Sotheby’s next hot auction: a Picasso-backed bond 11 Apr 2024 The auctioneer owned by Patrick Drahi is selling securities backed by collectors’ hoards. With only $34 bln of art-based lending, there’s scope to reach more borrowers. But there are good reasons why art, which is hard to verify and value, has resisted slice-and-dice financing.
Big banks turn inflationary lemons into lemonade 11 Apr 2024 Stubbornly high consumer prices may delay US monetary easing, a boost to lenders like JPMorgan or Citi that thrive amid high rates. Further relief could come from the dilution of tough new capital rules. For smaller banks, exposed to stressed borrowers, life tastes more sour.
Société Générale CEO is pruning a decaying tree 11 Apr 2024 Slawomir Krupa agreed to sell an equipment-financing unit to local French rival BPCE for 1.1 bln euros. It’s a good price, and Krupa is right to clear out peripheral assets that languished under his predecessor. The problem is that the bank’s core isn’t alluring either.
Grab-GoTo merger would be an all-round win 11 Apr 2024 A union of the two superapps would create an $18 bln Southeast Asian food delivery-to-ride-hailing giant and speed their journey to profit. A costly fight in Indonesia is holding them back. A tie-up looks more necessary, too, as global investors cool on the region's startups.
How Patrick Drahi can clamber out of his debt hole 11 Apr 2024 The tycoon’s Altice telecom empire is straining under $60 bln of borrowings, and creditors of its French unit are gunning for a fight. Yet loose bond terms, and the debt’s low trading prices, lend Drahi an escape route. He just needs to hope investors have short memories.
Powell’s rate cuts may go from steady to steep 10 Apr 2024 Inflation hit 3.5% in March, making a June cut to borrowing costs unlikely. But Fed Chair Jay Powell is running out of time. A decrease in September would be seen to favor President Biden. The November decision is one day post-election. The only other option: take bigger whacks.
Swiss too-big-to-fail rules are too timid to work 10 Apr 2024 Following the Credit Suisse disaster, Finance Minister Karin Keller-Sutter will give the country’s bank regulator more teeth and raise capital requirements for $100 bln UBS. It all helps. However, there’s no sign authorities will be any more willing to wind down a big bank.
Capital Calls: Philips 10 Apr 2024 Concise views on global finance: The Dutch company’s CEO Roy Jakobs secured a win by finalising a settlement with US regulators over faulty sleep aids. But myriad other potentially costly cases remain open, justifying an ongoing share-price discount.
EU tech rules bite ever-closer to Apple’s core 10 Apr 2024 As Brussels gains new powers and enforces a March music-streaming ruling, the European Union can finally force Apple to change how the iPhone works with outside developers. A US antitrust case adds pressure. Users may not like the results, which means investors should care too.
Hong Kong’s latest problem is a 99% nosedive 10 Apr 2024 That’s how much shares in cement maker China Tianrui fell in 15 minutes, erasing some $1.9 bln of value. It’s not the first such plunge on the city’s bourse, and at present outsiders can only guess at its cause. It’s a reminder that governance and transparency still need work.
Norwegian fund’s podcast guru plays both sides 9 Apr 2024 Nicolai Tangen, head of the country’s $1.6 trln sovereign vehicle, has a side gig hosting interviews with corporate leaders like Elon Musk. The jaunty chats give CEOs cover with one of their few engaged investors. At least the fund is not afraid to vote against his guests.
Tech FOMO prices at a disturbingly high level 9 Apr 2024 Destiny Tech100, a newly listed fund with only $53 mln of stakes in private firms such as SpaceX and OpenAI, is now worth about $700 mln. Investors are clearly overeager to get in earlier on hot trends. A multiple of 13 times net asset value resets the Silicon Valley hype bar.
Rabanne-owner IPO offers a scent of prestige 9 Apr 2024 Perfumes-to-skincare conglomerate Puig wants to list in Madrid. At a discount to beauty giants L’Oréal and Estée Lauder, the Spanish group may be worth $18 bln. European markets remain fragile, but premium fragrances’ rising appeal may turn the listing into a rare bright spot.
Airbus obsessives have a shaky grasp of history 9 Apr 2024 The $140 bln pan-European group is flying high as rival Boeing stutters. Now carmakers and others are wondering if similar collaboration could help them face down overseas competitors. But Airbus’s idiosyncrasies and convoluted road to success make copycat plans pie-in-the-sky.
India’s tech engine is primed for an AI boost 9 Apr 2024 Companies like BMW are deepening ties to the country’s IT services sector, which boasts low costs and a steady supply of engineers. As global businesses adopt artificial intelligence, Tata and peers look well placed to capture a larger share of the $4 trln tech services trade.
Blackstone’s apartment deal has only so much room 8 Apr 2024 A $10 bln buyout of AIR Communities and its 27,000 US rental units is the biggest of its ilk in a while. It hews to COO Jon Gray’s plan to invest before a market recovery. But unlike his firm’s post-2008 spree, deep pockets aren’t enough. The Fed and the economy loom larger now.
Eclipse overshadows Texas’ solar power strength 8 Apr 2024 The Lone Star State’s grid can handle Monday’s dimming of the sun. A bigger test comes when less-predictable natural events occur. Battery storage is growing fast enough that, soon, cheap solar energy should be available when the sun unexpectedly doesn’t shine.
Jamie Dimon sends missive from political Neverland 8 Apr 2024 The JPMorgan boss’s annual letter is a manifesto for the middle. From climate to regulation, diversity to deficits, he argues for keeping the US on top and markets working - but no more. It’s a vision a shareholder should love. But this fairytale centrism is not on the ballot.
Vivendi gives Canal+ a South African dowry 8 Apr 2024 The French pay-TV operator has offered $1.9 bln to buy out South African broadcaster MultiChoice. Despite a significant increase on an earlier bid, the price looks reasonable. Consolidating its presence in a fast-growing market may boost Canal+’s appeal in an upcoming IPO.
Blackstone dodges worst of Asia’s exit angst 8 Apr 2024 It plans to float more businesses in India this year, including a diamond certification firm at up to 6 times the value it paid last year. Apart from being one of the region’s biggest private equity investors, it is one of the least exposed to China. That strategy is paying off nicely.