Citi snatches Wells Fargo’s banking bronze medal 1 Jul 2020 At $106 bln Mike Corbat’s lender is worth more than Charlie Scharf’s for the first time since the financial crisis, making it the third biggest U.S. bank. Citi may not reclaim its pre-2007 top spot, but Corbat’s overhaul is bearing fruit. Scharf, meanwhile, has his work cut out.
Corona Capital: U.S. recovery, Small-business aid 30 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: White House virus adviser Anthony Fauci’s estimate that U.S. cases could breach 100,000 a day is bad news for the economy. Plus: Uncle Sam’s loan program for small businesses comes to an end with money in the bank.
Albertsons owners take shopping cart to the ankles 26 Jun 2020 The supermarket chain’s IPO raised 40% less than it hoped, pricing below the range set just a week earlier. The final valuation looks fair, suggesting the market is working as it should. It's a good outcome for investors, though not so much for Albertsons backers and advisers.
Unilever’s fairness agenda gets harder to manage 26 Jun 2020 The Anglo-Dutch giant is renaming skin-lightening products popular in India which generate $500 mln in sales. Dropping them, like J&J, would better fit with CEO Alan Jope’s values-driven ethos. Multinationals trying to be global and progressive will face more of these dilemmas.
Remittance woes will transfer from poor to rich 26 Jun 2020 Money sent home by migrant engineers, domestic helpers and more will fall sharply with the global slump and job losses. It could cost $140 bln. The pain, borne mostly by developing countries, may be shared by wealthier peers in the form of slower recoveries and possible bailouts.
Paroled Chinese tycoon greases GOME rally 26 Jun 2020 Shares of the $4.5 bln electronics retailer rallied as much as 25% after founder Huang Guangyu was released after a decade in jail. GOME has lost money for years, but investors are betting his return, plus recent deals with JD.com, herald a comeback. That could be a long shot.
Bayer pays dearly for blind faith in science 24 Jun 2020 The German group will spend up to $10.9 bln to settle U.S. claims its weedkiller causes cancer. Though Roundup remains legal, Bayer misread the danger of taking its chances with American juries. Shareholders will bear the toxic legacy of its ill-judged $66 bln Monsanto takeover.
Corona Capital: Payments systems, Shale 22 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Payments systems get some good news, shale oil drilling’s double whammy.
Breakup pledge will keep Unilever boss on his toes 22 Jun 2020 Alan Jope promised to list the consumer giant’s food and drink unit in Amsterdam if it’s spun off. That’s not happening now: Unilever shares largely reflect the division’s 50 bln euro value. But the hypothetical vow gives investors ammunition if the Dove maker underperforms.
Corona Capital: Frequent fliers, Folies Bergeres 15 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: United Airlines hocks its MileagePlus loyalty program for $5 bln from Goldman; Lagardere tries selling Parisian nightlife venues, including Les Folies Bergeres and Bataclan theatre at perhaps the worst time ever.
Just Eat investors may refuse to swallow Grubhub 11 Jun 2020 Shares in the Anglo-Dutch meal-delivery company dropped 13% after it unveiled a $7.3 bln acquisition of a struggling U.S. peer. The return on investment looks low. Just Eat Takeaway shareholders have both the means and motive to veto CEO Jitse Groen’s transatlantic expansion.
Unilever’s reverse reunification is win for FTSE 11 Jun 2020 Two years after UK shareholders rejected plans to create a single parent company in Rotterdam, the $143 bln Anglo-Dutch giant is unifying around a London listing. Investors in the Netherlands will struggle to throw up the same obstacles. The payoff is more M&A flexibility.
Corona Capital: Instacart stocks up 11 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Grocery-delivery firm and lockdown beneficiary Instacart tops up on capital while the getting is good.
Ocado cash call delays profit delivery slot 11 Jun 2020 The 15 bln pound online retailer raised over 1 bln pounds to fulfil global demand for its warehouses. CEO Tim Steiner’s plan takes advantage of a near-doubling in its share price since the pandemic. But capital-intensive investments mean investors face a longer wait for earnings.
“Lipstick effect” kissed off by Covid-19 11 Jun 2020 Estee Lauder’s ex-chairman once theorised that a downturn could be discerned by women buying the cheaper cosmetic over pricier items. Masked mouths, however, help explain a steep fall in lipstick sales during the pandemic. An economic-indicator makeover may be in order.
Corona Capital: Goldman, Vroom, Deutsche Bank 9 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Goldman does too well in Britain; shares in online used-car sales outfit Vroom double on their market debut; and Deutsche Bank gets another shot at redemption in the U.S. market.
Battle for Russia’s Amazon crown is heating up 5 Jun 2020 The country’s biggest lender Sberbank may buy a 30% stake in online marketplace Ozon after untangling itself from rival Yandex. The deal could value it at more than $2 bln. There’s room for both players in a market enjoying a Covid-19 boost, but the usual political caveats apply.
JD stock sale helps illuminate China’s have-nots 5 Jun 2020 The $70 bln Beijing-based online retailer will be next with a second listing, in Hong Kong. Others are bound to follow, but not all 175 trading on New York exchanges can access this safety valve from a U.S. backlash. Some may need to go private and hibernate for a while.
Make-up artist’s star power tested by $1 bln tag 4 Jun 2020 That’s how much Puig is close to paying for Charlotte Tilbury’s cosmetics company, Bloomberg reports. Famous friends and e-commerce helped the entrepreneur boost sales. To justify the price, the Spanish perfumer needs to lift margins after Covid-19, without smudging the brand.
Europe’s frenzied mall openings hide harsh reality 3 Jun 2020 Shares in landlords like Unibail-Rodamco-Westfield and Klepierre jumped after they reopened shopping centres. Queues outside IKEA suggest pent-up demand. But fewer shoppers and shorter visits will mean lower retail rents. Investors appear to be pricing in a 50% decline.