Capital Calls: Olympics on TV, Abrdn 10 Aug 2021 Concise views on global finance: NBC Universal's prime-time viewers for the Tokyo games were only half as many as for London 2012, boding ill for traditional U.S. TV; the British asset manager formerly known as Standard Life Aberdeen may be turning the corner.
Capital Calls: Brookfield, Macquarie 9 Aug 2021 Concise views on global finance: An insurance wing of the Canadian financial empire may bring a dash of risk to a conservative Texan insurer, while Australian investment bank Macquarie has snapped up a stake in British utility Southern Water.
Review: WeWork’s debacle had many enablers 6 Aug 2021 Founder Adam Neumann led the hyping-up of the office-sharing upstart, once purported to be worth nearly $50 bln. But he was far from alone. “The Cult of We” by Eliot Brown and Maureen Farrell exposes how banks, return-chasing investors and the media danced around the red flags.
LSEG data drive shows everywhere except its stock 6 Aug 2021 Financial information now brings in roughly two-thirds of the $60 bln London Stock Exchange owner’s revenue. Yet its shares trade closer to European exchange operators than more highly valued data purveyors. CEO David Schwimmer faces a long haul to win over sceptical investors.
Capital Calls: U.S. jobs, BBQ IPOs, Wm Morrison 6 Aug 2021 Concise views on global finance: The Delta variant puts a leisure job boom at risk; two grill makers’ floats show the IPO market isn’t frozen; Fortress strikes in the bidding war for a UK supermarket.
South Korea’s fintech wars put banks on back foot 6 Aug 2021 Web giant Kakao’s digital bank and payments affiliates are going public while rival Toss raised funds at a $7.4 bln valuation. Up for grabs is the country’s $1 trln lending market. The digital disruptors’ early gains in retail loans spell trouble ahead for incumbents.
Asia $5 bln property deal builds on a big pivot 5 Aug 2021 Hong Kong-listed ESR is buying fellow real estate manager ARA, its second big acquisition in months. It’s a bet that asset owners want to swap their offices and shops for exposure to fast-growing logistics and data centres. The region’s expanding REIT markets will help.
Viewsroom: Jack Dorsey takes a trip Down Under 5 Aug 2021 Square’s $29 bln takeover of Aussie fintech darling Afterpay shines a light on the “buy now, pay later” craze, which poses a big challenge to many established players in the banking and payments businesses, argue Melbourne-based editors Jeff Goldfarb and Antony Currie.
Uber’s M&A ride is yet to bring five-star result 4 Aug 2021 The $80 bln ride-hailing firm has invested in more than 20 businesses and sold nearly as many since 2017. More focused rival Lyft reached profit by one measure in the second quarter. Despite some smart exits and merges, Uber's multiple lanes have yet to get it there.
Chancellor: Bringing down the Red Curtain 4 Aug 2021 Recent shocks from Beijing are reminders that while investors in the West are protected by the rule of law, China’s markets are characterised by the “rule by law”. Investors shouldn’t forget Beijing has the final say on how capital is allocated and who gets paid and who doesn’t.
Capital Calls: Grab, Gaming, SocGen, Stellantis 3 Aug 2021 Concise views on global finance: The Southeast Asian super-app delivers some of the goods; Tencent shares tank after Chinese state-media criticism; the French lender’s investment bank overhauls goals; the carmaker hikes operating margin targets to a chunky 10%.
Li Auto’s Hong Kong debut extends battery hedge 3 Aug 2021 The New York-traded carmaker aims to raise $1.9 billion by adding an HKEX listing. Unlike peers Xpeng and Nio, it sells hybrids, with no pure-electric models on the road until 2023. It’s a wager on a slower energy transition in China that could bring profitability before rivals.
Alibaba can shake off its China discount 2 Aug 2021 The e-commerce titan's shares have tumbled 40% from an October 2020 peak as Beijing cracks down on tech. It’s now trading at a big discount to Amazon even though both are growing profit at about the same rate. Alibaba's resilient businesses should help the valuation gap narrow.
Evergrande’s fire sale risks too little too late 2 Aug 2021 The indebted developer sold stakes worth $418 mln in media unit HengTen to buyers including Tencent after its shares tanked. But it is also lending HengTen $260 mln for five years, interest-free. With its stock and bonds plunging, this deal looks both stubborn and desperate.
Grab’s tiny deal spotlights big Indonesia turf war 30 Jul 2021 A deal to shore up ties with a Jakarta conglomerate recalls the country’s importance for the super-app’s growth ahead of its $40 bln New York debut, and as top local rivals merge. Grab’s Southeast Asian footprint has benefits, but Indonesia carries outsize strategic value.
IPO U-turn is probably Didi’s most sensible route 29 Jul 2021 The beleaguered $40 bln Chinese ride-hailing group denied a report that it plans to go private a month after its U.S. debut. Changing course would be embarrassing and quite costly. But it may be the best way to get back in Beijing’s good graces amid a continuing crackdown.
Viewsroom: Climate transition, Chinese stocks 29 Jul 2021 Some of the biggest investors, including Brookfield and TPG, are launching mega-funds to invest in the global transition to a net-zero economy in what could be the ultimate new asset class. Richard Beales and Rob Cox discuss. Plus, Beijing’s crackdown on after-school tutoring.
Capital Calls: U.S. GDP 29 Jul 2021 Concise views on global finance: Supply chain woes are tripping up solid U.S. economic growth. GDP grew 6.5% in the second quarter, a big miss from estimates of 8.5%.
Apollo SPAC offers cheap ride on EV hype freeway 28 Jul 2021 Electric vehicle charging group Allego is listing through one of the buyout firm’s blank-cheque companies for $3 bln. It’s a crowded space, but a valuation multiple of 5 times 2024 sales is less racy than rivals. Still, only booming battery car demand will avoid a short-circuit.
Temping giant pays rich price for staying power 28 Jul 2021 Switzerland’s Adecco will buy Belgium’s Akka for $2.3 bln. The deal accelerates its shift towards technology consulting and away from low-growth businesses like short-term office workers. But the returns seem thin and rely partly on revenue boosters, which look challenging.