Shelved soda ash IPO is a UK wake-up call 15 Jun 2023 Turkish-owned WE Soda dropped plans for an $800 mln London listing after a cool reception from prospective shareholders. The firm blamed their cautiousness. The truth is that Britain’s attempts to fiddle with listing rules to revive the IPO market aren’t fooling shrewd investors.
Nasdaq futureproofs itself, but at 2021 prices 12 Jun 2023 Buying fintech firm Adenza for $10.5 bln adds vim to CEO Adena Friedman’s plan to reduce Nasdaq’s reliance on volatile markets. Yet the price, which includes a 15% stake for seller Thoma Bravo, is high. To justify it, Friedman needs bubbly tech valuations to make a comeback.
Coinbase investors are still aiming for the moon 9 Jun 2023 A lawsuit from the US Securities and Exchange Commission poses an existential risk for the crypto exchange. Yet it’s still valued at more than $11 bln, excluding spare cash. Loyal shareholders are betting CEO Brian Armstrong can avoid the crackdown – and find new ways to grow.
Capital Calls: Bitcoin is last crypto standing 6 Jun 2023 Concise views on global finance: SEC action against crypto exchanges Binance and Coinbase clarify the regulator’s thinking on which cryptocurrencies it deems to be securities. The lawsuits threaten every digital token except bitcoin, whose design makes it an outlier.
Binance charges are a last gasp for crypto 5 Jun 2023 The SEC sued the world’s largest cryptocurrency exchange saying it misled investors and evaded securities law. Even if Changpeng Zhao’s firm works through regulatory investigations, dabblers will become even more shy, and diehards will pivot further to decentralized exchanges.
EU-UK clearing drama heads for prosaic finale 2 Jun 2023 The bloc is stalling on allowing UK firms to clear euro derivatives after 2025. That has set off a round of financial-stability finger-pointing. Costs may rise but systemic fears are overdone. If there were real danger, London could just pledge to follow Brussels’ rules.
IPO pops are iffy adverts for Gulf capital markets 1 Jun 2023 ADNOC L&S, like other floats by the UAE energy giant, surged on its first day of trading. Yet the 50% rise looks contrived. Abu Dhabi’s listings boom is narrow, and mostly involves state-linked firms. Its dreams of being a go-to destination for global capital are remote.
ECB’s crisis tool works best if it’s never used 30 May 2023 The European Central Bank is touting its powers to buy sovereign bonds if they come under attack from the market. That has kept traders in check, so far. The trick for Frankfurt officials is to convincingly threaten to deploy emergency measures without ever having to.
UK listing shakeup requires double dose of hope 3 May 2023 Britain’s financial watchdog wants to spur domestic IPO markets by weakening shareholder protections. Yet making London appealing to fast-growing foreign firms requires wider reforms that may not occur. And lower standards are only a good idea if investors punish bad governance.
Slowing growth will crash European stock party 2 May 2023 The region’s shares have risen 22% since September, trouncing their US peers. A resilient economy and low valuations lured investors. Aggressive rate hikes and falling earnings will drive them away. High-quality bonds and emerging markets’ equities are good alternatives.
Deutsche Boerse data pivot comes at a price 27 Apr 2023 Boss Theodor Weimer is buying fund software firm SimCorp for 4 bln euros. Like peer LSEG, the German exchange is hoping a shift into the faster-growing data business will mean richer valuations. It’s a logical gamble, but such deals are expensive, and take time to pay off.
Hong Kong bourse’s profit pop looks passive 27 Apr 2023 Earnings popped 28% last quarter, but mostly thanks to the exchange operator’s investments gains; its core business of listings and trading was lacklustre. Boss Nicolas Aguzin can only hope IPOs and transactions revive in case returns from HKEX’s own trades aren’t sustained.
Exploring the City of London’s existential dread 25 Apr 2023 The global financial centre is suffering a spasm of anxiety about its status, while the government is pushing post-Brexit reforms. In this Exchange podcast William Wright, founder of the New Financial think tank, discusses the roots of the malaise and what can be done to fix it.
UK growth hinges on more than a new pension giant 19 Apr 2023 Low investment holds back Britain’s economy. To help, politicians and bankers want to consolidate the 2.2 trln pound retirement system into large, Canadian-style pools buying UK assets. Yet better taxes and planning, and more foreign money, would yield a happier ending.
Capital Calls: UnitedHealth, ETFs, Animal drugs 14 Apr 2023 Concise views global finance: Health insurer UnitedHealth continues to flex its muscles; Canada traps investors inside exchange-traded funds; private equity firm EQT buys into medicine for pets.
Bank health barometer could use own health warning 28 Mar 2023 Stock market investors interpreted last week’s jump in Deutsche Bank’s credit default swaps as a sign of distress. Yet thin trading in parts of the $12 trln market for speculating on creditworthiness can exaggerate moves. Add social media and it can feed self-fulfilling spirals.
Transatlantic valuation gap is mostly illusory 7 Mar 2023 Arm, CRH and Flutter may pursue US listings, while Shell mulled one. Since European stocks trade at a discount to the S&P 500, they might be hoping for a higher price. But the value chasm doesn’t hold for all sectors, and can be largely explained by differing growth rates.
Court dunk changes game for digital collectibles 28 Feb 2023 U.S. regulators didn’t say whether non-fungible tokens are financial securities before the $40 bln market swelled. Now it’s up to the courts. A judge’s ruling against fantasy basketball card developer Dapper Labs raises big risks for NFT companies. But there’s still no referee.
Euronext may have to dig deeper to snare Allfunds 22 Feb 2023 The 8 bln euro exchange offered 5.5 bln euros for the wealth technology group, the latest in a slew of deals. Boss Stéphane Boujnah would get much-needed diversification away from sluggish markets. Yet the price is not a knockout, and rivals like Deutsche Boerse could barge in.
Picking crypto exchange winner is a fool’s errand 22 Feb 2023 As questions about Binance mount, $15 bln Coinbase is benefiting. Despite swinging to a loss last quarter, its shares have doubled this year. If anything, it’ll be the smallest loser. The industry’s post-FTX fate increasingly rests with U.S. regulators, who are losing patience.