Tech IPO gives bad SPAC deals run for their money 15 Jun 2021 Macquarie-sponsored Nuix’s CEO and CFO resigned after poor earnings and forecast revisions within six months of taking the Australian software maker public. Blank-cheque deals like Lordstown are known for hype and under-delivery, and now this ordinary listing has managed it too.
Beijing finally gives China shorts a helping hand 15 Jun 2021 Central government crackdowns and the collapse of U.S.-based fund Archegos have delivered selective relief to investors betting against Chinese companies listed in New York. Caution is warranted as outbound investment quotas ease. Patriotic reinforcements are on the way.
Big Tech will dodge Congress’s sharpest arrows 14 Jun 2021 Lawmakers have included the power to break up firms like Amazon in one of five bipartisan bills designed to curb tech giants' market heft. It's unlikely to pass. Less onerous plans on data portability and merger fees have a better shot. Watchdogs will be left with blunt weapons.
SPAC boom gets “come to Jesus” moment in Lordstown 14 Jun 2021 The electric-pickup-truck maker admitted some pre-orders were nebulous, saw its CEO and CFO step down and warned it may not remain a going concern. This implosion, less than a year after going public, makes it easy for critics and regulators to latch onto specific SPAC problems.
Capital Calls: U.S. malls are a tale of two REITs 14 Jun 2021 Concise views on global finance: Shopping center operator Washington Prime filed for bankruptcy protection, but the outlook is a bit rosier for premium mall owners.
Fashion moves to the centre of activist crosshairs 14 Jun 2021 Covid-19 has exacerbated the $2.5 trln industry’s ESG-unfriendly flogging of cheap clothes. Recycling is no more than a partial fix for the problem. Inditex and H&M are insulated by their big family holdings, but Boohoo, Adidas and ASOS look vulnerable to investor attacks.
Shell’s U.S. rethink betrays lack of wiggle room 14 Jun 2021 The Anglo-Dutch driller may sell assets worth $10 bln in Texas. Not so long ago the U.S. Permian Basin was a key oil major growth area, but now Shell is under pressure to cut emissions. Restricting carbon while earning a financial return is increasingly determining strategy.
Exxon defeat could lead drillers back to Texas 11 Jun 2021 The $265 bln fossil fuel giant’s board upheaval will prompt other drillers to merge higher returns with greener investments. Buying Texas oil ironically could fit that bill. Deals not only offer companies a way to cut costs. Acquisitions can actually help them look greener, too.
Bank climate stress tests scarier than they look 11 Jun 2021 UK and European lenders that flunk green exercises will not face higher capital charges. But past evidence suggests investors will use the new disclosure to penalise funders of pollution. That will either throttle carbon financing – or shift it to the non-bank sector.
Greener Acciona comes with stiff family discount 11 Jun 2021 The $9 bln Spanish group’s valuation is yet to reflect the potential uplift from spinning off its renewables unit. That may be because the clan that owns Acciona will also control the new entity. Even so, investors may warm to the fact it could be worth more than its parent.
Selfridges $6 bln deal would be rich bet on London 11 Jun 2021 The Weston family may sell the luxury department store. At nearly 5 times sales, the mooted price looks punchy. Given the dicey prospects for physical retail and the UK capital after Brexit, buyers will have to be more interested in owning a trophy asset than financial returns.
Didi embarks on ultimate IPO road-test 11 Jun 2021 The Beijing-based ride-hailing giant, last valued at $62 bln, unveiled plans to go public in New York. It’s growing quickly, but cruising into record-high markets, U.S. political pressure on Chinese issuers and tech crackdowns at home. The fare could be steep for new investors.
Capital Calls: Biden’s Big Corn battle 11 Jun 2021 Concise views on global finance: The U.S. president is caught between oil refiners and farmers in biofuel mandate.
Mizuho Bank boss exit will scare technophobes 11 Jun 2021 Chief Executive Koji Fujiwara may step down after a series of glitches froze ATMs and delayed $456 mln in remittances. Japanese watchdogs may also force the country’s third-largest lender to upgrade operations. With luck, the example will prompt peers to speed digitisation.
America helps itself by vaccinating the world 10 Jun 2021 Joe Biden's plan to buy and donate 500 million doses of Pfizer’s vaccine to other countries is a cheap way to spread goodwill. It’s also in the nation's self-interest. Finishing the job would cost under $40 billion, or less than half of lost U.S. exports this year.
U.S. profit margins won’t get any better than this 10 Jun 2021 Companies are enjoying booming sales, keeping a lid on costs, and exerting pricing power. Goldman Sachs expects the net margin for the S&P 500 will be a stellar 11.5% in 2021. Analysts reckon it will go higher in 2022. Pressure from wages, and perhaps taxes, makes that a stretch.
Toshiba mess will be useful national embarrassment 10 Jun 2021 An independent probe found the $20 bln Japanese conglomerate sought to subvert shareholders in conjunction with the government. The findings intensify pressure for a sale, bolster the broad case for activist investors and should kick Japan’s governance changes into higher gear.
Capital Calls: U.S. inflation, Big Tech’s ad gains 10 Jun 2021 Concise views on global finance: A 5% annual jump in U.S. consumer prices reflects warped comparisons; the prospects for U.S. advertising are getting hotter, and the largest Silicon Valley firms will be the beneficiaries.
India is well placed to fight G7 tax deal’s flaws 10 Jun 2021 The country wants to charge big tech companies on the basis of local revenue or users, rather than profit. A rich-nation plan offers little on this front. India’s 1.3 bln population and relative openness to foreign companies give it good ground to push for fairer digital levies.
Drahi can lend BT some financial-engineering nous 10 Jun 2021 The tycoon has bought 12% of the 19 bln pound UK telco. His track record of selling chunks of fibre-broadband networks to fund faster building is instructive. Doing the same with BT’s investment-hungry Openreach unit would ease cash flow strains and head off competitive threats.