Transportation

China Cosco may be shipping war’s first casualty

24 Mar 2025

The world's top shipping group doubled 2024 earnings but Washington's proposed docking fees on China-linked vessels and tariff salvo will dent demand for Cosco services. Rival CK Hutch's $23 bln ports sale also suggests trade will reroute to Western peers. It’s a perfect storm.

Ports deal puts China’s investment case to test

21 Mar 2025

Beijing’s displeasure with CK Hutchison’s $23 bln sale of its docks business to BlackRock comes just as overseas money managers' confidence in the People's Republic was returning. Defending geopolitical interests while wooing foreign capital will require a delicate balancing act.

CK Hutchison is stuck as a geopolitical pawn

17 Mar 2025

The Li clan hoped to escape Washington’s ire over Panama and unlock value by agreeing a $23 bln ports sale to BlackRock. China is pushing back. Whether Beijing can block the deal or not, the Hong Kong conglomerate’s future is for now largely out of executives’ hands.

China and US hunker down for long shipping battle

13 Mar 2025

Washington may charge docking fees for China-linked ships and wants allies to follow. The immediate impact is manageable for Chinese firms. But it will take years and hefty investments for the US to break China's shipbuilding dominance. Beijing has options to protect its firms.

Li clan’s Panama problem epitomises a discount

10 Feb 2025

The Hong Kong family’s CK Hutchison conglomerate operates ports at either end of the critical canal, which US President Donald Trump asserts is controlled by China. The association weighs on the $19 bln group’s value. Offloading stakes might help – but only up to a point.

Renault and BMW have best airbags for auto crash

28 Jan 2025

European carmakers face carbon fines at home and trade duties in the US and China. Operating profit probably fell 26% on average last year. Valuations are low across the board, but France’s Renault and Germany’s BMW have less to fear than their rivals from the coming storm.

Congestion fees are practically a free lunch

24 Jan 2025

New York gridlock costs an estimated $10 bln a year in lost productivity. Charging drivers will help recover some of it, while less pollution and travel time variability offer additional benefits. The economics are clear, but also invite new quandaries, as London discovered.

Helicopter SPAC deserves another whirl

13 Dec 2024

Blank-check hype helped elevate Blade’s $825 mln valuation until the euphoria landed with a thud. Since then, the company has found more success transporting organs than Manhattan or Monaco jet-setters. The promise of quieter electric aircraft is another reason to go for a ride.

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.