is under pressure from the massive debt used to repay buyout backer Lone Star. An aggressive deal structure exacerbated pandemic risks. The danger is that Japan Inc’s more open-minded approach to deals closes again.
Evergrande contagion tests Beijing’s generosity 26 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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 Feb 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.