Consumer Products and Services

Apple’s China detox is painful and overdue

12 May 2025

Geopolitics and trade wars have upended the iPhone maker's lucrative dependence on the People's Republic. As CEO Tim Cook seeks other supply chains, Beijing has reason to keep the company onside. Spreading the $3 trillion company’s risks will be costly and time-consuming.

Private credit’s mass appeal creates new risks

12 May 2025

Blackstone, Apollo and others have raised nearly $300 bln from individuals for direct loans, thanks to evergreen funds which allow withdrawals. It dilutes private credit’s advantage over banks, locked-up cash, and puts the onus on managers to stay disciplined amid a nascent boom.

European TV M&A would only delay a gory finale

6 May 2025

Deals are back on the agenda for the region’s broadcasters, with Italy’s MFE, Britain’s $4 bln ITV and France’s TF1 potentially involved. Tie-ups help, but there’s no catching Netflix and other streamers. The best hope is to postpone a newspaper-like fate for as long as possible.

Amazon’s Day 1 memo contains handy tariffs guide

1 May 2025

In 1997, founder Jeff Bezos said his company would 'obsess over customers' and focus on the long haul. Living up to that ethos means eating some steep import levies or at least posting them clearly. Otherwise, it sends a message of thinking shorter-term and less about shoppers.

Iberia mess places timely focus on grid resilience

30 Apr 2025

Spain and Portugal are yet to identify the cause of their mega-blackouts. But the need for major investment in electricity grids, to cope with swings in power supply and demand as the world electrifies, has long been apparent. High-profile shocks may hasten much-needed upgrades.

DoorDash’s Deliveroo swoop is pricey but timely

28 Apr 2025

The $79 bln US food delivery giant has bid $3 bln for its UK peer. Even with a relatively modest premium, DoorDash needs growth and savings for its deal to stack up. Still, with rival bidders either distracted by other deals or out of the game, it’s a logical time to pounce.

Private equity bets on pets will lose their sheen

25 Apr 2025

UK competition authorities are probing vet clinics, where prices have increased 60% in eight years. Buyout shops like EQT and CVC stand to lose out if the regulator intervenes. But even without a clampdown, tighter household budgets will limit the scope for juicy returns.

Kering’s catwalk faceplants can still get worse

24 Apr 2025

Europe’s fourth largest luxury group has lost $20 bln in market value in the last 12 months. The Gucci owner’s latest results show the fallout from unwise price hikes. But Kering may suffer more than peers from US tariffs, and its new designer seems unlikely to stop the rot.

LVMH’s opaque succession merits investor discount

15 Apr 2025

The $300 bln luxury giant wants shareholders to raise the retirement age for chair and CEO Bernard Arnault to 85, perhaps giving him another decade in charge. Lack of clarity about who takes over, or how his five children will share control, weighs on the group’s enviable record.

Prada’s crisis-era Versace deal still looks pricey

10 Apr 2025

The Italian group paid $1.4 bln for the ailing brand from Michael Kors-owner Capri, less than expected. It helps CEO Andrea Guerra square up to bigger French rivals LVMH or Kering. Even so, the return on investment looks low, even before factoring in a tricky turnaround.

Walmart’s happy face is hard to reflect back

9 Apr 2025

The $700 bln retailer kept forecasts of at least 3% sales growth and 3.5% higher operating profit for 2025. Such confidence jars with US tariffs and recession risks both rising. Boss Doug McMillon has navigated downturns before, but unpredictability levels blunt his reassurance.

Klarna tests the waters for a ‘normal’ IPO

3 Apr 2025

The buy-now-pay-later firm is pushing through a still-thin pipeline toward a listing. Despite a high-tech sheen, it’s less tied to the big themes of the moment than recent disappointing offerings. In this week’s Viewsroom podcast, Breakingviews columnists debate its prospects.

Fake chocolate is a sweeter bet than plant burgers

28 Mar 2025

Once-hyped startups failed to displace beef with eco-conscious alternatives. Artificial confections have a stronger pitch: as candy makers like Hershey struggle to hedge rising cocoa costs amid a supply crunch, economic reality will tempt the $130 bln treat industry into the lab.

Berlusconis’ German M&A only partly eases TV bind

27 Mar 2025

The Italian family’s firm MFE has offered to buy the outstanding shares of its $1.5 bln rival ProSieben. Bulking up has a certain logic when TV is declining, provided the target accepts the cheap offer. But it ultimately won’t stem the outflow of viewers and advertisers.

Dismal dollar-store deal upends recession logic

26 Mar 2025

Discount chain Dollar Tree is selling its down-market brand for $1 bln to private equity, after buying it for $9 bln in 2015. As consumers show signs of struggling, catering to all income levels would seem a safe bet. Tariffs and government cuts turn that rationale on its head.

Nike’s boss is on a runaway turnaround treadmill

21 Mar 2025

CEO Elliott Hill issued a disappointing sales forecast, sending shares down 7%. A sneaker glut may require deep discounting and the tired brand needs a jumpstart. Investors’ benefit of the doubt is stretched to breaking point as earnings plunge, threatening yet more pain.

UK antitrust U-turn will awaken no-go megadeals

21 Mar 2025

The Competition and Markets Authority is reviewing how it probes M&A and faces a possible new law curtailing its powers. A laxer stance from the watchdog might resuscitate old ideas like Sainsbury’s $9 bln Asda bid. It may also boost new ones, like Shell-BP.

Caterers’ US indigestion may only be for starters

20 Mar 2025

Sodexo’s shares fell 18% after it said falling demand for its meal services in North American universities would dent forecasts. Providing multi-year public sector food contracts should be a stable business. Tariffs and Donald Trump’s efficiency drive may make it less so.

Klarna’s wisest IPO aim is a modest valuation hike

17 Mar 2025

The buy now, pay later firm made a net profit in 2024 as it eyes a US listing. Klarna was once worth $46 bln, but the last funding round only fetched $7 bln. While a new Walmart deal helps, rocky markets and the need for a discount to rival Affirm imply little more than $10 bln.

UAE crypto bet is a new twist on AI infrastructure

13 Mar 2025

Abu Dhabi’s MGX is investing $2 bln in Binance, the exchange. MGX is usually seen as a vehicle for building out data centres and other kit linked to artificial intelligence. Betting on Binance is in line with greater US enthusiasm for crypto, but still strikes a different tone.