1,775.20 +25.58 (1.46%)
Pre-Market: 6:47AM EDT
|Bid||1,777.14 x 1000|
|Ask||1,777.98 x 1400|
|Day's Range||1,745.24 - 1,804.90|
|52 Week Range||1,307.00 - 2,050.50|
|Beta (3Y Monthly)||1.58|
|PE Ratio (TTM)||72.59|
|Earnings Date||Oct 23, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||2,261.27|
(Bloomberg) -- Shares in Meituan Dianping surged the most in five months, hitting the highest price since its initial public offering after the Chinese internet giant posted its first quarterly profit last week.The stock jumped 8.9% to close at HK$76.20 on Monday in Hong Kong, becoming the second biggest gainer on the MSCI China Index. Meituan went public at HK$69 a share in September 2018 and has spent most of the intervening months below that level.Meituan recorded a net income of 877.4 million yuan ($124 million) compared with the 1.57 billion yuan loss analysts projected on average, after it grabbed market share from rivals like Alibaba Group Holding Ltd. in food delivery. The company however got help from one-time investment gains, such as in wealth management products. Revenue rose 51% to 22.7 billion yuan, compared with the 21.9 billion yuan mean estimate.Hard-charging billionaire founder Wang Xing is waging a take-no-prisoners battle of subsidies with Alibaba for China’s $1.3 trillion online services industry, which includes food delivery. Meituan’s expenses have soared, though it’s trying to control costs by putting the brakes on investment in loss-making areas such as bike sharing and ride hailing.Meituan Earns Its Way Into Amazon’s Virtuous Circle: Tim CulpanAdvances made against Alibaba however have helped the company become China’s third largest publicly traded tech company. It’s overtaken search engine Baidu Inc. and e-commerce platform JD.com Inc. in capitalization after gaining 59% this year. Backed by WeChat-operator Tencent Holdings Ltd., Meituan could have gained another 2 percentage points of food-delivery market share versus its rivals, reaching 36% in the second quarter, according to Bernstein.“Food delivery business achieved positive adjusted operating profit due to favorable seasonality and improved economies of scale,” Jefferies analysts Thomas Chong and Ken Chong wrote.For now, Meituan is focusing on its bread-and-butter business of dining, expanding up the value chain to help restaurants manage their back-end systems. Longer-term, Wang envisions a super-app modeled on WeChat, extending a raft of everyday services to an increasingly wealthy populace.Read more: The Greatest Delivery Empire on Earth Has Alibaba’s AttentionHere are a few highlights from its quarterly results:Food delivery revenue rose 44%In-store, hotel booking and travel business revenue rose 43%Gross transaction volumes climbed 29% to 159.2 billion yuanAnnual active merchants grew 16% to 5.9 million in the year ended June 30Company will continue to prioritize revenue over profit, and accelerate investment in marketing channels, allocate more resources to membership programs to increase active users.(Updates with share moves from the second paragraph)To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Colum Murphy, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
French and U.S. negotiators have reached a compromise agreement on France's digital tax, a levy which prompted U.S. President Donald Trump to threaten a separate tax on French wine imports, a source close to the negotiations said. The compromise struck between French Finance Minister Bruno Le Maire, U.S. Treasury Secretary Steven Mnuchin and Donald Trump's White House economic adviser Larry Kudlow envisages that France would repay to companies the difference between a French tax and a planned mechanism being drawn up by the OECD .
(Bloomberg) -- Walmart Inc. isn’t the only corporation that has seen its Tesla Inc. solar panels catch fire.On Friday, Amazon.com Inc. said a June 2018 blaze on the roof of one of its warehouses in Redlands, California, involved a solar panel system that Tesla’s SolarCity division had installed. The Seattle-based retail giant said by email that it has since taken steps to protect its facilities and has no plans to install more Tesla systems.News of the Amazon fire comes just three days after Walmart dropped a bombshell lawsuit against Tesla, accusing it of shoddy panel installations that led to fires at more than a half-dozen stores. The claims threaten to further erode Tesla’s solar business at a time when the company is fighting to gain back market share.Walmart and Tesla issued a joint statement late Thursday, saying they were in discussions to resolve their issues. “Both companies want each and every system to operate reliably, efficiently, and safely,” they said.In the complaint filed Tuesday, Walmart said it had leased or licensed roof space at more than 240 stores to Tesla’s energy unit. Two of the Walmart fires occurred in May 2018. Amazon said it has a very small number of solar systems installed by Tesla.More widely known for its electric cars, Tesla bought panel installer SolarCity three years ago in a $2 billion deal that proved highly controversial. SolarCity’s chief executive officer at the time is the cousin of Tesla CEO Elon Musk, and Musk was the chairman of SolarCity’s board.Also this week, Business Insider reported that Tesla launched an effort to replace a faulty part used in some of its solar panel systems last year. It was unclear whether issues with the component known as a “connector” affected Walmart or Amazon installations.Tesla said in response to the Business Insider story that some connectors manufactured by Amphenol Corp. “experienced failures and disconnections at a higher rate than our standards allow.” Over the past year, the company said, less than 1% of sites with these connectors exhibited abnormal behavior.Amphenol did not respond to a request for comment.\--With assistance from Brian Eckhouse.To contact the reporters on this story: Dana Hull in San Francisco at firstname.lastname@example.org;Matt Day in Seattle at email@example.comTo contact the editors responsible for this story: Lynn Doan at firstname.lastname@example.org, Kara WetzelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Investors celebrating Meituan Dianping’s first quarterly profit have as much reason to cheer how the company got there as the numbers themselves.Surging revenue, market-share gains against rivals such as Alibaba Group Holding Ltd. and success in controlling expenses all helped the Chinese food delivery and bookings provider post net income of 877.4 million yuan ($124 million) versus the 1.57 billion yuan loss analysts were expecting. Most encouraging, though, may be the signs that the company is creating the kind of virtuous cycle enjoyed by Amazon.com Inc.Meituan’s business model is simple and familiar. Restaurants use the company to sell food. Meituan aggressively chases both consumers and merchants. Customers keep coming back because they know they’ll find a wide range, good prices and quick delivery. The more that food buyers flock to Meituan, the more restaurants realize they need to be on the platform.Then comes the real magic. To get ahead of the competition, restaurants find they need to up their game by advertising or paying for priority listings. Because others are doing it, rivals have to as well. And so the cycle goes. That should sound familiar because it’s precisely what Amazon has been doing for years. My colleague Shira Ovide summed it up last month with a column titled: Amazon Advertising Is Just a Toll in Disguise. In just two years, the proportion of Amazon’s sales from advertising almost doubled to 4.7%. If you strip out the Amazon Web Services cloud and subscription businesses, the percentage contribution would be even higher.At Meituan, online marketing services climbed to 8.6% of revenue from its food delivery business in the most recent period, from 5.4% a year earlier. Food delivery remains the company’s biggest and fastest-growing business, accounting for 57% of revenue, yet its travel and hotel-bookings division is no slouch at 43% growth from a year earlier and with an 89% gross margin.Just as Amazon is enjoying tidy growth and profit at non-core businesses, Meituan appears to be having success in leveraging its relationship with food-delivery consumers to help them book holidays and hotels. While Alibaba-backed ele.me is Meituan’s chief rival in food, the travel division puts it head to head with Ctrip.com International Ltd.A concern for investors has been the cost of gaining such traction and fighting off competitors. The company fought bitterly with ele.me to gain users, merchants and delivery riders. Meituan’s second-quarter numbers indicate this rivalry may have slowed. Sales and marketing expenses dropped as a ratio of revenue, helped greatly by declining proportions for driver costs and user incentives. Such pragmatism has become a feature: The company backed out of the bike-rental business last year and the stock has been rewarded accordingly. Meituan shares have gained more than 70% in Hong Kong this year, and climbed as much as 7.7% to a record on Monday.If the company can remain nimble enough to seize new opportunities and ditch failures, there’s a good chance it’ll ride out China’s economic slowdown and emerge as dominant as Amazon is in the U.S. To contact the author of this story: Tim Culpan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Leading Brazilian companies and trade groups have joined the global outcry over surging wildfires in the Amazon as fears grow that the environmental crisis could hit business. Can Trump and Bolsonaro make relations great again?
Amazon has been coy about the details, stating the ambassadors — who first became visible a year ago — are real warehouse staff and part of a wider education programme that also includes tours of fulfilment centres. Twitter users dealt with this creepy public relations campaign in the way they know best, trolling Amazon’s dime-a-dozen diplomats and imitating the accounts so it became impossible to distinguish reality from parody. Whatever you think of Amazon’s methods, the logic of the programme is impeccable.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. U.S. companies are concerned about President Donald Trump’s threats to ban them from doing business in China, and they’re poised to halt new investments if the trade war escalates, the leader of group of top chief executive officers said.U.S. company executives get worried when they hear talk from Trump about invoking emergency powers on trade, said Josh Bolten, president and chief executive officer of the Business Roundtable and a former chief of staff to President George W. Bush.“He has a lot of authority through the national security statutes to disrupt trade and commerce in a way that would cause huge damage -- not just to the Chinese economy, but to the global economy and the U.S. economy,” Bolten said Sunday on CBS’s “Face the Nation.”Trump responded to the latest tit-for-tat retaliation from China on Friday by tweeting U.S. companies are “hereby ordered to immediately start looking for an alternative” to China. He also suggested he was looking at the International Emergency Economic Powers Act of 1977 in ordering U.S. companies to quit China. “Case closed!” Trump concluded in a tweet.‘Take a Look’White House economic director Larry Kudlow downplayed Trump’s China threat, saying on CBS that the president doesn’t intend to try to block investment in China right now and that “maybe the way it was phrased was a little tougher than usual.”“He’s asking American companies to take a look, take a fresh look at frankly moving out of China,” Kudlow said.Still, Bolten said the Dow Jones Industrial Average’s 623-point tumble on Friday in response to Trump’s threat -- while also increasing the tariff rate on $550 billion in Chinese goods -- was a sign of investors “tapping the brake lightly.” A lot of U.S. businesses are “poised right on top of the brake” on new spending if the trade war isn’t resolved, he said.“The risk is that everybody’s going to slam on the brake, and that would be a disaster — not just for the Chinese, but for the United States as well,” Bolten said.The Business Roundtable is an association of chief executive officers of large U.S. companies including Amazon.com Inc., Apple Inc. and General Motors Co. It’s chairman is JPMorgan Chase & Co. CEO Jamie Dimon.Bolten said the group supports Trump’s aim to address allegations of intellectual property theft and other trade issues with China, but it fears the trade war spiraling out of control -- and trying to de-couple completely from China “is not benign and certainly not helpful.”To contact the reporter on this story: Mark Niquette in Columbus at email@example.comTo contact the editors responsible for this story: Sara Forden at firstname.lastname@example.org, Steve GeimannFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Business Roundtable says companies must serve all stakeholders; value investors should be skeptical Continue reading...
Australia will block access to internet domains hosting terrorist material during crisis events and will consider legislation to force digital platforms to improve the safety of their services, officials said on Sunday. Australian Prime Minister Scott Morrison, who is in France to take part in the G7 leaders' forum, said the government intended to prevent extremists from exploiting digital platforms to post extremely violent content. Australia and New Zealand have increased scrutiny of websites and social media companies in the wake of the Christchurch massacre in March, when 51 worshippers were killed in attacks on two New Zealand mosques.
Streaming platforms such as Netflix and Amazon Prime have beefed up their UK offerings of reality shows, moving in on a genre that traditionally has acted as a battleground for broadcasters targeting younger viewers. The total number of hours of game, lifestyle and other types of unscripted shows on the British platforms of the two entertainment giants has quadrupled over the past two years, according to data from Ampere Analysis. Netflix, meanwhile, increased its reality content by one percentage point to four per cent, according to Ampere.
Well, that didn't take long -- the company's recently opened facility in Portugal is about to ship product. Meanwhile, MedMen comes up with its own delivery enhancement.
(Bloomberg Opinion) -- When snack makers start to lament that Indians can’t afford to spend 5 rupees (7 cents) on biscuits,(1)it’s time to stop arguing over how much of the nation’s slowdown is cyclical and what part is structural.Considering its glaring income, wealth and consumption inequalities, India is a surprisingly calm society. However, when purchasing power dries up to the extent that rural laborers and urban blue-collar workers have to think twice about cheap munchies, then the situation is desperate. The culprit is deep-rooted wage suppression, a long-term issue that needs attention.Britannia Industries Ltd., the No. 1 Indian biscuit maker, recently sounded alarm bells over the sharp deceleration in its domestic sales volumes. Rival Parle Products Pvt. chimed in and said jobs were at risk for as many as 10,000 of its workers.A Parle executive blamed India’s 2017 goods and services tax, or GST. While the consumption tax may indeed have been an additional burden in an economy slowing under a disastrous November 2016 currency ban, the funk has its roots in insufficient wages. In recent years, only about a third of the economy’s income has gone to labor, with providers of debt and equity capital taking the rest, according to India Ratings and Research Pvt., a unit of Fitch Ratings. Raising that 33.2% labor share to the developing-country average of 37.4% would put an extra $100 billion of annual spending power in the hands of Indian households.Only then can India start facing up to the tougher challenge of reaching advanced-economy levels. It has a long way to go. The labor share of income in the U.S. was almost 57% in 2016, even after a near 10-percentage-point drop following World War II that was caused by technological changes and globalization, according to McKinsey & Co.Trouble is, the distribution of the Indian economic pie is more lopsided than the aggregate numbers suggest. As India Ratings’ analysis shows, 80% of the output generated in informal production gets used up in paying for capital, which is scarce; households get only 20% in exchange for toiling on farms and in cottage industries. At the same time, only 32% of the production of a bloated public sector is shared with the taxpayers and banks that provide the capital; as much as 68% goes to a privileged group of state and quasi-state workers who enjoy assured jobs and higher pay than they would in the private sector.The long-overdue privatization of inefficient behemoths like Air India Ltd. would reduce the wastage of capital in the public sector. But it won’t automatically help informal private businesses grow and become productive. In its first term, the government of Prime Minister Narendra Modi thought taxation would provide the required nudge. It set out to formalize entire supply chains by bringing even small firms under the ambit of the GST. The poorly designed, badly implemented plan backfired. Two years later, New Delhi is furious that it can’t meet revenue targets; its frustration is leading to an antagonistic stance toward firms. Meanwhile, industries from autos to biscuits are demanding lower GST rates. There’s no fiscal room to please all. The government hit the brakes on its own investments in the June quarter, amid an extended slump in private capital expenditure.Taxes aren't the solution. Easier hiring-and-firing norms – and not mere consolidation of archaic labor laws – will boost employment in more productive large firms that can pay better. If Amazon.com Inc. can build its largest global center in India, why should factories be afraid to scale up by hiring blue-collar workers? At the other end of the spectrum, small firms need finance.A yearlong liquidity crunch in the shadow banking industry has caused jitters in India’s market for loans-against-property, which is how midsize businesses finance themselves. But even the luxury of a $25,000 loan obtained by mortgaging property worth $350,000 isn’t for everyone, as Pratibha Chhabra, a financial inclusion specialist at the World Bank, notes. Most small firms only have inventory and invoices to pledge, and no lender wants to be left holding half-made chairs, or potatoes rotting in a warehouse.However, if a bank lending to a furniture maker or a potato farmer in India can get repaid directly by Ikea or PepisCo Inc. against certified invoices, it can share the benefit of the final customer’s creditworthiness with the borrowers. This is how Citigroup Inc. greases the global supply chain of 700 multinationals and their 70,000 vendors. Since most tiny businesses run on household labor, only statisticians will worry about whether wages or profits are getting the lift. Spending power in the economy will rise.Such financing is well established in developed markets, though in India “to efficiently finance small firms by locating them in larger supply chains will be the next frontier,” says Gaurav Arora, head of Asia Pacific at Greenwich Associates LLC.India is overdependent on Bangladesh’s model of microfinance, which uses group pressure and social shame to collect on exorbitantly priced – but collateral-free – small loans. The country is barking up the wrong tree. A woman doing embroidery on a sari will never get more than a fraction of what her craft will ultimately sell for. But she can be given access to cheap credit. Then, she’ll also be able to buy more biscuits for her children. (1) Cookies, to Americans.To contact the author of this story: Andy Mukherjee at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- The fires currently consuming Brazil’s Amazon rainforest seem a world away from the tense diplomacy in the U.S. trade war with China. In truth, they’re more closely connected than you might suspect.One of Beijing’s main acts of retaliation in the fight has been to freeze purchases of the 30 million metric tons to 40 million tons of American soybeans it imports each year. That’s left it more dependent than ever on Brazilian soy to take up the slack. Chinese imports from Brazil in the 12 months through April came to 71 million tons, about as much as it imported from the entire world in 2014. As we’ve written, that’s driving an investment boom into Brazil’s farm sector, with major agribusiness players such as Nutrien Ltd. and Mosaic Co. shifting their focus to South America to take advantage of Beijing's desire to diversify away from dependence on U.S. food supplies. In a sense, this shouldn’t have a direct impact on the Amazon. Most Brazilian soy is grown in the cerrado, a vast area of savannah to the south and east of the rainforest. Agricultural investment has concentrated on converting cerrado land currently used for pasturing livestock into row-crops like soybeans. That process should be able to result in a huge expansion of arable land without touching the Amazon. The trouble is, even Brazil has a finite amount of land and if you squeeze the balloon in one place, it risks popping out in another. As it is, most of the expansion of Brazil’s arable land over the past decade appears to have come at the expense of regrowth forest, which tends to be less well-protected than primary forest like the Amazon. This year’s fires could see ranchers driven out of the cerrado by arable crops to seek new pastures in freshly-cleared former rainforest in the Amazon.That’s particularly dispiriting because preservation campaigns appear to have started paying off in recent years, with clearing of Brazil’s primary rainforest almost brought to a halt over the past decade despite the ongoing felling of regrowth woodlands. President Jair Bolsonaro has already promised a more aggressive approach to developing the Amazon, scorning environmental concerns and jokingly referring to himself as “Captain Chainsaw.” Even when activity is kept away from the Amazon, land conversion has a damaging effect on the atmosphere. Brazil’s cerrado pastureland can be quite densely forested, with livestock grazing beneath the open canopy of the trees. Converting that to row crops necessitates uprooting those carbon-sequestering trunks, one reason it’s such a costly and difficult process. In addition, pastureland trampled by livestock is quite effective at locking atmospheric carbon up in the soil, but arable fields tilled every year fail to make as much difference.It’s still hard to tell exactly who is responsible for the 84% increase in fires in Brazil’s forests over the past year. The intensity of the infernos is likely the result of drought, although the rising number of blazes almost certainly comes from an increase in deliberate human activity. More than half of outbreaks have been in the Amazon, with another 30% in the cerrado and most of the rest in the coastal Atlantic forest.The danger of the current situation is that China’s hunger for soy may derail the halting recent progress in ending deforestation. The European Union in June concluded a trade agreement with the South American Mercosur bloc after two decades of negotiation, but Bolsonaro’s insouciant attitude to the Amazon represents a stumbling bloc for European governments who are needed to ratify the deal. Brazil’s agribusiness sector has even lobbied Bolsonaro’s government to take greater steps to halt deforestation, out of fear that his confrontational stance could jeopardize the EU-Mercosur deal and hurt their exports.China, on the other hand, tends to be a much more hands-off trading partner, and long-standing concerns about food security mean Beijing has been unusually solicitous of Brazil’s approval. If anything could nudge Bolsonaro toward ignoring his country’s land barons and following his instincts instead, it’s the prospect of a rich alternative source of foreign exchange from China.This would be a miserable and unexpected outcome from the current trade war. Despite coming to office on a pledge to revive the coal industry and tear up environmental rules, President Donald Trump has mostly failed to reverse the greening of America’s power sector and the auto industry’s drive toward lower tailpipe emissions.His trade fight with an equally carbon-addicted China, however, encouraged that country to embark on a ruinously carbon-intensive industrial stimulus last year, and may now be driving Brazil to uproot more of its forests. The grimmest climate legacy of the Trump administration may well come not from energy policy, but from trade.To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Patrick McDowell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
AmazonFresh, the retail giant's grocery delivery service, is now available in Phoenix. Amazon.com Inc. (Nasdaq: AMZN) customers who subscribe to its Prime service now can add AmazonFresh to their subscription. Seattle-based Amazon expanded Fresh to Phoenix, as well as Houston and Minneapolis in the past week.