Ant’s big reveal is cost of financial disruption 27 Aug 2020 The Chinese fintech giant's IPO filings show its core consumer lending unit was hit by new rules in 2018, forcing it to upend its business model. Swapping margins for fees has paid well so far. It’s less risky too. Ant survived and thrived, but Beijing is keeping watch.
Xiaomi is next Apple of China’s eye 27 Aug 2020 The $65 bln smartphone maker has exploited Washington's attacks on Huawei to take overseas market share. Its suite of gadgets look similar to the Cupertino giant's, and Xiaomi has maintained a bland political profile at home and abroad. That’s about to pay off.
Palantir has “chosen sides” for its listing, too 26 Aug 2020 CEO Alex Karp says the U.S. analytics firm has done that, only working for friendly powers. After 17 years Palantir has a history of losses and just 125 customers. And it wants to perpetuate its founders' control. The firm looks to have sided with them over incoming investors.
The Exchange: Telecoms mogul David McCourt 25 Aug 2020 The pandemic has made connecting rural areas a global priority. The Irish-American cable entrepreneur explains to Aimee Donnellan why he returned to Dublin to roll out a 3 billion euro broadband programme, and how the Covid-19 crisis created an opportunity to transform business.
China’s Ant can gobble up $200 bln valuation 25 Aug 2020 The fintech firm’s IPO filing shows it handled $17 trln worth of online payments in the year to June. Earnings are volatile, but the trend is strongly positive. The Alibaba affiliate is well placed in the expanding Chinese market. The mooted price tag looks conservative.
Corona Capital: KFC ditches finger lickin’ 25 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: The Yum Brands’ fast-food chain made eating fried chicken synonymous with cleaning your digits with your mouth. KFC has at last realized that’s a no-no in a pandemic.
SoftBank wins most in $5 bln industrial-data M&A 25 Aug 2020 UK-listed Aveva, part of the French Schneider, is buying OSIsoft, backed by the Japanese tech investor. SoftBank gets a handsome profit on an investment made three years ago. For the new owner, justifying the price requires massive growth in sales of factory-analysis software.
India Insight: Ambani, a maverick Rockefeller 25 Aug 2020 Data is the new oil for the tycoon who wants his $185 bln Reliance to serve all the needs of Indian consumers. He’s backed by America’s tech monopolists. Just as the Standard Oil energy cartel birthed U.S. antitrust law, Mukesh Ambani will amass power until told to stop.
Palantir float harks back to not-so-golden age 24 Aug 2020 The data analytics firm may give its founders shares with expanding votes, ensuring their control even if they sell. It’s an absurd reboot of the golden shares governments once used to protect national champions. Palantir is a rare beast, but that doesn’t justify bad governance.
Corona Capital: Dividends, Zoom, Big-screen blues 24 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: As company bosses try to conserve cash, investors are feeling the pinch; Zoom has a back-to-school problem; and a mediocre debut for Russell Crowe’s new road-rage movie shows Hollywood is stuck in the slow lane.
BT would be high-risk private equity double play 24 Aug 2020 The UK telecoms group is bolstering its takeover defences, according to Sky. Political baggage and a 10 bln pound pension gap help its cause. But depressed shares point to breakup potential, and a new owner may think it can manage BT’s daunting long-term investment needs better.
Pinduoduo gets stung by its own shopping hype 24 Aug 2020 Investors erased $16 bln in market value from the Chinese company as orders on its e-commerce app disappointed. “Gross merchandise value” is a confusing metric and much more so when consumer sentiment is volatile. Boss Chen Lei has had a costly lesson in why hard numbers rule.
TikTok could find a new home on Wall Street 21 Aug 2020 Potential suitors for the Chinese-backed video app go from logical – such as Twitter – to downright odd, like Oracle. But owner ByteDance could do worse than try a buyout firm like Blackstone. Private equity could bridge financial gaps and push the right political buttons.
Uber may be in the driver’s seat in labor dispute 21 Aug 2020 A California court gave the ride-hailing firm some breathing room to comply with a new law that turns gig workers into employees. Voters will decide in November if that should hold. The protracted mess gives Uber, DoorDash and others a reason to compromise on labor policies.
Charge into Chinese scooter’s VIE fine print 21 Aug 2020 Ninebot, the maker of two-wheelers which famously bought Segway, is set to be the first IPO on the mainland using an arcane variable interest entity structure. Beijing’s blessing does not clear up the legal fuzziness. Investors should be ready to scrutinise the specifics.
Alibaba polishes its crown and half-hidden jewels 20 Aug 2020 Quarterly sales at its shopping business rose 34%, in line with rival JD. But the cloud computing unit is growing nearly twice as fast and fintech affiliate Ant is on track for an epic IPO. The pair account for a fifth of Alibaba’s value. Boss Daniel Zhang has plenty to tout.
Corona Capital: Nvidia, Air conditioners 20 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: Nvidia goes gangbusters, HVAC units have their moment in the sun.
Tencent’s D.C. lobbying is too little, too late 19 Aug 2020 WeChat's owner made its first hire to influence Washington amid a threat to ban the Chinese app. Huawei boosted government efforts after its finance chief was arrested. TikTok was less flat-footed but still tardy. Courting politicians works better before their help is needed.
Hong Kong speculators should read China Literature 19 Aug 2020 The fan-fiction startup leaped 86% on its first trading day in 2017, but is now underwater, alongside peers that enjoyed similarly oversubscribed floats. Low interest rates have the city’s retail investors back at playing IPOs, so another round of unsustainable pops is underway.
JD is having its self-sufficient star moment 17 Aug 2020 Adjusted earnings at the $97 bln e-commerce giant rose 66%. The mooted listings of its health and fintech units have helped shares rise 76% year-to-date, outpacing Alibaba. Boss Richard Liu’s costlier inventory-led model and domestic focus are finally starting to pay off.