Exchanges/Platforms

Hong Kong bourse needs Beijing to calm down

11 Aug 2021

A bumper first-half profit thanks to record trading volumes and an IPO flood help justify the $84 bln group’s premium over rival exchanges, at 41 times forecast earnings. But such optimism won’t survive more regulatory mood swings, and HKEX has no way to hedge them.

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.

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%.

Capital Calls: Volvo, Moderna, Mediobanca

21 Jul 2021

Concise views on global finance: The Swedish automaker boosts its appeal ahead of a possible IPO by buying out its Chinese joint venture partner; joining the S&P 500 will cut both ways for the vaccine maker; another Italian tycoon ups his stake in the Italian investment bank.

Capital Calls: Intel, SPAC lobby

16 Jul 2021

Concise views on global finance: Buying GlobalFoundries would boost Intel’s ambitions to make chips for other firms, but spinning it off afterward might please investors more; a new D.C. group sets up shop to defend the blank-check craze.

Chancellor: Robinhood is more sheriff than rebel

15 Jul 2021

Like its many antecedents during previous bubbles, the app-based stockbroker claims a mission to “democratise finance for all”. But the $40 bln startup is more a creature of Wall Street and Silicon Valley than its clients may understand. The long-term risk is a people’s revolt.

Capital Calls: Gates split, Chinese IPOs, Telenor

8 Jul 2021

Concise views on global finance: Bill and Melinda Gates agree a post-divorce plan for their joint charitable organisation; medical data firm LinkDoc is among the first to pull its U.S. listing; the Norwegian telco gets just $105 mln for unit hobbled by Myanmar junta.

Chinese IPO detour benefits Hong Kong only so much

8 Jul 2021

Didi’s U.S. listing debacle has lifted expectations that more mainland companies will go public closer to home. New York’s star may be dimming, but Beijing’s crackdown on overseas market debuts sounds sweeping. Even the Asian financial hub’s $80 bln bourse faces fresh hurdles.

Capital Calls: U.S. jobs, Fitness IPO

7 Jul 2021

Concise views on global finance: U.S. employment vacancies tip scales towards workers; Mark Wahlberg-backed F45’s IPO values it at twice what an attempted SPAC deal did last year, justifiably.

Wise’s low-fee vision goes blurry in London float

7 Jul 2021

The money-changing app is paying Goldman Sachs and others 13 mln pounds for its direct stock market listing. That’s steep relative to the tiny number of shares on offer, though investors benefit from future liquidity. Either way, it’s more ambiguous than Wise’s cheap FX rates.

Capital Calls: JEDI’s demise, Toyota’s weird world

6 Jul 2021

Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.

How much is Wise worth?

5 Jul 2021

The money-changing app is listing in London without setting a price. Its worth depends largely on how much more foreign-exchange business CEO Kristo Käärmann can win from banks. A Breakingviews calculator shows Wise is due a roughly 20% upgrade from last year’s $5 bln price tag.

Wise’s FX land grab merits $6 bln valuation

5 Jul 2021

The money-changing app is listing in London without setting a price. Its worth depends largely on how much more foreign-exchange business CEO Kristo Käärmann can win from banks. A Breakingviews calculator shows Wise is due a roughly 20% upgrade from last year’s $5 bln price tag.

Goldman’s big $62 mln China STAR deal has limits

30 Jun 2021

The Wall Street bank is investing its own funds in Beigene’s Shanghai float. It’s a requirement to lead listings on the startup market and a due diligence nightmare for banks. Goldman’s backing of an existing $34 bln client will be hard to repeat.

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.

Fintech Wise’s hybrid IPO may be a one-off for UK

17 Jun 2021

Like Spotify in the U.S., the money transfer group will list in London without inviting bids from would-be investors. A direct listing is alluring, but only open to companies that don’t need cash and already have a base of external shareholders. Few other hopefuls fit the bill.

Capital Calls: Corporate America blowback

15 Jun 2021

Concise views on global finance: An investor lawsuit against Trump-era rules on shareholders' proposals is the latest sign of the tables turning.

Chancellor: This time isn’t different, but scarier

3 Jun 2021

By any number of proven valuation measures American stocks are poised to deliver negative returns in future years. To believe otherwise is to suggest that “this time is different” – four of the most dangerous words in investing parlance. Active managers will have their day.

Investors place bold bets in UK deal tussle

28 May 2021

Shares in five takeover targets including Spire Healthcare and John Laing are trading at or above agreed offers. Big shareholders like Allianz are protesting lowball bids while merger arbitrageurs are betting on higher prices. But buyers have plenty of reasons to hold firm.