From Breakingviews: Concerns about the Bank of England’s corporate financing facility are misplaced and a Chinese upstart makes the increasingly perilous journey to a U.S. listing. Catch up with the latest financial insights
PAPER WIN. The list of companies using the Bank of England’s emergency corporate financing facility looks odd. The scheme, designed for companies making a “material” contribution to the UK economy, bought 1 billion pounds of commercial paper from chemical giant BASF, whose employees are mostly outside of Britain. Others, like Telefonica and Bayer, used the scheme while still planning to pay dividends – usually a sign of financial health. Politicians balked.
It’s not so bad. Commercial paper usually covers specific short-term cash flow needs like wages and supplier payments. The BoE’s scheme will have encouraged firms to make payments on time, boosting the economy. Dividends, by contrast, are usually allocated according to longer-term metrics like free cash flow or earnings. The real takeaway is that BoE holdings dropped to 16.2 billion pounds from 19 billion pounds the week before.
SURPRISE DELIVERY. Dada Nexus appears to have succeeded in the increasingly perilous journey from Shanghai to New York. Backed by Chinese online retailer JD.com and its partner Walmart, the upstart is looking to increase the size of its Nasdaq initial public offering by more than a quarter, Reuters reported on Thursday, as investors brushed off concerns about potential delistings by U.S. regulators. Dada is seeking to sell 21 million shares at $16 each, raising $336 million, up from 16.
Having a pandemic-proof business model probably played a role. Dada works with supermarkets to deliver their goods using crowd-sourced riders. Sales nearly doubled in the first quarter year-on-year to 1.1 billion yuan . Its success in the aftermarket, however, is another matter. Chinese companies that have listed in New York so far this year are collectively down 23%, according to data provider Dealogic. Its debut later today will be watched closely.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Breakingviews - Corona Capital: Bonds, Booze, Cars, Scandal(Reuters Breakingviews) - Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
Lire la suite »
Breakingviews - Corona Capital: Davos, AMC Entertainment(Reuters Breakingviews) - Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
Lire la suite »
Corona Capital: ZoomInfo IPO, U.S. tradeConcise views on the pandemic’s corporate and financial fallout: ZoomInfo goes public with a big pop despite Covid-19; and America’s goods-trade deficit with Europe will test Washington’s mood.
Lire la suite »
Corona Capital: Crisis loans, Jet fightingConcise views on the pandemic’s corporate and financial fallout: Bank customers are no longer making a dash for cash, loan drawdowns suggest. Meanwhile, a U.S. block on Chinese passenger flights suggests domestic battles haven’t dimmed President Trump’s desire to make China pay.
Lire la suite »
Breakingviews - Corona Capital: Davos, AMC Entertainment(Reuters Breakingviews) - Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
Lire la suite »
Breakingviews - Corona Capital: Bonds, Booze, Cars, Scandal(Reuters Breakingviews) - Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
Lire la suite »