China trading-data restrictions are self-defeating 23 Apr 2024 The Shanghai and Shenzhen bourses will cease real-time updates of when overseas investors buy and sell shares. It looks like a ploy to shore up market sentiment. Reversing the decade-long practice, though, will decrease market transparency and undermine shareholder confidence.
Chinese stocks have found a bottom 23 Apr 2024 After a $5 trln crash, there are early signs of healthy buying. In this Exchange podcast, Herald van der Linde, HSBC head of equity strategy, Asia Pacific, unpicks the shifting sentiment of Chinese households and implications for the rest of the region’s capital markets.
Private credit paints a new scream for banks 22 Apr 2024 Lending against wealthy patrons’ art has been dominated by financial institutions. Sotheby’s $700 mln sale of bonds backed by such loans offers non-bank rivals a template to upend the status quo. A rebounding securitization market can feed this machine, if it fits a careful mold.
Swedes’ gaming split is far from a next-level fix 22 Apr 2024 Struggling $3 bln Embracer will divide itself into three discrete companies. Leveraging up the group’s board games arm and splitting out hit-and-miss blockbusters and steadier mobile games makes sense. But it’s unlikely to unlock value akin to the Swedish firm’s glory days.
Buyout barons salivate at Toshiba job cuts 22 Apr 2024 They extract world-beating returns from deals in Japan often without reducing staff because lifetime employment is the norm. Now the private equity-owned conglomerate may cut 5,000 roles. A tight labour market helps, but if layoffs catch on acquirors could both pay and earn more.
Paramount’s sale cries out for intervention 19 Apr 2024 Shari Redstone is mulling a deal for control of the $8 bln media company with unclear upside for other shareholders. The math can just work, but a bid from Apollo would offer a safer payday. The choice is clear, even if independent investors can do nothing but press their case.
Winner’s curse unfairly haunts $7 bln paper deal 19 Apr 2024 UK-based Mondi dropped its pursuit of DS Smith, handing victory to rival US bidder International Paper. The victor’s shares have lagged the sector, suggesting its investors see little value in the deal. If the promised cost savings appear, that view may be too pessimistic.
ESG is ghost at global retailers’ annual feast 19 Apr 2024 LVMH, Amazon and peers gathered in Paris for the industry’s yearly shindig. The growth areas in the $30 trln sector are Shein-style cheap garments and the Middle East. Both jar with retailers’ previous focus on environmental, social and governance factors.
Shell’s value gap is more strategy than geography 19 Apr 2024 CEO Wael Sawan may shift the $230 bln UK oil giant’s listing to New York if a discount to rivals like Exxon Mobil persists beyond 2025. But Shell’s shifting priorities, slower growth, and unreliable dividends weigh on its valuation. Those factors defy a superficial fix.
Netflix plots feel-good story in a horror festival 18 Apr 2024 The $260 bln streaming service’s ability to keep adding subscribers by cracking down on password-sharing is inspiring copycats. The “One Day” producer has other edges on laggards such as Disney and Paramount. A $7 bln cash pile also provides it with a chance to widen the lead.
Blackstone’s cash pile will buy only so much time 18 Apr 2024 The investment giant is reaching into its $200 bln war chest, but selling less. Higher-for-longer rates also threaten to slow down deals. A protracted mismatch would sharpen the divide between fund backers focused on profit and shareholders benefiting from capital deployment.
UK music fund may walk off stage without encore 18 Apr 2024 Hipgnosis Songs Fund accepted $1.4 bln in cash from US rival Concord Chorus. The 32% premium pitches songs by Neil Young and Shakira at the lower end of their shrunken fair value. With higher-for-longer rates, it’s far from clear that its Blackstone-owned manager will pay more.
Wells Fargo has worn its dunce cap long enough 18 Apr 2024 In 2018, the US bank was banned from growing beyond $2 trln in assets as punishment for its flagrant customer abuses. Even if warranted, the Fed’s decision has led to market distortions. It’s time to scrap the limit, explain why it remains, or – if the rot persists – get tougher.
Spain’s utility saga calls for tough balancing act 18 Apr 2024 The UAE wants to buy 40% of 22 bln euro Naturgy from its private equity owners. That would usually require a full takeover, but Madrid has form on protecting key infrastructure. Spain will have to balance its desire to retain control with the need not to scare its bidder away.
TSMC’s high-tech stock beset by low-tech problems 18 Apr 2024 Shares of Taiwan's $640 bln tech titan are up 36% this year thanks to its AI chip dominance. Yet they trade at a decade-high valuation discount to peers. Geopolitical risk is one factor, as are sluggish handset sales and over-expansion fears. All look out of TSMC's control.
Czech Sphinx may need to pay up for UK mail morsel 17 Apr 2024 Daniel Kretinsky has been rebuffed in a bid to buy the 72% of 3 bln pound International Distributions Services he doesn’t already own. The Czech billionaire has deep enough pockets to pay more for the owner of Royal Mail. But his target’s board has grounds to dig its heels in.
Musk’s next big payday matters more than his last 17 Apr 2024 Tesla shareholders will soon vote on the CEO’s court-voided $40 bln pay package. It’s not a tough decision. Recent departures and strategy shifts make Tesla’s value highly dependent on keeping Elon Musk motivated. But a new pay plan is needed too, and the stakes are even higher.
Walmart-backed IPO makes brick-and-mortar AI pitch 17 Apr 2024 Ibotta is chasing a $2.6 bln public valuation for one of marketing’s oldest tricks: rebates on in-store purchases. Its data-gathering is simple – customers scan receipts – yet solid and profitable. But efforts to cover the company in a high-tech sheen look like a stretch.
Guess what: Boeing can be spelled without G and E 17 Apr 2024 Instead of investing in a new model, the 737-maker embraced the gospel of Jack Welch and returned $60 bln to shareholders over a decade. McDonnell Douglas suffered a similar fate before infusing Boeing with GE’s toxic ethos. It’s not too late to excise it and build another plane.
Luxury’s great divide will get more striking 17 Apr 2024 Sales at $420 bln LVMH rose a dull 3% in the first quarter. The Tiffany-to-Dior behemoth’s insipid performance points to a broader fragility within the sector. With revenue in the luxury industry flattening, the gap between winners and losers is set to grow wider.