Aeroflot’s travails are metaphor for Russia 9 Jun 2022 Sanctions have curtailed the state-run carrier’s routes and grounded its jets. Moscow will underpin a $3 bln rights issue by raiding its rainy-day fund. As its economic isolation deepens, more oil dollars will have to be diverted to struggling domestic enterprises.
Casino SPAC is for hardened gamblers only 7 Jun 2022 A legal battle over Okada Manila resort turned physical when its ousted boss seized the property last week. That could scupper its $2.7 bln deal with a U.S. blank-cheque firm. But unfriendly politicians, dubious financial reports and more stack the odds against investors, too.
Hong Kong co-living boom bets on more lonely years 17 May 2022 Warburg Pincus is among those buying hotels in the Asian hub to convert into upscale shared digs for millennials. Given a 99% drop in visitors in the past three years and a belief that won’t reverse soon as officials stick with China’s zero-Covid policy, more deals look likely.
Capital Calls: Business travel, Adidas China woes 6 May 2022 Concise views on global finance: British Airways owner IAG faces stormy UK skies; Chinese lockdowns and boycotts are slowing down the German sneaker maker.
Sands’ Singapore bet turns into crucial hedge 28 Apr 2022 Core profit at its Marina Bay resort held up relatively well last quarter. Its larger Macau hub dipped into the red, and China’s Covid curbs are dealing it another bad hand. Relaxed tourist restrictions mean the Lion City casino is now the $27 bln gambling group’s prize property.
Fallen casino kings have lessons for Blackstone 25 Apr 2022 If the buyout shop’s $6.5 bln bid for Crown Resorts succeeds, its executives will study founder James Packer and his former Macau partner. Lawrence Ho’s Melco group is struggling while Packer is exiting Crown after bad China bets. Even so, their examples point the way to success.
Italian motorway menu serves the Benettons well 21 Apr 2022 The dynasty may merge its Autogrill chain with $4 bln Swiss duty-free specialist Dufry. Though slightly bigger, the latter is suffering the worse Covid-19 hangover. Even though they’re surrendering control, the Benettons would still have a strong hand to get a good deal.
Capital Calls: U.S. truck drivers go missing 4 Apr 2022 Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.
Capital Calls: Continental split 17 Feb 2022 Concise views on global finance: The $20 bln German auto supplier is eyeing a four-way separation, according to a report.
Rich stocks have yet to feel cost-of-living crisis 16 Feb 2022 Rising inflation and higher energy bills are hitting consumers. UK punters in particular look vulnerable, given uneven savings and tax hikes. Mass belt-tightening could mean fewer holidays and less spending on luxuries like streaming, hurting companies from Ryanair to BT.
Marriott and Airbnb aren’t a tale of two cities 15 Feb 2022 The $56 bln hotel chain’s revenue hasn’t fully recovered to its pre-pandemic level but is expected to grow quickly to get there by next year. Meantime Airbnb’s best growth days may be behind it. Yet the $108 bln home-sharing app’s valuation is far higher. The two need to converge.
Wynn rolls the dice in search of a new prize 15 Feb 2022 Craig Billings, the $11 bln casino group’s third boss in four years, could use a growth engine. A long slog awaits in Macau even as the mature Las Vegas market rebounds. Rival Sands found success in Singapore. The odds are longer for Wynn’s push into online betting and the UAE.
Capital Calls: Continental, Harley-Davidson 8 Feb 2022 Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.
Capital Calls: Wizz investor sides with workers 7 Feb 2022 Concise views on global finance: Denmark’s AkademikerPension picks an odd moment to offload its stake in the $6 bln budget airline over a lack of union representation among its staff.
Ferretti float may be back in same boat 24 Jan 2022 After a bold $1.2 bln valuation target sank its Milan IPO effort in 2019, the Italian yacht maker owned by China’s Weichai is now sailing for Hong Kong. Growth is buoyant, but luxury goods have charted a patchy course on Asian bourses. It’ll be hard, again, to make a splash.
Incompetence and greed fuel U.S. airline 5G battle 20 Jan 2022 Major airlines said a rollout of 5G could make flights dangerous. Airlines, wireless firms, and government agencies had over a year to solve the problem. The weakened air industry may not want extra costs. But other countries figured it out while U.S. taxpayers are left hanging.
Peninsula Hotel owner checks in for expensive stay 19 Jan 2022 Hong Kong’s Kadoorie family paid almost twice market rate to add 12% to its controlling stake in the 156 year-old chain with luxury hotels from Paris to Tokyo. With shares trading at a third of net asset value, it suggests some post-pandemic tourism plays have yet to be booked.
Capital Calls: UK bid gets hedge funds off hook 17 Jan 2022 Concise views on global finance: Private equity group Triton sweetens its offer for pharma group Clinigen to 1.3 bln pounds, raising the chances of hedge funds accepting the deal.
Crown plays its cards well with Blackstone 13 Jan 2022 The embattled Aussie casino empire is ready to drop its poker face and back the buyout firm’s fourth bid, sweetened to $6.4 bln. Blackstone’s impressive turnaround track record in hospitality deals leaves it well-placed to maximise returns, even after the multiple price hikes.
Macau watchdogs will double down on digital yuan 3 Jan 2022 As casino operators prepare bids for new licenses in the $37 bln gambling hub, investors fear regulators will tighten their grip on Sands, Wynn and MGM. One clever way to start would be by forcing them to adopt China’s new virtual currency.