E-brokers are big reach for Beijing’s long arm 4 Nov 2021 A Chinese central banker chided trading apps that cater to rich investors with money abroad. That suggests new restrictions are in the works. Barring an awkward crackdown on banks that help move capital overseas or a complete ban, however, $9 bln Futu and its peers can thrive.
Funky debt offers SoftBank fix for UK retail hole 3 Nov 2021 Masayoshi Son’s group has an option to buy part of the e-commerce unit of stricken retailer THG, in which it owns a stake. Honouring that would mean big losses, but walking away could amplify the UK group’s woes. Investing in a new convertible bond might buy time for a recovery.
Capital Calls: KKR, Ferrari, HelloFresh 2 Nov 2021 Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.
Capital Calls: WeWork listing, Polish games maker 21 Oct 2021 Concise views on global finance: The battle-scarred office-sharing outfit finally started trading on the NYSE after its deal with a blank-check company closed; CD Projekt delays chunky updates to its flagship “Cyberpunk” video game, avoiding a repeat of last winter.
Time to end Richemont’s online fashion drag 18 Oct 2021 The Cartier owner may sell its e-commerce business YNAP just three years after taking it over. A deal with Farfetch or other rivals might reap at most 3.6 bln euros. Yet, by cutting exposure to a lossmaking unit, boss Johann Rupert would smarten up his company’s dowdy valuation.
London’s IPO revamp gets its cautionary tale 18 Oct 2021 THG’s founder is giving up his golden share in the stricken online retailer, just as regulators prepare to make it easier for executives to keep control after listing. It’s a timely reminder of the benefits of “one-share-one-vote” governance. It’s not too late to turn back.
Viewsroom: IMF’s big brouhaha, European retailing 14 Oct 2021 The multilateral lender’s boss, Kristalina Georgieva, rode out data-rigging charges. Now she has got a lot to prove. Swaha Pattanaik ticks through how she can remake her legacy and reform the institution. Aimee Donnellan walks through the aisles of French supermarket finance.
UK fallen web star needs brighter disclosure 12 Oct 2021 Retailer THG’s value fell by a third in one day to just $5 bln. That reflects uncertainty over a core unit that helps companies like Coca-Cola market and ship products. Until CEO Matthew Moulding sheds light on its profitability and contracts, investors will be wary.
Capital Calls: Green investors, ASOS, Renren 11 Oct 2021 Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.
Capital Calls: Pet retail scrap, Chubb, Czech IPO 8 Oct 2021 Concise views on global finance: Buyout firm Hellman & Friedman matches EQT’s 3.4 bln euro bid for Germany’s Zooplus, putting the onus on its rival; the U.S. insurer buys the Asian assets of Cigna for $5.8 bln; haulage-fleet manager Eurowag makes a chaotic market debut.
Nordic retail robot IPO carries steep price tag 29 Sep 2021 AutoStore, the SoftBank-backed firm that sells automated warehouses, is listing in Oslo for up to $15 billion. It’s a bet on the boom in online shopping and grocery delivery. Yet the rich valuation relies on breakneck growth in a competitive market and downplays legal risks.
EQT $3.9 bln pet bid typifies PE growth obsession 27 Sep 2021 The Swedish buyout firm topped Hellman & Friedman’s offer for online dog-food seller Zooplus. An absence of debt funding and limited scope for cost cuts mean the numbers only work if sales grow at a greyhound-worthy 15%. A possible counteroffer would stretch things even further.
Capital Calls: Lagarde channels Thatcher 9 Sep 2021 Concise views on global finance: The ECB boss will buy fewer bonds but tells markets: “The lady isn’t tapering.” A tough decision on whether to scale back bond purchases more decisively will come later.
Capital Calls: JD.com shakeup 6 Sep 2021 Concise views on global finance: New appointments at the $126 billion Chinese e-commerce giant hint at succession planning.
Pinduoduo’s largesse masks bigger profit problem 25 Aug 2021 China's $124 bln e-commerce group swung into the black in the quarter as it reduced subsidies. But slowing growth, alongside a $1.5 bln philanthropic pledge in rural projects, suggest that is not sustainable. Beijing’s crackdown on the sector has also emboldened rivals like JD.
The Exchange: Ron Johnson, Apple store retail guru 24 Aug 2021 He helped transform Target, opened the first Apple store, but failed to save J.C. Penney. Now Johnson is turning his attention to mobile stores. He tells Jennifer Saba about his new venture, Enjoy, and explains how e-commerce is changing everything.
Beijing and ByteDance are killing a video-app star 24 Aug 2021 Kuaishou has shed $190 bln from a peak struck shortly after its February listing. Its adjusted net loss is forecast to hit $3 bln this year as it struggles with regulators and TikTok’s owner. Barring a turnaround, it may prove to be China tech's shortest-lived flash in the pan.
Capital Calls: Sea’s rising tides 18 Aug 2021 Concise views on global finance: The $162 billion Southeast Asian tech group’s revenue is soaring, but so are its costs.
Capital Calls: Coupang’s winding road 13 Aug 2021 Concise views on global finance: The fast-growing South Korean e-commerce outfit’s lack of profit is testing investors’ patience.
Capital Calls: Olympics on TV, Abrdn 10 Aug 2021 Concise views on global finance: NBC Universal's prime-time viewers for the Tokyo games were only half as many as for London 2012, boding ill for traditional U.S. TV; the British asset manager formerly known as Standard Life Aberdeen may be turning the corner.