Baidu’s Ctrip sale leaves room for risky wandering 27 Sep 2019 The $37 bln web giant is offloading nearly a third of its holding in China's largest travel agency for $1 bln. Ctrip stock has shed over 30% since Baidu came in; still, thanks to an initial share swap, boss Robin Li can book a profit. Now he needs to spend on more than buybacks.
Viewsroom: WeWork overhaul won’t be enough 26 Sep 2019 Adam Neumann lost his CEO role and control of the shared-office provider after its valuation plummeted in preparation for a now-postponed IPO. But WeWork’s business model remains a problem. Plus: Thomas Cook’s collapse hits China’s Fosun. And: parsing financial climate pledges.
Fosun books early return flight from UK holiday 24 Sep 2019 Iconic travel company Thomas Cook collapsed after Downing Street declined a bailout, leaving hordes of tourists stranded. Fosun Tourism’s 450 mln pound rescue attempt, which might have salvaged its stake, stands abandoned. Shareholders in the Chinese company may feel the same.
Thomas Cook crash is dry run for Brexit failures 23 Sep 2019 The UK government refused a 150 mln pound bailout of the travel firm, citing moral hazard, but will fund the repatriation of thousands of stranded Brits. A chaotic departure from the EU will leave more businesses ailing. That will test Prime Minister Boris Johnson’s tough stance.
Airbnb may be everything WeWork isn’t 19 Sep 2019 Both space-sharing pioneers have been valued at more than $30 bln. Yet Airbnb’s asset-light business needs little capital while reaping obvious economies of scale and network benefits. That should help its public listing, planned for 2020, succeed where WeWork’s is failing.
Green fears could keep UK high-speed rail on track 23 Aug 2019 The so-called HS2 link from London to northern England may end up 29 billion pounds over budget. That eats into benefits of the bullet train’s potential to narrow Britain’s troubling north-south divide. Yet concerns about global warming point to the project maintaining momentum.
Chinese tourists’ reverse-Marco Polo is no fluke 19 Aug 2019 The flow of visitors from the Middle Kingdom to Italy has jumped. That is the reward for becoming the People’s Republic’s new best European friend. The Communist party uses its $315 bln outbound tourism market to exercise soft power, helping friends and punishing foes.
Cathay Pacific yields to its Beijing co-pilot 12 Aug 2019 The Hong Kong carrier will allow Chinese authorities to vet staff flying to and over the mainland, as anti-government protests heat up at home. “Overly radical" employees will be kept away. Local roots and links leave Cathay and parent Swire vulnerable, and with limited options.
Brexit casts a double cloud over IAG 2 Aug 2019 The British Airways owner’s top and bottom lines are growing, a rarity among ravaged European carriers. Yet the risk of Britain crashing out of the EU weighs on its valuation. IAG can’t reduce its dependence on UK travellers, but more clarity on post-Brexit ownership would help.
Elliott’s Saga raid rests on insurance revival 17 Jul 2019 The activist has boarded the UK group which flogs cruises and cover to the over-50s. A breakup may rejuvenate shares which have halved since early April, but a turnaround depends on its biggest unit. At least the investor can steer the choice of CEO Lance Batchelor’s successor.
Thomas Cook wipeout forces Fosun to double down 12 Jul 2019 The ailing UK tour operator is finalising a 750 mln pound recapitalisation which would give creditors control of the airline and the Chinese group its travel unit. That allows Fosun to salvage its 250 mln pound equity stake. Other shareholders are likely to be left with nothing.
Macau’s Las Vegas ambitions face reality check 29 May 2019 Millions of Chinese visitors are swarming the tiny territory across a new bridge. The $38 bln gaming hub doesn’t seem to know what to do with them, and is mulling a tourist tax to reduce congestion. The city’s Nevada-inspired economic diversification strategy is due a rethink.
Jaunts abroad offer useful cover for China’s Ctrip 21 May 2019 The $20 bln travel giant, owner of Skyscanner, has become a top shareholder in India's MakeMyTrip. Efforts at diversification are prudent: rivals are proliferating at home, and the economy is cooling. There's protection too, if Beijing pulls tourists into a worsening trade war.
Saga is a wake-up call for UK insurers 4 Apr 2019 Shares in the company that focuses on baby boomers fell 38 percent after it issued a profit warning and cut its dividend. Data protection laws and the UK financial watchdog’s keener focus on prices that are causing problems for its insurance business will also hurt rivals.
Brexit gives easyJet handy excuse for summer blues 1 Apr 2019 The low-cost airline blamed political turbulence in Britain for weak passenger demand. Anaemic euro zone growth is probably a bigger culprit. With fuel costs rising and air-traffic disruption still likely, easyJet will struggle to repeat last year’s high-flying performance.
Etihad is strapped in too tightly at Jet Airways 19 Mar 2019 The ailing $400 mln Indian carrier has stopped flights to Abu Dhabi, the hub of its 24 pct shareholder. Even with some planes grounded, Jet may be trying to strong-arm support for a restructuring. It’s a harsh reminder that Etihad has more to lose than just its equity investment.
Cambodia’s casino king faces new poker hands 11 Mar 2019 Malaysian tycoon Chen Lip Keong is enjoying an extraordinary monopoly in Phnom Penh: his $6 billion flagship group, NagaCorp, grew net profit by more than 50 percent last year. But new rules and an influx of Chinese tourists will inspire upstarts to try their luck too.
Macau’s festive blowout defies economic worries 27 Feb 2019 The $38 bln Chinese gambling hub looks resilient despite concerns about slowing consumption onshore. Visits rose by 27 pct over the Lunar New Year holiday; quarterly results at Melco and MGM also inspire optimism. Efforts to attract the up-and-coming middle class are paying off.
A plucky local upstart will take on Macau’s moguls 31 Dec 2018 Regulators in the world’s largest gambling hub could allow new players onto the casino floor when licenses expire in 2020. With frayed U.S.-China relations dealing American giants Sands and Wynn a weak hand, homegrown names like Suncity and Golden Dragon will try their luck.
Drones prove disruptive capacity – in a bad way 20 Dec 2018 Rogue devices forced London's Gatwick airport to close, grounding flights and stranding thousands of passengers the week before Christmas. Even known risks with new technology - already highlighted by UK aviation authorities - can be hard to manage.