Hong Kong will ride China bulls beyond stampede 2 Feb 2021 A market frenzy has made the city’s stock exchange the world’s biggest at $82 bln and helped online broker Futu’s shares more than double this year. Valuations are frothy, but mainland rule changes should gird both the bourse and traders when momentum subsides and bubbles pop.
Guest view: Concrete and the carbon challenge 1 Feb 2021 Cement accounts for about 7% of global CO2 emissions. Yet the world will need more of it to make the concrete to build lower-carbon energy infrastructure. The industry can be part of a cleaner future, says Dinah McLeod, CEO of the Global Cement and Concrete Association.
Sports data a better bet than sports wagers 1 Feb 2021 Genius Sports, which collects live data for betting shops, is going public with a blank-check company for $1.5 bln. As U.S. legalized gambling grows and teams diversify revenue, data should become more valuable. Gaining an early advantage gives it an edge over future competitors.
Exxon-Chevron tie-up is right deal, tricky time 1 Feb 2021 A potential $350 bln mega-deal entices on paper with savings that could be valued as high as $20 bln. That would shore up both companies against oil’s darkening future. Exxon would need humility, though, and government a desire for a fossil fuel champion. Both are huge hurdles.
LSE’s big deal makes its fortunes data-dependent 1 Feb 2021 The London Stock Exchange Group’s takeover of Refinitiv, which has closed after 18 months, lifts its value to $82 bln including debt. Most revenue now comes from charging for information, not handling trades. Investors aren’t giving CEO David Schwimmer full credit for the shift.
Corona Capital: Universal Music 1 Feb 2021 Concise views on the pandemic’s corporate and financial fallout: A Universal Music IPO could close Vivendi’s conglomerate discount.
Nintendo could reach next level in two-player mode 1 Feb 2021 Millions of homebound gamers helped drive quarterly operating profit up 36% to $2 bln. Despite hit franchises like Super Mario, the Japanese company depends on its Switch console, whose sales are peaking. Teaming up with partner Tencent in mobile would unlock steadier earnings.
Julius Baer can hit M&A trail after light penance 1 Feb 2021 The $13 bln Swiss private bank escaped serious penalties for money laundering sins and boosted net profit by 50%. That gives CEO Philipp Rickenbacher a strong foundation if regulators lift a ban on deals. Rivals EFG International or Edmond de Rothschild may be attractive targets.
Myanmar all but fades from investment frontier 1 Feb 2021 Military detentions of Aung San Suu Kyi and other ruling party figures represent a dark turn for a once-bright opportunity. An economy that lured tourists and foreign companies such as Kirin may be headed back to isolation. Recovering again will be a painstaking process.
Washington takes low road back to Latin America 1 Feb 2021 Days before Donald Trump left office, a U.S. development bank agreed to help Ecuador repay some $3.5 bln of debt in exchange for locking China out of its telecom network. Reviving relationships in the region makes economic sense, but it’ll take more than chasing Beijing away.
India Insight: Amazon has plenty to fight for 1 Feb 2021 The e-commerce titan led by Jeff Bezos is trying to stop the sale of a big-box retailer to Mukesh Ambani’s Reliance. The spat centres on a disputed contract. An Amazon victory could cost thousands of jobs. The business itself may be less important than the message being sent.
Robinhood free lunch was never really free 29 Jan 2021 The online broker’s restrictions on trading of stocks like GameStop look at odds with its mission to democratize finance. Yet Robinhood’s rush to raise cash shows that there’s a side to zero-cost trading that users don’t see. Safe trading costs money, one way or another.
Chevron looks exposed without cover from Exxon 29 Jan 2021 The $171 bln oil group's shares fell premarket on Friday despite a reduced fourth-quarter loss and steady production. Boss Mike Wirth is maintaining a strong balance sheet. That sets Chevron up well, but without its larger rival's usually same-day earnings, there's less to like.
HNA’s final agonies deserve investor study 29 Jan 2021 The indebted Chinese travel group looks set to enter bankruptcy. That’s unusual but unsurprising: Beijing already let a bank go under last year, and allowed market-rattling bond defaults. Given the empire’s complexity and broad creditor base, distributing haircuts could get ugly.
Bubbly stocks risk painful vaccine puncture 29 Jan 2021 Drugmakers Pfizer and AstraZeneca are cutting deliveries of Covid-19 inoculations, the latest in a string of delays. Slower-than-expected rollouts and virus mutations may prolong lockdowns, hurting growth. Investors eyeing a rapid bounce-back this year could be disappointed.
Airlines’ virus parachutes warrant minimal padding 29 Jan 2021 Quarantines could mean carriers like easyJet face further losses over the summer boom months. In extremis, they can flog planes or tap investors for cash, although neither are ideal. Given CO2 emissions and their non-strategic nature, they don’t merit special treatment.
Ericsson’s China gains heighten blowback risks 29 Jan 2021 The $41 bln Swedish telecoms kit maker’s prospects are soaring due to Western bans on Chinese rival Huawei. But the Middle Kingdom is also its hottest 5G equipment market. The risk of reprisals should its own government ban Huawei are increasing.
Corona Capital: Vaccines, Dr. Martens 29 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Quantity matters with vaccines, while Permira gets an extra kick from the bootmaker.
Shaky electric-car maker zips into market mania 29 Jan 2021 Faraday Future, which has yet to sell a vehicle, will get yet another lease on life by way of a SPAC. Chinese automaker Geely is also backing the $3.4 bln venture. There are red flags galore, including internal control weaknesses. The biggest may be founder Jia Yueting himself.
Pain of China’s bad holiday will be widely shared 29 Jan 2021 Fresh Wuhan-style lockdowns have been imposed ahead of the Lunar New Year break, a week-long spending boom. Less travel may reduce disruption for factory owners but it’s a blow for already weak consumption. A subdued getaway will exacerbate the imbalances of China’s recovery.