Smart specs are a solution in search of a problem 13 Sep 2021 Facebook and Apple are working on so-called augmented-reality glasses, the latest addition to an $81 bln wearable accessories market. Like watches, such gadgets help tech giants hoover up data and lock in customers. The hard part is convincing people they’re actually useful.
Review: Navalny explores limit of Russian activism 10 Sep 2021 The jailed politician used tactics borrowed from investors to challenge Vladimir Putin, the authors of “Navalny” explain. Even though he can’t run in elections or appear on TV, 75% of Russians know who he is. But if they keep shrugging off corruption, his nemesis will prevail.
Capital Calls: UK interventions, Post-virus reset 7 Sep 2021 Concise views on global finance: U.S. bidder TransDigm’s withdrawal from the $8.7 bln race for Meggitt removes a tricky decision for the government; Boris Johnson’s new proposals will address social care but not generational wealth divides.
Review: Covid-19 and the crises yet to come 3 Sep 2021 2020 was one of the most seismic years in world history. Adam Tooze’s “Shutdown” recaps how the pandemic exposed the fragility of an interconnected world, while uncovering some pockets of strength. It’s a troubling test run for future challenges, most notably from climate change.
Business travel fixes risk grounding recovery 27 Aug 2021 The $1.4 trln industry of selling expensive plane tickets and hotel rooms to itinerant executives faces a bleak future as firms like HSBC slash travel budgets. Making ordinary customers pay more would bolster margins. But raising prices may also dampen an already slow revival.
Dating outscores gaming in app store showdown 25 Aug 2021 A U.S. judge is considering an antitrust suit against Apple’s online shop as lawmakers pile pressure on the iPhone maker and rival Google. Despite games dominating their outlets’ $111 bln in annual sales, a cut in the tech giants’ 30% fee may boost daters like Match more.
China’s middle-class push has luxury silver lining 23 Aug 2021 President Xi Jinping’s plans to rein in the super-rich may mean more, not less, conspicuous consumption. With China accounting for 40% of designer demand, LVMH and others are nervous. But wealth reallocation may swell the ranks of bourgeoisie. The luxury selloff looks excessive.
Sex toy unicorn gets into the wellness fetish 20 Aug 2021 UK online vibrator seller Lovehoney is buying Germany’s Wow Tech to form a $1.2 bln “sexual wellbeing” group. Their punters love e-commerce and aren’t too price sensitive, boosting margins. Asian markets are also losing their scruples. An IPO would be the ultimate taboo breaker.
Tencent’s Disney-like ambitions will enchant Xi 18 Aug 2021 Games, movies and web shows did well in the quarter, showcasing the $540 bln group’s entertainment prowess. Unlike the U.S. giant, censors dictate what Tencent can do. Yet a Chinese answer to the Magic Kingdom at least fits into Beijing’s vision of a prosperous middle class.
Private equity barks up right pet-makeover tree 13 Aug 2021 Hellman & Friedman is splurging $3.5 bln on unloved German pet food supplier Zooplus. The online retailer is crying out for more investment and better management to cash in on the e-commerce and pet-ownership booms. Even with minimal debt, returns could turn out best in show.
Novo Nordisk diet drug may finally be the big one 4 Aug 2021 Obesity costs America over $1 trln a year, but therapies have proved ineffective or worse. The $215 bln Danish group’s new injection works, and a fast start means annual sales may one day near $10 bln. If U.S. insurers play along, it could be one of the best-selling drugs ever.
Volkswagen makes timid bet on brave new car world 29 Jul 2021 A group led by the German carmaker will pay $3.4 bln for Europcar. The rental company’s city sites may help CEO Herbert Diess sell new services like subscriptions and self-driving taxis. But keeping the unit at arm’s length suggests caution at odds with the optimistic vision.
IMF skims over non-viral risks to global economy 27 Jul 2021 The emergence of new highly infectious Covid-19 variants could wipe about $4.5 trln off global GDP by 2025, the international lender warned. Its economic update pays less attention to policy missteps, market ructions, or more bankruptcies. Yet these also pose a threat to growth.
Greener anti-flood investments will be win-win 26 Jul 2021 Germany’s worst natural disaster in decades and deluges in China have sparked calls to build more dams and reservoirs. There are better ways to protect people, land and buildings from both too much and too little water. These alternatives will also appeal to investors.
Review: The many unseemly faces of Facebook 23 Jul 2021 The $1 trillion social network’s ruthless rise is well documented. “An Ugly Truth” captivates with new, disturbing details on recent scandals and CEO Mark Zuckerberg’s handling of the firm’s growing power. The uglier reality is that its 3 billion-plus users aren’t that bothered.
Cigar exit is next strike in Swedish Match revamp 20 Jul 2021 Most of the $14 bln group’s sales come from oral tobacco and nicotine pouches which are less harmful than cigarettes, giving it a rich valuation. But rivals like Philip Morris are catching up. Getting out of stogies could raise $2 bln and give its stock a brighter ethical flame.
Capital Calls: BBQGuys go easy on the hot sauce 20 Jul 2021 Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.
UK virus cost-benefit discounts human psychology 19 Jul 2021 Britain lifted Covid-19 restrictions, diverging from states like Israel. On the face of it, the financial benefits of reopening outweigh the ongoing costs from living with the virus. But as with previous false dawns, if consumers remain fearful the recovery won’t motor.
South Africa has no money to throw at its problems 15 Jul 2021 The Rainbow Nation is suffering its worst civil unrest since the end of apartheid in 1994. The ruling ANC’s usual response to cracks in the social fabric is to fill them with new subsidies. With debt at 80% of GDP and rising fast, that has a limited shelf-life.
Review: The dark side of stakeholder capitalism 9 Jul 2021 Arif Naqvi promised to make money while doing good in emerging markets. But he treated his Abraaj private equity group’s cash as his own, pocketing $780 mln. “The Key Man” tells how he hoodwinked the likes of Bill Gates and TPG. It’s an overdue reality check for impact investing.