High-flying airlines still face stiff headwinds 25 Jan 2023 EasyJet shares surged on improved expectations, as rising numbers of holiday-goers look set to push the sector back into the black. But recent meltdowns show air travel has an increasing problem with tech glitches. It’s premature for investors to settle back in their seats.
Macau bounces into Year of the Rabbit 19 Jan 2023 Spring has sprung in the casino hub with the end of China’s zero-Covid. Operators will return to profit. Yet from Sands to SJM, balance sheets are stretched. How quickly they are repaired depends on if punters spend as much as before. Pandemic policies will leave other scars too.
Capital Calls: AstraZeneca 9 Jan 2023 Concise views on global finance: The drug giant is to pay up to $1.8 bln for U.S. group CinCor Pharma to beef up its kidney and heart businesses.
Capital Calls: Southwest, U.S. jobs and wages 6 Jan 2023 Concise views on global finance: Financial bumpiness caused by the airline’s major flight disruptions should be temporary, partly due to limited competition; slower U.S. wage growth raises the chances that the Fed won’t have to crush the labor market to bring down inflation.
Capital Calls: Amazon, Flying cars 5 Jan 2023 Concise views on global finance: The $855 billion e-commerce giant's layoffs could actually help its antitrust defense; Stellantis’s possible $150 mln investment in Archer Aviation is less crazy than it seems.
Return of Chinese tourists will be turbulent 4 Jan 2023 Retailers and hoteliers from Macau to Paris will welcome travellers again. Pent-up demand augurs a full recovery in $255 bln of annual spending even if flight capacity and testing requirements slow the pace. But Beijing's policies may reshape where and how money is spent.
Capital Calls: Cross-border M&A, Riches to rugs 9 Nov 2022 Concise views on global finance: The market reaction to U.S.-based Chart Industries’ $4.4 bln deal to buy Scotland’s Howden reinforces the idea that it’s a bad time to shop overseas, while Peloton’s founders are shifting gears with a new bespoke carpet business.
Capital Calls: Adidas 21 Oct 2022 Concise views on global finance: The 19 bln euro sportswear maker slashed its 2022 revenue outlook, dragging shares down 10%.
Capital Calls: TSMC 13 Oct 2022 Concise views on global finance: The $324 bln Taiwan Semiconductor Manufacturing barely addressed questions regarding U.S. technology export controls on China during its earnings call.
China’s dreary Golden Week has shades of grey 10 Oct 2022 Domestic tourism sales during the country's top holiday fell to less than 50% of pre-pandemic levels. Cities like Shanghai might get a welcome boost from shoppers that stayed put, but the sector drives roughly 30% of consumption. That’s cold comfort for the weakening economy.
Hong Kong’s opening leaves it long way from normal 23 Sep 2022 The city will no longer quarantine arrivals. It may lure Wall Street bosses to a key banking summit. But with China's mainland unlikely to reciprocate access, Hong Kong will go on struggling. Its recessionary status is leader John Lee’s best hope of winning more relaxations.
Capital Calls: SPAC unwind, U.S. trustbusters 20 Sep 2022 Concise views on global finance: Chamath Palihapitiya, who personified the excess of the blank check market, is returning cash in two of his vehicles. Investors in companies that went public via SPACs are the main losers. And American antitrust enforcers suffer a second court loss in a month.
Capital Calls: Saipem’s new CEO 31 Aug 2022 Concise views on global finance: The hard-hit Italian energy services company appointed Eni veteran Alessandro Puliti as chief executive.
Capital Calls: Taiwan, Meme stocks 18 Aug 2022 Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.
China’s Hawaii washes away an economic sandcastle 8 Aug 2022 A Covid-19 outbreak has locked down cities in Hainan, stranding over 80,000 visitors. It sets back a decent recovery in tourism, a generator of more than 11% of pre-pandemic GDP. With other growth pillars shaky, it’s the worst time to give consumers another reason to check out.
MGM and SJM fuel Macau recovery hopes and fears 4 Aug 2022 The $15 bln U.S. group’s record results in Las Vegas suggests its Chinese casinos should prosper, too, once Beijing’s zero-Covid policy lifts. That, though, is becoming a long-term bet, and cash-burning rivals like SJM are already having to raise more money to stay at the table.
Airbnb dodges inflationary roach motel 2 Aug 2022 The cost of hosting tourists – and being one – is rising. But not for Airbnb, which unlike Marriott and Hilton has managed to ensure price hikes remain other people’s problems. Meanwhile, travelers are willing to pay more, which cushions both the hosts and the company itself.
Cathay Pacific charts hopeful course for Hong Kong 18 Jul 2022 Huge capacity cuts and a bailout put a lid on debt as quarantine rules keep its home city isolated. Its shares, better performing than Singaporean and Western peers, imply the airline and the Asian hub will make a quick turnaround. But it faces a harder slog back to normal.
Disney boss’s next challenge: win over investors 6 Jul 2022 The $177 bln company’s board gave Bob Chapek three more years at the helm despite a rocky start. But with video streaming in danger of slowing and the shares down 40% year-to-date, the CEO needs some financial magic. Offloading the ESPN sports network would restore value.
Americans’ urge for the open road knows few bounds 1 Jul 2022 Travelers book flights for convenience – and in theory rising gas prices help that trend. But time is money, too, and plane delays are increasing. Assign a reasonable value for an airport setback, and it suggests holiday travelers should blare "Holiday Road."