Transportation

European airlines’ tough summer adds to M&A logic

11 Nov 2024

Carriers such as $8 bln Lufthansa and $2 bln Air France-KLM saw rising costs and competition on Eastern routes from Chinese rivals. The logical response for EU players is to look West instead. Bidding for Portugal’s state-owned TAP would drive much-needed consolidation.

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.

Tokyo Metro takes wild ride on inefficient market

23 Oct 2024

Shares of Japan's $7 bln subway operator surged 45% on debut. An official campaign to get savers buying more stocks is working, perhaps too well. A paucity of IPOs means bankers might be rusty on price discovery too. Public market hopefuls will need to tread carefully.

Tokyo Metro IPO is a big deal with big caveats

7 Oct 2024

Japan’s largest listing in half a decade comes to market with rising passenger traffic and solid earnings to back its $2 bln share sale. The subway operator also carries a sizable debt load and a massive stock overhang that raises questions about the government's ownership.

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.

Green hydrogen fever gets needed doses of reality

1 Aug 2024

Over the past five years, supporters argued the low-carbon gas would be a big fossil fuel killer. Cost and science makes much of that fanciful. Fortescue nixing production goals and EU targets being dubbed too ambitious suggest the industry is getting more practical and smaller.

Toyota is driving a dangerously fine line

4 Jun 2024

The world's largest automaker shed some $8 bln of market value after revealing problems in testing procedures. It's not all bad, but it adds to a heap of governance gripes ahead of this month's AGM. And probes may yet uncover more. Chair Akio Toyoda looks particularly exposed.

Alstom cash call is just first stop on rescue ride

8 May 2024

The indebted French train maker announced a 1 bln euro capital hike, which was smaller than it could have been thanks to funky hybrid debt. The next job for boss Henri Poupart-Lafarge is to generate cash. A fast-growing industry backdrop gives investors a reason to hop aboard.

Ship IPO puts wind back in Korea Inc’s sails

8 May 2024

KKR-backed HD Hyundai Marine Solution surged more than 40% in the largest float on the bourse in two years. The successful $540 mln listing will spur some IPO momentum, and might even help the $1.8 trln stock market catch up with regional peers.

Cruise-ship IPO bets the rich will always float

23 Apr 2024

Viking is seeking an $11 bln valuation in its US listing — a premium price relative to the larger Carnival and Royal Caribbean. As ballast, it offers a focus on high-end customers and less debt than peers. Investors will be reliant on the whims of the few, in more ways than one.

How Boeing’s woes change everything but planes

11 Apr 2024

Grave problems with the jetmaker’s 737 MAX have sparked a crisis. In this Viewsroom podcast, Breakingviews columnists explain whether rival Airbus offers a template for policymakers, the impact of a US export champion floundering, and why others may struggle to capitalize.

Grab-GoTo merger would be an all-round win

11 Apr 2024

A union of the two superapps would create an $18 bln Southeast Asian food delivery-to-ride-hailing giant and speed their journey to profit. A costly fight in Indonesia is holding them back. A tie-up looks more necessary, too, as global investors cool on the region's startups.

Elon Musk bets big on Tesla, not cars

5 Apr 2024

A move to ditch its cheap car, which Reuters reported, to focus on self-driving dashes shorter-term growth hopes at the $525 bln automaker. But boss Musk has scale with data which can help AI. With a tenuous EV crown, reinventing transportation is very Tesla and very risky.

Collapsed US bridge spans hard assets to high-tech

26 Mar 2024

The Baltimore tragedy compounds Suez and Panama Canal shipping woes. Fallout from Los Angeles port closures illustrates how wide-ranging costs can be. For investors swept up in AI fervor, it’s a reminder that the value of intangible IP depends heavily on tangible infrastructure.

Uber gets the hang of navigating multiple lanes

14 Feb 2024

An inaugural stock buyback, at $7 bln, helps validate the hybrid business model under CEO Dara Khosrowshahi. The company commands a premium to ride-sharing rival Lyft, but a discount to food-delivery specialist DoorDash. It’s safe for investors to let go of the grab handle now.

Capital Calls: Lyft

14 Feb 2024

Concise views on global finance: The US ride-hailing firm mistakenly forecast 500 basis points of margin improvement for 2024, causing its stock to surge some 60% before it came back to earth.

Capital Calls: Greek airport IPO

25 Jan 2024

Concise views on global finance: The Athens government is selling 30% of the country’s biggest airport operator, aiming for a market capitalisation of up to 2.4 bln euros.

Prolonged Red Sea attacks can hurt global economy

11 Jan 2024

Freight costs are soaring as militants target ships on a crucial trade route. In this Viewsroom podcast, Breakingviews columnists debate how inflation could rise and which companies could suffer if the tensions aren’t resolved soon.

Red Sea windfall will only delay shippers’ pain

4 Jan 2024

Maersk and Hapag-Lloyd have gained some $18 bln in market value, as militant attacks shut the Suez Canal and caused freight rates to soar. Yet investor hopes for a lasting boost may be disappointed. And carriers will still face a reckoning from a weak economy and idle fleets.

Biofuels comeback will give West a rare energy win

20 Dec 2023

Propellants from plant waste and animal fats have lost out amid an e-mobility push. Yet the difficulty of using electricity for planes and ships, and the rise of non-edible crops as feedstock, will offset food supply fears. Western groups like BP, Total and Eni will benefit.