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Hedge funds take third strike vs. U.S. watchdogs

29 Mar 2021

So far Archegos’ default hasn’t matched the systemic impact of other crises. But last year short-term funding stresses forced a U.S. government backstop. Then there was the GameStop roller coaster. The industry can only sustain so many misses before regulators say enough.

ESG wave crashes into Volkswagen’s narrow straits

26 Mar 2021

U.S. eco-investors have pushed ordinary shares in the $153 bln automaker way above equal preference stock after CEO Herbert Diess upgraded battery car plans. Investors’ need for voting rights plus VW’s small free-float may explain why. But the lack of clarity invites a snapback.

Carbon markets have a Goldilocks problem

24 Mar 2021

Europe’s lowball carbon prices used to be a joke. Since the EU acted to clear a permit glut, they’ve spiked above 40 euros a tonne to a level just right to drive CO2 cuts. The challenge is to stop a political backlash if financial interlopers ramp prices too far, too quickly.

Naspers can tackle one-third of Tencent problem

19 Mar 2021

Despite listing a Dutch subsidiary in 2019, the South African company still trades at a big discount to its $239 bln stake in the Chinese internet giant. Its inability and unwillingness to sell are enduring factors. An outsize weight on the Johannesburg bourse is easier to fix.

BNP Exane deal takes equities dream an inch closer

11 Mar 2021

The $78 bln French lender will buy the rest of the brokerage it doesn’t own. The deal offers savings and better research to sell to clients. But CEO Jean-Laurent Bonnafé’s hope of challenging dominant U.S. banks requires other rivals to exit the business, like Deutsche.

Capital Calls: Digital art

11 Mar 2021

Concise views on global finance in the Covid-19 era: A blockchain-protected work by Beeple sold for $69 million at Christie's.

Britain’s zeal for financial reform could backfire

8 Mar 2021

Finance minister Rishi Sunak has endorsed changing rules to promote stock market listings and fintech. Insurance may be next. The drive not only risks a return to the pre-2008 “light touch” approach to oversight. It also makes financial services deals with other countries harder.

London IPO shakeup is more about SPACs than tech

3 Mar 2021

Finance minister Rishi Sunak plans to overhaul stock market rules to attract more listings. The changes may prevent some UK startups from defecting. But they also allow London to join the craze for blank-cheque offerings. The costs of weaker regulation will become apparent later.

Sustainable debt may be too popular for own good

2 Mar 2021

Investors are piling into bonds sold by companies such as H&M or Tesco which punish issuers for missing environmental targets. Demand has been such that the funding is now dirt-cheap. That could distort the price of the securities, and their intended effect.

Review: The wild history of the commodities boys

26 Feb 2021

“The World for Sale” offers a virtuoso depiction of the globe’s top oil, food, and metals traders. Javier Blas and Jack Farchy tell of their startling risk appetites, spy novel antics, and geopolitical heft. Still, it’s good that their wings have been increasingly clipped.

Capital Calls: Deloitte castoff, Banks and Brexit

15 Feb 2021

Concise views on global finance in the Covid-19 era: The UK auditor chooses an unfortunate moment to offload its lucrative restructuring practice; The Bank of England pours cold water on the idea of a regulatory bonfire after Britain leaves the European Union.

Trading exodus is skirmish in City’s EU perma-war

11 Feb 2021

Some dealing in shares and derivatives shifted out of London in January after European regulators declined to recognise their UK counterparts. The tussle is a taster for bigger fights over clearing and fund management. Britain has many advantages, but few good ways to fight back.

New Hong Kong bourse boss keeps eye beyond China

9 Feb 2021

Hiring JPMorgan’s international private bank chief Nicolas Aguzin signals overseas ambitions even after Charles Li’s failed attempt to buy the LSE. HKEX Chairman Laura Cha can help with Beijing. The bigger tasks will be to keep foreign investors sweet and the gateway opening.

LSE’s big deal makes its fortunes data-dependent

1 Feb 2021

The London Stock Exchange Group’s takeover of Refinitiv, which has closed after 18 months, lifts its value to $82 bln including debt. Most revenue now comes from charging for information, not handling trades. Investors aren’t giving CEO David Schwimmer full credit for the shift.

Short squeezers could end up strangling themselves

27 Jan 2021

Heavily shorted European stocks like Pearson, Cineworld and Ambu surged on Wednesday morning. The craze of trying to force hedge funds and market makers to cover their bearish positions has spread beyond the U.S. It increases the risk of the squeezers ending up with a dud.

LSE deal sets lucrative standard for M&A advice

10 Dec 2020

CEO David Schwimmer, formerly of Goldman Sachs, seems to have done his old buddies a favour: fees on the exchange group’s $27 bln takeover of data provider Refinitiv exceed $1 bln. It reflects long regulatory reviews and the target’s complex finances. Both are becoming the norm.

Corona Capital: Chevron, Boeing, OPEC, Orange

3 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Chevron cuts spending, prudently; Boeing orders are a solid step; OPEC makes up its mind; and Orange’s Belgian deal has some juice.

Will ICE let another big fish wriggle away?

1 Dec 2020

The $59 bln stock exchange operator watched LSE grab Refinitiv, and now stands on the sidelines as S&P gobbles up IHS Markit. It has proven to be a disciplined deal-doer, and IHS is relatively expensive. Still the companies could fit, and ICE may be tempted to jump in.

Corona Capital: Record Dow, Basketball, GoCompare

25 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Vaccine optimism shunts the blue-chip Dow Jones index through 30,000; U.S. college basketball gets back on the court; and UK publisher Future snaps up the bargain-hunting website.