Carbon market faces slow burn to success in China 19 Jul 2021 The world’s largest emissions-trading system is hampered by data concerns, dirt-cheap prices and feeble fines. It also currently exempts most big polluters and lacks a mechanism to reduce emissions. It’s a start, but the scheme needs an overhaul to match Beijing’s climate goals.
Capital Calls: Chinese hacking, Tencent 19 Jul 2021 Concise views on global finance: When the only response to China hacks is harsh words, companies will pay the price; the $680 billion technology giant places a heavyweight bet on UK gaming group Sumo.
China’s IPO crackdown exposes U.S. weaknesses 19 Jul 2021 Several companies have spiked plans to list abroad after Beijing ramped up oversight. But the move by regulators also highlights the frailties of an American financial system that is heavily reliant on disclosure. Chinese firms have long shown that’s easy to take advantage of.
Netflix and JPMorgan share post-pandemic potential 16 Jul 2021 Both the video streaming service and the giant U.S. lender left the lockdown with more customers, cash and competition. JPMorgan boss Jamie Dimon is doing small deals in new fields to help fend off rivals. Netflix may want to follow his script.
SPAC’s legions are ripe for healthier discernment 16 Jul 2021 Investors have lost their heady enthusiasm for the typical blank-check vehicle. Higher and lower quality sponsors may be seeing their capital-raising fortunes diverge. There’s evidence sponsors affect longer-term performance, too. A winnowing would be good for the market.
Branson space caper may have airline economics 16 Jul 2021 The British tycoon has lined up punters paying $250,000 each for his sub-orbital joyride. To hit profit targets, though, his Virgin Galactic needs to hike prices as rivals lift off. If it can’t, the $8 bln firm’s financial trajectory may resemble loss-making Virgin Atlantic.
European airlines’ CO2 pleas deserve cold shoulder 16 Jul 2021 Trade body IATA is moaning about EU plans to curb emissions by making jet fuel more expensive. Ideas that may add 3% to operating costs over several years aren’t a grounding order. And most of the changes would merely remove existing freebies to align aviation with other sectors.
Capital Calls: Intel, SPAC lobby 16 Jul 2021 Concise views on global finance: Buying GlobalFoundries would boost Intel’s ambitions to make chips for other firms, but spinning it off afterward might please investors more; a new D.C. group sets up shop to defend the blank-check craze.
Aurora could be biggest fish in a faraway pond 16 Jul 2021 The self-driving firm is going public in a $13 bln blank-check deal, and at a premium to rivals Embark and TuSimple. Aurora may deserve one based on its technology pedigree and partnerships with the likes of Toyota. But all may be underestimating when the market arrives.
Viewsroom: Finance’s first-rate second quarter 15 Jul 2021 Earnings of Wall Street’s largest banks confirmed that animal spirits among corporate chiefs and global investors are running high, while pandemic-shy consumers are getting their mojo back. John Foley walks Rob Cox through JPMorgan, Goldman, BofA, Wells Fargo and Citi results.
Tony Hayward’s SPAC suits green fans and amnesiacs 15 Jul 2021 Ten years after floating his last shell company, the ex-BP boss has launched a new $175 mln vehicle. A solid plan to invest in the energy transition is promising. Investors who lost 90% of their capital after Hayward bought Genel Energy will hope he has learned from his mistakes.
Morgan Stanley has its fingers in the best pies 15 Jul 2021 The Wall Street firm’s investment bank, like peers, did well in the second quarter. CEO James Gorman made less money than Goldman from M&A and trading but twin bets on wealth and investment look more durable. That explains the growing premium his company commands over its rival.
Revolut’s $33 bln value rests on limitless growth 15 Jul 2021 The digital bank raised $800 mln from SoftBank and Tiger Global at six times its early 2020 price tag. To make the numbers add up, founder Nik Storonsky has to more than double revenue every year and keep a lid on costs. Competition and a slowdown in trading fees are key threats.
Chancellor: Robinhood is more sheriff than rebel 15 Jul 2021 Like its many antecedents during previous bubbles, the app-based stockbroker claims a mission to “democratise finance for all”. But the $40 bln startup is more a creature of Wall Street and Silicon Valley than its clients may understand. The long-term risk is a people’s revolt.
Capital Calls: Online fashion retail 15 Jul 2021 Concise views on global finance: The return of old customer habits and muted demand as the pandemic lingers could reverse the recent stellar run of the likes of ASOS.
Norton UK cyber deal has many vulnerabilities 15 Jul 2021 The U.S. antivirus software group is in talks about a cash and stock offer for $7.2 bln London-listed rival Avast. But probable returns look low, and British investors may not want a large slug of American equity. If a private equity buyer gets involved, it will be even harder.
European SPAC booking offers uncertain reward 15 Jul 2021 Vacation rental company HomeToGo will go public through a deal with blank cheque vehicle Lakestar, the first in Germany. The 1.2 bln euro valuation isn’t greedy, and the structure is more friendly than some U.S. peers. Still, investors are making a bold punt in a crowded sector.
Taiwan’s top diplomat is a $567 bln chipmaker 15 Jul 2021 Tensions between Beijing and the self-ruled island are spiking amid vaccine squabbles and fighter jet sorties. Enter TSMC, whose economic and geopolitical clout has risen amid the semiconductor shortage. It could be Taipei’s best political advantage against a hostile neighbour.
China’s uneven recovery threatens Xi’s tidy-up 15 Jul 2021 The economy expanded at a slower-than-expected 7.9% in the second quarter as small firms struggle. Easing monetary policy is a quick fix but will fuel lending to sectors President Xi Jinping is trying to rein in. Pressure is building for him to kick the can down the road again.
Sydney Airport becomes Covid-19 rebound hub 15 Jul 2021 It rejected a $17 bln takeover proposal despite the hefty premium on offer. The airport operator reckons it can land post-pandemic value unaided. Any bid sweetener would require an even rosier view of travel, turning the deal into a stark proxy for fuzzy recovery prospects.