Transportation

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.

Capital clarity would speed up Alstom’s journey

7 Dec 2023

The French train maker must cut debt by 2 bln euros to repair its balance sheet. Selling assets worth at best 1 bln euros won’t be enough to restore investor credibility while cash flow stability remains in doubt. Delaying a capital call risks hampering the group’s revival.

Capital Calls: Ferrovial/Heathrow

29 Nov 2023

Concise views on global finance: The Spanish infrastructure giant has offloaded its final 25% stake to Saudi Arabia’s sovereign wealth fund and private equity group Ardian for 2.4 bln pounds, but a chunky premium means the new owners should hope for a smoother ride.

Capital Calls: Goodyear, Target

15 Nov 2023

Concise views on global finance: By offloading assets, the 125-year-old tire maker is succumbing to a similar overhaul as many other iconic US industrial centenarians; the $60 bln retailer has finally taken aim at what it can control – keeping watch over inventory and costs.

Uncle Sam provides shaky base for Caterpillar

31 Oct 2023

The equipment maker beat third-quarter profit forecasts with help from Washington’s infrastructure bill. Yet half of the $550 bln package has been spent, and Caterpillar’s backlog is shrinking. Like other government-supported spending, federal aid can only help for so long.

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.

Capital Calls: Finnair

6 Oct 2023

Concise views on global finance: The state-backed airline is planning to raise 600 mln euros through a rights issue – almost as much as its current equity.

Capital Calls: Alstom cash crunch

5 Oct 2023

Concise views on global finance: The French train maker’s management is in the spotlight after it warned on free cash flow for the year, sending its shares down 35%.

Alibaba spinoff can deliver two recovery packages

4 Oct 2023

Logistics unit Cainiao’s name may mean “rookie”, but the group is profitable and weaning itself off dependence on its parent. A successful IPO valuing it at $10 bln or more would warm up Hong Kong’s market and show Alibaba’s overhaul is on track after CEO Daniel Zhang’s exit.

Instacart under-promises in hope of overdelivering

19 Sep 2023

The grocery delivery service’s shares started trading at $42 apiece, 40% higher than where it priced last night. That may seem wacky, but at $14 bln, Instacart is still reasonably valued. In this market, it’s a wise strategy for boss Fidji Simo.

Detroit profit engine could screech to a halt

14 Sep 2023

Years-long employment contracts meant auto workers missed out on post-pandemic gains. New demands could halve Ford and GM profit. The companies may prefer one-off rewards. But unions have little incentive to accept. Instead, transition plans may be wounded, and both sides pay.

Double defensive gas deal offers relative cleaning

6 Sep 2023

Canadian pipeline firm Enbridge wants to reduce dependence on transporting oil. Dominion Energy wants to concentrate on clean electricity. Selling retail gas distribution businesses for $9.4 bln to Enbridge doesn’t directly reduce emissions. But it does make both look cleaner.