China’s rental push could grease property slide 27 Jul 2022 Officials struggling to complete $300 bln of stalled apartment projects are mulling flipping them into leased units. More inventory is good in the long run but a falling housing market needs buyers more than renters. Depressing already low yields will deter investment.
Aston Martin cash call leaves a sputtering engine 15 Jul 2022 The luxury-car maker may raise 653 mln pounds from its shareholders and Saudi’s state fund. That would avert an imminent crash, and the terms are less painful than investors feared. But the group will still be laden with heavy borrowings amid a worrying economic backdrop.
SoftBank’s Fortress sale calls for an interloper 13 Jul 2022 The Japanese tech conglomerate may sell the asset manager to Abu Dhabi’s Mubadala wealth fund. The mooted price tag of over $1 bln looks embarrassingly cheap. SoftBank’s recent investing mishaps, like Klarna, should make boss Masayoshi Son open to a higher offer.
India’s energy-storage fix has virtue of speed 18 May 2022 As the West obsesses over building the perfect battery, Singapore- and Abu Dhabi-backed Greenko is launching the largest long-lasting renewable power-storage project. It’s a low-tech leap towards a greener energy system. Big customers like ArcelorMittal are lined up too.
Ex-Goldman conviction is partial justice for 1MDB 8 Apr 2022 A U.S. jury found Roger Ng guilty of corruption linked to the Malaysian fund. His ex-boss who helped organize the scheme may get a lesser penalty for cooperating with prosecutors; the Wall Street firm got off with a $5 bln fine. It’s an imperfect deterrent for future miscreants.
Russian economic collapse will be hard to avoid 28 Feb 2022 The central bank more than doubled its main policy rate to 20% to support the plunging rouble. It won’t be enough. But further hikes or capital controls would compound pain in an economy where Western sanctions are spurring a run on banks. Moscow has few viable policy options.
Turkish mobile spat exposes state fund weakness 10 Jan 2022 Billionaire Mikhail Fridman wants to overhaul Turkcell’s board to boost the $3 bln group’s valuation. Turkey’s state wealth fund, which appoints most of the directors, looks an obstacle. With stakes in other ailing companies like Turkish Airlines, it’s proving a poor custodian.
Switzerland has rich-world foreign reserve problem 15 Dec 2021 After years of intervening to curb franc strength, the central bank has amassed $1 trillion in foreign currency investments. A group of academics suggests converting this into a sovereign wealth fund but that would bring its own worries. Wisely investing so much money isn’t easy.
Nordic drug buyout flop highlights hidden gem 3 Dec 2021 The $8 bln takeover of Swedish Orphan Biovitrum failed after buyers could not secure 90% of the shares. The market reaction suggests the deal is dead. But investor AstraZeneca’s role in the failed bid and its interest in a respiratory disease treatment provides some comfort.
Capital Calls: Moderna’s $40 bln shot gain 29 Nov 2021 Concise views on global finance: News of a spreading Covid-19 variant added $40 bln to the biotech’s market value. Investors are pricing in about 3 billion extra jabs. That’s rosy given competition and uncertainty.
Capital Calls: Google, Twitter, Swedish grocer 10 Nov 2021 Concise views on global finance: The search giant’s defeat in appealing a $2.8 bln EU fine is tolerable if American judges don’t follow; the social media network hopes to charge hardcore U.S. users a monthly fee; ICA Gruppen’s top shareholder takes the $12 bln retailer private.
Newcastle bid suits Saudi more than UK soccer 7 Oct 2021 A consortium led by the kingdom’s Public Investment Fund may buy the northeastern club for 305 mln pounds. Saudi Arabia gets a storied team for a low price, and cheap PR. Yet having another deep-pocketed sovereign backer will further distort competition in British soccer.
Norway readies fresh round of green air guitar 14 Sep 2021 The Scandinavian state is on track for a left-wing coalition pledging to do more on climate change after eight years of conservative rule. But rapid cuts to national hydrocarbons output aren’t likely. Given Norway has a $1.4 trln wealth fund, it can afford to go beyond gesturing.
Capital Calls: Grill makers cook their IPOs rare 27 Jul 2021 Concise views on global finance: Weber and Traeger set conservative prices for their market debuts, leaving something on the table for new investors.
Italy sovereign wealth fund gets market friendlier 27 May 2021 Dario Scannapieco will run state investor Cassa Depositi e Prestiti. Under Fabrizio Palermo the $500 bln fund intervened boldly in M&A and hoovered up stakes in assets like Euronext. A change of the guard, under liberal Premier Mario Draghi, suggests a welcome recalibration.
North Sea oil IPOs had best take the plunge soon 24 May 2021 Ex-Centrica boss Sam Laidlaw is mulling a float that may see his Neptune Energy group valued at $10 bln. Equity markets are skittish and rival driller Wintershall Dea also wants to list. But question marks over gas demand make it riskier for owners CVC, Carlyle and CIC to wait.
Capital Calls: Endeavor’s Hollywood ending 29 Apr 2021 Concise views on global finance: The entertainment conglomerate’s IPO flipped the script on opening day.
Goldman’s 1MDB pain looks light next to AmBank’s 1 Mar 2021 The Malaysian lender is paying what equates to 30% of its market value for its part in the sovereign fund scandal, more than four times the Wall Street firm’s ratio. Domestic politics is at play, but AmBank’s fine is ominous for global banks yet to draw a line under the affair.
Indonesia builds sovereign fund with daring design 27 Nov 2020 Buyout firms and Gulf nations are being wooed to invest $15 bln in a government-backed mashup of Singaporean and Indian models. It’s an ambitious effort to finance President Joko Widodo’s development plans, but also faces limits on how much outside money will take the plunge.
Italian sovereign fund is a force to reckon with 20 Nov 2020 Fabrizio Palermo has turned 170-year-old CDP into a deal machine. Through his activism, Rome snagged stakes in Euronext and fintech star Nexi. If he gets another term as CEO, the urge to build champions won’t ebb. But the fund must prove it can keep politics at arm’s length.