London IPO shakeup is more about SPACs than tech 3 Mar 2021 Finance minister Rishi Sunak plans to overhaul stock market rules to attract more listings. The changes may prevent some UK startups from defecting. But they also allow London to join the craze for blank-cheque offerings. The costs of weaker regulation will become apparent later.
Sustainable debt may be too popular for own good 2 Mar 2021 Investors are piling into bonds sold by companies such as H&M or Tesco which punish issuers for missing environmental targets. Demand has been such that the funding is now dirt-cheap. That could distort the price of the securities, and their intended effect.
Review: The wild history of the commodities boys 26 Feb 2021 “The World for Sale” offers a virtuoso depiction of the globe’s top oil, food, and metals traders. Javier Blas and Jack Farchy tell of their startling risk appetites, spy novel antics, and geopolitical heft. Still, it’s good that their wings have been increasingly clipped.
Capital Calls: Deloitte castoff, Banks and Brexit 15 Feb 2021 Concise views on global finance in the Covid-19 era: The UK auditor chooses an unfortunate moment to offload its lucrative restructuring practice; The Bank of England pours cold water on the idea of a regulatory bonfire after Britain leaves the European Union.
Trading exodus is skirmish in City’s EU perma-war 11 Feb 2021 Some dealing in shares and derivatives shifted out of London in January after European regulators declined to recognise their UK counterparts. The tussle is a taster for bigger fights over clearing and fund management. Britain has many advantages, but few good ways to fight back.
Retail frenzy is dubious gift for market middlemen 11 Feb 2021 High-frequency traders like $6 bln Virtu Financial seemed like the main winners as Reddit-using punters poured cash into shorted stocks like GameStop. Yet its investors are sceptical that the party will last. A regulatory backlash could also upend the dealers’ business model.
New Hong Kong bourse boss keeps eye beyond China 9 Feb 2021 Hiring JPMorgan’s international private bank chief Nicolas Aguzin signals overseas ambitions even after Charles Li’s failed attempt to buy the LSE. HKEX Chairman Laura Cha can help with Beijing. The bigger tasks will be to keep foreign investors sweet and the gateway opening.
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.
Short squeezers could end up strangling themselves 27 Jan 2021 Heavily shorted European stocks like Pearson, Cineworld and Ambu surged on Wednesday morning. The craze of trying to force hedge funds and market makers to cover their bearish positions has spread beyond the U.S. It increases the risk of the squeezers ending up with a dud.
LSE deal sets lucrative standard for M&A advice 10 Dec 2020 CEO David Schwimmer, formerly of Goldman Sachs, seems to have done his old buddies a favour: fees on the exchange group’s $27 bln takeover of data provider Refinitiv exceed $1 bln. It reflects long regulatory reviews and the target’s complex finances. Both are becoming the norm.
Corona Capital: Chevron, Boeing, OPEC, Orange 3 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Chevron cuts spending, prudently; Boeing orders are a solid step; OPEC makes up its mind; and Orange’s Belgian deal has some juice.
Will ICE let another big fish wriggle away? 1 Dec 2020 The $59 bln stock exchange operator watched LSE grab Refinitiv, and now stands on the sidelines as S&P gobbles up IHS Markit. It has proven to be a disciplined deal-doer, and IHS is relatively expensive. Still the companies could fit, and ICE may be tempted to jump in.
Corona Capital: Record Dow, Basketball, GoCompare 25 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Vaccine optimism shunts the blue-chip Dow Jones index through 30,000; U.S. college basketball gets back on the court; and UK publisher Future snaps up the bargain-hunting website.
Bigger DAX is still too small for Germany 24 Nov 2020 Exchange operator Deutsche Boerse is expanding the blue-chip benchmark by a third to 40 members. Including a larger slice of the country’s listed companies is a good thing. But given the ubiquity of family-owned mid-sized firms, investors are still missing much of the action.
March’s market bailout demands regulatory payback 23 Nov 2020 Central banks were right to prop up financial markets when the pandemic caused panic. But their support exposed structural flaws and may lead to future recklessness. Preventing that requires regulators to extend their reach. Compared to 2008, the reforms are less obvious.
Deutsche Boerse jumps on ESG train with ISS deal 18 Nov 2020 CEO Theodor Weimer is spending $1.8 bln on 80% of the U.S. proxy adviser after missing out on Italy’s bourse and an FX trading platform. Accurately scoring companies’ environmental, social and governance credentials is a growth business. But it’s also a crowded field.
Corona Capital: Mixed market messages, Chile votes 26 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: Global stocks slumped on Monday as Covid-19 cases rose – yet some prognosticators are readying for major stimulus; and Chile has shown that pandemics don’t have to squash voter turnout.
Guest view: Ways to defuse currency wars 13 Oct 2020 Weak economic activity is giving countries an incentive to use exchange rates to win a competitive edge in trade. Mark Sobel, a former U.S. Treasury official, argues that the world’s biggest economy is no innocent bystander this time round and explains how to calm tensions.
Borsa gives Euronext a strong Italian accent 9 Oct 2020 The pan-European exchange has seized Milan’s bourse with a 4.3 bln euro cash bid. The chunky price reflects Borsa’s scarcity value. By teaming up with investors, including an arm of the government, CDP, Euronext hopes to avoid political landmines and lessen the financial pain.
Hadas: Markets’ risky fling is far from over 24 Sep 2020 Fears of returning Covid-19 and revelations like Nikola’s non-driving trucks have restrained investors a bit. But the financial world’s careening exuberance will keep going long after the economy stops benefitting from massive support. Higher asset prices mean bigger risks.