Exchanges/Platforms

Yuan’s fall would be a gift to Bank of Japan

16 Dec 2024

Talk of devaluation by Beijing to blunt any impact of an aggressive ratcheting up of US tariffs is jolting currency markets primed for a trade war. A drop in the renminbi would weigh on Japan's yen especially. That's not necessarily bad news for Governor Kazuo Ueda.

Delivery Hero investors’ meal is stuck in traffic

13 Dec 2024

Shares in the $9.5 bln online takeaway group have dipped since it sold a $2 bln stake in its Middle East unit through a Dubai IPO. CEO Niklas Östberg can now cut net debt, but many of his businesses still burn cash. A more comprehensive breakup may be the best option on the menu.

Ashtead is out of reasons to stay in London

10 Dec 2024

The $31 bln equipment-rental group plans to shift its main listing to New York. It makes sense since most earnings come from the US. Throw in the prospect of higher CEO pay and President-elect Donald Trump’s America First stance, and the switch looks like a no-brainer.

Shein IPO is test of UK market discipline

6 Dec 2024

Britain’s financial watchdog may bless the fast-fashion group’s possible $64 bln listing, leaving investors to gauge the risks in its supply chain. Yet passive funds and soft disclosure rules limit shareholders’ ability to price such factors. Better transparency would help.

Currency drop worsens Moscow’s stagflation fears

29 Nov 2024

The Russian central bank may have to hike interest rates from an already high 21% after this week’s rouble meltdown, caused by US sanctions on a key bank. But its real problem is that inflation keeps rising as the economy is slowing, deepening fears of a crash-landing.

A financial historian’s warning about the AI boom

26 Nov 2024

Artificial intelligence hopes have unleashed an investment frenzy, propelling chip giant Nvidia’s value to $3.5 trln. In this episode of The Big View podcast, mathematician Andrew Odlyzko explores parallels with the 1990s dotcom bubble and Britain’s railway mania of the 1840s.

There are few good ways out of China’s stock slump

21 Nov 2024

Despite a recent bounce driven by stimulus hopes, the country’s benchmark equity index is down by nearly a third in the past three-and-a-half years. Though valuations look cheap, Donald Trump’s return to the White House could lead to even worse outcomes for investors.

Trump 2.0 will see more European firms do a Holcim

18 Nov 2024

The $56 bln Swiss building materials group is splitting off its US unit and listing it separately. Some CEOs may think President-elect Donald Trump will spur a growth spurt. Fear of missing out, and a huge valuation gap, will make other European companies ponder similar moves.

UK mistakes City liberalisation for a growth plan

15 Nov 2024

Finance minister Rachel Reeves wants to unleash the 153-bln-pound financial sector to boost the economy. It’s not clear that her reforms so far, like a share-trading venue for private companies, will do that. Meatier deregulation, meanwhile, would raise the risk of future crises.

Investors ignore the law of long-term averages

14 Nov 2024

US stocks are trading at 38 times cyclically adjusted earnings, near the most expensive level ever on that measure. For more than two decades, equities have defied predictions that valuations return to the historical mean. Yet conditions which enabled juicy returns are fading.

Shein margin wobble takes bite out of IPO value

14 Nov 2024

The e-commerce giant’s revenue growth slumped in the first half of 2024, and the net margin fell to 2% per The Information. Even if the business recovers, it creates uncertainty that’s compounded by a protectionist US government. Investors may struggle to see the upside.

Italy has more to gain from France’s pain

14 Oct 2024

Rome borrowing costs are converging with Paris. Prime Minister Giorgia Meloni’s stable government is pledging to contain its deficit and pushing through reforms, at a time when its peer is in turmoil. To press home the advantage, though, Meloni will need to take bolder action.

China’s stock market bazooka is yet to fire

10 Oct 2024

The People’s Republic recently unveiled a raft of measures to solve a housing bust and support the market, producing a pop of post-vacation enthusiasm. That’s now waning as investors await a bigger move. In this Viewsroom podcast, Breakingviews columnists discuss what comes next.

Hong Kong economic pain is marginal gain for LME

4 Oct 2024

Port activity and land prices have fallen so far that the London Metal Exchange is eyeing warehouses in the financial hub. That may spur more Chinese buyers to use the bourse. But despite more than a decade of Hong Kong ownership, storage in mainland China remains out of reach.

China and India reveal emerging market mistakes

3 Oct 2024

Investors often assume stocks in developing countries track economic growth, while valuations are a guide to future returns. The diverging path of Chinese and Indian equities over the past decade shows the flaws in this approach. Better to pay attention to capital efficiency.

China brokerage deal has more bark than bite

9 Sep 2024

The merger of Guotai Junan and embattled rival Haitong will create the country’s largest brokerage with assets of $225 bln. The overcrowded sector needs consolidation, but this deal probably won’t aid Beijing’s goal to foster a squad of world-beating investment banks.

Investors’ black-tinted glasses obscure Fed’s role

5 Aug 2024

Stocks are sinking, with major indexes down 6% or more in August. High tech valuations and Japan’s monetary policy are factors. But a US recession is a bigger fear. Workers and consumers are suffering, but not enough for Fed boss Jay Powell to slash rates as much as traders hope.

European boards have too little skin in the game

17 Jul 2024

Non-executive directors at big US companies get 60% of their pay in equity. That’s rare in Britain, France and Germany, where many board members own a slither of stock. Cash fees warp incentives, discourage engagement, and risk making Europe’s capital markets less competitive.

European board pay requires a US-style overhaul

16 Jul 2024

Non-executive directors at UK and EU-based firms own little equity in the companies they oversee. In this Exchange podcast, Liad Meidar of the hedge fund Gatemore argues that this is a problem, while Peter Boreham of the pay consultancy Mercer explains why it’s hard to change.

Li clan take a tiny step to beat China value trap

12 Jul 2024

A plan for an additional listing, possibly in London, for their $15 bln infra company will allow investors shunning Hong Kong to buy the stock. As for CKI's larger parent, its revenue is globally diversified. The family faces a long slog to limit damage from its China roots.