Capital Calls: Regulating crypto 7 Nov 2023 Concise views on global finance: The US Securities and Exchange Commission is struggling to hire digital token experts, partly because prospective recruits aren’t willing to acquiesce to the agency’s requirement that they sell their holdings in bitcoin and beyond.
Worldline crash is pivotal moment for payments 25 Oct 2023 The $7 bln French group’s shares fell 60% after it said sales would be hit by a call to ditch riskier merchants. Investors expect payment providers to be on top of flaky transactions. The fact that a leading player has had to rethink will scare them, and alert regulators.
Alphabet’s present looks brighter than its future 24 Oct 2023 Revenue at the Google parent rose more than 10% for the first time since mid-2022 because of a recovery in online advertising, its bread-and-butter. But a stumble in its fast-growing cloud computing unit suggests it will be tough for Alphabet to catch up with weightier rivals.
European payments LBO would be rewarding but messy 18 Oct 2023 CVC may bid for Milan-listed Nexi, Bloomberg reported. A $16 bln buyout could earn handsome returns, even if the group just performs as analysts expect. But Nexi’s private-equity shareholders like Hellman & Friedman know this, forcing buyers to either cough up or bring them in.
Bankman-Fried circus will be a singular clown show 4 Oct 2023 The FTX founder’s fraud trial bookmarks crypto’s rise and fall. Risk-loving speculators were the most obvious losers, while more everyday investors suffered in previous scandals such as Enron and Countrywide. This time, the spectacle is less likely to lead to new protections.
Visa takes charge of one risk as another grows 28 Sep 2023 The payments network devised a way for banks such as JPMorgan to gradually offload their collective 20% stake, worth about $96 bln. It would help avoid a mad dash to the exit. With credit card usage, and possibly fees, rising, however, fresh legal and regulatory concerns abound.
Jeffrey Epstein leaves small mark on Wall Street 27 Sep 2023 JPMorgan will fork out another $75 mln to settle claims over its ex-client, winding down the sordid mess for financiers. The sex offender cost two industry CEOs their jobs, while banks now monitor such reputational risks more closely. The effects are likely to fade soon, however.
India’s fintech partygoers nurse a needed hangover 11 Sep 2023 The $16 bln industry’s annual shindig was a sombre affair. Founders touted sustainable growth amid dipping valuations, regulators preached risk mitigation and big investors stayed away. Waning euphoria for the country’s digital ecosystem may, though, be an early sign of maturity.
Capital Calls: Diversity initiatives 23 Aug 2023 Concise views on global finance: The group that got the Supreme Court to overturn affirmative action at universities is suing financial firms to end programs for diverse applicants. It will make companies rethink recent diversity initiatives.
Capital Calls: Coinbase’s Circle deal 22 Aug 2023 Concise views on global finance: Crypto exchange Coinbase is investing in struggling $26 bln stablecoin issuer Circle. Tokens tracking the US dollar haven’t delivered on hopes of transforming finance; the deal promises little current payoff, but at least keeps the dream alive.
Crypto survivors will be severely scarred 17 Aug 2023 Digital asset custodian BitGo says it raised money at a $1.7 bln valuation, days after a rival filed for bankruptcy. As with stablecoins, exchanges, and currencies, winners are emerging in crypto. Stumbles will still happen, though – a painful but necessary process.
Fickle Big Tech customers wash away Adyen’s moat 17 Aug 2023 Shares in the Dutch payment group slumped 25% after first-half earnings missed forecasts. The former market star is seeing margins eroded by a hiring push. But the real issue is that users can easily switch to cheaper rivals. To fix that, the company needs a broader client base.
Mastercard’s African fintech bet is VC, but better 15 Aug 2023 Mastercard is investing in telecoms company MTN Group’s $5.2 bln mobile payments unit after backing an Airtel Africa-owned rival. The price is higher than past deals. But historical underinvestment in African fintech helps, as does its ability to spread money around.
PayPal would slot well in a different wallet 15 Aug 2023 As the $70 bln fintech company’s next CEO, Intuit veteran Alex Chriss brings small-business bona fides, but also dealmaking nous. It could be an opportunity for Citi, Meta or Stripe to advance their respective strategies. Fiserv, however, would make the most sensible partner.
CFOs are stepping into a rapidly revolving door 14 Aug 2023 From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.
Capital Calls: Coinbase raises the stakes 4 Aug 2023 Concise views on global finance: For the first time, the $21 bln cryptocurrency exchange generated more revenue from services like pledging coins for blockchain initiatives than from transaction fees. Diversification is sensible, but 10 state regulators jeopardize the strategy.
PayPal pays price for prolonged CEO hunt 3 Aug 2023 Despite 7% quarterly revenue growth under retiring boss Dan Schulman, the company’s adjusted operating margin fell short of its 22% projection. Bad small-business loans also contributed to another 11% drop in the share price. Vital strategic plans are in a costly holding pattern.
Capital Calls: European earnings 20 Jul 2023 Concise views on global finance: Consumer-facing companies Electrolux, Essity and HelloFresh all plunged after weaker-than-expected financial reports.
Hobbled Ant faces treacherous march ahead 10 Jul 2023 China's erstwhile fintech star is buying back shares at a quarter of its $300 bln price tag in 2020. Even with Beijing signalling an end to a years-long crackdown on the sector, the restructured firm’s new valuation looks generous as an economic slowdown could shrink it further.
KKR takes private markets right up to the checkout 20 Jun 2023 The buyout shop will acquire up to 40 bln euros of buy-now-pay-later loans from PayPal. That will feed a business growing 70% a year, and satisfy asset managers’ hunt for new big markets to pour dollars into. They may encroach on another domain once the preserve of banks.