LSE Nordic raid would be expensive complication 24 Jan 2019 The London Stock Exchange is mulling a bid for Oslo Bors, says the Evening Standard. The Norwegian group is already the target of a pricey offer by Euronext, and LSE’s links with it limit cost savings. The takeover would be a costly distraction from bigger issues, like Brexit.
Messy Manila casino deal is worth the gamble 23 Jan 2019 Japanese tycoon Kazuo Okada wants to stop a backdoor listing for Universal Entertainment’s $2.4 bln resort that bears his name. Going public amid a nasty ownership brawl invites extra risks, but the fast-growing Philippine market holds too much promise. Better to roll the dice.
Jack Bogle defined value in more ways than one 17 Jan 2019 The Vanguard founder turned the once-heretical idea of indexing the broad stock market into the dominant form of investing. Instead of pursuing riches, he spread the low-cost ethos, saving investors untold billions and building a $5 trln juggernaut. Talk about wealth creation.
Wall Street’s new bourse effort challenges history 7 Jan 2019 Citadel, Morgan Stanley and seven others are launching MEMX to rival the big U.S. stock exchanges, hoping to cut costs. Past attempts stalled or were bought by the incumbents. If brokers with serious trading volume can’t give a startup more staying power, they should give up.
Euronext gives Oslo bourse surprise Christmas gift 24 Dec 2018 The pan-European group is ready to pay 625 mln euros for the Norwegian exchange. The festive offer already has the support of nearly 50 pct of investors. In the consolidating world of electronic trading, it’s getting harder to play alone. Accepting the holiday hamper makes sense.
Asian IPO slump brings welcome valuation sanity 16 Nov 2018 Having raised $62 bln in nine months via 480 listings, economic anxieties have infected overheated equity markets in Hong Kong and beyond. Deals from Tencent and others are being delayed or repriced in an overdue correction. With luck, rationality will creep in elsewhere, too.
Pharma upset derails remake of Samsung’s heir 15 Nov 2018 Jay Y. Lee championed the $20 bln Samsung BioLogics as a new engine of growth at the South Korean conglomerate. Now the arm faces delisting for breaking accounting rules ahead of its IPO. Such a punishment would be harsh but also fit with Seoul’s new resolve to rein in tycoons.
China’s abused offshore yuan is scarred for life 8 Nov 2018 As the currency nears 7 to the dollar, its weakest since 2008, officials are attacking short-sellers exploiting gaps in overseas derivatives trade. Beijing is trying to run two exchange rate regimes. A muddled strategy is making an already difficult balance unsustainable.
Xi enters Shanghai in high-stakes tech IPO race 6 Nov 2018 China's leader granted the city a new board to compete with Shenzhen and Nasdaq for startups. It also will test a looser U.S.-style registration system for new listings. The steps are overdue, but officials may rue the governance risks and trading volatility they’re apt to bring.
ASOS’ fast-fashion surge lacks high-end profit 17 Oct 2018 The internet retailer’s shares rose 12 pct after it beat forecasts, and touted its “huge” potential. But more profitable own brands made up a smaller proportion of its sales, and new ranges such as a gender-fluid style are cheaper. Competition in online retail is huge too.
Norway power failure a rehearsal for bigger shocks 14 Sep 2018 The 114 mln euros Einar Aas lost betting on energy markets was not enough to sink the clearing house backing the trades. But the damage wreaked by one man implies deeper frailties. An increasingly volatile carbon price would make the commodities market vulnerable to a repeat.
Europe’s $50 bln payment upstarts can justify hype 10 Sep 2018 Investors can’t get enough of groups like Wirecard, which is replacing Commerzbank in Germany’s main stock index. As with peer Adyen, the risk is that a crowded sector caps growth. To hit their targets, the pair need to double their share of the payments pie. That’s doable.
China’s London stock bridge goes halfway across 5 Sep 2018 Beijing has new draft rules for investing between the Shanghai and London exchanges. In theory the channel could see Chinese punters put billions into UK shares, as they have in Hong Kong. It’s otherwise more about diplomatic relations than market demand.
China’s offshore debt crackdown adds outflow risk 9 Jul 2018 Officials are curbing dollar bond issuance as the yuan weakens. Regulation of the $775 bln market has always been haphazard. This move looks reactive and clumsy. It will put more downward pressure on a faltering currency, and could inadvertently encourage capital leakage.
Chinese markets have much to fear from fear itself 4 Jul 2018 A stronger dollar largely accounts for a recent 6 pct fall in the yuan, with the central bank managing the pace. Tumbling Chinese stocks can be weathered, and some defaults are healthy. Patience is not one of President Xi’s virtues, though, and panicked intervention is a risk.
Xiaomi humble IPO pie still good enough to eat 29 Jun 2018 The Chinese smartphone maker priced its Hong Kong float at the bottom end of a marketed range, valuing it at $54 bln. This isn’t a failure, and investors who believe in the company will like the discount. Missteps by executives and bankers offer lessons for those next in line.
Chinese P2P giant Lufax dodges valuation bullet 15 Jun 2018 A mooted private fundraising of more than $1 bln makes sense. With regulatory change coming to peer-to-peer lenders, floating now could upset Beijing, and might only be doable at a bargain price. Abundant venture capital offers a way to keep growing without a distracting IPO.
Hermes loses niche status in fashion and finance 15 Jun 2018 The fashion group is joining rivals LVMH and Kering in France’s CAC 40 index. The Hermes family must get used to hoi polloi like ETFs and hedge funds crowding into its stock, and tougher disclosure norms. For companies, like luxury handbags, there’s a cost to going mainstream.
Xiaomi IPO escalates China’s battle of the bourses 15 Jun 2018 The handset-maker will now sell at least half of its mooted $10 bln offering in Shanghai. That is a blow to the other listing venue, Hong Kong, which changed its rules to woo more tech IPOs. The city will have to share a lot of this business with its two mainland rivals.
Hong Kong could teach China tech some manners 14 Jun 2018 Sina plans a secondary listing in the city, under new rules welcoming Chinese tech outfits traded overseas. In New York, the $7 bln web portal and its peers can issue super-voting stock on a whim and skip annual general meetings. The Fragrant Harbour will be less soft.