Companies & Funds

Brick phones will ring in an unlikely revival

19 Dec 2024

Nokia handsets of the early 2000s are appealing to a generation seeking a digital detox. The market, which is only 2% of US devices, is growing fast having doubled in a year. With the likes of Australia banning social media for under-16s, Apple and Samsung may pivot or lose out.

Luxury firms will warily cut prices to boost sales

19 Dec 2024

High-end goods cost 54% more than before Covid. Yet the likes of LVMH refuse to blame lower volumes on more expensive wares. The fact is that rich Chinese consumers care more about savings than status symbols. Sacrificing margins will be an uncomfortable but inevitable strategy.

Hot topics of 2024 will smoulder into new year

19 Dec 2024

Inflation in the United States, a struggling Chinese economy and Boeing’s existential challenges were among the stories that dominated this year. In this Viewsroom podcast, Breakingviews columnists explain why these issues – among others – will keep cropping up in 2025.

Saudi’s sports M&A splurge will get smarter

18 Dec 2024

The kingdom has so far focused on mature markets like golf and men’s soccer, including spending $400 mln on English team Newcastle. Rugby and women’s soccer arguably have greater growth potential. Saudi will make the switch in 2025 and provide some much-needed investment.

Watchdogs finally detect scent of hedge-fund risk

18 Dec 2024

The Financial Stability Board proposed ideas including leverage caps that may affect Ken Griffin’s Citadel and Israel Englander’s Millennium. The new US administration will balk. Yet with hedge fund borrowing surging to $5 trln, it’s worth fleshing out rules ahead of any blowup.

Nissan-Honda merger would be far from cure-all

18 Dec 2024

Japan’s second- and third-largest carmakers may be mulling a tie-up which might also include Mitsubishi. Cost cuts could bolster dismal margins for the $50 bln trio ahead of US tariffs. But as rival Stellantis's woes show, M&A cannot produce vehicles customers want to buy.

Savvy US green investor merits White House backing

17 Dec 2024

Power provider PG&E is due a record $15 bln from a controversial Energy Department loan program for clean energy projects. Donald Trump mostly mothballed the office during his first term, but its returns are impressive. Elon Musk knows the value, too: Tesla was a big beneficiary.

SoftBank’s $100 bln US pledge is doubly fanciful

17 Dec 2024

In 2016 Masayoshi Son offered to invest $50 bln stateside. Now the Japanese group’s founder has promised Donald Trump twice that sum, despite having barely a quarter of it at his disposal. It will be hard to make up the difference without selling shares in his crown jewel, Arm.

Capping credit card rates is only half a solution

17 Dec 2024

Donald Trump pledged to limit interest on plastic at 10%, eliciting howls from banks of a crunch on consumers. Delinquencies are up as charges have soared. But a plan that doesn’t also target, say, 400% APR payday loans could push poorer borrowers into something worse.

Vivendi’s discount haunts Bollorés post-breakup

17 Dec 2024

The media group split in four to shed a conglomerate valuation penalty. The bits are now collectively worth just 8 bln euros, implying no upside from the move. One lesson is that the discount was always down to the controlling Bolloré clan’s influence rather than the structure.

Green energy will be a smart contrarian trade

17 Dec 2024

Donald Trump’s dislike of offshore wind and threats to axe subsidies imply the renewable sector is one to swerve in 2025. Yet the US president-elect is primarily focused on keeping energy costs low. If permitting gets sped up, Big Tech-driven demand could help green power too.

BHP will try a club deal for Anglo American

17 Dec 2024

The Aussie miner is now free to make another takeover proposal for its smaller rival, whose copper assets still appeal to CEO Mike Henry. But paying a big premium looks harder to justify second time round. Partnering with a rival like Glencore or Vale may smooth the way.

Obesity giants will begin $80 bln M&A face-off

17 Dec 2024

Eli Lilly and Novo Nordisk will need to invest the war chests they are amassing from sales of weight-loss drugs. They could snap up rivals like Zealand Pharma, or forge into new areas, say by buying autoimmune player Argenx. Pressure to do deals raises the risk of overpaying.

US-China tech war will hold Asian allies hostage

16 Dec 2024

Washington’s curbs on semiconductors and other goods are starting to elicit a response from the People’s Republic. New export control rules offer a way for Beijing to retaliate. Its leverage over giants like Japan’s Toyota or South Korea’s SK Hynix make them prime targets.

Bausch + Lomb buyout gets blurry beyond $7 bln

13 Dec 2024

Private equity firm TPG is interested in the eye care company, whose parent’s $20 bln of debt makes it a willing seller. A new owner will struggle to find big costs to cut and to exit at a higher valuation multiple. Such constraints make it harder to see clear to a 20% return.

Private equity bids long goodbye to IPOs

13 Dec 2024

Buyout firms called $130 bln more from fund investors than they handed back between 2022 and early 2024, piling on pressure to return capital. Public markets are an increasingly impractical way to sell large investments quickly. Creative finance commands an ever greater premium.

Helicopter SPAC deserves another whirl

13 Dec 2024

Blank-check hype helped elevate Blade’s $825 mln valuation until the euphoria landed with a thud. Since then, the company has found more success transporting organs than Manhattan or Monaco jet-setters. The promise of quieter electric aircraft is another reason to go for a ride.

AstraZeneca lacks good medicine for Chinese limbo

13 Dec 2024

Executives at the $205 bln drugmaker have been detained by Beijing, hitting its shares. One way for CEO Pascal Soriot to ringfence China risk from the rest of AstraZeneca might be to list or spin off the unit. Yet that might just highlight fresh reasons to mark down the stock.

Delivery Hero investors’ meal is stuck in traffic

13 Dec 2024

Shares in the $9.5 bln online takeaway group have dipped since it sold a $2 bln stake in its Middle East unit through a Dubai IPO. CEO Niklas Östberg can now cut net debt, but many of his businesses still burn cash. A more comprehensive breakup may be the best option on the menu.

ESR take-private throws up Asia exit quandary

13 Dec 2024

A group led by US investors offered to privatise the Asian real estate fund manager for $7 bln. Hong Kong's dismal market and ESR's complex business merits the move, yet backers will find it hard to re-list. Asia offers slim pickings for regional groups with IPO dreams.