Manufacturing

Capital Calls: U.S. malls are a tale of two REITs

14 Jun 2021

Concise views on global finance: Shopping center operator Washington Prime filed for bankruptcy protection, but the outlook is a bit rosier for premium mall owners.

Blocked Nvidia-Arm M&A would hit SoftBank hard

8 Jun 2021

CEO Masayoshi Son agreed to sell his chip designer to the U.S. giant for $40 bln. If governments or competition authorities scupper the deal, an IPO would be the obvious Plan B. Based on sector valuations, $20 bln may be a realistic public price tag, landing SoftBank with a loss.

Markets are too tranquil for their own good

2 Jun 2021

Measures of expected asset-price volatility have fallen as the U.S. economy roars ahead, Fed boss Jay Powell keeps his foot on the accelerator, and firms and consumers regain some confidence. The recovery is now so fully priced in that even small setbacks could rattle investors.

Capital Calls: Airbus signals liftoff, Bill Gates

27 May 2021

Concise views on global finance: The global aircraft industrial complex got a boost after the European plane maker said it hopes to churn out more of its A320 short-haul workhorses per month than expected; Microsoft founder’s huge private investment vehicle under scrutiny.

Bain discount auto IPO is cheap for a reason

25 May 2021

The private equity firm is listing French car parts seller PHE to raise 450 mln euros to pay down debt and prep for M&A. Europe’s fragmented after-sales market is due an overhaul. The jalopy-like multiple reflects uncertain growth and the threat from cheap-to-run electric motors.

Capital Calls: BlackRock/Exxon, Media deals, SPACs

25 May 2021

Concise views on global finance: The giant asset manager will vote for three dissident nominees for Exxon Mobil’s board; boutique adviser LionTree has benefited from a rash of media deals; Lordstown Motors show why blank-check merger projections can’t be relied upon.

Capital Calls: JPMorgan, FirstGroup, Break fees

18 May 2021

Concise insights on global finance: Jamie Dimon is shuffling his deputies; the UK bus-to-rail group’s sale of its U.S. businesses to EQT has hit an investor revolt; deals involving AT&T and Canadian National Railway highlight the fees due for walking away.

Capital Calls: AT&T’s bankers, Blackstone in Italy

17 May 2021

Concise views on global finance: The U.S. telecom giant’s unwinding of its purchase of Time Warner is a gift for advisers on Wall Street; a court rules that the U.S. private equity firm’s 2013 purchase of Corriere della Sera’s HQ was valid.

Capital Calls: Train bidding war

14 May 2021

Concise views on global finance: Canadian National increases its bid for U.S.-based Kansas City Southern.

Capital Calls: Endeavor’s Hollywood ending

29 Apr 2021

Concise views on global finance: The entertainment conglomerate’s IPO flipped the script on opening day.

Europe’s $36 bln chip runt is coming into its own

29 Apr 2021

Shares in Franco-Italian STMicro have lagged the soaring semiconductor sector. Now CEO Jean-Marc Chery is boosting sales targets thanks to a global shortage. And his rising market share in cars and digital everyday gizmos should help close the valuation gap with bigger rivals.

Italian IPO to square God’s work with capitalism

28 Apr 2021

Automatic door maker FAAC, worth some 2 bln euros, may float in Milan. The Catholic Church, which inherited the business from the owner, can use the proceeds to fund good deeds. The firm’s rapid growth may also convince investors their bet will be more solid than a parish raffle.

Capital Calls: The $2 trln toybox

23 Apr 2021

Concise views on global finance: Mattel’s 47% sales growth tees up a spree of discretionary spending, as American consumers raid pandemic savings.

Melrose disposal puts spring back in M&A step

19 Apr 2021

The UK turnaround specialist is selling most of its air conditioning unit for $3.6 bln. Though the implied annual return of 14% is not stellar, further disposals may lift it. Cutting net debt will allow CEO Simon Peckham to hit the acquisition trail again with vigour.

Capital Calls: Elon Musk, LeBron James

1 Apr 2021

Concise views on global finance in the Covid-19 era: Endeavor, Ari Emanuel’s entertainment group, is hoping the Tesla boss’s stardust will help a second attempt at an IPO; the basketball star’s stake in the Red Sox is a foil to Steve Cohen’s Mets deal.

Capital Calls: BlackRock’s Archegos angle, SPACs

30 Mar 2021

Concise views on global finance in the Covid-19 era: The fallout from the collapse of Bill Hwang’s family office gives regulators reasons to focus on funds, not fund managers; and bosses of blank-check companies don’t take investor questions.

H&M kicks off Europe’s unfashionable China dilemma

25 Mar 2021

The $35 bln Swedish retailer is under sudden attack over an old statement saying it doesn’t source materials from controversial Xinjiang. Many EU companies want both greater access to the giant market and ESG credibility. Beijing will make it choose which is the bigger priority.

Intel’s big gamble contains contradictions

24 Mar 2021

The chip giant will spend $20 billion so that it can ramp up production of advanced chips for itself and others. This eats up cash flow and exposes a tension. Potential customers may also be rivals that don’t want the U.S. company’s new strategy to be a roaring success.

Capital Calls: OPEC+, Michaels

4 Mar 2021

Concise views on global finance in the Covid-19 era: Recovery concerns keep a lid on the oil cartel’s supply taps; Apollo tries its hand at craft retailer Michaels.

Chip shortages are here to stay, for some

2 Mar 2021

Pandemic-led demand swings and trade wars have left factories short of semiconductors. The chip industry’s too-successful capital discipline is also a factor. The $450 bln industry’s coming splurge on new capacity will benefit smartphone manufacturers more than automakers.