China travel boom is stuck in the departure lounge 10 Dec 2021 Domestic tourism was already struggling of late. Now a surge in pandemic curbs like testing and quarantine is making regional travel difficult. Duty-free giant China Tourism’s decision to shelve its $6 bln Hong Kong listing shows the industry hunkering down for staycation pain.
Capital Calls: Zoom, U.S. jobs 3 Dec 2021 Concise views on global finance: The video-conferencing service is investing in Amex Global Business Travel as part of a $5.3 bln SPAC deal; in the United States, only 210,000 positions were added in November, but the unemployment rate fell.
Capital Calls: Dan Loeb, Daily Mail 2 Dec 2021 Concise views on global finance: The billionaire activist swats away his own gadfly investor; the UK tabloid’s controlling Rothermere family sweetens its take-private offer, to the presumable delight of the campaigners on its news desk.
Macau mogul’s downfall is good news for casinos 1 Dec 2021 China’s investigation into an illegal gambling group casts a shadow over Alvin Chau’s Suncity, which once helped high rollers fund as much as $8 bln in wagers each year in the betting hub. But the VIP market is a drag on earnings. Ending it can help strengthen recovering casinos.
China’s bet on Covid-zero worsens odds for Macau 29 Nov 2021 Beijing’s draconian restrictions are a growing problem for Wynn, Sands, and other casino operators in the gambling hub. Resorts sit half-empty with gaming at 30% of pre-pandemic highs. They can live without foreign tourists, but local visitors are their lifeblood.
Airline investors weigh up more pandemic baggage 24 Nov 2021 U.S. travelers may log their busiest day since the pandemic during Thanksgiving. In Europe, government clampdowns may crimp winter travel. And airlines on both sides still have to contend with what happens in China, which could knock some wind out of valuations.
China is missing wildcard in $2.5 bln casino SPAC 20 Oct 2021 Japan’s Universal Entertainment plans to float its Okada Manila resort through a shell company run by former Sands director Jason Ader. A modest valuation will hold appeal for such a fast-developing market. China’s closed borders, however, make it a deceptively risky bet.
Online jackpot tempts ambitious $2.9 bln bet 18 Oct 2021 Australia-based Aristocrat is paying a chunky 58% premium to buy UK gambling software maker Playtech. The tech-related stakes are big, but plans to close in some areas will come at a cost. Backlash against giddy growth in online wagering also lowers the odds of financial success.
Star steeled for its own Crown duel with watchdogs 13 Oct 2021 The market knocked 25% off the Aussie casino operator’s market value after a media exposé suggested it may yet face a corporate governance crisis akin to James Packer’s. But Star is better prepared, and a pandemic proved it can weather a crisis. Investors could roll the dice.
China’s Golden Week takes shine off outlook 12 Oct 2021 A 5% fall in tourism spending during the annual autumn vacation stretch sent a gentle reminder about the shakiness of consumer confidence. Other bleak indicators such as home sales also suggest the economy is cooling quickly. Beijing for now seems unpersuaded to offer any relief.
Capital Calls: Facebook, TeamViewer, Audio M&A 6 Oct 2021 Concise views on global finance: Whistleblower Frances Haugen’s polished rollout is a warning for Big Tech; the video software specialist’s 25% share price fall shows the perils of growth stocks; hearing aid group GN snaps up headset maker SteelSeries for $1.3 bln.
Capital Calls: Merck pill, Zoom deal 1 Oct 2021 Concise views on global finance: Investors are being stingy about the pharma firm’s new drug to treat Covid-19; the video-conference company and Five9 are dropping their $15 bln transaction.
Blackstone places safer bet in Las Vegas 28 Sep 2021 The buyout shop hit the jackpot in a $6 bln deal to sell its Cosmopolitan casino. The twist is that its own real estate arm is one of the buyers. By keeping the property with plans to collect rent, Blackstone offloads some risky exposure while taking better odds as the landlord.
New light emerges from China’s shadowy shoppers 24 Sep 2021 Cross-border traders known as daigou have been hurt by the pandemic, curbing sales of everything from A2 milk powder to Gucci handbags. Shrinking this once-thriving grey market will come at a cost, as evidenced by one Aussie company. Lower risks and clearer pictures are worth it.
Capital Calls: China/TPP, Flavourings, Chill-boxes 17 Sep 2021 Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.
Bolloré gives coup de grâce in French tycoon spat 16 Sep 2021 Gallic raider Vincent Bolloré may buy publisher Lagardere for 4.6 bln euros, ending a battle for control of the Paris Match owner also involving LVMH boss Bernard Arnault. His Vivendi can make a healthy return, while CEO Arnaud Lagardere at least gets to come along for the ride.
Capital Calls: Biden channels Trump on China 16 Sep 2021 Concise views on global finance: After losing an Australian submarine deal, the French accused the U.S. president of acting like his predecessor. They’re right that there’s bipartisan antipathy towards Beijing in Washington. They’d better hope the similarity ends there.
Capital Calls: Vaccine mandates, U.S. debt ceiling 10 Sep 2021 Concise views on global finance: New White House requirements for Covid-19 injections will provide cover for businesses while Washington lawmakers arguing about borrowing limits make themselves look foolish.
Bill Gates bets luxury hotels are plague resistant 9 Sep 2021 The billionaire who predicted a pandemic snagged half of Saudi Prince Alwaleed’s stake in the Four Seasons chain, valuing it at $10 bln. That’s a big price since Gates helped take the group private in 2007 and a sign one of the richest guys thinks fancy suites offer protection.
EasyJet packs M&A reserve chute into safety plans 9 Sep 2021 The low-cost carrier is raising $1.7 bln from shareholders after another virus-hit summer. That, plus a $400 mln loan facility, gives CEO Johan Lundgren a plump cushion if the recovery stalls again. If all else fails, ambitious budget rivals like Wizz Air are poised to pounce.