Companies & Funds

Capital Calls: Bank of America, EU carbon prices

14 Jul 2021

Concise views on global finance: the U.S. lender beat earnings forecasts, despite a less-than-stellar performance in the activities that boosted rivals; and European Commission reforms should push up the cost of greenhouse gas emissions.

Nationalist flame wars will singe China Inc

14 Jul 2021

Angry users are ditching Didi’s ride-hailing app for alleged data leaks to foreigners. Patriotic extremism has stung overseas brands like H&M; now it’s turning on domestic companies, sometimes with official encouragement. It sets a dangerous precedent that could get out of hand.

Zara’s Chinese rival threatens from the shadows

14 Jul 2021

Online fashion site Shein cranks out ultra-cheap designs at lightning speed. It discloses next to nothing about its operations and tried to scrub its Chinese origins off the internet. Its opacity is strategic, but competitors had best study its model.

China chip crash helps fine-tune tech policy

14 Jul 2021

Lavish government funds fuelled the rapid expansion of semiconductor darling Tsinghua Unigroup. It now faces bankruptcy with $31 bln of debt piled up. Letting it fail reflects Beijing's new, more selective strategy of developing industry champions. It may yield better results.

Car-battery SPAC deal is joyride at electric price

13 Jul 2021

U.S. auto charge maker SES Holdings is going public via a merger with Robert Friedland’s blank-cheque vehicle at a $3.3 bln valuation. That’s chunky given a controlling founder and zero near-term sales. Investors must hope big backers like General Motors help swerve potholes.

U.S. auto financing has mini subprime problem

12 Jul 2021

Prices have shot up 45% in some cases in the $800 billion car sales market, due to pent-up demand and a chip shortage. But unlike houses that can go up in value, cars depreciate as soon as they are driven off the lot. Owners will soon be underwater, and so will their lenders.

Soaring animal spirits buoy Wall Street’s heavies

13 Jul 2021

JPMorgan and Goldman Sachs are raking in fees from dealmaking CEOs and investors who snap up almost anything bankers throw at them. Consumers, still cautious, are no longer a risk. These conditions can’t last forever, though the firms’ shares are valued as if they might.

Bank investors sense a blockage in dividend gusher

13 Jul 2021

UK lenders like NatWest could in theory make payouts worth up to 25% of their market value, after the Bank of England lifted a ban. Despite a recent rally, they’re not getting full credit for this. Lingering coronavirus risks and IT investment needs may explain the scepticism.

Capital Calls: Disney hits two post-Covid targets

13 Jul 2021

Concise views on global finance: Netflix and the Mouse House have racked up 24 Emmy nominations each for “The Crown” and “The Mandalorian.” But Disney's "Black Widow" not only saw a stunning streaming debut but also topped the re-emerging theater box office.

Elon Musk is stuck in an alternate past

13 Jul 2021

In testimony about the 2016 SolarCity deal, Tesla’s boss said the carmaker would “die” if he wasn’t CEO. That was true once, but not now. He’s in denial about his sway over the board then, too. It suggests governance changes since could be at risk if he becomes chairman again.

Chinese duty-free giant’s share sale is well timed

13 Jul 2021

China Tourism’s Hong Kong secondary listing plan spotlights the $90 bln company’s unique strengths. State ties help, as do favourable policies in tropical getaway Hainan. Hefty proceeds will give it a war chest to expand overseas and challenge rivals like Switzerland’s Dufry.

MSP’s $33 bln listing stretches SPACs to the limit

12 Jul 2021

MSP Recovery dogs insurance firms for healthcare payments the government was forced to pick up. In a dysfunctional U.S. industry, that’s a smart mission. But it’s complex, hard to value and has no real peers. That, plus other unanswered questions, calls for a very strong stomach.

European IPO market feels like global leftovers

12 Jul 2021

A raft of companies like livestock firm Huvepharma and BASF had to cancel European listings. Trendier players Soho House, Turkish retailer Hepsiburada and Italian vaccine vial maker Stevanato have opted for New York. Lacklustre IPO trading makes it hard to coax back investors.

Rothermeres heed Daily Mail’s buyout criticism

12 Jul 2021

The publisher’s controlling family wants to take it private after offloading insurance and car-retail holdings. All in, they will put up a minority of the 810 mln pound cost. Happily for the tabloid organ’s campaign against private equity, other shareholders aren’t being shafted.

Swedish tech investor benefits by slimming down

12 Jul 2021

Most listed investment firms trade at a discount to the net value of their assets. Kinnevik’s recent decision to hand its stake in e-tailer Zalando to shareholders has made it an exception. Shedding future winners from its $9 bln portfolio will be vital to preserving its status.

Tate & Lyle’s hybrid breakup can sweeten valuation

12 Jul 2021

The $5 bln ingredients maker is selling half its commercial sweeteners unit to a private equity buyer. It gets $1.3 bln in cash and a 20-year deal to keep access to manufacturing plants and corn. The hope is its remaining business will now trade in line with faster-growing peers.

Tencent e-sports defeat exposes tech M&A weakness

12 Jul 2021

Trustbusters nixed a $5 bln merger of two video-game streaming companies the Chinese titan backs. It's a sign Beijing will no longer tolerate the kinds of transactions that created giants like Meituan. For Tencent boss Pony Ma, a bigger problem may be having to unwind past deals.

Capital Calls: Goldman, ASOS/Nordstrom, Resins M&A

12 Jul 2021

Concise views on global finance: The Wall Street bank faces pressure to keep up with the pack when it comes to junior bankers’ compensation; the UK online retailer forms an unconventional union with the U.S. mall giant; PTT Global Chemical pays up for Advent’s coatings business.

South Asia bourses face Hong Kong-style IPO test

12 Jul 2021

Bukalapak’s and Zomato’s respective debuts in Indonesia and India will help startups decide whether to list at home. The Fragrant Harbour has proven it has what it takes to attract hot tech names. Mumbai’s stellar secondary market makes it better placed to replicate that success.

Beijing sets wolf to guard equity sheep

12 Jul 2021

China’s cyberspace agency may take the lead deciding which companies can tap offshore markets. The move risks undoing progress made integrating financial regulation following the 2015 stock crash. A turf war also might clog the domestic IPO queue and encourage corruption.