Capital Calls: Greek airport IPO 16 Jan 2024 Concise views on global finance: State-backed Athens International Airport may be able to fetch a 3 bln euro valuation in a planned February listing.
Shein’s ‘Made in China’ label clashes with IPO 15 Jan 2024 The fast-fashion retailer is seeking Beijing’s nod to go public in New York. It’s a setback for the Singapore-based company which has tried to distance itself from its Chinese roots. Whatever the decision, it’ll set an awkward precedent for peers like ByteDance’s TikTok.
The spectre of Donald Trump hangs over Davos 12 Jan 2024 The former US president is not among the 2,800 business and political leaders converging on the Swiss resort. But his possible return to power will pervade debates about Ukraine, China, and climate change. In 2016, Davos laughed off the idea of a Trump presidency. Not this time.
EU’s energy security drive may have gone too far 11 Jan 2024 The bloc’s pivot away from Russian pipeline gas has worked. But Europe’s fast-rising capacity to import the fossil fuel in liquid form will surpass its total gas needs by 2030. LNG infrastructure’s public and private backers have a stark choice: scale back, or risk writedowns.
Bitcoin ETFs only entrench one frivolous use case 10 Jan 2024 The SEC finally greenlit BlackRock, Grayscale and other funds to track the crypto price, with trading due to start this week. It’ll be easier to make – and lose – money in the volatile digital asset, but it’s no closer to being a currency, store of value or network for new apps.
Wall Street brings gun to Basel knife-fight 10 Jan 2024 JPMorgan and peers have good reason to be livid over proposed US bank rules. Some planned changes would punish them unduly, clash with existing controls, and effectively hand business to foreign rivals. With logic on their side, the risk is that banks overplay their hand.
Corporate boards have lost the war on drugs 8 Jan 2024 Some directors at the six companies run by Tesla boss Elon Musk worry his drug use will hinder business. Dabbling in narcotics is rising while testing is falling, and legalization has normalized dope use. For corporate chieftains, though, even a little may be too much.
Boeing loses when it has everything to gain 8 Jan 2024 The $138 bln plane maker's business should be unreplaceable. Two firms dominate the expanding business, both run production at max capacity, and customers can’t easily switch. But repeated issues are undermining more than Boeing's reputation. Its finances are worsening, too.
T-Mobile’s climb to top dog risks winner’s curse 8 Jan 2024 The US telecom’s decade-long rise, sealed by 2020’s Sprint merger, has lapped rivals AT&T and Verizon and triggered an $8 bln payout for backer SoftBank. The tie-up threatened unshakable dominance. But now, newer cable entrants may wrench open the market much as T-Mobile did.
Dead power deal shows limits of M&A futurology 2 Jan 2024 Avangrid and PNM have given up on a $8 bln merger after three years of waiting for regulatory approval. Yet investors repeatedly priced the target as if the tie-up were in the bag. Political twists can easily wrong-foot arbitrageurs. Trouble is, such twists may get more common.
EU tech rules will create clicks, not competition 27 Dec 2023 Brussels wants to force Google, Meta and Apple to open up app stores, messaging networks and search engines. The US giants will have to let startups compete and offer consumers more opt-outs. It’s likely to result in lawsuits and hassle for users rather than rivals for Big Tech.
China policy risk returns as stock market grinch 22 Dec 2023 Shares in Tencent and NetEase plunged after surprise new curbs from Beijing on video-game spending and rewards. It smacks of President Xi Jinping’s crackdowns on private tutoring, tech and other sectors – and gives overseas investors another reason to be wary jumping back in.
Price of Illumina’s Grail fail extends to board 19 Dec 2023 The gene-sequencing company finally conceded to selling the cancer-testing business it bought without regulatory approval for $7.1 bln. Its bravado will be costly, as Grail’s value has plummeted. Boss Francis deSouza already paid with his job; directors deserve to, as well.
Adobe paints brighter future without Figma 18 Dec 2023 Unwilling to fight trustbusters, the design-software giant ditched its $20 bln deal. Since agreeing to pay the inflated price, its own AI plans have wowed investors. Even so, the hype is a bit overdone and its target now gets an extra $1 bln to sketch out new ways to compete.
Ozempic overshoot will plump up bargain-hunters 18 Dec 2023 New weight-loss drugs are highly effective, but investors risk overestimating how fast change will occur and how many people will take the therapies indefinitely. Some companies regarded as victims, such as Zimmer Biomet, may even benefit. Contrarian investors may profit in 2024.
Oprah’s Weight Watchers is Ozempic-as-a-platform 15 Dec 2023 Obesity-fighting drugs should curb demand for hawkers of weight-loss regimens. But WW bought a telehealth firm that can push prescriptions, like those used by its celebrity backer, to customers. As insurers fund habit-forming programs, companies will find ways to take a cut.
Cyber-paperwork blizzard will soon blind markets 14 Dec 2023 New SEC rules force companies to divulge a hack within days of deeming it serious. CEOs wary of falling foul are apt to overshare. Such stock-swinging decisions, like ones from Clorox and Johnson Controls, will test investors’ analytical skills as much as corporate tech defenses.
Banks’ hidden losses are surprise survivor of 2023 13 Dec 2023 The same paper deficits that helped fell Silicon Valley Bank in March still burden lenders worldwide. Bank of America alone sits on $130 bln; US banks nurse a record sum. Investors are now better at telling what’s scary from what’s not, but fuzzy accounting remains unhelpful.
Capital Calls: OpenAI’s Microsoft dilemma 11 Dec 2023 Concise views on global finance: When boss Sam Altman’s ouster threatened to implode the ChatGPT maker, $2.7 trln backer Microsoft helped restore order. That necessary boon, however, will draw ever-more trustbuster scrutiny about tech giants’ unshakable influence in AI.
Bank CEOs channel movie mobsters in Basel fight 7 Dec 2023 New capital rules are beset by inefficiencies and inconsistencies. Yet eight US bank chiefs appearing before the Senate delivered a more populist warning: water them down, or regular Americans will be impoverished. It’s disingenuous at best; counter-productive at worst.