How to pick the hydrogen industry’s future Amazon 22 Jan 2021 The element could play a major role in decarbonisation, which has sent shares in related companies skyrocketing. As with the 1999 tech-stock boom, investors can’t tell which group can corner the market. But they can see which uses of hydrogen will become cost-competitive first.
Google threat demands that Australia find allies 22 Jan 2021 The tech titan says it’ll disable search Down Under if Canberra enacts a law forcing it to pay media companies for news. It goes to show how much clout $1.3 trln parent Alphabet thinks it has. Such corporate dominance suggests global regulators may have to put up a united front.
Chinese edge of India’s fintech star is too sharp 22 Jan 2021 The $16 bln Paytm sought to emulate China’s e-commerce and mobile wallet pioneers, including backer Ant. But that model has come under Beijing’s scrutiny, and rivals like Google have broken Paytm’s grip on payments. Founder Vijay Shekhar Sharma’s startup has hit a tricky patch.
Australia commits unforced tennis error 22 Jan 2021 Foreign players are flying in for the Grand Slam tournament even as strict pandemic policies have left citizens struggling to get home. Stars like Novak Djokovic complaining about quarantine don’t help. Flimsy economic considerations may be distorting risk assessments.
DowDuPont activist legacy spawns new activism 21 Jan 2021 Starboard Value wants new directors and a new CEO at $33 bln Corteva. The seed and pesticide group is one of three born from the 2017 merger and later breakup of Dow and DuPont. That grand plan looked good on paper to other noisy investors, but making it work is proving hard.
Keystone XL is stage for more political theater 21 Jan 2021 The logic behind the U.S. pipeline was already on the fritz. Oil’s future is uncertain, especially the crude in Canada that Keystone would have transported. Banks, too, were pulling back from lending. Joe Biden’s order nixing the project is mostly symbolic of future intentions.
Perella Weinberg deal boosts SPAC credibility 21 Jan 2021 A $977 million price tag for the M&A advisory shop values it lower than peers based on reasonable growth assumptions. It's a sensible figure for a real business in a competitive market. Perella's choice to go public by selling to a blank-check company looks well advised.
Russian mining IPO comes with sanctions noise 21 Jan 2021 Nord Gold is planning a $5 bln listing in London, the WSJ reports. Severstal billionaire Alexey Mordashov only has a minority stake, but his sons own most of the rest. Investors need to consider the risk that the new U.S. administration decides to take a tougher line on Moscow.
Corona Capital: Intel, Run on guns 21 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Intel’s new boss gets closer to his big debut. Meanwhile, gunmakers are riding high on social tensions and pandemic angst, but could soon find they have fewer friends in high places.
Options trading bubble draws frothy M&A equivalent 21 Jan 2021 Britain’s IG is buying tastytrade for $1 bln in cash and shares. The price seems high, even allowing for surging demand for the Chicago-based group’s derivatives products. As with the current stock-market boom, success depends on continued interest from flighty retail traders.
Couche-Tard may be impulse buyer after French fail 21 Jan 2021 Founders of the minimart empire, blocked from buying Carrefour, have a super voting share that expires in 11 months. After that they’d need investor support for a big purchase like German grocer Metro. The 13% drop in the Canadian group’s stock shows fears of a short-term spree.
Chinese monopoly rules threaten super-app model 21 Jan 2021 The central bank has defined payments dominance in market-share terms, squarely targeting Ant and Tencent. Its new draft rules also separate transactions from interest-bearing products. That will complicate cross-selling more profitable services, and deter new competitors.
China’s energy policy keeps blowing fuse 21 Jan 2021 Widespread electricity rationing last month slowed factory output, threatening another harsh winter for Chinese households. Banning Aussie coal didn’t help, but Beijing has stalled reforms to its grid monopoly, forcing a choice between emissions targets and keeping the lights on.
Europe’s IPO early birds will catch the worm 20 Jan 2021 Six European companies have already launched floats in 2021. That’s unusual: the second quarter is usually the busiest period for IPOs. Vaccines and resilient valuations mean that those who jump the gun are likely to be the ones who end up looking smart.
Morgan Stanley serves up best of two weird worlds 20 Jan 2021 Covid-19 delivered a trading windfall for James Gorman’s firm as it did for rivals, adding about $5 bln to 2020 revenue. Banks can’t rely on a repeat of 2020’s dislocations, but Gorman’s stock-fueled M&A means Morgan Stanley can shrewdly reach the masses while low rates continue.
Corona Capital: ESG investing, U.S. moves, P&G 20 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: ESG opens up investing opportunities; home values in U.S. resort towns rise faster than rural areas; and Procter & Gamble cleans up.
Europe’s chip darling may fall victim to its hype 20 Jan 2021 ASML’s market value has risen by two-thirds in the past year to $230 bln, helped by surging demand for its kit. Yet CEO Peter Wennink will struggle to meet investors’ heady growth hopes. A drawn-out trade war between China and America would make his job even harder.
Burberry is entering the M&A danger zone 20 Jan 2021 The UK maker of fancy trench coats performed worse than most peers during the pandemic. Despite some positive signs, investors are attributing little value to CEO Marco Gobbetti’s turnaround plan. A cheap valuation and lack of dominant shareholders could entice cash-rich peers.
Birkenstock buyout calls for heavy buffing 20 Jan 2021 CVC may buy the maker of strappy sandals worn by Hollywood stars and monks. Private equity has a good history with niche footwear brands, but the German group is already well-run. To justify a mooted 4 bln euro price tag, the new owner would have to target luxury-style margins.
Elliott’s HK exit reflects Asia activist reality 20 Jan 2021 The hedge fund is closing its Hong Kong base and will run its Asian campaigns from Tokyo and London. Moving amid the city’s political strife raises eyebrows, but the region’s rapid growth in shareholder shake-ups is passing China by. Paul Singer’s group is following the money.