Transportation

Cathay Pacific charts hopeful course for Hong Kong

18 Jul 2022

Huge capacity cuts and a bailout put a lid on debt as quarantine rules keep its home city isolated. Its shares, better performing than Singaporean and Western peers, imply the airline and the Asian hub will make a quick turnaround. But it faces a harder slog back to normal.

Americans’ urge for the open road knows few bounds

1 Jul 2022

Travelers book flights for convenience – and in theory rising gas prices help that trend. But time is money, too, and plane delays are increasing. Assign a reasonable value for an airport setback, and it suggests holiday travelers should blare "Holiday Road."

Capital Calls: Antitrust cops’ quixotic PE warning

14 Jun 2022

Concise views on global finance: Competition chief Lina Khan is using a run-of-the-mill deal to issue a broadside against private equity – but it’s unclear what these tough words mean in practice.

Capital Calls: Ford wisely trims its electric bets

9 May 2022

Concise views on global finance: The Detroit automaker is selling part of its stake in stumbling electric startup Rivian, just as its own costly electric turnaround takes hold.

Uber’s CEO has right idea, wrong valuation

9 May 2022

Boss Dara Khosrowshahi said he’s focused on cutting costs to up free cash flow. That sounds like a great idea. The trouble is Uber’s $50 billion valuation is too high even assuming better margins. And it’s harder to square if top line growth slows when expenses are slashed.

Rising costs put U.S. auto revamp in a jam

29 Apr 2022

Prices of cars from makers like Ford and GM are up by 13% in a year. But higher costs have caused profits to stagnate. Revamping businesses away from combustion engines is expensive, and adds pressure. They have few levers to pull, and little cushion to fund change.

Stranded jets are least of plane lessors’ problems

14 Apr 2022

Big fleet-owners like AerCap may have to write off $10 bln of planes trapped due to Russian sanctions. Ultimately, though, insurers should cover their losses. A bigger brake on the aircraft-leasing industry’s rapid ascent is the rising cost of debt from jittery lenders.

Capital Calls: Buffett’s HP bet, Gambling M&A

7 Apr 2022

Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.

Russian yachts stranded in choppy sanctions waters

1 Apr 2022

France, Italy and Britain have grabbed headlines by seizing luxury cruisers linked to sanctioned oligarchs. But proving ownership is tricky, while keeping the expensive boats afloat may require state money or navigating complex rules. Selling them will be an even rougher voyage.

Capital Calls: Chip supply chain bites own tail

31 Mar 2022

Concise views on global finance: Semiconductor factories rely on machines made by ASM International. Paradoxically, the firm is having trouble finding the chips it needs. Untangling the mess will take a while.

Uber, Lyft grease driver’s pockets with surcharge

29 Mar 2022

The ride-hailing firms added a 55 cents per-trip surcharge to offset a 50% spike in fuel prices. That should cover the bump in gas and then some. Both firms are competing in a tight labor market, so it’s a start. But they may find they have to open their wallets, too.

Uber NYC cab deal turns lemons into lemonade

24 Mar 2022

The ride-hailing app is partnering with New York City taxis to make them available on the platform as a surge in gas prices threatens Uber’s ability to recruit drivers. Demand for rides is stepping up too. Joining forces with a once-bitter rival may help smooth the road.

Hong Kong’s Star Ferry deserves tycoon lifeline

18 Mar 2022

Lockdowns have put the Victoria Harbour icon into dire financial straits. Local moguls like family-controlled parent Wharf group are keen to help the city through tough times. Keeping the boats afloat would preserve a slice of history and provide some hope for the future.

Capital Calls: White House embraces digital dollar

9 Mar 2022

Concise views on global finance: President Joe Biden was initially lukewarm about the United States issuing its own cryptocurrency, but the financial fallout from Russia’s invasion of Ukraine has forced his hand.

Electric-car companies face test of endurance

1 Mar 2022

Lordstown and Lucid shares sank on disappointing estimates of how many cars they will be able to produce. Where it was once enough just to show that making a car was possible, electric-vehicle hopefuls must now prove they can make many, while squeezed by supply challenges.

Stellantis’ forward push faces winding road

1 Mar 2022

CEO Carlos Tavares vowed to double the carmaker’s sales to 300 bln euros by 2030. It’s a bold pledge, helped by a drive in finance and data. Yet to fix the Jeep-manufacturer’s depressed valuation, investors need proof Tavares can tackle its challenges in China and battery rides.

Canada’s trade risks go beyond bridges to America

23 Feb 2022

Trucker protests paralyzed a key border route, exposing the country’s reliance on its largest trading partner. But Canada also suffers from internal barriers between its provinces and territories. Removing those could boost the economy, if local protectionism can be overcome.

Tesla can build cars, but culture may be harder

11 Feb 2022

The environmental promise of boss Elon Musk’s vision necessitates rapid growth. Managing a workforce expanding 42% annually, though, brings new risks for leaders more used to disrupting social and governance norms than upholding them. Lawsuits from workers hint at the problem.

Capital Calls: ABB’s car chargers, Airport M&A

10 Feb 2022

Concise views on global finance: The Swiss engineering group’s listing plans come at an unfortunate moment; Britain’s John Menzies takes a risk with rejection of “opportunistic” approach from Kuwaiti air services group NAS.

Uber looks like a tech stock in the worst ways

9 Feb 2022

The ride-hailing firm is expected to grow sales rapidly. But that isn’t coming easy – or cheap - and the valuation is now in line with Netflix. As investors decide to look more closely at the fundamentals of tech darlings, Uber has more troubling attributes than the good ones.