Corona Capital: U.S. airlines 20 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: The CDC issued a warning to Americans not to travel over the upcoming Thanksgiving holiday as Covid-19 cases surge. Airlines, once again, are going hat-in-hand to Washington.
Panasonic pushes limits of rewiring circuitry 20 Nov 2020 The $26 bln electronics empire is yet again shuffling around its fax machines and electric-vehicle batteries. This latest restructuring should help streamline operations and boost profitability. If it clears the way for new boss Yuki Kusumi to lead a broader breakup, even better.
Video IPO live-streams cost of ByteDance rivalry 20 Nov 2020 Chinese app Kuaishou wants to go public at a $50 bln valuation. The Tencent-backed company swung into the red in the first half as growth slows and fierce competition with TikTok’s owner takes a toll. It’s a preview of the costly battles playing out across the industry.
Russia is blessing and curse for e-commerce IPO 19 Nov 2020 Online marketplace Ozon’s New York offering values it at up to $5.6 bln. A big and underpenetrated market is a plus, as are barriers to foreign rivals. But subsidising deliveries in the world’s biggest country means it’s burning cash. The $1 bln fundraising may not be its last.
Corona Capital: Brexit curveball, Sonos 19 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: a Covid-19 scare for European Brexit negotiators puts an already-optimistic deadline to the test; and wireless-speaker maker Sonos joins the list of companies profiting from consumers being stuck indoors.
Baidu gets useful M&A advice from unlikely source 19 Nov 2020 Days after the Chinese search-engine operator agreed to buy a video-streaming app for $3.6 bln, short-seller Muddy Waters has accused owner Joyy of fraud. It’s a blessing in disguise. YY is losing users and lagging rivals. The allegations may give Baidu room to rethink the deal.
Revlon may take shareholder rights full circle 18 Nov 2020 The cosmetics company controlled by Ron Perelman became a case study on shareholder value maximization following a 1980s lawsuit. Last week it narrowly avoided bankruptcy. Its business and stock price have been sliding for several years. A sale looks like the best final chapter.
Corona Capital: Dimon weighs in, Gen Z 18 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: JPMorgan’s chief executive calls for U.S. politicians to “just split the baby” on stimulus; and Generation Z deals a new body blow to the idea that office life will emerge from the pandemic unscathed.
Nio mania reaches Tesla’s extra gear 18 Nov 2020 The Chinese electric-car maker narrowed its quarterly loss as sales surged. Even without the production of its U.S. rival or a bombastic boss like Elon Musk, its shares have rocketed up by 1,000% this year. Nio, too, has a long way to go to grow into a racy $63 bln valuation.
Haier’s $14 bln deal gives up simplicity for speed 18 Nov 2020 The Shanghai-traded appliance maker will add a Hong Kong listing so it can issue stock to buy out its electronics unit. But the paid shares will only trade after the deal, and a cross-border valuation gap makes it hard to assess their value. That could rile minority investors.
Walmart explores perks of being second best 17 Nov 2020 The retailer’s online sales are soaring, and it has rolled out a membership model akin to Amazon Prime. Jeff Bezos’s firm is miles ahead. But like Disney, whose streaming service is quickly catching up to Netflix, there are benefits for Walmart in riding a rival’s coattails.
Corona Capital: Home Depot 17 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Home Depot will benefit as DIYers move inside.
It’s a good time to be “the other” Alibaba 17 Nov 2020 Shares of $149 bln JD are rising even as draft antitrust rules sink those of its larger, aggressive e-commerce rival. Adjusted quarterly earnings up 80% highlight how its inventory-led model has shone through the pandemic, and why it might get a longer-term regulatory boost.
Corona Capital: Lyft, Vaccine minefield, Peru 11 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: The U.S. ride-hailing company is tempted by food delivery; Pfizer could face high demand for its coronavirus vaccine; and Peru gets another leadership shuffle just as Covid-19 cases soar.
Bank of Japan’s M&A fix will test depth of slumber 11 Nov 2020 The central bank will pay 0.1% on deposits of small lenders if they cut costs or merge. Prodding weaker institutions to shape up will add to its reputation for radical innovation. But bosses have vested interests. Success will depend on rousing Japan’s supine shareholders.
India crudely tries to prevent payments dominance 11 Nov 2020 To ward off a China-style duopoly, caps are being imposed on Google, WhatsApp and others. It tilts the playing field in favour of local operators. Keeping a digital infrastructure designed as a public good from turning into an anticompetitive market is a tough balancing act.
The Exchange: Post-pandemic consumer behaviour 10 Nov 2020 Companies like Nestlé and Unilever are grappling with a Covid-19 recession and potentially drastic changes in how people shop and what they buy. Kristina Rogers, global consumer leader at consultancy EY, joins Dasha Afanasieva to discuss which trends will stick.
China hangs its sharpest sword over online giants 10 Nov 2020 Hot on the heels of a regulatory halt to Ant’s IPO, antitrust watchdogs unveiled draft rules targeting e-commerce and other sites owned by Alibaba and peers. The details cover everything from offshore structures to big data. Beijing’s reckoning with tech titans could be bloody.
Aramco-Reliance is one deal too strategic to fail 11 Nov 2020 The Saudi oil giant’s imputed $75 bln valuation of Mukesh Ambani’s oil-to-chemicals unit last year now looks rich given weak demand and crude prices. That could mean terms get tweaked for the 20% stake sale. But the long-term significance for both sides will help get it done.
Chinese vaccine developer flags corporate disease 10 Nov 2020 Sinovac’s promising tests to confer Covid-19 immunity just hit a snag. Investors are stuck because the shares have been halted since last year amid an epic saga featuring a buyout attempt, boardroom coup and poison pill. These governance trials are worth watching closely too.