Consumer Products and Services

Nestlé and Unilever switch focus to shopping lists

19 Apr 2018

The consumer giants reported strong sales growth in the first quarter; a welcome change after two years of sluggish demand. With share prices flatlining, though, a further shake-up of their brands is likely. There are growing signs of where both companies are looking to buy.

VW truck IPO may squander $20 bln opportunity

19 Apr 2018

The German carmaker might list its trucks and buses unit next year. The flotation could boost the group’s shares by nearly a fifth, if the market values the division more highly than the rest of it. Yet a partial listing and Volkswagen’s messy governance would limit the upside.

TSMC’s new chips hint at life after Apple

19 Apr 2018

Quarterly sales at the $210 bln chipmaker topped $8 bln, missing estimates. Weak iPhone sales and fizzling bitcoin prices probably weighed. Even so, TSMC is set to debut cutting-edge new semiconductors that will position it ahead of rivals as AI and autonomous cars take off.

India’s cash shortage may be charged to Modi

18 Apr 2018

ATMs in several states have run out of money amid a spurt in demand. Officials say there is no need to panic. Indeed, cash in circulation is back to where it was before Prime Minister Narendra Modi's bold experiment with large notes. That suggests bad planning is to blame.

Danone pasteurised debt gives novel way to go green

18 Apr 2018

Banks led by BNP Paribas will charge the French dairy group a lower margin on a 2 billion euro credit line if it hits social and environmental targets. Perversely, lenders would gain if Danone drags its feet. But shareholders now have a clear incentive to do the right thing.

China backlash could unravel 5G network effect

18 Apr 2018

Huawei's retreat and ZTE being cut off from U.S. vendors will slow telecom infrastructure development in both America and China. And given how instrumental the two companies are to 5G technology and the power of supply chains, the whole global rollout is likely to be impeded.

Starbucks’ anti-racism coffee break sets example

17 Apr 2018

After the arrest of two black men at a Philadelphia shop the $84 bln chain will shut some 8,000 U.S. outlets for an afternoon of racial-bias education. The swift response, perhaps costing $20 mln in lost latte sales, backs up Starbucks’ social goals and offers a lesson to others.

Tesla in pole position to win U.S.-China trade war

17 Apr 2018

Beijing has set deadlines to lift JV rules for foreign automakers. Ford and Daimler will be pleased, but Elon Musk's embattled $50 bln electric-car maker should benefit most. Freed to enter the biggest market without having to share technology, Tesla's risky strategy may pay off.

U.S. regulators ask if ZTE can hear them now

17 Apr 2018

The Commerce Department barred domestic companies from selling to the $20 bln Chinese telecoms equipment maker for years. It's a big blow given how much ZTE sources from the United States. Things could get worse depending on how fast political winds shift against it in Europe.

Widening net of China censors puts tech on notice

17 Apr 2018

Jokes and gay content are disappearing from the web. It's a fresh sign censors are policing beyond political discourse. For $25 bln microblog Weibo and peers, appeasing both users and regulators will get harder. It will make life tougher for China hopefuls like Facebook, too.

Coffee to go offers quick fix for Whitbread

16 Apr 2018

Activist Elliott controls 6 pct of the UK hotel and coffee chain and reckons a listing of its Costa brand would add 3 bln pounds of value. It’s a simple-seeming solution to Whitbread’s discount rating. Separating investor worries about the two parts of the business has merit.

Singapore ruling gives Uber deal yellow light

16 Apr 2018

Regulators have tapped the brakes on Southeast Asia's ride-hailing mega-merger. They won’t halt a deal with rival Grab but have limited data-sharing and driver exclusivity contracts, at least while they review. That’s an amber signal, and a sign of potholes ahead.

Toys R Us Asia deal will be far from child’s play

12 Apr 2018

The bankrupt retailer has drawn bids of over $1 bln for its Asian operations. The unit is growing in China and Southeast Asia but its biggest market is Japan, where the number of kids is shrinking. Any buyer will also need a clear idea of how to handle the threat from e-commerce.

Tesco’s turnaround may bring forward regime change

11 Apr 2018

Three years after an accounting scandal and price war, the grocer is improving margins and cutting debt. It’s the least shorted of all British supermarket stocks. Boss Dave Lewis’ revamp looks within reach. The question for investors is whether he’ll stick around to finish it.

Busting EU sport cartel lines already fat pockets

11 Apr 2018

Antitrust authorities raided groups including Fox in a TV-sports cartel probe. Usually, such moves help consumers. But if the cartel had helped hold down inflated media rights, the main beneficiaries from its end would be already loaded teams and athletes.

Solid takeover hurdle trips up Foxconn of sneakers

11 Apr 2018

Taiwanese contract footwear maker Pou Chen wanted full control of its Hong Kong affiliate Pou Sheng. The $1.4 bln deal was nixed, however, by just 4 pct of investors. There's a risk that the rigorous system can be gamed, but it commendably tilts in favour of outside shareholders.

Trump trade war risks European carmaker backfire

10 Apr 2018

BMW and Daimler sell a surprising number of American-made vehicles in China. Were the U.S. president’s tariff-war rhetoric to become reality, carmakers could shrink stateside production. If Trump wants to keep rather than lose jobs, he should seize Beijing’s latest olive branch.

New VW boss would only part-solve its problems

10 Apr 2018

The German carmaker may replace CEO Matthias Mueller after just two-and-a-half years. Probable successor Herbert Diess brings a welcome outside perspective having only joined 2015. His difficulty will be getting the conservative board’s approval for radical moves like spinoffs.

Dutch lawmakers give Ahold backup in activist spat

10 Apr 2018

Activist CIAM wants the supermarket to scrap its foundation that can be used to block takeovers. But with the Netherlands eyeing new laws to stymie hostile bidders, companies may not need these arcane tools much longer. Shareholders will suffer either way.

Xi throws the trade ball back into Trump’s court

10 Apr 2018

China’s president pledged imminent market openings at a speech on Tuesday. He re-hashed plenty of old promises but dangled new items on autos and intellectual property. The opening offer is unlikely to appease U.S. hardliners, but it creates precious space for more negotiation.