Big Tech trustbusters need to disrupt themselves 30 Jun 2021 A U.S. judge tossed out a government suit against Facebook mainly because the FTC didn’t show how to measure the social network’s market share of a service people don't pay for – despite saying it was 60%-plus – or name competitors. Regulators need to rethink their toolbox.
Atlantia’s M&A treasure chest has use-by date 30 Jun 2021 The infrastructure group is due a $10 bln cash windfall from the forced sale of its Italian motorway unit. Airports or toll roads are in high demand, while mobile payments bets are risky. Without a clear target, CEO Carlo Bertazzo should return more cash to investors or cut debt.
Money market overhaul starts on solid ground 30 Jun 2021 Global watchdogs have a plan to revamp the $8 trln industry. These usually safe funds saw big redemptions in March 2020. Some of the FSB’s ideas would ease pressure in a crisis, say by deterring mass investor withdrawals. But their success will depend on local regulators.
Knorr risks a prang in German auto bidding war 30 Jun 2021 The 16 bln euro brake maker’s shares fell sharply after it said it might buy car electricals supplier Hella. The latter’s focus on lights points to minimal savings. Competition from more logical bidders like France’s Faurecia will drive financial returns even further off-road.
Pre-owned watch IPOs ride second-hand wave 30 Jun 2021 As with fashion, demand for “pre-loved” bling timepieces is booming. That, and a switch to online buying, underpins the mooted $1 billion-plus listing valuations of web players Chronext and Chrono24. For investors, the latter’s breadth of choice makes it more Rolex than Timex.
Capital Calls: Didi IPO, Space SPAC, Travel SPAC 30 Jun 2021 Concise views on global finance: The Chinese ride-hailing outfit snags an $80 billion valuation early in its New York debut; a blank-check deal for satellite-transport group Momentus cuts its valuation in half; high-end vacation club Inspirato takes subscriptions to a new level.
Goldman’s big $62 mln China STAR deal has limits 30 Jun 2021 The Wall Street bank is investing its own funds in Beigene’s Shanghai float. It’s a requirement to lead listings on the startup market and a due diligence nightmare for banks. Goldman’s backing of an existing $34 bln client will be hard to repeat.
China’s Communist Party runs low on creativity 30 Jun 2021 The institution that runs the People’s Republic turns 100 this week. The Communist Party has never been so popular at home or resented abroad, as a clunky recovery empowers an aristocracy of xenophobes. This elite has an iron grip but few new ideas. It’s a recipe for stagnation.
Fed gives back Wall St power over investor payouts 29 Jun 2021 JPMorgan and Goldman Sachs are among banks that raised their dividends after passing central bank stress tests. Some increased their buybacks too. With new capital requirements in place, investors can see who has what to give – but not how much will come their way.
Wall Street enlists Main Street for IPO advantage 29 Jun 2021 Clear Secure’s underwriters are allocating 1% of its offering to trading platform Robinhood. That tips bankers off if the airport security firm creates retail buzz. If so, it should enable them to leave less value on the table while also giving Robinhood traders a chance to play.
South Africa’s arm of the law gets slightly longer 29 Jun 2021 Jailing ex-President Jacob Zuma for contempt of court is far from a conviction. Still, it’s another sign of the country’s institutions losing patience with graft and waste. With his predecessor neutralised, Cyril Ramaphosa can speed up reforms, including at power giant Eskom.
The Exchange: Niall Ferguson on human error 29 Jun 2021 The historian joins Pete Sweeney to discuss his latest book on disasters, natural and man-made, and why so many governments got Covid-19 so wrong. They debate which political model looked best after the pandemic and whether historians can make a difference at times like these.
Why 2021 is a sweet spot for economic policymakers 29 Jun 2021 Economies are rebounding, low interest rates mean debt service costs are at historical troughs, and finance ministers and central bankers are pulling in the same direction. But “Pandexit”, as a new BIS report calls it, will make officials’ jobs harder again after this year.
Capital Calls: Teneo manages its own crisis 29 Jun 2021 Concise views on global finance: Declan Kelly, the PR firm’s chair and CEO, has quit after allegations of drunken behavior. Bad behavior is an underappreciated risk in people businesses.
Private equity offers test for IPO market hunger 29 Jun 2021 British group Bridgepoint is listing in London to expand beyond buyouts into real estate or infrastructure. Shares in bigger rivals like EQT are soaring, implying a $6 bln-$7 bln valuation. Yet its niche core business and limited diversification call for a discount.
Shared-office buyout would need pandemic booster 29 Jun 2021 Private equity firm CC Capital briefly held talks with IWG over a $6 bln takeover, Sky says. Persuading founder Mark Dixon would require a big premium. And to get a decent return, a buyer would have to believe that flexible working will boom after the crisis. That’s a bold call.
Climate bad bank concept has ideal test case 29 Jun 2021 Rising prices may help BHP offload more fossilised assets. A better option for mining boss Mike Henry would be to shovel them into a bad bank of sorts, using cashflows to cut carbon while winding down the units. That would help win over ESG investors and set a replicable example.
Sea banks on rising with fintech tide 29 Jun 2021 The Tencent-backed gaming-to-shopping group, at $147 bln, trades at a rich sum of its parts. Investors believe it can ramp up commission-based fintech services in underbanked Southeast Asia. Its trove of licences minimise risk. Boss Forrest Li has built an enviable position.
Facebook ruling shows limit to Biden’s deal crunch 28 Jun 2021 The social network won a dismissal of an antitrust lawsuit by the U.S. Federal Trade Commission, temporarily sending its market value above $1 trln. That’s a blow to an administration that signaled tougher M&A reviews. Deals may take longer, but in court, companies can prevail.
Movie theaters look less fast, more furious 28 Jun 2021 AMC is thumping its chest about a post-pandemic record, with over 2 mln people flocking to its U.S. cinemas to see films like “F9.” The chain trades at a higher multiple than the studios providing the flicks. Yet an emphasis on streaming puts media firms in the driver’s seat.
Cox: Wall Street is back – and absolutely booming 28 Jun 2021 Following edicts from on high, hordes of investment bankers and asset managers are returning to their Manhattan headquarters. Deal pipelines are bulging, animal spirits are high and staff shortages are the primary obstacle. It’s a situation that’s going to last for some time.
Guest view: A debt relief plan for green recovery 28 Jun 2021 Bond markets are buoyant but poorer economies’ fiscal problems are unresolved. Economists Shamshad Akhtar and Ulrich Volz suggest a way of offering more comprehensive debt relief while promoting an environmentally-friendly and inclusive rebound in economic activity.
HSBC’s weak investment bank softens China backlash 28 Jun 2021 State-owned firms have shunned the lender amid tensions with Beijing, Reuters reported. It’s a setback for HSBC’s push to build up its wholesale arm. Longer-term banking relationships are harder to dislodge, however. And Chinese multinationals have few domestic alternatives.
Burberry CEO steps off catwalk with job unfinished 28 Jun 2021 Marco Gobbetti is leaving the $13 bln maker of high-end trench coats to join smaller Italian shoe and leather group Ferragamo. His four-year drive to relaunch the British brand is incomplete. It’s a setback for Burberry’s hopes to quickly revive its underperforming share price.
Drahi’s mystery pounce gives BT plenty to ponder 28 Jun 2021 The Franco-Israeli tycoon may have used derivatives to collar 12% of the British telco. Such deals typically cap an investor’s economic exposure. Buying the underlying shares would align his interests with those of other holders and let him benefit from a BT broadband shakeup.
Capital Calls: Genetic gold rush 28 Jun 2021 Concise views on global finance: A company has shown biotechnology called CRISPR can precisely edit defective genes in humans, fueling investment and squabbles.
Chinese grocery apps risk spoiling early 28 Jun 2021 Missfresh shares fell 26% on their New York debut, a worrying sign for rival Dingdong Maicai’s upcoming listing. Price wars and logistics costs have crushed margins and e-commerce giants are muscling into the sector. Joining forces may give both a better chance of survival.
Geely’s reversal clears way for STAR takeoff 28 Jun 2021 The Chinese carmaker dropped plans to list on the technology growth board citing “strategic adjustments”. Chances are strategy was adjusted by the government, which wants to prevent STAR from being overrun by mature giants. That’s mixed news for Syngenta, also in the queue.
What a bucket of chicken wings might tell the Fed 25 Jun 2021 U.S. poultry prices are on a tear. Wings are the priciest of all. There are reasons of supply, like feedstock inflation and labor shortages, and of demand. Some may be transitory, as the central bank hopes. But it’s more complex than just going back to pre-Covid times.
Review: Reining in the crypto-fanatics 25 Jun 2021 Ex-Swift executives Gottfried Leibbrandt and Natasha de Terán traverse the payments world in “The Pay Off”. Anecdotes and explanations lend pace and purpose. But despite warnings about central bank digital currencies and other novelties, they ask more questions than they answer.