Capital Calls: Data falsehoods 26 Jan 2023 Concise views on global finance: Better-than-expected U.S. GDP and durable goods data suggest the country might be spared from a recession. But exclude Boeing sales and corporate stockpiling, and the economic outlook is less rosy.
Adani’s buy now, pay later fundraise could sting 26 Jan 2023 The world’s third-richest man Gautam Adani won anchor investor backing for a $2.4 bln share sale by his flagship company, including from Abu Dhabi’s wealth fund. Yet an Adani group selloff resulting from a short attack means terms that were meant to reward buyers could hurt them.
Short-seller attack raises Gautam Adani stakes 25 Jan 2023 Hindenburg reinforces how the $230 bln empire of the world’s third richest man is closely held, overvalued, and dismissed by Wall St. The upstart’s record of exposing U.S. fraud will make India sit up. But Adani is a giant target, and too many powerbrokers have a lot to lose.
Davos, Inc. finds reasons to be less gloomy 20 Jan 2023 Business leaders gathering in the Swiss mountain resort have plenty to fret about. Still, with China reopening, Europe keeping the lights on and interest rate pressure easing, the overriding emotion is one of relief. Less clear is whether the mood extends beyond the alpine elite.
Capital Calls: Dr. Martens’ stomping 19 Jan 2023 Concise views on global finance: The bootmaker’s stock fell nearly 30% after a profit warning on Thursday, and is down 60% since Permira listed it in 2021.
Indian IT reboots in time for an easy recession 19 Jan 2023 Quitting workers hurt profitability at service providers from Tata to Cognizant. But the drying up of startup funding has reduced job hopping. That will make any slowdown in spending by global clients easier to manage, leaving India to keep taking market share, at least for now.
AGL’s new boss has a $14 bln target on his back 19 Jan 2023 That’s how much Damien Nicks needs to turn Australia’s top carbon emitter into a renewables giant. Unlike predecessors, he has a proactive board, improving earnings and a half-placated billionaire agitator. He’ll still get hauled over the coals if he can’t find funds quickly.
China’s demographic decline can be boon, not doom 18 Jan 2023 Last year’s near-1 mln population drop puts India in position to become the most populous country. It’s not necessarily a problem for Beijing. Adapting policy from social safety nets to immigration could prevent higher ages and wages from defining the $18 trln economy’s future.
The Davos party returns, with the shakes 16 Jan 2023 Business leaders including JPMorgan’s Jamie Dimon and Chevron’s Mike Wirth are back in force at the World Economic Forum’s Swiss shindig. But heads of state who shape corporate fates more than ever are mostly staying home. It’s symptomatic of a divided, uncertain world.
Capital Calls: Prices down, jobs saved? 12 Jan 2023 Concise views on global finance: New data shows U.S. prices falling 0.1% in December, marking the largest drop since early 2020. With inflation in retreat, the Fed can focus more on keeping Americans employed.
China’s wolf warriors start 2023 in retreat 10 Jan 2023 Beijing has taken the mic away from combative foreign ministry spokesperson Zhao Lijian. His transfer follows other de-escalatory moves like a thaw in trade with Australia and calls for healthier U.S. relations. But it will take years to undo the damage from nationalist trolls.
Singapore looks boxed in with Li Ka-shing 9 Jan 2023 Co-investing with Hong Kong’s top tycoon once seemed like a no-brainer but sovereign fund Temasek may sell its 20% of CK Hutchison’s ports business. It owns a hefty slug of the company’s retail unit too. Geopolitics complicate any exit from these bold private investments.
Jack Ma’s Ant is China tech’s tiniest bellwether 9 Jan 2023 The founder is ceding control of his fintech giant, sending shares of affiliate Alibaba up 7%. The move was expected, yet investors clearly see Ant's rehabilitation as symbolic. That may be misguided, but any excuse to reevaluate China’s beat-down internet sector will do.
Being ready for anything is top priority for 2023 3 Jan 2023 After the global pandemic and the outbreak of war in Europe, the world faces a vast array of possibilities this year. Little wonder that executives, policymakers and financiers are planning for many scenarios. Though the choices remain difficult, there’s value in thinking ahead.
Female fans will fuel Formula One in 2023 23 Dec 2022 Liberty Media’s testosterone-powered franchise is ready to shift gear. A docuseries following its drivers was among Netflix’s best-watched shows and lured more women to the racing stands. Forget Lewis Hamilton: finding a Louise Hamilton could rev up that trend and boost revenue.
Putin’s Russia will look more like North Korea 22 Dec 2022 The Kremlin leader will strengthen his hold over the ailing economy, from banking to industrials. Massive nationalisation, along with the end of U.S. and European investments, could soon be followed by strict capital controls. The complete closure of the Russian economy is next.
How Ana Botín can defeat the Santander sceptics 21 Dec 2022 The Spanish bank suffers from a lower valuation, relative to its return on tangible equity, than rivals. If its executive chair can keep costs low and show the group is worth more than the sum of its parts, that might change. If not, it’s time to sell assets, starting in the U.S..
Vietnam’s Elon Musk challenger turns heads in 2023 21 Dec 2022 Le Thi Thu Thuy is steering VinFast onto Western roads to race the entrepreneur’s premium marque, Tesla. She’ll have to convince investors in its New York IPO to look past niggles at its powerful parent. It’s a complex route, and puts the former Lehman banker in the spotlight.
China property gets $650 mln vote of no confidence 13 Dec 2022 Controlling shareholder Yang Huiyan is shedding 7% of Country Garden's services arm, a first. She doesn’t seem to need the money given state support for the developer, and it’s an odd time to sell. It suggests deep scepticism about Beijing’s real estate rescue package.
Sam Bankman-Fried lacks cover of systemic risk 13 Dec 2022 The former boss of bankrupt crypto firm FTX has been arrested. That hasn’t happened to financial hall-of-shamers that are more mainstream. The decentralised nature of crypto makes isolating people easier. The more complex the institution or blow-up, the harder it is to pin blame.