Consumer Products and Services

Capital Calls: Cineworld needed AMC’s apes

19 Aug 2022

Concise views on global finance: The U.K.-based cinema chain is preparing for bankruptcy, according to the Wall Street Journal, while similarly debt-beleaguered AMC is still standing – an object lesson in the power of becoming a favorite of retail traders.

D.C. turf war opens crypto regulatory arbitrage

18 Aug 2022

The Fed issued the latest salvo in a regulatory tussle, requiring banks to alert the agency when they offer services for bitcoin and its ilk. The SEC and CFTC are also fighting to oversee the $1 trln market. It’s an opportunity for digital currency outfits but hurts token owners.

Capital Calls: Taiwan, Meme stocks

18 Aug 2022

Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.

Target’s smaller grocery aisle will take a toll

17 Aug 2022

The $80 bln retailer led by Brian Cornell benefited from pandemic shopping until inventory piled up – to $15 bln in the second quarter. Rival Walmart confronts similar problems, but it sells more food as a percentage of revenue. Sticky inflation makes things harder for Target.

Bank living wills could rise from the dead

16 Aug 2022

New U.S. watchdogs may be tougher on how lenders unwind in a crisis. A breakup is one penalty for failing the exercise. But it’s odd timing given JPMorgan and others just increased capital buffers. Resurrecting the stick would make Wells Fargo the most vulnerable.

Anti-Beijing bandwagon sideswipes Biden’s EV push

16 Aug 2022

Only cars with a good chunk of U.S. battery parts and critical minerals qualify for a $7,500 tax credit passed by Congress. A global supply chain that relies on China means few vehicles will qualify. The race against climate change takes a back seat to the America First drive.

Capital Calls: Walmart whiplash

16 Aug 2022

Concise views on global finance: The U.S. mega-retailer revised its profit forecast yet again, just weeks after sounding the alarm.

Capital Calls: Adam Neumann’s new venture

15 Aug 2022

Concise views on global finance: Venture capital firm Andreessen Horowitz funnels $350 mln into the WeWork founder’s real estate startup.

Cancer scare leaves GSK castoff adrift

11 Aug 2022

Shares in Haleon have fallen by nearly a fifth on fears of litigation linked to a heartburn drug. It’s another worry for the $28 bln business which GSK spun off after loading it up with debt, amid recession fears. The uncertainty means investors can’t even hope for a takeover.

After streaming, Walmart just needs Instacart

10 Aug 2022

If the $350 bln retailer were to bundle streaming services from Paramount, Disney and Comcast, it could better compete with its nemesis, Amazon. The strategy is a low-cost path into the media business, albeit late. A boost to food delivery would give Walmart the whole package.

Food delivery’s next gig is software-as-a-service

10 Aug 2022

As demand for takeaways slows, $28 bln DoorDash and rivals are searching for new sources of revenue. One option is to sell their tech to food retailers. But that assumes others can make a bigger success of a business model that has struggled for profitability.

Streaming video’s next episode: price wars

9 Aug 2022

Eight out of every 10 American households has three streaming services, 50% more than three years ago. Plus, the amount people are spending has spiked. It all points to saturation. Rivals now have to steal share by lowering prices. Disney boss Bob Chapek has the most to lose.

Carlyle’s next gen needs to be more than its CEO

8 Aug 2022

Boss Kewsong Lee stepped down at the $14 bln asset manager and co-founder Bill Conway will be in charge as they look for a replacement. That’s a step back in Carlyle’s transition. Success hinges on finding a leader who, like the business, is a commodity not a star.

Drug law aims small dart at wrong part of monster

8 Aug 2022

America spends about twice as much on pharmaceuticals as peer nations. Government drug price negotiations might save $100 billion. A real headshot would be targeting hospital spending, which is about twice as big as drugs and faster growing.

TSMC is China’s trump card against U.S. and Taiwan

5 Aug 2022

The chipmaker plays an outsized role in the global economy, supplying Apple, Qualcomm and others that make phones and cars. If tensions with Taiwan ramp up, China may threaten a blockade of the island. That could halt production of everything from Toyota Camrys to Maytag washers.

Biden’s economic successes shadowed by inflation

5 Aug 2022

A $433 bln climate and healthcare bill would bring the U.S. president $1.7 trln in non-crisis spending for key projects. That’s better than predecessors. But helping the environment or fixing roads won’t solve surging prices in the short term, so he won’t get credit for wins.

Nelson Peltz’s ego may be only winner in scrap

4 Aug 2022

Investors in a London fund managed by the agitator are trying to replace its board and wind it down. The 80-year-old might prevail in a shareholder vote, but he still faces other battles. As he’s said to other executives, sometimes a compromise is better than a distraction.

American solar plan one-ups gas-junkie EU

4 Aug 2022

A U.S. bill is offering $30 bln in tax credits to companies to build solar panels at home. That will help crack China’s control of the green supply chain. The EU could increase solar capacity seven times by doing something similar. That requires better coordination and focus.

Alibaba offers false ray of China’s economic dawn

4 Aug 2022

Quarterly revenue at the $260 bln e-commerce giant was flat, beating horrid expectations. As lockdowns ease, the hope is that consumers will spend more. But online advertisers, Alibaba’s core customers, are cutting budgets, suggesting a protracted slowdown is on its way.

It’s not so bad being a bubble stock after all

3 Aug 2022

GameStop, Microstrategy, AMC, and even Robinhood all attracted irrationally exuberant investors. Now an obscure Hong Kong company has caught a similar wind. Sure, the air has come out of most of the hype. But companies have ended up better off than they would have been otherwise.