Consumer Products and Services

Capital Calls: Satellites deal, EU gas price cap

16 Dec 2022

Concise views on global finance: Private equity firm Advent is paying a 129% premium for Maxar, indicating that the volatile, costly satellite construction business could soar away from public markets; the EU is edging towards a controversial cap for gas future contracts.

Texas’s small ESG stick still packs a wallop

15 Dec 2022

Lone Star state legislators exempted Vanguard from a hearing on environmental investing because the asset manager ditched a net zero coalition. Texas’s pension fund is much smaller than ESG-friendlier California’s, but its political heft makes it hard to ignore.

Adidas has sneaker each side of ESG turf war

15 Dec 2022

The $24 bln group is probing claims it ignored inappropriate behaviour by Kanye West. Adidas is big in both Europe and the U.S., where investors differ on the “E” of environmental, social and governance issues. It may soon discover how much they diverge on “S” ones, too.

Capital Calls: Danske’s money-laundering slap

14 Dec 2022

Concise views on global finance: The Danish bank’s $2 bln penalty for processing potentially illicit payments pales in comparison with BNP Paribas’ $9 bln hit in 2014, even though the suspicious money flows may have been larger.

Capital Calls: Nuclear fusion, U.S. inflation

13 Dec 2022

Concise views on global finance: The scientific breakthrough in potentially limitless power is exciting, but to make it commercially viable will be equally challenging; Consumer prices rose 0.1% in November, and there could be more good news to come once shelter data catches up.

Amgen’s $28 bln deal is a reasonable gamble

12 Dec 2022

The $150 bln biotech company is buying smaller peer Horizon after the target’s big drug suddenly stalled. Horizon’s shares look expensive if growth remains derailed. But there’s a good chance, based on past deals, it will resume. If so, Amgen looks calculated and opportunistic.

Aesop owner evokes goose and golden egg fable

9 Dec 2022

Ten years after buying control of the luxury skincare brand, Brazil’s Natura is exploring strategic options for the business. A possible $2.4 bln valuation from a spinoff or stake sale would help pay down the parent’s debt. The danger is bungling what has been a solid investment.

Capital Calls: Rio Tinto, Grocery delivery M&A

9 Dec 2022

Concise views on global finance: After a shambolic process, the $118 bln miner has succeeded in buying out the 49% of Turquoise Hill Resources it doesn’t own; Turkish grocery delivery player Getir gobbles up German rival Gorillas for $1.2 bln.

Disney’s board needs some magic

6 Dec 2022

Nearly all the media giant’s directors were picked during Bob Iger’s first term as CEO. He’s back and part of his job is to find a replacement, something he failed to do. He needs people to challenge his thinking and prepare to exit. That requires dismantling the inner circle.

Capital Calls: Twitter’s news problem

6 Dec 2022

Concise views on global finance: If the U.S. Congress passes a law that allows news organizations to band together and negotiate with online platforms, Elon Musk may have one more challenge to add to his growing list.

Saboteurs add new twist to U.S. outage problem

5 Dec 2022

Over 40,000 customers were plunged into blackouts out after attacks on two U.S. substations. Vandalism on the power grid is costly to secure against, but utilities continue to face much larger vulnerabilities. The threat from storms is orders of magnitude larger and growing.

Circle’s SPAC flop does the public market a favor

5 Dec 2022

The stablecoin that CEO Jeremy Allaire runs is meant to have a predictable, steady price. But the company, which scrapped a merger with a blank-check firm, defies valuation. That could change, but only if the crypto storm calms and Circle can remain profitable until then.

Railway fight gets stakeholder capitalism on track

5 Dec 2022

After President Biden blocked a strike that threatened to disrupt the U.S. economy, investors want Norfolk Southern and Union Pacific to let shareholders vote on the sick-pay sticking point. Such proposals bring welcome attention to fresh ways of thinking about the bottom line.

Blackstone’s BREIT slump looks nasty but not fatal

2 Dec 2022

The buyout goliath’s market value fell nearly $8 bln on news that investors were fleeing its flagship property fund. That doesn’t look like an augur of crisis for Steve Schwarzman’s firm. But it does suggest a nasty black eye to one of Blackstone’s best earners.

Capital Calls: Farfetch

1 Dec 2022

Concise views on global finance: Shares of the New York-listed online retailer dropped over 20% as its plan to sell e-commerce services to luxury groups like Salvatore Ferragamo failed to convince investors.

Blackstone mall IPO puts wealthy India on display

1 Dec 2022

Brands like Zara suffer from a dearth of quality shopping centres like those the asset manager is floating. Its portfolio boasts high occupancy rates in both posh and up-and-coming locations. Owners collect rent plus a share of revenue. That’s compelling as the rich get richer.

Buy-now-pay-later has a case of the holiday blues

29 Nov 2022

Even though the use of credit cards has jumped, the big U.S. shopping weekend hasn’t been great for e-borrowing. With the economic outlook weakening, that isn’t terrible. The trouble is that investors in companies like Affirm are still expecting massive growth.

Consumer spending anomalies are the new norm

29 Nov 2022

High inflation and glum sentiment are changing how people use their money. In this edition of The Exchange podcast, Brookings Institution economist Wendy Edelberg explains what shoppers are loath to give up during times of duress and why strange patterns will persist.

Capital Calls: Funky debt shock

29 Nov 2022

Concise views on global finance: Germany property group Aroundtown won’t be the last to flout bond market convention on hybrid debt.

Big Pharma will muscle in on obesity gold rush

28 Nov 2022

Novo Nordisk and Eli Lilly’s weight loss drugs are swelling their valuations, and give them a lead in a potentially $50 bln market. Yet rivals like Pfizer are not far behind, and others can snap up biotechs like Altimmune. An increasingly crowded sector may lead to lower returns.