Roads & Transportation

Uber’s deal chest would be well spent on groceries

31 Oct 2024

The $150 bln ride-sharing firm’s rich stock price gives boss Dara Khosrowshahi good reason to go shopping, especially amid the threat of robotaxis. Slower growth this quarter adds to the anxiety. A mooted Expedia tie-up would send the wrong message. Instacart is a better fit.

Germany gives DSV a sweet deal on freight takeover

12 Sep 2024

The Danish group will acquire Schenker, the logistics arm of indebted German railway operator Deutsche Bahn, for 14 bln euros, beating a higher CVC offer. Berlin may be hoping that an industry player will be a more stable owner. But DSV’s share price jump shows it got a bargain.

Victorian rail mania has lessons for AI investors

12 Jul 2024

Excitement over artificial intelligence has spurred a wave of investment. In the mid-1840s, British speculators similarly went wild for another capital-intensive technology: railways. The historic boom and subsequent bust provide a salutary warning for today’s hyped-up markets.

Ola sets a mileage test for India’s EV market

27 Jun 2024

Investors are resisting the electric scooter maker's mooted IPO price-tag. At $7 bln, it's 30% higher than the SoftBank-backed company's last fundraise. Bhavish Aggarwal's startup has an early-mover advantage and deserves a premium valuation but peers are catching up fast

Didi IPO would give Hong Kong its dream comeback

19 Jun 2024

Hong Kong listings have raised a paltry $1.5 bln this year. To restore animal spirits, the city needs a big offering from a well-known Chinese firm to showcase Beijing's support for offshore share sales and the end of tech crackdowns. Few tick as many boxes as the ride-hailer.

Israel highlights fragility of new trade corridors

10 Oct 2023

The bloody conflict undermines Washington’s vision to use the country’s Haifa port to link India via Saudi Arabia to Europe. It also makes China’s pivot to the Middle East look less of a bright idea. The spoils are huge but reconfiguring trade and financial flows is hard work.

Deaths haunt Corporate America via labor strikes

15 Sep 2023

Auto workers, pilots, and truck drivers have had upper hands in labor strikes. That’s despite labor supply healing. One reason may be that men have left the workforce. Opioids and Covid are partly to blame. But it highlights the dangers of demographically concentrated jobs.

Capital Calls: Illumina’s odd bedfellows

3 Apr 2023

Concise views on global finance: The FTC’s order that Illumina unwind its Grail acquisition puts head commissioner Lina Khan on the same side as Carl Icahn. Khan opposes the deal because Illumina can raise prices, while the activist thinks the deal doesn't make sense.

Capital Calls: Southwest, U.S. jobs and wages

6 Jan 2023

Concise views on global finance: Financial bumpiness caused by the airline’s major flight disruptions should be temporary, partly due to limited competition; slower U.S. wage growth raises the chances that the Fed won’t have to crush the labor market to bring down inflation.

Capital Calls: Amazon, Flying cars

5 Jan 2023

Concise views on global finance: The $855 billion e-commerce giant's layoffs could actually help its antitrust defense; Stellantis’s possible $150 mln investment in Archer Aviation is less crazy than it seems.

Benettons swap motorway power for airport clout

11 Jul 2022

The Italian tycoons will exchange their stake in road and airport caterer Autogrill for at least 20% of duty-free player Dufry, without getting a premium. The combined $5.6 bln group is a bet on long-distance travel recovering. Other investors must decide whether to hop on board.

Americans’ urge for the open road knows few bounds

1 Jul 2022

Travelers book flights for convenience – and in theory rising gas prices help that trend. But time is money, too, and plane delays are increasing. Assign a reasonable value for an airport setback, and it suggests holiday travelers should blare "Holiday Road."

Uber’s CEO has right idea, wrong valuation

9 May 2022

Boss Dara Khosrowshahi said he’s focused on cutting costs to up free cash flow. That sounds like a great idea. The trouble is Uber’s $50 billion valuation is too high even assuming better margins. And it’s harder to square if top line growth slows when expenses are slashed.

Italian motorway menu serves the Benettons well

21 Apr 2022

The dynasty may merge its Autogrill chain with $4 bln Swiss duty-free specialist Dufry. Though slightly bigger, the latter is suffering the worse Covid-19 hangover. Even though they’re surrendering control, the Benettons would still have a strong hand to get a good deal.

Blackstone’s Italian gambit can stay on the road

14 Apr 2022

Looking to deter a rival bid, the buyout group has teamed up with the Benettons to take infrastructure group Atlantia private. The 19 bln euro equity value looks steep. Yet inflation protection from concession assets and cash from an upcoming sale justifies the swoop.

Pérez vs. Benettons will be an uphill struggle

7 Apr 2022

ACS, run by Spanish magnate Florentino Pérez, has sided with Brookfield and GIP to buy road group Atlantia, 33%-owned by the Italian tycoons. A takeover could cost 20 bln euros net of debt, but a looming 8 bln euro asset sale would help. Winning over the Benettons will be harder.

Moped charger gets trapped in electric-car traffic

7 Apr 2022

Shares in Engine No. 1-backed Gogoro have jumped 16% since this week’s debut, adding zip to the Taiwanese battery-swapping scooter maker’s valuation. Yet it trails most car-charging outfits. There are risks, but Asia’s reliance on two-wheelers warrants a narrower gap.

Capital Calls: Chip supply chain bites own tail

31 Mar 2022

Concise views on global finance: Semiconductor factories rely on machines made by ASM International. Paradoxically, the firm is having trouble finding the chips it needs. Untangling the mess will take a while.

Uber NYC cab deal turns lemons into lemonade

24 Mar 2022

The ride-hailing app is partnering with New York City taxis to make them available on the platform as a surge in gas prices threatens Uber’s ability to recruit drivers. Demand for rides is stepping up too. Joining forces with a once-bitter rival may help smooth the road.

SoftBank’s Cruise exit hits self-driving cars hard

21 Mar 2022

Selling its Vision Fund stake in the autonomous unit to largest owner GM is a reminder of the Japanese group’s woes. And the carmaker had to inject $3.5 bln it could have used elsewhere. Any lingering hope that driverless cars are just around the corner is the biggest casualty.