Paytm IPO ends Morgan Stanley India winning streak 19 Nov 2021 The fintech firm’s 27% first-day drop contrasts with pops the Wall Street giant oversaw for Nykaa and others. Paytm execs and powerful buyers and sellers like Alibaba, SoftBank, and BlackRock all played a role in the fiasco. But as lead bank Morgan Stanley has most to lose.
Blackstone’s raise makes it time for Crown to fold 19 Nov 2021 The buyout firm is back with a sweetened $6.2 bln bid for the embattled Aussie casino empire. Other suitors have fallen away, making the 26% premium even more appealing. The new management team and shareholders are better off letting Blackstone gamble with its lodging reputation.
Razer’s $4.5 bln buyout plan has a serrated edge 19 Nov 2021 The purveyor of pricey keyboards may swap a Hong Kong listing for one in New York as part of a management-led deal. A video-gaming fanbase gives it meme-stock potential while its Southeast Asian fintech unit might look hotter stateside. But any valuation gains may be subtle.
Capital Calls: Biden’s deficit, Austria lockdown 19 Nov 2021 Concise views on global finance: A nonpartisan analysis finds a $160 billion hole in the U.S. president’s social programs; while new Covid restrictions spark selloff in European airlines and hospitality.
Biden shoots antitrust blank at oil giants 18 Nov 2021 The U.S. president wants regulators to examine anticompetitive behavior by oil and gas groups. Similar past efforts have fizzled because energy firms mostly take prices in a global market. But affordable gasoline is a political must even if it conflicts with Biden's bigger goals.
Prada’s new look merits fashion league promotion 18 Nov 2021 After years of drift, the $18 bln Italian brand has got a grip on its retail chain, axed discounts and rejuvenated its image. That should help it hit a 4.5 bln euro sales target and double its margins. For investors, the catch-up with snazzier rivals is something worth having.
Chancellor: Investors unprepared for carbon crunch 18 Nov 2021 Markets aren’t effectively factoring in a potential hydrocarbons scarcity. It’s not just that the world is trying to get off fossil fuels. They’re increasingly expensive to extract as supplies reach their peak. It’s another downside risk investors need to consider.
Icahn’s Southwest Gas mixtape has all the hits 19 Nov 2021 The activist is blasting overspending, making a hostile tender offer, criticizing a major deal and pushing for a breakup in his campaign at the $4 bln U.S. utility. They are classic Icahn tactics. But history suggests investors might do best if he gets only some of what he wants.
JD looks sturdier than Alibaba in Beijing’s storm 18 Nov 2021 Quarterly earnings at the Chinese e-commerce giants fell as regulatory and other woes take their toll. But the smaller e-retailer is gaining market share while revenue at Alibaba’s core online shopping unit barely grew. The diverging fortunes will bolster JD’s valuation premium.
Viewsroom: European bank M&A, De-Dutching Shell 18 Nov 2021 Big lenders in the euro zone are doing deals, but not the kind investment bankers dream about. BNP Paribas is in U.S. retreat, BBVA bulks up in Turkey and KBC goes Bulgarian. Liam Proud explains. George Hay explains why the Anglo-Dutch oil major is dropping the Dutch bit.
Paytm IPO misery leaves Indian tech looking West 18 Nov 2021 The Alibaba and SoftBank-backed fintech company plunged a bruising 24% on its debut, in contrast to huge first-day pops for Nykaa and Zomato. The market is mispricing tech IPOs. It revives the debate about listing in a New York market more accustomed to money-losing firms.
Europe’s vaccine bazooka is more like sniper rifle 18 Nov 2021 Germany may join Austria in imposing curbs on the unvaccinated to tackle soaring Covid-19 infections. Restricting freedoms is harsh but worked in France and the United States, which both saw inoculation rates pick up. It also avoids the economic pain of blanket lockdowns.
Glasgow’s carbon market overhaul is only half done 18 Nov 2021 The U.N.’s COP26 summit agreed tougher accounting standards for emissions credits, a market ex-BoE Governor Mark Carney hopes can swell to $100 bln a year. It’s a step forward, but loopholes remain. Companies that don’t like greenwashing have a strong incentive to help police it.
Capital Calls: SEC turns tables on vote advice 18 Nov 2021 Concise views on global finance: The U.S. watchdog wants to reverse Trump-era rules restricting firms that advise investors how to vote on corporate matters.
Australia deserves to pay climate risk premium 18 Nov 2021 Canberra adopted a net-zero emissions target mainly to keep the country from being punished by investors. Its newly released assumptions on electric vehicles, mining and more confirm a lack of seriousness in the plan. Sustained pressure from fund managers could make a difference.
Activision may become vulnerable to a takeover 17 Nov 2021 A new scandal about sexual assault allegations is hurting the $50 billion gaming company’s already-battered share price. As the problems pile up, the chances are growing that an activist will pop up to agitate for a sale. A deal might make sense for Netflix.
Elliott seeks hidden tech treasure in dull grocer 17 Nov 2021 Paul Singer’s fund took a 3% stake in $35 bln retailer Ahold Delhaize. Rather than cost cuts, the activist’s interest lies in the Dutch group’s online unit, worth perhaps $8 bln. But competition is fierce and rich valuations may not last. Elliott’s bet also needs good timing.
Nvidia would gain if watchdogs bite its Arm off 17 Nov 2021 A near-150% stock run for the graphics-chip maker has turned its $40 bln deal for Britain-based Arm into a $72 bln splurge. Regulators in the UK and elsewhere are alarmed. With Arm now implicitly valued far more highly than its peers, Nvidia could be better off solo.
GE split should start with insurance black box 17 Nov 2021 Its $38 bln of old-age care policies – historically the source of some nasty surprises – will be lumped with the jet-engine division when the conglomerate breaks into three. Covid-19 may have made those policies less of a liability. That’s all the more reason to cut them loose.
Thyssenkrupp finds lost hydrogen lottery ticket 17 Nov 2021 The ailing 7 bln euro German group’s shares soared amid hopes it might list its electrolysis unit. With a few tweaks, its chlorine-making kit can produce hydrogen, a big enabler of a no-carbon world. That promise means its paltry current sales could yield a 5 bln euro jackpot.
Ariston IPO is enticing play on green energy wave 17 Nov 2021 The family-owned maker of heat pumps and water heaters is going public in Milan at a valuation of up to 4 bln euros. With demand for energy-efficient heating systems set to boom, it’s in a sweet spot. A discount to rivals A.O. Smith and NIBE Industrier should help inflate demand.
Capital Calls: Stadium naming, Diageo, Evolution 17 Nov 2021 Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.
Bitcoin miner’s green patina is fool’s gold 17 Nov 2021 In a somewhat novel twist for the power-sucking cryptocurrency business, Iris Energy relies mainly on renewables. That probably helped boost its valuation in a $1.6 bln IPO, but it feels like style over substance. And the climate hype cannot mitigate some serious risk factors.
Biden at war with himself on supply-chain battles 16 Nov 2021 The U.S. president wants to ease bottlenecks but punitive tariffs on Chinese-made port equipment, a vaccine employer mandate, and expiring contracts with a dock workers union stand in the way. Solving the problems require changing Biden's policies. Neither will be fixed soon.
The Exchange: Hollywood broadens its horizon 16 Nov 2021 The entertainment industry is hard to break into without connections. Hollywood producer Tyler Mitchell is trying to make the process more diverse with an online network. He explains to Jennifer Saba how his firm Impact helps discover writers who might otherwise be overlooked.
Carlyle bank buyout would need hard work and hope 16 Nov 2021 The U.S. private equity group is eyeing sickly UK lender Metro. It looks cheap, but an acquirer would have to throw in extra capital, slash costs and crank up risky lending to earn a respectable return. A merger with another small peer might help but would be tricky to pull off.
Belarus’ gas muscle-flexing is self-sabotage 16 Nov 2021 President Lukashenko may regret his threats to disrupt flows of Russian gas to Europe. The pipeline crossing his territory is already of waning importance. By potentially hastening the opening of Russia’s Nord Stream 2 line to Germany, he’s bringing forward its retirement.
China’s central bank tries brighter shade of green 16 Nov 2021 A new lending programme could, by one estimate, lead to nearly $1 trln of investment in clean energy projects. It’s a bolder policy than from Western peers, and also a clever way to tackle the stagflation dilemma. Runaway stimulus remains a risk, as does misallocated capital.
Temasek buffs sovereign fund standing in M&A fight 16 Nov 2021 The money manager is on both sides of a $2.9 bln tussle for Singapore Press’ real estate assets. That may seem a conflict in the city-state’s spiciest bidding battle in years. But it hammers home how Temasek’s mundane arm's-length investor role makes it the envy of global rivals.
Capital Calls: CalPERS and private equity, Art market 16 Nov 2021 Concise views on global finance: The biggest U.S. public pension fund is taking on more risk; works collected by the Macklowes sold for $676 million on Monday in a reminder that the richest have prospered through the pandemic.