Capital Calls: U.S. jobs, Didi probe, Pharma LBO 2 Jul 2021 Concise views on global finance: The U.S. added 850,000 jobs in June but the recovery isn't happening everywhere. Meanwhile, Didi is hit with an investigation by a Chinese regulator days after its U.S. listing, and a pharma buyout by EQT and Goldman is a game of hot potato.
Capital Calls: It sure feels good to be a banker 1 Jul 2021 Concise views on global finance: Global deals in the first half of the year broke all records.
Big Tech trustbusters need to disrupt themselves 30 Jun 2021 A U.S. judge tossed out a government suit against Facebook mainly because the FTC didn’t show how to measure the social network’s market share of a service people don't pay for – despite saying it was 60%-plus – or name competitors. Regulators need to rethink their toolbox.
Wall Street enlists Main Street for IPO advantage 29 Jun 2021 Clear Secure’s underwriters are allocating 1% of its offering to trading platform Robinhood. That tips bankers off if the airport security firm creates retail buzz. If so, it should enable them to leave less value on the table while also giving Robinhood traders a chance to play.
Drahi’s mystery pounce gives BT plenty to ponder 28 Jun 2021 The Franco-Israeli tycoon may have used derivatives to collar 12% of the British telco. Such deals typically cap an investor’s economic exposure. Buying the underlying shares would align his interests with those of other holders and let him benefit from a BT broadband shakeup.
Capital Calls: Genetic gold rush 28 Jun 2021 Concise views on global finance: A company has shown biotechnology called CRISPR can precisely edit defective genes in humans, fueling investment and squabbles.
Review: Reining in the crypto-fanatics 25 Jun 2021 Ex-Swift executives Gottfried Leibbrandt and Natasha de Terán traverse the payments world in “The Pay Off”. Anecdotes and explanations lend pace and purpose. But despite warnings about central bank digital currencies and other novelties, they ask more questions than they answer.
Capital Calls: Microsoft, U.S. bank footprint 25 Jun 2021 Concise views on global finance: The $2 trillion software giant’s avoidance of antitrust scrutiny may be coming to an end; a new study challenges the received wisdom that American banks do better in faster-growing states.
Amazon’s lax policy on waste belongs in the bin 24 Jun 2021 The $1.8 trln retailer has been destroying millions of unsold items in the UK alone, ITV says. For now Amazon is benefitting from a lack of net zero emissions-style global standards on waste, and a grey area over unsold stock liability. It should be prepared for that to change.
Capital Calls: Infrastructure, Doximity, Deliveroo 24 Jun 2021 Concise views on global finance: President Biden’s $1 trln bipartisan plan for U.S. infrastructure is a feat of political engineering. Meanwhile, medical-themed social network Doximity finds riches in niches, and UK delivery outfit Deliveroo serves up a favorable court ruling.
Profitability makes Wise a true fintech unicorn 23 Jun 2021 Like financial-technology rivals, the UK money-changing group has a snazzy app and disruptive business model. What sets it apart is healthy earnings. Big banks can’t match its service without parting with fees worth $250 bln a year. Smaller ones may end up using Wise’s service.
Capital Calls: Schwarzman’s double tax speak 23 Jun 2021 Concise views on global finance: The founder of Blackstone has a love-hate relationship with capital gains changes.
Battery deficit risks UK driving electric jalopy 22 Jun 2021 Britain needs more so-called gigafactories to supply power for green cars, ahead of import caps and a ban from 2030 on gas guzzlers. Current expansion plans may electrify just 20% of local output from BMW, Nissan and others. Prime Minister Boris Johnson faces an uphill drive.
CNH pays hefty price for driverless tractor ride 21 Jun 2021 The Italian-American agricultural equipment group is paying $2.1 bln for Raven Industries, which makes tech for autonomous farm machines. With few cost savings, the multiple of almost 40 times EBITDA looks rich. CNH will need a big sales boost to harvest a decent return.
Airport security fast-tracker jumps the IPO line 18 Jun 2021 Clear, the U.S. firm that allows people to cut security lines for $179 a year, wants to go public. With vaccine checks on the horizon and the U.S. government as a new client, it has a promising path to fly as a public company, so long as its valuation stays in the $2 bln range.
Capital Calls: JPMorgan, French SPAC, Jessica Alba 17 Jun 2021 Concise views on global finance: Jamie Dimon bulks up his nascent UK digital banking offer by buying Nutmeg; France boosts its lowly SPAC league-table position with two blank-cheque vehicles; the Hollywood star’s consumer packaged goods company Honest encounters growing pains.
Didi IPO runs into flashing regulatory yield sign 17 Jun 2021 Beijing trustbusters are probing the ride-hailing giant as it readies a market debut. Its dominance at home depends less on the anticompetitive tactics used by tech peers. Abrupt crackdowns on Ant and other industries, however, mean investors have been warned of the risks.
Toshiba’s scandal-hit board is on borrowed time 17 Jun 2021 The $20 bln Japanese conglomerate sacrificed just two directors after an inquiry judged insiders colluded with government officials to block activists. Yet all the top brass are tainted by association. Transparently phasing in their replacements would help rebuild investor trust.
Waymo proves moonshots work better in the dark 16 Jun 2021 Alphabet’s self-driving unit snagged $2.5 bln of new funding despite executive departures and slow progress on its driverless cars. Waymo dealt with its potholes in private. Speculative businesses going public through SPACs may not get the chance to learn from their mistakes.
Data IPO is bet vs. Amazon, Google and Microsoft 16 Jun 2021 Confluent, which helps companies knit together streams of data, is seeking an $8 bln valuation. Revenue quadrupled from 2018 to 2020. But that's not enough to justify a toppy valuation multiple when cloud competitors include three of the four biggest tech groups on the planet.