Babcock CEO’s reset comes with valuation upside 9 Apr 2021 David Lockwood may soon unveil a writedown at the 1 bln pound UK engineering group, which is also saddled with heavy debt. Those concerns obscure the relatively promising trend of UK defence spending. Lockwood’s CV offers hope of a cleanup – and significantly higher share price.
China wealth management ventures build on sand 9 Apr 2021 Western funds like BlackRock are partnering with local banks to tap a market forecast to hit $23 trln in assets by 2030. It’s the latest rush into a promising financial sector where foreigners can take majority stakes. But control may prove illusory while hidden risks abound.
Naspers remains strapped to Tencent roller coaster 8 Apr 2021 Selling a $14.6 bln stake in the Chinese internet giant restocks the South African group’s war chest. But its residual $220 bln shareholding towers over other investments. The best hope for investors is that Naspers finds a way to shrink its weighting on the Johannesburg bourse.
Capital Calls: Trucking IPO 7 Apr 2021 Concise views on global finance in the Covid-19 era: Startup TuSimple will be listing shares via a traditional initial public offering.
Capital Calls: Bling deal 6 Apr 2021 Concise views on global finance in the Covid-19 era: Signet, the owner of jewelers Zales and Kay, is buying rental firm Rocksbox.
Credit Suisse’s spring clean has barely started 6 Apr 2021 Risk chief Lara Warner and investment bank boss Brian Chin are leaving after the Swiss bank unveiled a $4.7 bln hit from Archegos’ collapse. New board investigations should include deeper soul-searching over recent scandals. Restructuring and business disposals may be necessary.
Review: Rwanda, Africa’s good-news story gone bad 1 Apr 2021 Under Paul Kagame, the Land of a Thousand Hills has gone from genocidal hellhole to wannabe African Singapore. In feting the ex-guerrilla president, donors and investors ignored autocracy and murder. Michela Wrong’s “Do Not Disturb” may force Davos to rethink its guest list.
Capital Calls: Elon Musk, LeBron James 1 Apr 2021 Concise views on global finance in the Covid-19 era: Endeavor, Ari Emanuel’s entertainment group, is hoping the Tesla boss’s stardust will help a second attempt at an IPO; the basketball star’s stake in the Red Sox is a foil to Steve Cohen’s Mets deal.
Draghi’s corporate inbox will keep flashing red 31 Mar 2021 Rome’s to-do list, left over from the last government, includes selling dud bank MPS, resurrecting carrier Alitalia, expanding broadband and ending a motorway row. With vaccinations and recovery his legacy, these secondary tasks will slip to the bottom of Mario Draghi’s pile.
Credit Suisse is overdue for new chairman’s axe 31 Mar 2021 The Swiss bank’s shares are down 23% in a month after Archegos and Greensill collapsed. Though losses are unclear, investors assign no worth to the investment bank. By shrinking that unit, and hiving off the fund and local divisions, António Horta-Osório could rescue some value.
Deliveroo’s IPO cash hunger leaves sour aftertaste 30 Mar 2021 The UK food delivery firm’s offering values it at 7.6 bln pounds, the bottom of the target price range. Despite its rapid growth and big ambitions, investors face post-pandemic uncertainty. Boss Will Shu’s order for 1 bln pounds of fresh cash suggests profitability is a way off.
Capital Calls: BlackRock’s Archegos angle, SPACs 30 Mar 2021 Concise views on global finance in the Covid-19 era: The fallout from the collapse of Bill Hwang’s family office gives regulators reasons to focus on funds, not fund managers; and bosses of blank-check companies don’t take investor questions.
AstraZeneca could use a shot of under-promising 29 Mar 2021 The pharma group got caught in a spat between states over vaccine supplies, partly due to PR gaffes and overhasty pledges. A refresh of the board and chairman would be one way to overcome an episode that has hurt credibility and hampered rollout of a good product millions want.
Credit Suisse has PAF to redemption over Greensill 26 Mar 2021 Funds linked to the collapsed supply-chain firm may have billions of dollars in bad debt. The bank and its employees are culpable and should share losses with clients. Reviving a post-2008 asset-backed bonus vehicle would be one way for senior staff to shoulder some of the risk.
Capital Calls: Sports versus the Trump slump 26 Mar 2021 Concise views on global finance in the Covid-19 era: Political news startup Axios may merge with sports site The Athletic.
Pinduoduo governance cleanup misses some spots 26 Mar 2021 The $156 bln e-commerce company’s departing founder Colin Huang has given up his supervoting stock. But it’s not clear he’s relinquishing other holds on power. Insiders can exert outsize influence on the board. And Pinduoduo still lacks a finance chief. There’s more work to do.
Deliveroo’s main sustainability doubt is financial 25 Mar 2021 Some fund managers are shunning the food delivery group’s IPO over its treatment of workers. Unlike most ESG laggards, the $11 bln group is loss-making. Concern about labour rights and founder Will Shu’s super-voting stock are secondary to whether it can turn a consistent profit.
Russia has defences against U.S. sabre-rattling 25 Mar 2021 Given the U.S. president reckons his Russian counterpart is a “killer”, new sanctions on Russian government debt are possible. Jumpy prices forced Moscow to cancel a bond auction. But with a trade surplus and low external debt, Kremlin finances will hold up.
Capital Calls: Twitter time-wasting, News Corp 25 Mar 2021 Concise views on global finance in the Covid-19 era: Congressional hearings on Big Tech get ever less productive; meanwhile, the parent of the Wall Street Journal snaps up Investor’s Business Daily.
Capital Calls: Defence IPO, ViacomCBS and GameStop 24 Mar 2021 Concise views on global finance in the Covid-19 era: Italy’s Leonardo postpones the initial public offering of its U.S. unit; ViacomCBS and GameStop's rising stocks give them both a chance to raise fresh cash.