Travel & Tourism

Capital Calls: Merck pill, Zoom deal

1 Oct 2021

Concise views on global finance: Investors are being stingy about the pharma firm’s new drug to treat Covid-19; the video-conference company and Five9 are dropping their $15 bln transaction.

Blackstone places safer bet in Las Vegas

28 Sep 2021

The buyout shop hit the jackpot in a $6 bln deal to sell its Cosmopolitan casino. The twist is that its own real estate arm is one of the buyers. By keeping the property with plans to collect rent, Blackstone offloads some risky exposure while taking better odds as the landlord.

New light emerges from China’s shadowy shoppers

24 Sep 2021

Cross-border traders known as daigou have been hurt by the pandemic, curbing sales of everything from A2 milk powder to Gucci handbags. Shrinking this once-thriving grey market will come at a cost, as evidenced by one Aussie company. Lower risks and clearer pictures are worth it.

Capital Calls: China/TPP, Flavourings, Chill-boxes

17 Sep 2021

Concise views on global finance: China formally applies to join the Pacific trade pact; EQT-owned Azelis has a strong market debut; Sweden’s Dometic is shelling out a cool $677 mln for Texan chill-box maker Igloo.

Bolloré gives coup de grâce in French tycoon spat

16 Sep 2021

Gallic raider Vincent Bolloré may buy publisher Lagardere for 4.6 bln euros, ending a battle for control of the Paris Match owner also involving LVMH boss Bernard Arnault. His Vivendi can make a healthy return, while CEO Arnaud Lagardere at least gets to come along for the ride.

Capital Calls: Biden channels Trump on China

16 Sep 2021

Concise views on global finance: After losing an Australian submarine deal, the French accused the U.S. president of acting like his predecessor. They’re right that there’s bipartisan antipathy towards Beijing in Washington. They’d better hope the similarity ends there.

Capital Calls: Vaccine mandates, U.S. debt ceiling

10 Sep 2021

Concise views on global finance: New White House requirements for Covid-19 injections will provide cover for businesses while Washington lawmakers arguing about borrowing limits make themselves look foolish.

Bill Gates bets luxury hotels are plague resistant

9 Sep 2021

The billionaire who predicted a pandemic snagged half of Saudi Prince Alwaleed’s stake in the Four Seasons chain, valuing it at $10 bln. That’s a big price since Gates helped take the group private in 2007 and a sign one of the richest guys thinks fancy suites offer protection.

EasyJet packs M&A reserve chute into safety plans

9 Sep 2021

The low-cost carrier is raising $1.7 bln from shareholders after another virus-hit summer. That, plus a $400 mln loan facility, gives CEO Johan Lundgren a plump cushion if the recovery stalls again. If all else fails, ambitious budget rivals like Wizz Air are poised to pounce.

Business travel fixes risk grounding recovery

27 Aug 2021

The $1.4 trln industry of selling expensive plane tickets and hotel rooms to itinerant executives faces a bleak future as firms like HSBC slash travel budgets. Making ordinary customers pay more would bolster margins. But raising prices may also dampen an already slow revival.

Capital Calls: Cook defeats Apple crumble risk

24 Aug 2021

Concise views on global finance: The CEO replaced the ailing Steve Jobs exactly 10 years ago. Despite fears at the time, Cook’s must be one of the most lucrative successions of all time for shareholders.

Capital Calls: Oatly, Sonos/Google

16 Aug 2021

Concise views on global finance: The Swedish oat milk producer’s decent results are only good in parts; Sonos gets a boost with a preliminary trade ruling that Google infringed its patents.

Capital Calls: Brookfield, Macquarie

9 Aug 2021

Concise views on global finance: An insurance wing of the Canadian financial empire may bring a dash of risk to a conservative Texan insurer, while Australian investment bank Macquarie has snapped up a stake in British utility Southern Water.

TPG-backed vacation deal is a worthy destination

29 Jul 2021

One of the private equity firm’s SPACs is merging with Vacasa in a $4.5 bln deal. The firm helps owners list and manage their vacation properties including on Airbnb. The management is experienced, the concept is solid and Vacasa could be a strategic fit for others down the line.

Branson space caper may have airline economics

16 Jul 2021

The British tycoon has lined up punters paying $250,000 each for his sub-orbital joyride. To hit profit targets, though, his Virgin Galactic needs to hike prices as rivals lift off. If it can’t, the $8 bln firm’s financial trajectory may resemble loss-making Virgin Atlantic.

European airlines’ CO2 pleas deserve cold shoulder

16 Jul 2021

Trade body IATA is moaning about EU plans to curb emissions by making jet fuel more expensive. Ideas that may add 3% to operating costs over several years aren’t a grounding order. And most of the changes would merely remove existing freebies to align aviation with other sectors.

European SPAC booking offers uncertain reward

15 Jul 2021

Vacation rental company HomeToGo will go public through a deal with blank cheque vehicle Lakestar, the first in Germany. The 1.2 bln euro valuation isn’t greedy, and the structure is more friendly than some U.S. peers. Still, investors are making a bold punt in a crowded sector.

Chinese duty-free giant’s share sale is well timed

13 Jul 2021

China Tourism’s Hong Kong secondary listing plan spotlights the $90 bln company’s unique strengths. State ties help, as do favourable policies in tropical getaway Hainan. Hefty proceeds will give it a war chest to expand overseas and challenge rivals like Switzerland’s Dufry.

Capital Calls: U.S. jobs, Fitness IPO

7 Jul 2021

Concise views on global finance: U.S. employment vacancies tip scales towards workers; Mark Wahlberg-backed F45’s IPO values it at twice what an attempted SPAC deal did last year, justifiably.

Wizz Air CEO’s 100 mln pound bonus is aptly remote

6 Jul 2021

Jozsef Varadi’s payday could be even bigger than Michael O’Leary’s at rival Ryanair if his airline’s shares nearly treble. Linking such a big reward to stock performance looks crude but the target implies a fourfold revenue jump. Even Varadi can’t sustain that steep a climb.