Rocket’s $3 bln delisting leaves investors adrift 1 Sep 2020 Even as tech stocks surge, Oliver Samwer’s German investment vehicle has concluded it doesn’t belong on the public market. His plan to take Rocket Internet private gives small shareholders two unappealing options: cash out with no premium or hang on with little hope of liquidity.
Swiss outsider has a chance in Borsa Italiana race 27 Aug 2020 Deutsche Boerse and Euronext have been favourites for buying the Milan exchange operator, worth at least 3 bln euros. Unlisted SIX has deep pockets, big ambitions, and tolerance for lower returns. Despite a non-EU base, it could be a worthy contender.
ICE deal risks giving private equity a good name 7 Aug 2020 Thoma Bravo is making around a fourfold return in 16 months selling mortgage processor Ellie Mae to the bourse operator for some $9 bln plus debt. But ICE boss Jeff Sprecher isn’t overpaying. The pandemic, low rates and the target’s growth make this a smart deal for all.
Tricky bidding war brews over LSE’s Italy bourse 31 Jul 2020 The London exchange may sell Borsa Italiana or the unit’s stake in the MTS bond trading platform to win EU approval for its $27 bln Refinitiv bid. Likely buyers Euronext and Deutsche Boerse would find themselves in a messy three-way tussle if Rome weighs in with a domestic bid.
Zimbabwe launches quixotic war on modern finance 14 Jul 2020 The government is blaming South African insurer Old Mutual and phone-based payment systems for a currency collapse. Its fondness of money printing is the more likely culprit. Attacking the stock market and mobile money will damage savings and confidence, and spur capital flight.
Corona Capital: Ice hockey 13 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: The National Hockey League and its players make the kind of deal Major League Baseball sluggers and owners should have been pitching for.
TransferWise sellers get the best of $5 bln deal 7 Jul 2020 Investors in the UK fintech may cash out at a 30% premium to a similar transaction last year, Sky News reported. The valuation only makes sense if revenue withstands a Covid-19 slump. Since that’s unlikely, the buyers are taking a dicey punt on the currency-exchange specialist.
China-UK stock link’s glitches go beyond politics 17 Jun 2020 China Pacific Insurance is just the second Shanghai-listed company to offer shares in London, raising $2 bln. Political tension between Britain and the People’s Republic may be a factor. But lack of liquidity and trouble hanging onto foreign investors are the bigger impediment.
Hong Kong bourse walks fine line on CEO succession 7 May 2020 Boss Charles Li plans to step down by October 2021. Ample lead time helps HKEX shareholders and should ensure a clean handover, but he also risks becoming a long-term lame duck. Finding someone equally able to balance the interests of Beijing and foreign investors will be tough.
Bond ETF turmoil exposes credit’s faulty wiring 27 Mar 2020 The share price of some of these funds plummeted below the value of the less liquid assets underpinning them, upping selloff fears. But ETFs aren’t really to blame; rather it’s the corporate debt market’s opaque pricing. Uncle Sam’s new role as a buyer could spur change.
Bank of Japan gives lesson in perils of ETF buying 25 Mar 2020 Unrealised losses on its exchange-traded fund holdings could be as high as $27 bln. Governor Haruhiko Kuroda has reserves that would likely cover that. And in a real pinch, governments can recapitalise central banks. But that may call into question rate-setters’ independence.
Short-selling bans are no cure for virus rout 13 Mar 2020 A pandemic-induced market crash prompted Spain and Italy to curb trading on some hard-hit local stocks. The measure, also used to protect bank shares in the 2008 crisis, looks rushed and won’t help much. Real panic selling rather than speculation is what’s roiling markets.
Robinhood’s trading arrows turn into friendly fire 3 Mar 2020 Rivals like Schwab matched the startup’s chief appeal, and $7.6 bln valuation, by ditching fees. Now outages during frenetic markets are landing more blows. Valuable service can overcome glitches, as Twitter and Slack show. But Robinhood’s 10 mln customers have plenty of options.
NMC mess implies London needs fiercer watchdogs 27 Feb 2020 The Gulf hospital operator fired its CEO after revealing undisclosed debts. Its poor governance and disclosure sit awkwardly with the UK’s aim to be the world’s top venue for foreign companies and capital. Keeping that reputation requires tougher penalties for bad behaviour.
Morgan Stanley-E*Trade deal puts D.C. on the spot 20 Feb 2020 It’s the first major acquisition by a big bank in over a decade, which virtually guarantees political scrutiny. Yet regulators like the Fed seem amenable to financial mergers. Political detractors can’t easily sabotage the $13 bln deal, but they could upset the delicate timing.
E*Trade embodies Wall Street’s stodgy middle age 20 Feb 2020 Serving armchair investors is as unracy as it gets for erstwhile masters of the universe. Yet Morgan Stanley’s $13 bln purchase of an online broker makes sense given the rise of passive funds and decline of securities trading. Wall Street’s future is boring, and profitably so.
Morgan Stanley beats Goldman to E*Trade punch 20 Feb 2020 Buying the online broker for $13 bln gives James Gorman’s Wall Street firm stable income, higher returns and cheap retail deposits. David Solomon has promised that too at Goldman Sachs, albeit via other means. It leaves Solomon, still tackling regulatory issues, on the back foot.
Hong Kong homecoming bets are only half a whim 24 Jan 2020 Trip and Baidu are mulling secondary listings in the Asian hub, following in the footsteps of Alibaba. Early evidence suggests that could boost valuations. For now, it’s more convincingly a hedge against any politically-driven crackdown on Chinese companies listed in New York.
Thailand’s capital markets are anything but sick 10 Jan 2020 Central Retail is raising up to $2.7 bln in a record IPO, putting the country on course to be top for new issues in Southeast Asia for a fourth year. As Thai Inc looks abroad for growth, helped by a strong currency, it’s a reminder that the market’s relative maturity has upsides.
Hong Kong bourse boss trusts in awkward necessity 10 Jan 2020 Charles Li has seen HKEX earnings plunge on political unrest as Beijing mulls alternative venues. Yet Li is confident China’s market inefficiencies will leave it dependent on Hong Kong’s financial plumbing in the end. The exchange’s reviving share price suggests investors agree.