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Capital Calls: Disney’s Netflix problem

8 Nov 2022

Concise views on global finance: The Magic Kingdom’s shares tanked on Tuesday after it reported widening losses in its streaming service division, but it can overcome the challenges.

Liverpool could be a rare soccer M&A victory

8 Nov 2022

Club owners are often more interested in glory than profit. But Fenway Sports Group, which may sell the English team, could score a near 10 times uplift on its 300 mln pound purchase price. The timing is odd, but Liverpool may be an exception to the rule that soccer doesn’t pay.

Guest view: Climate finance club hands over baton

8 Nov 2022

It’s a year since banks, investors and insurers with a collective $130 trln convened in the Glasgow Financial Alliance for Net Zero. Despite some setbacks, the group has made progress, writes Huw van Steenis. Now it’s up to governments to help unlock more green investments.

The politics and economics of superpower rivalries

8 Nov 2022

Are America and China heading for a showdown, and what does it mean for the world order? In this edition of the Exchange podcast Paul Tucker, former deputy governor of the Bank of England, discusses the financial and foreign policy fallout and his new book, “Global Discord”.

Philip Morris and Rio’s poker faces need some work

7 Nov 2022

The $139 bln Marlboro maker and $95 bln miner have upped buyout offers to try and clinch strategically key deals. In both cases, hedge funds and minority investors called their bluff. The lesson is that bidders can’t play hardball if everybody knows they really need a deal.

NFTs may not get back up off the canvas

7 Nov 2022

Global non-fungible token sales have dropped over 90% since January. Enthusiasts remain hopeful that NFTs can branch into new, more durable applications that are less like trinkets. But with rate rises upending niche assets, don’t bet on it.

Capital Calls: Japan baulks at U.S. car credits

7 Nov 2022

Concise views on global finance: Tokyo warns America’s Inflation Reduction Act could discourage Japanese investment into the world’s biggest economy.

How Joe Biden can help save the planet at COP27

7 Nov 2022

“Just transition partnerships” with states like India are essential to fight climate change and advance Western interests. America needs to join up its trade, geopolitical and climate policies, says Hugo Dixon, as the U.S. president heads to the U.N. climate conference in Egypt.

Capital Calls: Starbucks waits stubbornly in China

4 Nov 2022

Concise views on global finance: The $100 billion coffee chain surprised investors with a solid quarter despite persistent sluggish results in the People’s Republic.

Lisbon tech schmooze takes baby steps to reality

4 Nov 2022

Amid 2022’s cratering valuations, venture capitalists attending the Portugal-based Web Summit are appropriately more cautious about new startups. Yet crypto crowds are still out in force. That’s despite the need for tech cash to focus more on solving problems like climate change.

Abrdn’s battered model may yet start to shine

4 Nov 2022

The British group meshes staid fund management with technology platforms for savers and wealth managers. The latter are growing and benefitting from higher interest rates. CEO Stephen Bird’s turnaround has a long way to go, but an undemanding valuation leaves plenty of upside.

Tom Ford return offers remedy for Gucci fatigue

4 Nov 2022

Kering is considering a swoop on the U.S. fashion house. Bringing back Gucci’s ex-star designer could ease the $60 bln fashion giant’s reliance on its largest brand, which needs reinvigorating. Kering’s vast retail network would also make the Tom Ford label a winner.

Capital Calls: Uniper

3 Nov 2022

Concise views on global finance: The German utility’s 40 bln euro loss for the first nine months of 2022 has turned its equity negative and implies a much larger bailout.

Monte Paschi cash gambit leaves bitter aftertaste

3 Nov 2022

The bailed-out lender secured 93% backing for its 2.5 bln euro cash call. Financially, that's a success. But investors will include bank foundations, a past source of political meddling. A conversion of junior bonds would have saved taxpayers high fees and interest payments.

BNP defies French banks’ interest-rate malaise

3 Nov 2022

The 60 bln euro lender’s top line is rising handily. That’s partly because CEO Jean-Laurent Bonnafé has tilted BNP Paribas away from Gallic retail banking, where regulations restrict its ability to earn more as rates rise. A valuation premium to local rival SocGen looks assured.

Saudi Credit Suisse deal is fair Buffett imitation

2 Nov 2022

The kingdom’s biggest lender is ponying up $1.4 bln to help the weak bank raise capital. It’s not getting the sweet terms the Sage of Omaha extracted from Goldman in 2008 but the returns are still in his ballpark. And if Credit Suisse struggles, a breakup may limit the downside.

UK tech flops expose perils of IPO forecasts

2 Nov 2022

E-commerce group Made.com has all but collapsed little more than a year after issuing sunny targets in an 800 mln pound float. Stock market duds Deliveroo and Funding Circle had optimistic guidance. When initial public offerings restart, investors should ignore the projections.

Capital Calls: DuPont, Dollar stores, Twitter

2 Nov 2022

Concise views on global finance: The chemicals company takes an unexpected but welcome M&A break; Dollar General is being sued for practices that raise questions about pricing power; and Elon Musk plans to charge micro-bloggers for blue checks to help cover his huge deal costs.

BP is case study in global windfall-tax quandary

1 Nov 2022

The $100 bln oil major wants to produce more green energy and less crude. Yet a British windfall tax risks pushing it in the opposite direction. A better levy design would hit outsized profit in both fossil fuels and renewables, while still incentivising investment in the latter.

Europe’s diverging prices complicate ECB’s task

1 Nov 2022

Inflation is running at 7% a year in France and 22% in Estonia. These differences make the European Central Bank’s stance too aggressive for some states and too timid for others. The controversy about monetary policy will only intensify as the ECB pushes rates higher.