Capital Calls: AMC, German pet retailer 8 Sep 2021 Concise views on global finance: The movie theater chain enjoyed bumper Labor Day attendance; a trio of private equity suitors are circling Zooplus.
Nio share sale copies one of Tesla’s better tricks 8 Sep 2021 The electric-car maker plans to boost its balance sheet by raising $2 bln, despite rising sales and a chunky cash pile. Like Elon Musk last year, CEO William Li is raising funds while he can, not when he needs to. That’s wise: Rich valuations make both vulnerable to setbacks.
Morgan Stanley boldly sidesteps record India IPO 8 Sep 2021 The Wall Street firm didn’t pitch for the $14 bln debut of state-owned insurer LIC. Sure, fees are painfully low. But the deal brings bragging rights and government brownie points and looks more straightforward than, say, the Saudi Aramco sale. Yet there’s logic to the move.
El Salvador takes a risky punt on crypto 7 Sep 2021 Bitcoin is now an official currency in the Central American republic, alongside the U.S. dollar. There are potential benefits for a country that is so dependent on remittances from abroad, but President Nayib Bukele’s pioneering move has way too many downsides.
Crypto poses systemic risks that need swift remedy 7 Sep 2021 Digital currency trading venues are a $2 trln industry while some coins, like Tether, are backed by fiat currencies. If money markets freeze up, their positions are so large that they could have ripple effects. Watchdogs are classically behind in reining in the market.
Capital Calls: UK interventions, Post-virus reset 7 Sep 2021 Concise views on global finance: U.S. bidder TransDigm’s withdrawal from the $8.7 bln race for Meggitt removes a tricky decision for the government; Boris Johnson’s new proposals will address social care but not generational wealth divides.
The Exchange: Adam Tooze on the pandemic 7 Sep 2021 2020 was one of the most seismic years in world history. The Columbia University professor’s new book, “Shutdown”, recaps the events and offers some conclusions about where Covid-19 has left the planet. Tooze tells Peter Thal Larsen why it might be a dry run for future crises.
D.Telekom finds good route to poor destination 7 Sep 2021 The 85 bln euro German carrier is upping its stake in T-Mobile US by 5% to near-majority ownership. Doing so via a share swap with Japan’s SoftBank is better than handing over $8 bln in cash. Yet it exacerbates the problem of DT investors valuing U.S. assets at a discount.
Electric vehicles will short-circuit car dealers 7 Sep 2021 Booming auto sales have buoyed shares in middlemen like $7.6 bln U.S.-based AutoNation and $357 mln UK-listed Pendragon. Battery rides need fewer parts and rely on over-the-air software updates. That’s great for carmakers but means dealerships risk becoming glorified garages.
Beijing puts misplaced stock in new exchange 7 Sep 2021 President Xi is launching a bourse in China’s capital to fund small firms. It could bolster the fortunes of its parent, the New Third Board, which targets the same companies. But diverting liquidity from Shanghai and Shenzhen into a new pool will leave businesses no better off.
Capital Calls: JD.com shakeup 6 Sep 2021 Concise views on global finance: New appointments at the $126 billion Chinese e-commerce giant hint at succession planning.
VW-style tech hype calls for defensive driving 6 Sep 2021 CEO Herbert Diess says the “gamechanger” for his industry will be software and autonomous cars, with the former a $1.4 trln global market by 2030. Such a Panglossian take relies on fleets of robo-taxis and driver-downloads galore, plus manoeuvring past tech leaders like Alphabet.
China’s tech sector gets dragged off hamster wheel 3 Sep 2021 Companies like ByteDance and Meituan are cutting back work hours and improving benefits and labour protection, as Beijing pushes to reduce overwork and promote family life. Some companies may take short-term hits to profitability, but it could help improve focus and productivity.
Viewsroom: Scoring Ronaldo’s return to Man Utd 2 Sep 2021 Shareholders cheered the prolific Portuguese striker’s surprise decision to rejoin his former club in England. His three-year stint at Juventus, though, was hardly a clear financial victory. Plus: An $80 bln IPO valuation for electric-truck maker Rivian would be too racy.
Capital Calls: New York City is on climate notice 2 Sep 2021 Concise views on global finance: Cities with a higher number of wealthier residents will be able to combat climate related events.
South Korea’s app-store sandbox is worth watching 1 Sep 2021 A new bill stops Apple and Google from forcing local developers to use their payment systems, which carry hefty commissions. It’s good for the country’s tech champions, like the $60 bln Kakao. But it’s only worth copying elsewhere if users end up with cheaper or better services.
Prosus pushes hard on Indian fintech door 31 Aug 2021 The tech investor is paying $4.7 bln for payment processor BillDesk. That transforms its PayU operation and provides a profitable base to extend credit. The multiple of 19 times revenue is punchy, but a fraction of Paytm. And it’s a strong foothold in a big emerging market.
Italian data land grab comes at a price 31 Aug 2021 Fintech group ION has upped its bid for risk intelligence provider Cerved to 2 bln euros. An overall premium of 45% reflects growing demand for financial information. Offloading Cerved’s debt collection unit, worth perhaps 400 mln euros, would help recoup some of the cost.
Capital Calls: Bharti Airtel 30 Aug 2021 Concise views on global finance: The telecom operator’s $2.9 bln rights issue will widen the gap with its next rival.
Capital Calls: Forbes catches SPAC wave 27 Aug 2021 Concise views on global finance: The business brand and magazine has agreed to merge with a blank-check firm in a $630 million deal, upping its value since last time it changed hands.