Transportation

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.

Deutsche Bahn $16 bln sale has non-obvious endgame

24 Mar 2023

The German railways group may sell logistics arm DB Schenker for over $16 bln to cut debt. The most obvious fit is rival DSV. But selling to private equity or French shipping giant CMA CGM could mean fewer job cuts, which may be more appealing to Deutsche Bahn’s state owner.

GoTo is back to facing less existential problems

21 Mar 2023

The $8 bln Indonesian superapp may not need to raise capital in a hurry. It expects to reduce its cash burn by up to 65% this year. Cost cuts are paying off but hard questions on future growth and competition with its financially stronger Singaporean rival Grab remain.

Capital Calls: SVB found old concentration risk

10 Mar 2023

Concise views on global finance: The busted bank counted half of all U.S. venture capital-backed startups as clients. As with financiers to oil barons in the 1980s, monomaniacal focus on a booming industry is a way to court disaster.

America isn’t quitting gas guzzlers yet

3 Feb 2023

Despite tit-for-tat discounts in the electric market, GM and Ford wrung $6 bln of operating profit by increasing prices overall this quarter – and they don’t expect to give it up. It’s an indicator that, even after a banner year for EVs, the U.S. may be slow to give up trucks.

Europe’s autos have weak defences against China

1 Feb 2023

Carmakers like Stellantis and Volkswagen are facing greater competition on their home turf from Chinese rivals. Higher tariffs or government subsidies might soothe the pain, but could also prompt a backlash in the Middle Kingdom. And Europe may even welcome the competition.

Global supply chain scars will spark sea change

31 Jan 2023

The business of shifting goods around the world plunged into chaos during the pandemic. In this Exchange podcast Alan Murphy, boss of researcher Sea-Intelligence, explains China’s changing role in global trade and how that impacts the price of everything from iPhones to cars.

Virgin Australia IPO relies on Qantas flight path

20 Jan 2023

Bain Capital may relist the carrier it bought in 2020 as travel revives and rivals’ shares rally. Virgin could be worth $800 mln if it replicates the projected juicy margins and growth rates of its larger rival. If not, the private equity firm might wait in the departure lounge.

Capital Calls: BlackRock, Tim Cook’s pay

13 Jan 2023

Concise views on global finance: The asset manager edges closer to its Blackstone roots by expanding in private investments; compensation for Apple’s CEO re-enters Earth’s atmosphere.

Capital Calls: McDonald’s ex-CEO fine

10 Jan 2023

Concise views on global finance: The Security and Exchange Commission’s decision to slap former fast food chain boss Stephen Easterbrook with a penalty is a convoluted way to the right outcome.

Singapore looks boxed in with Li Ka-shing

9 Jan 2023

Co-investing with Hong Kong’s top tycoon once seemed like a no-brainer but sovereign fund Temasek may sell its 20% of CK Hutchison’s ports business. It owns a hefty slug of the company’s retail unit too. Geopolitics complicate any exit from these bold private investments.

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.

Scooterverse collides with financial reality

16 Nov 2022

Bird’s scooter-share business attracted investors on the understanding that it would disrupt transportation and eventually turn a profit. It got part way there, but the capital markets seized up before Bird really got going. Even good ideas can run out of road.

Net zero woes go beyond lack of global cooperation

20 Sep 2022

The International Energy Agency frets that poor collaboration between states will keep emissions high. But the struggles of green groups like ITM Power suggest countries aren’t doing enough to help domestic markets either. Energy policy needs to do more than fight today’s crisis.

Capital Calls: Electronic Arts’ M&A game

26 Aug 2022

Concise views on global finance: The publisher of the popular FIFA franchise is an attractive target but few buyers may be on the board.

Maersk’s cash machine is economic storm warning

2 Aug 2022

The Danish shipping giant reckons sky-high freight rates will help it land $37 bln of EBITDA this year. The trouble is its $50 bln enterprise value gives little credit to what lies over the horizon. The likely explanation is a sharp collapse in container demand due to recession.

GE is fine, it’s everyone else that’s the problem

26 Jul 2022

Inflation, war and supply problems knocked 5% off the industrial firm’s second-quarter revenue and about one-fifth off its profit. In turn, GE boss Larry Culp will miss a key cash-flow target. If not for Culp’s tireless tinkering under the hood, though, things would be worse.

Capital Calls: Royal Mail, Europe’s chip champion

20 Jul 2022

Concise views on global finance: Britain’s postal provider is eyeing a potentially messy separation, but a nationalisation would make more sense; shares of ASML, which provides cutting-edge machines for chipmaking, look more appealing despite inflation and geopolitical worries.

China’s great outdoors opens up for business

19 Jul 2022

Tired of lockdowns and wary of Covid contagion, citizens are embracing camping, glamping and recreational vehicles. For now, the market is tiny compared to the $700 bln U.S. industry. It’s a great opportunity for foreign brands to pitch their tents in a fast-growing luxury space.