Sustainability

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.

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.

Greener anti-flood investments will be win-win

26 Jul 2021

Germany’s worst natural disaster in decades and deluges in China have sparked calls to build more dams and reservoirs. There are better ways to protect people, land and buildings from both too much and too little water. These alternatives will also appeal to investors.

BHP’s oil exit would be better sooner than later

21 Jul 2021

The mega-miner is reported to be mulling a $15 bln sale of its petroleum arm. The subsidiary’s status as a profit engine amid rising energy prices makes it a tough decision. But even if done at a knock-down rate, CEO Mike Henry can burnish BHP’s allure with oil-hating investors.

European airlines’ CO2 pleas deserve cold shoulder

16 Jul 2021

Trade body IATA is moaning about EU plans to curb emissions by making jet fuel more expensive. Ideas that may add 3% to operating costs over several years aren’t a grounding order. And most of the changes would merely remove existing freebies to align aviation with other sectors.

Lagarde’s green turn may not need to be that sharp

16 Jul 2021

The ECB boss’s 293 bln euro corporate bond programme may soon tilt toward environmental saints and away from sinners. Too heavy a hand could distort markets and inflate green bubbles. But it’s a big enough change for it not to matter if, as seems likely, the intervention is mild.

Capital Calls: Online fashion retail

15 Jul 2021

Concise views on global finance: The return of old customer habits and muted demand as the pandemic lingers could reverse the recent stellar run of the likes of ASOS.

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.

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.

Capital Calls: Glencore chair, Chinese e-commerce

5 Jul 2021

Concise views on global finance: The commodity giant picks a new chair familiar with its stamping grounds; Beijing cranks up the pressure on companies over data abuses.

Capital Calls: Didi IPO, Space SPAC, Travel SPAC

30 Jun 2021

Concise views on global finance: The Chinese ride-hailing outfit snags an $80 billion valuation early in its New York debut; a blank-check deal for satellite-transport group Momentus cuts its valuation in half; high-end vacation club Inspirato takes subscriptions to a new level.

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.

Green megalomania renews $80 bln Congo hydro dream

18 Jun 2021

Aussie mining magnate Andrew Forrest is behind a fresh push to turn the African river’s vast power into energy. Dam-building is a fool’s errand, though, and his Fortescue’s plan to produce hydrogen for export may not stack up financially. Less bombastic alternatives are better.

The Exchange: Hiro Mizuno

17 Jun 2021

The former chief investment officer of Japan’s $1.6 trillion Government Pension Investment Fund is now a board member at Tesla and Danone. In an interview as part of last week’s Ethical Finance 2021 summit, he tells George Hay how ESG has changed since he championed it at GPIF.

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.

Capital Calls: U.S. malls are a tale of two REITs

14 Jun 2021

Concise views on global finance: Shopping center operator Washington Prime filed for bankruptcy protection, but the outlook is a bit rosier for premium mall owners.

Fashion moves to the centre of activist crosshairs

14 Jun 2021

Covid-19 has exacerbated the $2.5 trln industry’s ESG-unfriendly flogging of cheap clothes. Recycling is no more than a partial fix for the problem. Inditex and H&M are insulated by their big family holdings, but Boohoo, Adidas and ASOS look vulnerable to investor attacks.

Shell’s U.S. rethink betrays lack of wiggle room

14 Jun 2021

The Anglo-Dutch driller may sell assets worth $10 bln in Texas. Not so long ago the U.S. Permian Basin was a key oil major growth area, but now Shell is under pressure to cut emissions. Restricting carbon while earning a financial return is increasingly determining strategy.

Danish hydrogen adds hygge to market green malaise

7 Jun 2021

Green Hydrogen Systems is planning a Copenhagen float that will value the electrolyser maker at $500 mln. Of late, pulled IPOs reflect investor scepticism about so-so renewable energy listings. The green gas’s key role in cutting EU carbon emissions may make this a comfier fit.

Anglo spinoff points to darker future for coal

7 Jun 2021

The mining giant’s thermal coal unit, Thungela, was valued at just $250 mln on its market debut. That’s a third of the EBITDA its South African mines may earn this year. It’s a stark reminder of the black stuff’s rapidly declining worth, and of public investors’ aversion to it.