ICE’s Black Knight deal has antitrust snare 13 May 2022 The NYSE owner is paying a big premium to round out its mortgage tech dominance with the servicing-focused Black Knight. But the combination looks to pose antitrust problems, and a loose merger agreement gives ICE room to blow up the deal if it runs into resistance.
SoftBank’s Son is running out of ammunition 12 May 2022 The stock market values the $60 bln technology conglomerate at half the sum of its parts. In the past, founder Masayoshi Son has used buybacks to prop up the shares. High leverage and slumping markets make that tricky. More radical measures, like a breakup, seem off the table.
Stablecoin crash drags crypto ideals back to earth 11 May 2022 TerraUSD, a digital token supposedly pegged to the U.S. dollar, slumped to a fraction of that. The popular store of value is vulnerable because its design is based on trading incentives, not hard reserves. For crypto fans there’s a tradeoff between decentralisation and stability.
Stars align for UAE to become a global crypto hub 6 May 2022 Big exchanges Binance, FTX and Kraken are expanding in Dubai and Abu Dhabi as local regulators grant licences to trade virtual assets. The world’s leading financial regulators have been wary of cryptocurrencies. A variety of factors give UAE the chance to steal a march on them.
The elusive value of past investment mistakes 5 May 2022 A new library in Edinburgh hopes to improve financial understanding by studying historical errors. The best investors understand the importance of learning from their painful howlers. Yet, says Edward Chancellor, ultra-low interest rates have induced a kind of collective amnesia.
Didi’s New York woes mask deeper problems 4 May 2022 The Chinese ride-hailing group hopes leaving the Big Board will ease Beijing’s cybersecurity probe. It now faces a U.S. investigation into its IPO. Yet the bigger blow in its new annual report is rising regulatory pressure at home, raising fresh doubts about Didi’s core business.
Robinhood’s growing pains could use some Buffett 3 May 2022 The Sage’s deputy, Charlie Munger, said the platform encouraged short-term gambling. But perhaps not enough: Robinhood is cutting jobs and revenue is falling. New ideas – like accounts that stimulate investment – aren’t horrible, but only if they invoke old, boring philosophies.
Capital Calls: Gap falls through the inflation gap 22 Apr 2022 Concise views on global finance: Shares in the clothing retailer fell over 19% after the company warned of a sharper drop in sales and announced the departure of Nancy Green, the boss of its Old Navy unit.
Twitter’s scarce suitors, Didi’s New York exit 21 Apr 2022 As Elon Musk dangles a $41 billion offer, Breakingviews columnists discuss whether anybody will end up buying the social network in this Viewsroom podcast. Plus, the Chinese ride-hailing firm cancels its U.S. listing less than a year after arriving, leaving shareholders stranded.
China’s overseas oil giant preps for inward turn 21 Apr 2022 CNOOC, booted off New York, popped the maximum 44% on its Shanghai debut. It was well-timed, with sanctions on Russia boosting the fossil fuel’s price. Diplomatic tensions make its foreign business risker, and it may ditch some assets. But there’s plenty to do closer to home.
How metals markets can limit future debacles 19 Apr 2022 UK regulators want answers after the London Metal Exchange voided nickel trades. A supply crunch in a wider range of metals means Europe’s key market can expect more crises. Regaining trust may require new leaders, but the LME can at least reduce the impact of future shocks.
Didi’s peers will pay price of New York debacle 19 Apr 2022 The Chinese ride-hailing group is planning a U.S. exit less than a year after arriving. But shareholders, who have seen the stock fall 85% since the disastrous IPO, have no guarantee of an exit afterwards. The corporate wreck will taint other mainland firms eyeing the Big Board.
An economist’s warning for stock market investors 14 Apr 2022 Most economic theory is far removed from the gyrations of financial assets. A new book from a veteran City of London economist attempts to close the gap. Edward Chancellor explains why his troubling conclusions about U.S. equity valuations deserve to be taken seriously.
Chinese firms’ New York exit hits tricky new phase 13 Apr 2022 Quora-like Zhihu won’t raise a cent from its Hong Kong float, the first so-called homecomer to eschew the chance. It won’t be the last: Many of them are, like the $1.4 bln Q&A forum, cash rich. But insiders are selling. That can weigh on valuations, hurting regular investors.
Hong Kong-based PAG raises private equity IPO bar 29 Mar 2022 At a mooted $15 bln, the Blackstone-backed buyout shop would be valued at 30% of managed assets. Although a rich premium to U.S. peers like TPG, it’d be on par with recent deals involving Asian rivals. The test is if public-market investors assess the growth and mix the same way.
India’s foreign IPO freeze fits divided world 24 Mar 2022 New Delhi is pausing plans to allow local companies without a domestic listing to float overseas. A global tech rout, the saga around U.S.-traded Chinese firms, and Russian sanctions all help to make the worrying case. In the long run, it risks driving startups away sooner.
Hong Kong may have a buyer if it wants to dump LME 18 Mar 2022 The London Metal Exchange’s nickel-trading goofs have upset customers and damaged its good name. Owner HKEX’s vision to link western and eastern markets already faced challenges. At the right price, U.S. rival ICE might get another shot at the prize it missed out on in 2012.
Capital Calls: Tencent, Ted Baker 18 Mar 2022 Concise views on global finance: The Chinese web giant may have to separate its mobile payments business from its popular social media arm; U.S. buyout fund Sycamore can afford to be generous towards the hard-pressed UK fashion group’s shareholders.
Nickel gets nixed, French firms linger in Russia 17 Mar 2022 The war in Ukraine is affecting far corners of global finance. In the Viewsroom podcast, Breakingviews columnists explain how the conflict helped bring nickel trading to a halt in London. And why oil giant Total and carmaker Renault are resisting the exodus by Western companies.
Capital Calls: Electric vehicles 17 Mar 2022 Concise views on global finance: Tesla and BYD price hikes show that EV makers need to push harder to slim down designs and jettison expensive materials.