Agriculture

American pigs also need pandemic readiness

28 Mar 2022

African swine fever is in the western hemisphere for the first time in 40 years. Unlike, say, in China, U.S. mainland hog farmers and bacon lovers benefit from a zero-ASF reality for now. But far more than the $23 bln of annual economic output is at stake if the virus gets in.

Russian wheat squeeze sows seeds of global unrest

9 Mar 2022

Prices of the grain soared to record highs following Moscow’s invasion of Ukraine, a major producer. A previous spike in 2007 led to riots in Africa and Asia while pushing up subsidy costs. This time major importers like Egypt already have low reserves, spelling greater trouble.

Aussie conglomerate daringly bucks breakup trend

14 Feb 2022

As GE and J&J dismantle their empires, Wesfarmers is expanding its stationery-to-lithium sprawl by acquiring drugstores and maybe a veterinary service. Its Home Depot-like Bunnings chain helps the disparate parts equal the A$60 bln sum, but one bad deal risks debunking the model.

Climate-change money will flow freely to Plan B

24 Dec 2021

COP26’s so-so outcome makes damaging temperature rises more likely. At some point, optimal portfolios may require guns and canned food. Until then investors will lean towards shares in Syngenta, Veolia and other companies that aid adaptation to global warming not just mitigation.

Capital Calls: Couch-potato habits help Roblox

9 Nov 2021

Concise views on global finance: The video game app’s shares surged 36% on Tuesday after it said sales nearly doubled in the quarter.

Capital Calls: Wall Street B-team arrives in D.C.

23 Sep 2021

Concise views on global finance: U.S. senators sent SPAC managers letters questioning incentives in blank-check vehicles.

Capital Calls: Forbes catches SPAC wave

27 Aug 2021

Concise views on global finance: The business brand and magazine has agreed to merge with a blank-check firm in a $630 million deal, upping its value since last time it changed hands.

Pork feud stirs up another giant China risk factor

26 Aug 2021

WH Group is embroiled in a nasty clash with the octogenarian chairman’s son, who alleged financial misdeeds after being ousted. Denials didn’t prevent $2 bln of lost market value. Succession quandaries in graying corporate China add one more item to a growing investor checklist.

Capital Calls: Salmon, M&S, Sydney airport, BHP

20 Aug 2021

Concise views on global finance: SalMar places $1.3 bln order for Norway Royal Salmon; the UK retailer’s improving fortunes may ward off predators; the Australian firm provides scant evidence for rejection of a $16 bln takeover bid; Santiago dings the Aussie miner over water use.

Capital Calls: Oatly, Sonos/Google

16 Aug 2021

Concise views on global finance: The Swedish oat milk producer’s decent results are only good in parts; Sonos gets a boost with a preliminary trade ruling that Google infringed its patents.

SPAC five-year plans fall short of Soviet accuracy

12 Aug 2021

AppHarvest, a greenhouse grower that completed a SPAC merger earlier this year, cut its 2021 sales forecast by nearly two-thirds. Revenue-free firms float on five-year projections, but a series of early stumbles show most long-term forecasts are practically a stab in the dark.

Chicken deal hatches from family-history egg

9 Aug 2021

The $4.5 bln sale of U.S. producer Sanderson Farms to Cargill and Continental Grain comes as U.S. chicken prices and the company’s own stock are both on a roll. Boss Joe Sanderson has no family interested in taking over. That doesn’t force a sale, but it’s one more nudge.

Capital Calls: Moderna, Qualcomm, US tax, ViacomCBS

5 Aug 2021

Concise views on global finance: The Covid-19 vaccine maker is looking past the pandemic; the telecoms group is offering $4.6 bln for Veoneer; U.S. Democrats are trying to close the carried-interest loophole; ViacomCBS is betting "South Park" can boost its streaming service.

What a bucket of chicken wings might tell the Fed

25 Jun 2021

U.S. poultry prices are on a tear. Wings are the priciest of all. There are reasons of supply, like feedstock inflation and labor shortages, and of demand. Some may be transitory, as the central bank hopes. But it’s more complex than just going back to pre-Covid times.

Syngenta plants listing seed in rich Chinese soil

23 Jun 2021

The Swiss agrochemical giant’s Beijing-backed owners are cultivating a Shanghai IPO with a possible $60 bln valuation. That’s punchy. But with local investors desperate for global exposure and farm-produce prices soaring, an ambitious price tag may be achievable.

CNH pays hefty price for driverless tractor ride

21 Jun 2021

The Italian-American agricultural equipment group is paying $2.1 bln for Raven Industries, which makes tech for autonomous farm machines. With few cost savings, the multiple of almost 40 times EBITDA looks rich. CNH will need a big sales boost to harvest a decent return.

Global Britain’s winners and losers take shape

16 Jun 2021

The UK’s first major post-Brexit trade deal grants zero-tariff and zero-quota access to Australian agricultural exporters, with little obvious in return. The pact may not hit Britain’s farming sector too hard. But it will form the template for future and bigger trade agreements.

Capital Calls: U.S. malls are a tale of two REITs

14 Jun 2021

Concise views on global finance: Shopping center operator Washington Prime filed for bankruptcy protection, but the outlook is a bit rosier for premium mall owners.

Capital Calls: Medline’s money machine

7 Jun 2021

Concise views on global finance: Blackstone and partners’ purchase of a majority stake in the $34 bln medical equipment maker could generate a big windfall for its founding family, without the clan members handing over the keys to their empire.

Capital Calls: Russia and US, Clothing IPOs, Food

3 Jun 2021

Concise views on global finance: The Kremlin tells its national state fund to get out of greenback-denominated assets; Rent the Runway thinks about going public; the FAO’s global food index hits its highest level in nearly a decade.