Transportation

Wanderlust, not shopping, drives China tourism 2.0

9 Oct 2017

More people spent China's "Golden Week" holiday on Thai beaches than in Hong Kong malls. As Chinese tourists eschew shopping for sight-seeing, offshore luxury retailers could lose custom. But as the travelling middle class spreads out, there are bound to be more winners.

Amazon’s delivery self-help may have AWS effect

5 Oct 2017

The e-commerce goliath's web needs led it to build something for itself that became a big and profitable business. Jeff Bezos is now testing a way to ship goods to save money, a venture that could threaten UPS and FedEx. Amazon's solutions are a growing problem for others.

Ford’s clever electric van plan in China

4 Oct 2017

The U.S. carmaker is changing course in China, insiders told Reuters, as sales slow. New state policies open an opportunity for Ford to build electric commercial vehicles. That could help meet quotas - and electrify Ford SUVs. Much depends on the partner, and battery supply.

Warren Buffett is wise to keep on truckin’

3 Oct 2017

The Berkshire Hathaway boss has a soft spot for old-school businesses, even ones facing tech upheaval. His investment in truck-stop operator Pilot Flying J, with some $20 bln in revenue, fits the nostalgia bill. It'll be a long haul before electric and driverless rigs cruise by.

Two rights at Uber in danger of making a wrong

2 Oct 2017

Travis Kalanick's newly appointed directors add useful expertise to a flawed board. And the effort by incumbents to limit the ousted founder's power as part of a deal to raise capital from SoftBank also makes sense. Both stand to lose if they dig in too firmly against each other.

Lyft IPO would amplify Uber’s troubles

28 Sep 2017

The ride-hailing firm is readying to go public as early as next year, Reuters reports. It would be an opportunistic way to capitalize on its larger rival’s self-inflicted damage. Additional capital for the No. 2 U.S. player would merely compound the frontrunner’s injuries.

Italy gets narrow lead in race for EU naval giant

28 Sep 2017

Shipbuilder Fincantieri has won conditional control over French rival STX, which Paris nationalised suddenly in July. The pact defuses a cross-border diplomatic row. But the real battle will be fought over the ownership of a European naval champion that is now in the making.

Alstom gains upper hand in Franco-German rail deal

27 Sep 2017

The French group’s shareholders will own nearly half the combination with Siemens’ train unit, despite contributing just a third of the operating profit. Alstom also keeps its CEO and head office. Hefty cost savings and the creation of a European champion justify the concessions.

Fortum price for Uniper implies another bite later

27 Sep 2017

The Finnish power group will offer 8.1 billion euros for its German target. E.ON, with 47 percent of Uniper, is on board, but other shareholders can reasonably expect a bigger premium. If Fortum wants full ownership, it may take more time – and more money.

Siemens and Alstom put European engine on track

26 Sep 2017

The German firm is merging its rail unit with its French rival. It's a deal that has long made strategic sense but stumbled over turf issues. That the two countries are pulling it off after Angela Merkel’s election setback suggests fresh steam for the continent's political unity.

Alibaba trades margins for clarity in logistics

26 Sep 2017

The tech giant is paying about $800 mln to lift its stake in logistics arm Cainiao slightly to 51 pct. Keeping the unit at arm’s length had prompted SEC scrutiny. But absorbing the capital-intensive and loss-making Cainiao into the parent’s accounts will weigh on margins.

Uber may be low on fuel for London fight

22 Sep 2017

The UK capital has decided not to renew the ride-hailing app’s licence, citing an irresponsible approach to safety and security issues. Boardroom upheaval makes it harder for Uber to address the concerns credibly, while a dented image could undermine Londoners’ enthusiasm to help.

Siemens-Alstom train-deal economics trump politics

21 Sep 2017

The German firm may merge its train unit with the French peer Alstom, rather than Bombardier. That would create a global player in high-speed rail, but leave Siemens in an awkward embrace with joint-owner French government. It’s a price worth paying to create a European champion.

China’s grand plans help Advent to shore in Brazil

8 Sep 2017

The buyout firm is selling port operator TCP in a $1 billion deal. That is a good outcome after a recession and a currency rout, and the target fills a strategic gap for its Chinese state-backed buyer. China’s trading ambitions mean more overseas port deals should follow.

Cathay’s ugly first half points to further woes

17 Aug 2017

Cathay Pacific has posted its worst half-year loss in at least two decades. Despite attempts to cut costs, the Hong Kong carrier is still locked into costly fuel hedging contracts and faces tough competition. Investors shouldn’t expect a return to profitability any time soon.

Grab rides two trends to $6 bln valuation

24 Jul 2017

The taxi app is raising $2.5 bln in Southeast Asia’s biggest fundraising. It helps that Japan’s SoftBank is investing in unicorns everywhere and that Didi, like China's other tech giants, is chasing growth nearby. The funds will make it harder for Uber to conquer the region.

China’s latest logistics IPO is hard to unpack

27 Jun 2017

Alibaba-backed Best Inc could raise $1 bln in New York, a few months after a rival's disappointing debut. The loss-making group is faster-growing and more diverse. But the extra complexity could make this a hard sell for already-wary investors.

Uber’s journey to good governance jerks to a start

13 Jun 2017

CEO Travis Kalanick will leave temporarily as the ride-hailing firm tries to impose order. An indefinite absence and putting a shrinking group of direct reports in charge are murky first steps. Finding an independent chairman should help, but the board could use a bigger shakeup.

Epic rally leaves China Evergrande on shaky ground

12 Jun 2017

The Hong Kong-listed developer is 2017’s best-performing major stock, up roughly 240 pct. Business is brisk, costly debt is being repaid, and a bold mainland listing is on track. It has also quit a distracting battle over rival Vanke. A $28 bln market cap still looks overdone.

HNA slowdown makes financial and political sense

5 Jun 2017

The Chinese conglomerate plans less M&A this year, after spending tens of billions of dollars on everything from aircraft leasing to a stake in Deutsche Bank. That should let managers get a handle on their vastly expanded empire. It’s a good time to adopt a lower profile, too.