MarketLine Blog

Posts written by Tom Hawthorn

The Sky is the Limit: How Uber’s dominance of a market allows it to chase next-gen dreams


Uber released financial data to Bloomberg on April 14, 2017, something it is in no way obliged to do. The image it presented was one of rapid growth and expansion, skyrocketing revenues and incredible levels of spending. One would hope to see this level of performance; private investment in the company has grown consistently since its launch in 2009 as UberCab, generating nearly $10bn from investment firms since then, and it has managed to spend more than $8bn investing in its own growth. Private investment growth will need to continue… Read more

UK General Election: Theresa May’s Call for Election on June 8 an Opportunistic Masterstroke


On June 23, 2016, the United Kingdom voted to leave the European Union, a historic result the likes of which has never been seen. On June 5, 1975 the UK voted overwhelmingly in favor of remaining in the EU (then called the European Community) and the thought of any member state actually leaving is a very recent phenomenon. Many point to the Great Recession of 2008-09 as the catalyst for the most recent wave of anti-EU sentiment but opposition to the EU has existed in the UK since it joined… Read more

From GM to PSA: Why the sale of Vauxhall Opel is good for shareholders but bad for workers


US-based General Motors is the world’s third largest automobile manufacturer by sales, and second largest by revenues. French-owned Groupe PSA, which sold nearly 3.2 million vehicles and had revenues of €54bn ($57bn), is a fairly small player in comparison. GM’s ownership and continued management of Vauxhall Opel is at odds with the rest of its portfolio – the company primarily operates in the US and Asia, selling brands including Chevrolet, Buick, Holden and Wuling – while PSA operate Peugeot, Citroen and DS Automobiles primarily out of Europe. The sale of… Read more

Piracy: The social acceptability of theft and its effect on the movie industry


Internet piracy has been around almost as long as the internet itself. Communities exist, consisting of millions of web users, which are dedicated to sourcing, converting and sharing valuable copyrighted material. Some – The Pirate Bay – were the inspiration for political parties. Others – Megaupload – were responsible for accelerating the fortunes of a small group into the billions of dollars. But all major sites have been in the spotlight for a decade, coming and going, constantly switching web hosts from Sweden to Somalia to Costa Rica, managing to… Read more

Tesco-Booker: The Squeeze on Small Businesses


Tesco, one of the largest retailers in the world, is the most dominant supermarket in the UK market. Its recent announcement to merge with Booker was a surprise to all. Booker occupies a very different area of the market, primarily offering bulk-purchase supply to small retailers, both independent and franchised stores under brands it owns, such as Londis and Budgens. At first glance then, this seems an odd target for Tesco; to merge operations with a company whose target market is so different to its own. Indeed, no one considers… Read more

OPEC: Supply restriction amid global oil glut


OPEC, consisting of 13 oil-rich governments, is the only true cartel allowed, albeit grudgingly, to operate in today’s global economy and it wields considerable power. In 1973 Arab members imposed an oil embargo on the US during the Arab-Israeli war which tripled prices in a matter of months. Three times in recent history OPEC has stepped in to shore up the oil market, and each time prices rallied within days of action being taken. It is fair to say, therefore, that OPEC is a force to be reckoned with. Or… Read more