Bitcoin isn’t a currency, but a bet on skepticism 22 Jan 2021 Reasons to doubt the cryptocurrency, up over 250% in a year, are legion. It’s a poor unit of exchange, and the price is driven by speculative retail traders. As a reflection of mistrust in government, though, it offers a useful market signal – one that could rise long term.
Review: “Work Won’t Love You Back”, so compromise 22 Jan 2021 Sarah Jaffe explains how a devotion to jobs isn’t working for today’s employees. She’s right that loving your profession can mean forgoing salary, lifestyle or security. Inadvertently she makes the case for dropping the pursuit of purpose for good pay and a more balanced life.
Corona Capital: M&A boost, Purell 22 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs, JPMorgan and other banks collectively reaped billions in fees related to advice on transactions with the expectation the money will keep rolling in; hand sanitizer makers hope good habits linger.
Cineworld’s new release is moral hazard disaster 22 Jan 2021 The $1.3 bln movie chain wants to give executives including CEO Mooky Greidinger shares which would be worth $142 mln if they recover to pre-Covid-19 levels. It’s a skewed reward for a company which owes its survival to creditors and governments. Only investors can stop it.
How to pick the hydrogen industry’s future Amazon 22 Jan 2021 The element could play a major role in decarbonisation, which has sent shares in related companies skyrocketing. As with the 1999 tech-stock boom, investors can’t tell which group can corner the market. But they can see which uses of hydrogen will become cost-competitive first.
Google threat demands that Australia find allies 22 Jan 2021 The tech titan says it’ll disable search Down Under if Canberra enacts a law forcing it to pay media companies for news. It goes to show how much clout $1.3 trln parent Alphabet thinks it has. Such corporate dominance suggests global regulators may have to put up a united front.
Chinese edge of India’s fintech star is too sharp 22 Jan 2021 The $16 bln Paytm sought to emulate China’s e-commerce and mobile wallet pioneers, including backer Ant. But that model has come under Beijing’s scrutiny, and rivals like Google have broken Paytm’s grip on payments. Founder Vijay Shekhar Sharma’s startup has hit a tricky patch.
Australia commits unforced tennis error 22 Jan 2021 Foreign players are flying in for the Grand Slam tournament even as strict pandemic policies have left citizens struggling to get home. Stars like Novak Djokovic complaining about quarantine don’t help. Flimsy economic considerations may be distorting risk assessments.
DowDuPont activist legacy spawns new activism 21 Jan 2021 Starboard Value wants new directors and a new CEO at $33 bln Corteva. The seed and pesticide group is one of three born from the 2017 merger and later breakup of Dow and DuPont. That grand plan looked good on paper to other noisy investors, but making it work is proving hard.
Keystone XL is stage for more political theater 21 Jan 2021 The logic behind the U.S. pipeline was already on the fritz. Oil’s future is uncertain, especially the crude in Canada that Keystone would have transported. Banks, too, were pulling back from lending. Joe Biden’s order nixing the project is mostly symbolic of future intentions.
Viewsroom: Biden’s inauguration, China’s stresses 21 Jan 2021 The new U.S. president arrives with a long to-do list, good intentions and a swelling national debt pile. Gina Chon and Richard Beales talk with John Foley about what to expect. Plus: New lockdowns bring fresh financial problems in China, as Yawen Chen and Pete Sweeney explain.
Guest view: Voluntary carbon markets carry risks 21 Jan 2021 Surging demand for carbon credits is a positive sign of private sector interest in addressing climate change. But it makes no sense to scale up voluntary markets if it’s not clear what these traded commodities actually represent. Or how they will help meet global climate goals.
Perella Weinberg deal boosts SPAC credibility 21 Jan 2021 A $977 million price tag for the M&A advisory shop values it lower than peers based on reasonable growth assumptions. It's a sensible figure for a real business in a competitive market. Perella's choice to go public by selling to a blank-check company looks well advised.
Russian mining IPO comes with sanctions noise 21 Jan 2021 Nord Gold is planning a $5 bln listing in London, the WSJ reports. Severstal billionaire Alexey Mordashov only has a minority stake, but his sons own most of the rest. Investors need to consider the risk that the new U.S. administration decides to take a tougher line on Moscow.
Brexit legacy will clip sterling’s wings 21 Jan 2021 The currency hit an eight-month high against the euro. Vaccine rollouts, on which GDP rebounds depend, are more advanced in UK than many countries. But non-tariff barriers are hindering trade with the EU, which may hold back growth. That will limit the pound’s scope to fly.
Corona Capital: Intel, Run on guns 21 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Intel’s new boss gets closer to his big debut. Meanwhile, gunmakers are riding high on social tensions and pandemic angst, but could soon find they have fewer friends in high places.
Options trading bubble draws frothy M&A equivalent 21 Jan 2021 Britain’s IG is buying tastytrade for $1 bln in cash and shares. The price seems high, even allowing for surging demand for the Chicago-based group’s derivatives products. As with the current stock-market boom, success depends on continued interest from flighty retail traders.
Couche-Tard may be impulse buyer after French fail 21 Jan 2021 Founders of the minimart empire, blocked from buying Carrefour, have a super voting share that expires in 11 months. After that they’d need investor support for a big purchase like German grocer Metro. The 13% drop in the Canadian group’s stock shows fears of a short-term spree.
Chinese monopoly rules threaten super-app model 21 Jan 2021 The central bank has defined payments dominance in market-share terms, squarely targeting Ant and Tencent. Its new draft rules also separate transactions from interest-bearing products. That will complicate cross-selling more profitable services, and deter new competitors.
China’s energy policy keeps blowing fuse 21 Jan 2021 Widespread electricity rationing last month slowed factory output, threatening another harsh winter for Chinese households. Banning Aussie coal didn’t help, but Beijing has stalled reforms to its grid monopoly, forcing a choice between emissions targets and keeping the lights on.
Biden’s dream team faces a nightmare 20 Jan 2021 The pandemic has worsened structural economic problems: the poor have gotten poorer, marginalized people are losing jobs quicker, and the workforce is further out of reach for the unemployed. The new U.S. president has chosen experienced aides. But they will need imagination too.
Economic fixes can make 2024 election less fraught 20 Jan 2021 Joe Biden has many goals, but one ought to be making the next election smoother than the last. An inequitable job market keeps voters from polls while gerrymandering helps keep wealth in areas that already have it. Electoral and economic systems are linked; both need an overhaul.
Europe’s IPO early birds will catch the worm 20 Jan 2021 Six European companies have already launched floats in 2021. That’s unusual: the second quarter is usually the busiest period for IPOs. Vaccines and resilient valuations mean that those who jump the gun are likely to be the ones who end up looking smart.
Job market will be weak link in global recovery 20 Jan 2021 Vaccines are set to end stop-start lockdowns and boost GDP. But that’s when efforts to limit jobless rates may be wound up. And bankruptcies will surge everywhere after last year’s bailouts tided businesses over. Growing labour insecurity could jeopardise the economic upturn.
Morgan Stanley serves up best of two weird worlds 20 Jan 2021 Covid-19 delivered a trading windfall for James Gorman’s firm as it did for rivals, adding about $5 bln to 2020 revenue. Banks can’t rely on a repeat of 2020’s dislocations, but Gorman’s stock-fueled M&A means Morgan Stanley can shrewdly reach the masses while low rates continue.
Corona Capital: ESG investing, U.S. moves, P&G 20 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: ESG opens up investing opportunities; home values in U.S. resort towns rise faster than rural areas; and Procter & Gamble cleans up.
Europe’s chip darling may fall victim to its hype 20 Jan 2021 ASML’s market value has risen by two-thirds in the past year to $230 bln, helped by surging demand for its kit. Yet CEO Peter Wennink will struggle to meet investors’ heady growth hopes. A drawn-out trade war between China and America would make his job even harder.
Burberry is entering the M&A danger zone 20 Jan 2021 The UK maker of fancy trench coats performed worse than most peers during the pandemic. Despite some positive signs, investors are attributing little value to CEO Marco Gobbetti’s turnaround plan. A cheap valuation and lack of dominant shareholders could entice cash-rich peers.
Birkenstock buyout calls for heavy buffing 20 Jan 2021 CVC may buy the maker of strappy sandals worn by Hollywood stars and monks. Private equity has a good history with niche footwear brands, but the German group is already well-run. To justify a mooted 4 bln euro price tag, the new owner would have to target luxury-style margins.
Elliott’s HK exit reflects Asia activist reality 20 Jan 2021 The hedge fund is closing its Hong Kong base and will run its Asian campaigns from Tokyo and London. Moving amid the city’s political strife raises eyebrows, but the region’s rapid growth in shareholder shake-ups is passing China by. Paul Singer’s group is following the money.