Climate-bond cold shoulder gets harder to justify 10 Dec 2019 Even though green bonds perform well and can weather economic cycles better than regular issues, they’re still constrained by limited demand. Poor transparency and a comparability have been a turnoff, but a new Nasdaq tool means even that argument no longer holds much water.
Euronext’s Spanish journey looks tortuous 22 Nov 2019 Stephane Boujnah, the exchange’s acquisitive boss, may try to trump Swiss rival SIX’s 2.8 bln euro bid for Madrid-based peer BME. A higher offer may clinch the deal, but would test Euronext’s financial discipline. Appeasing local politicians would also come at a cost.
Schwab-TD merger too appealing for its own good 21 Nov 2019 An $80 bln union of the two U.S. brokerages is an idea that has been tossed around for over a decade, and justifiably. Competitive pressures are intense, the industry fragmented, and the potential savings prodigious. That, though, gives TD Ameritrade room to set a high price.
Swiss bourse buys costly ticket to EU trading room 18 Nov 2019 Zurich-based exchange operator SIX is offering 2.8 bln euros cash for Spain’s BME, which is also being courted by rival Euronext. Building up scale makes sense. But extracting savings to justify the 34% premium may be challenging. It’s an expensive way to gain an EU foothold.
UK listing rules bonfire gives more pain than gain 6 Nov 2019 The government may let companies going public give founders extra voting rights in a bid to draw tech firms to London. Dual class shares, which may be temporary, won’t trigger a rush of IPOs. Yet weakening shareholder rights could hurt the City’s status as a financial hub.
Hong Kong seeks new traffic cop for wonky market 15 Oct 2019 Ashley Alder made the best of a middling job as chief securities regulator. He made progress fighting shoddy IPOs, though failed to stop dual-voting share structures. His successor could tackle the SFC’s slow enforcement, but will still be stuck between powerful vested interests.
Stars gradually align for new Shanghai tech bourse 10 Oct 2019 MSCI says stocks on China’s nascent STAR Market could be eligible for index inclusion. That, and other factors, should lift trading volumes, which have dipped. Best of all, looser listing rules tested on the board will be rolled out to the rest of the equity market.
LSE has done Hong Kong’s bourse a favour 8 Oct 2019 Charles Li, unable to charm the UK exchange into talks, has dropped his bid. It’s a blessing in disguise. Adding cash to sweeten a rejected 30 bln pound offer would stretch finances, and the political backdrop has worsened after a weekend of violence in the Chinese-run territory.
China’s market reformers face a changing America 3 Oct 2019 U.S. politicians are mulling whether to delist over 150 Chinese firms and curb American investment in their securities. Once a vocal proponent of open markets, some in Washington seem to be having second thoughts. That may undermine those in Beijing pushing for liberalisation.
U.S. online stockbrokers reap what they once sowed 2 Oct 2019 The industry has lost some $19 bln in value after Charles Schwab set trading fees to zero. The onetime disruptor now faces its own threats, but is better placed than E*Trade or TD Ameritrade. The price war is a kind of karma for the financial giants the online upstarts targeted.
Nasdaq finds odd time for right move on IPOs 30 Sep 2019 The U.S. bourse is making it hard for small overseas firms to go public amid concerns about governance and liquidity. That makes sense. But the tweaks are snaring companies from the People’s Republic. With the U.S. trade war raging, Nasdaq risks looking like it’s currying favor.
HKEX bids $37 bln to halt London rival’s escape 11 Sep 2019 Hong Kong’s exchange is dangling a 23% premium to LSE shareholders if they reject a $27 bln deal with data provider Refinitiv. It’s a last-ditch attempt to snag the perennial takeover target. But the tie-up has only vague financial benefits and faces a tricky political reception.
Hong Kong businesses pick an ill-timed ESG fight 13 Aug 2019 A stock exchange plan to increase disclosure on green issues and governance has met resistance from local firms, wary of extra costs. The city already lags the likes of Singapore on such reporting; protests are hardly adding to its appeal. A corporate victory would be pyrrhic.
Viewsroom: Vicious trade cycle traps U.S., China 8 Aug 2019 The White House’s decision to brand Beijing a currency manipulator is the latest move in a conflict riven by miscommunication, unrealistic expectations and no obvious way out. Plus: Why the LSE is paying $27 bln for Refinitiv, and which of the data firm’s owners comes out on top.
Refinitiv’s unequal exchange 1 Aug 2019 As the London Stock Exchange reveals plans to merge with data provider Refinitiv, run the numbers to see which of the target’s backers, Blackstone and Breakingviews parent Thomson Reuters, comes off best.
Thomson Reuters beats Blackstone in Refinitiv deal 1 Aug 2019 If the financial data provider clinches a $27 bln takeover by the London Stock Exchange, the buyout firm will make a handsome return. Yet an insurance policy designed to protect its downside works in its Canadian co-investor’s favour. Thomson Reuters may almost triple its money.
LSE’s data download needs growth to add up 1 Aug 2019 The stock exchange operator confirmed its $27 bln takeover of financial information provider Refinitiv. To earn an adequate return on investment, CEO David Schwimmer will have to cut costs, but also find new sources of revenue. LSE shareholders’ expectations are already high.
Just Eat satisfies hunger for takeaway Dutch CEO 29 Jul 2019 The leaderless UK food delivery group is selling to rival Takeaway.com in a 5 billion pound all-share deal. Just Eat gains a new boss and ally in the battle against Uber and Deliveroo. The Dutch company, meanwhile, uses its highly-valued equity to join the UK food fight.
Asia can lead an equity research rethink 29 Jul 2019 Thin capital markets, opaque companies and the diversity of a region stretching from Tokyo to Karachi makes it even harder for banks to make money from analysing stocks. But schemes like Singapore's analyst grants suggest Asia may also be a testing ground for new business models.
Alibaba stock should have local staying power 16 Jul 2019 The New York-listed Chinese e-commerce titan may raise up to $20 bln in Hong Kong. Investors should be able to trade the shares between exchanges. So-called two-way fungibility has cost the Asian market liquidity in the past, but Alibaba’s regional appeal could be an exception.