Consumer Products and Services

Philip Morris’ snus deal looks doubly defensive

9 May 2022

The U.S. cigarette maker could beat a faster path to becoming a mostly smoke-free company if it snags the $12 bln Swedish Match and its chewable tobacco packs. A tie-up would be pricy, but investors’ growing yen for recession-proof stocks gives the Marlboro Man an added edge.

Capital Calls: Business travel, Adidas China woes

6 May 2022

Concise views on global finance: British Airways owner IAG faces stormy UK skies; Chinese lockdowns and boycotts are slowing down the German sneaker maker.

SlimFast maker could be tasty swig for Nestlé

4 May 2022

An activist wants Irish protein powder seller Glanbia to break up. Listing its consumer unit in the U.S. could double its 3 bln euro value, but would take time and carries risk. That opens the door to a cash-rich buyer like the Swiss giant, which is bulking up its health lines.

Inflation exposes consumer groups’ portfolio duds

29 Apr 2022

Companies like Danone and Nestlé had some success in flogging more stuff while hiking prices last quarter. Water and healthcare enjoyed a post-Covid boost. But groups peddling inflation-proof wares, such as pet care, look better prepared for sustained high prices.

Amazon takes hit from foggy outlook

28 Apr 2022

The e-commerce giant shed nearly $140 bln in market value after it forecast sluggish sales growth. The pandemic was good for Amazon and other online retailers. Now, while cloud services remain a bright spot, shipping, wage costs and macroeconomic factors are stumbling blocks.

Capital Calls: U.S. GDP fall masks solid economy

28 Apr 2022

Concise views on global finance: Consumer spending and business investment are resilient amid price hikes.

South Korea Inc heaps added pressure on Samsung

28 Apr 2022

The Galaxy maker’s 51% rise in quarterly operating profit, to $11 bln, only underscores its dependence on memory chips. Despite its ambitions in autos, biotech and other areas, peers Hyundai, SK and LG are moving faster to capitalise on new markets. Idle cash is a growing risk.

Capital Calls: GM electrifies executives’ pay

27 Apr 2022

Concise views on global finance: The Detroit automaker’s move to tie boss Mary Barra’s pay to electric vehicles goals is a new spin on pledges to shift away from combustion-engine cars.

Energy efficiency starts to attract the big bucks

25 Apr 2022

Brookfield’s potential $4 bln pitch for UK boiler repair group HomeServe sounds like small fry for a group with $690 bln of funds. But decarbonising buildings is a key growth area in the energy transition. Institutional investors are manoeuvring to ensure they don’t miss out.

P&G’s savvy inflation remedy has its limits

20 Apr 2022

The Braun razor maker’s sales rose 10% in the third quarter. And cuts to marketing spend helped prop up its operating margin even as commodity and freight prices surged. But some input costs filter through with a lag. CEO Jon Moeller may struggle to keep delivering good news.

Just Eat Takeaway faces humiliating U.S. exit

20 Apr 2022

The food delivery group may sell Grubhub, a business it bought last year for $7.3 bln, an embarrassing U-turn for CEO Jitse Groen. Expanding into the tough U.S. market always looked tricky. Getting out when there are few buyers, just as consumers are squeezed, will be harder.

Capital Calls: KKR and Australia, Danone

20 Apr 2022

Concise views on global finance: The private equity firm’s offer for Ramsay Health Care would almost double Down Under M&A by value this year; the French consumer group’s sales growth boost is offset by inflation fears.

Twitter can afford to refuse Musk’s $41 bln bid

14 Apr 2022

The world’s richest man says he’ll pay $54.20 a share for the social network, but may sell his 9% stake if the “best and final” but non-binding offer is rejected. It’s less than a week since Musk walked from a deal to join the board. Twitter has multiple reasons to demand more.

JPMorgan rolls with early 2022 punches

13 Apr 2022

The giant lender took hits from a slump in financial-market activity and Russia’s invasion of Ukraine, reporting a 42% dive in quarterly profit. Wall Street peers are likely to sport similar bruises. But a strong U.S. economy and rising interest rates will soften the blows.

Biden may pay big price for surging grocery bills

13 Apr 2022

The U.S. president is trying to mitigate the pain of soaring gas costs. But he has fewer tools to address dearer food. Grocery prices rose 10% in March from a year ago, with meat jumping 15% and milk up 13%. That might add up to an expensive midterm loss for Democrats.

Capital Calls: Thoma Bravo plays favorite PE tune

13 Apr 2022

Concise views on global finance: The private equity firm sells cybersecurity company Barracuda Networks to KKR.

Warner-Discovery combo deserves benefit of doubt

12 Apr 2022

Netflix’s stock is off 40% so far this year while Discovery, which just merged with AT&T's media unit, is up. The new $60 bln company needs to combine its assets successfully. But even if boss David Zaslav only does a so-so job, HBO can shine without its former AT&T shackles.

Central banks pay cost of rear-view-mirror driving

12 Apr 2022

U.S. consumer prices leapt 8.5% in March from a year ago, the biggest jump since 1981. The Fed is playing catch up as its policy framework was designed for a low, not high, inflation world. That’s the danger of thinking the future will resemble the past.

China’s “bulletproof” coffee IPO is full of holes

12 Apr 2022

Star Plus Legend banks on the founder's pop-star son, Jay Chou, hawking butter-infused, or bulletproof, java and other diet fads. Beijing's crackdown on celebrity influence, however, threatens $57 mln of revenue. Using consumers as a sales force raises another red flag.

Flighty Musk exposes Twitter’s flaky governance

11 Apr 2022

The world’s richest man bailed on joining the social media firm’s board, days after agreeing to become a director. His run-ins with regulators and inflammatory tweets were well known. Appointing Musk the day he unveiled a 9% stake reflects how poorly the $37 bln company is run.