Travel & Tourism

Capital Calls: Cross-border M&A, Riches to rugs

9 Nov 2022

Concise views on global finance: The market reaction to U.S.-based Chart Industries’ $4.4 bln deal to buy Scotland’s Howden reinforces the idea that it’s a bad time to shop overseas, while Peloton’s founders are shifting gears with a new bespoke carpet business.

Capital Calls: Adidas

21 Oct 2022

Concise views on global finance: The 19 bln euro sportswear maker slashed its 2022 revenue outlook, dragging shares down 10%.

Capital Calls: TSMC

13 Oct 2022

Concise views on global finance: The $324 bln Taiwan Semiconductor Manufacturing barely addressed questions regarding U.S. technology export controls on China during its earnings call.

China’s dreary Golden Week has shades of grey

10 Oct 2022

Domestic tourism sales during the country's top holiday fell to less than 50% of pre-pandemic levels. Cities like Shanghai might get a welcome boost from shoppers that stayed put, but the sector drives roughly 30% of consumption. That’s cold comfort for the weakening economy.

Hong Kong’s opening leaves it long way from normal

23 Sep 2022

The city will no longer quarantine arrivals. It may lure Wall Street bosses to a key banking summit. But with China's mainland unlikely to reciprocate access, Hong Kong will go on struggling. Its recessionary status is leader John Lee’s best hope of winning more relaxations.

Capital Calls: SPAC unwind, U.S. trustbusters

20 Sep 2022

Concise views on global finance: Chamath Palihapitiya, who personified the excess of the blank check market, is returning cash in two of his vehicles. Investors in companies that went public via SPACs are the main losers. And American antitrust enforcers suffer a second court loss in a month.

Capital Calls: Saipem’s new CEO

31 Aug 2022

Concise views on global finance: The hard-hit Italian energy services company appointed Eni veteran Alessandro Puliti as chief executive.

Capital Calls: Taiwan, Meme stocks

18 Aug 2022

Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.

China’s Hawaii washes away an economic sandcastle

8 Aug 2022

A Covid-19 outbreak has locked down cities in Hainan, stranding over 80,000 visitors. It sets back a decent recovery in tourism, a generator of more than 11% of pre-pandemic GDP. With other growth pillars shaky, it’s the worst time to give consumers another reason to check out.

MGM and SJM fuel Macau recovery hopes and fears

4 Aug 2022

The $15 bln U.S. group’s record results in Las Vegas suggests its Chinese casinos should prosper, too, once Beijing’s zero-Covid policy lifts. That, though, is becoming a long-term bet, and cash-burning rivals like SJM are already having to raise more money to stay at the table.

Airbnb dodges inflationary roach motel

2 Aug 2022

The cost of hosting tourists – and being one – is rising. But not for Airbnb, which unlike Marriott and Hilton has managed to ensure price hikes remain other people’s problems. Meanwhile, travelers are willing to pay more, which cushions both the hosts and the company itself.

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.

Disney boss’s next challenge: win over investors

6 Jul 2022

The $177 bln company’s board gave Bob Chapek three more years at the helm despite a rocky start. But with video streaming in danger of slowing and the shares down 40% year-to-date, the CEO needs some financial magic. Offloading the ESPN sports network would restore value.

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."

Missing Chinese tourists augur hard economic treks

14 Jun 2022

From Phuket to Paris, destinations that banked on the $255 bln mainlanders spent in overseas hotels, shops and restaurants each year are awakening to the possibility they might be gone indefinitely. It will challenge governments to find new and more sustainable sources of growth.

Aeroflot’s travails are metaphor for Russia

9 Jun 2022

Sanctions have curtailed the state-run carrier’s routes and grounded its jets. Moscow will underpin a $3 bln rights issue by raiding its rainy-day fund. As its economic isolation deepens, more oil dollars will have to be diverted to struggling domestic enterprises.

Casino SPAC is for hardened gamblers only

7 Jun 2022

A legal battle over Okada Manila resort turned physical when its ousted boss seized the property last week. That could scupper its $2.7 bln deal with a U.S. blank-cheque firm. But unfriendly politicians, dubious financial reports and more stack the odds against investors, too.

Hong Kong co-living boom bets on more lonely years

17 May 2022

Warburg Pincus is among those buying hotels in the Asian hub to convert into upscale shared digs for millennials. Given a 99% drop in visitors in the past three years and a belief that won’t reverse soon as officials stick with China’s zero-Covid policy, more deals look likely.

Capital Calls: Business travel, Adidas China woes

6 May 2022

Concise views on global finance: British Airways owner IAG faces stormy UK skies; Chinese lockdowns and boycotts are slowing down the German sneaker maker.

Sands’ Singapore bet turns into crucial hedge

28 Apr 2022

Core profit at its Marina Bay resort held up relatively well last quarter. Its larger Macau hub dipped into the red, and China’s Covid curbs are dealing it another bad hand. Relaxed tourist restrictions mean the Lion City casino is now the $27 bln gambling group’s prize property.