Cancer biotech’s triple listing has singular risk 13 Dec 2021 Beigene is raising $3.3 bln on Shanghai’s STAR market, making it the first company to trade there and in New York and Hong Kong. That suits its ambition to be seen as a global business and gives it enviable funding options. But its listing largesse is at the mercy of geopolitics.
Xi’s new year’s resolutions are hard balancing act 13 Dec 2021 China's president wants to tap the brakes on tech and other crackdowns in 2022. He's also softening his energy-transition stance while pushing for more infrastructure. Yet he plans no U-turns on property or how regions raise funds. Officials will be walking a tightrope to comply.
The Exchange: Breakingviews at Reuters Next 9 Dec 2021 At the global conference, our columnists interviewed the movers and shakers at Ola Electric, Philip Morris, ViacomCBS and Klarna about disruption at scale in India, the challenges of making bold corporate transitions in tobacco and media, and Europe’s fintech frenzy.
Capital Calls: Securitas 8 Dec 2021 Concise views on global finance: The Swedish security specialist’s acquisition of Stanley Black & Decker’s alarms unit should boost growth and margins.
Apple’s ugly China deal mostly bought time 8 Dec 2021 The iPhone maker in 2016 secretly promised Beijing $275 bln of investment in exchange for relaxing pressure on its business, per a new report. The sum exceeds its sales in the country since then. Boss Tim Cook may have had little choice, but it muddles the return calculus.
LG’s $11 bln battery spinoff is fully charged 8 Dec 2021 The South Korean group is eyeing a $60 bln valuation for its crown jewel in what could be the country's biggest IPO. The hot play on electric vehicles hopes to entice investors by offering a discount to peer CATL. LG's track record of recalls, though, warrants caution.
Capital Calls: Microsoft, AT&T, American Airlines 7 Dec 2021 Concise views on global finance: Microsoft is finally being scrutinized with Europe’s probe of its $16 bln Nuance deal; U.S. lawmakers have antitrust worries about the telecom firm’s Discovery deal; American Airlines’ retiring CEO leaves shareholders short-changed.
Alibaba’s new CFO signals shifting priorities 6 Dec 2021 The Chinese e-commerce company, whose market value has halved to $300 bln this year, is replacing finance chief Maggie Wu. During her seven-year tenure, Alibaba successfully courted foreign investors. Successor Toby Xu’s experience suggests there will be a greater focus at home.
Didi faces long and perilous journey to Hong Kong 3 Dec 2021 The $38 bln ride-hailing group is eschewing its New York listing for one in the Asian hub amid pressure from Beijing. A take-private would be costly; migrating American depositary receipts could be tricky. Didi will have to navigate Hong Kong's tougher IPO requirements too.
Alibaba looms larger than Beijing in Weibo IPO 3 Dec 2021 China's $8 bln answer to Twitter is readying a secondary listing in Hong Kong. The company’s sway over public opinion means it is a frequent target of censorship campaigns and regulatory crackdowns. That makes the e-commerce giant's 30% stake a political liability for both.
Super-app Grab gets rear-ended 3 Dec 2021 The group’s shares plunged 20% on debut following its $31 bln SPAC merger. Unlike China’s Didi or India’s Paytm, the crash wasn't so much its fault; the Altimeter- and Temasek-backed deal was well-enough constructed. But Grab is in a market pile-up that won’t clear soon.
SenseTime IPO could help HSBC gain recognition 26 Nov 2021 It’s the only Western lead adviser on the AI dragon’s mooted $2 bln Hong Kong market debut. The issuer’s spot on a U.S. blacklist adds a degree of difficulty to the large Chinese stock sale. That makes it an especially bold way to showcase renewed investment banking ambitions.
Pinduoduo’s strategy sows further seeds of doubt 25 Nov 2021 The Chinese e-commerce company rocketed to relevance by single-mindedly challenging Alibaba. Following policy crackdowns and rising costs, it’s expected to swing back to a quarterly operating loss. New boss Chen Lei would benefit from looking beyond farming for additional growth.
Paytm battering targets raw valuation underbelly 24 Nov 2021 India’s fintech giant is worth $13 bln after a 31% post-IPO drop. That remains exuberant at 26 times sales. The company is still growing, but revenue pressure is a concern, and costs are high. Success requires official help on fees and lending. That’s far from guaranteed.
Paytm IPO ends Morgan Stanley India winning streak 19 Nov 2021 The fintech firm’s 27% first-day drop contrasts with pops the Wall Street giant oversaw for Nykaa and others. Paytm execs and powerful buyers and sellers like Alibaba, SoftBank, and BlackRock all played a role in the fiasco. But as lead bank Morgan Stanley has most to lose.
Silicon Valley can’t slice and dice lower returns 29 Oct 2021 Veteran Sequoia is ditching its traditional VC model in favor of allowing the fund to hold assets indefinitely. It’s an effort to stay competitive as SPACs and others bid up unicorns. But extraordinary valuations and founders with the catbird seat can’t be papered over.
Sony seizes best of hardware and software worlds 28 Oct 2021 Sales of PlayStation consoles and other consumer electronics helped power quarterly sales to $21 bln. Games, music and movies shone too, as boss Kenichiro Yoshida doubles down on content. Even better for investors, a more cohesive strategy linking the different units is emerging.
Frankenstein’s watchdog can tame Big Tech monster 25 Oct 2021 Combining FCC-style oversight of U.S. broadcast stations with the OCC’s supervision of banks and FDA’s drug vetting could bring needed policing to firms like Facebook. Being regulated by an uber monitor is a nuisance. But it isn’t unprecedented and may even diffuse some vitriol.
Viewsroom: Electric-car global roundup; Facebook 7 Oct 2021 Rivian drops its IPO prospectus, Volvo readies its public market return, Hertz brings on a car guy and GM gets a thumbs up from Engine No. 1. Antony Currie puts it all together. And what does Facebook’s outage mean for shareholders? Gina Chon and Richard Beales weigh in.
Capital Calls: American healthcare exceptionalism 27 Sep 2021 Concise views on global finance: American male life expectancy at birth dropped over 2 years in 2020, the worst among 29 nations. That raises the stakes in a healthcare crisis among working-age people that even the mightiest U.S. employers have so far failed to solve.