AUTOMAKERS
Hyundai eyes India IPO
Hyundai Motor Co is set to hire banks including Citigroup Inc and JPMorgan Chase & Co for an initial public offering (IPO) of its Indian unit that could raise about US$2.5 billion, people familiar with the matter said on Friday. India’s second-largest carmaker is also in talks with other banks as it pulls together a roster of advisers for the offer that might come this year, the people said. If the South Korean company does proceed with an IPO, it will use the cash raised to expand operations, Bloomberg News reported this week. India accounted for 13 percent of Hyundai’s global sales last year.
BANKING
Citi urges moderate drinking
Citigroup Inc dealmakers were told to be disciplined when consuming alcohol at client events after the bank received complaints of unruly behavior, according to people with knowledge of the matter. In calls late this week, bankers at all levels — from analysts to managing directors — were reminded to keep the firm’s reputation in mind when drinking, the people said. The senior bankers leading the calls did not put a complete curb on consumption of alcohol, noting that drinking in business settings has wide cultural acceptance, the people said. Citigroup’s management is cutting 20,000 roles, but has so far left investment banking less affected than other divisions.
REAL ESTATE
Meta frees Singapore space
Meta Platforms Inc is giving up its lease for seven floors of office space in Singapore that is set to expire at the end of September, the Business Times reported on Thursday. The Facebook parent had conveyed its decision to not renew its lease at South Beach Tower in June last year, the newspaper reported, citing Samantha Tan, general manager of developer South Beach Consortium Pte Ltd. That was just three months after a round of global layoffs by Meta in March last year. Meta started moving staff out of its 115,000-square-feet South Beach Tower offices in the first half of last year, consolidating its teams at its office in Marina One in the financial district, the report said.
OIL
Petroleos Mexicanos ‘caa3’
Petroleos Mexicanos would be near default without the Mexican government’s support, Moody’s Investors Service said, downgrading the state oil company’s debt further into junk territory. The credit rating company lowered Pemex’s corporate debt to “B3” from “B1” and maintained its “negative” outlook, according to a statement on Friday. Another measure that considers government dependence, which Moody’s calls the Baseline Credit Assessment, was cut to “ca” from “caa3,” indicating the company would be highly likely to default without backing from the state. Pemex, the world’s most indebted oil company, has seen its debt burden balloon to around US$106 billion while production lags and profits slump.
BRAIN IMPLANTS
Neuralink goes to Nevada
Elon Musk’s brain implant company, Neuralink Corp, switched the location of its business incorporation to Nevada from Delaware, according to the office of the Nevada secretary of state and a notice sent to shareholders in the company. The change, completed on Thursday, follows Musk’s outburst against Delaware after a judge there struck down his US$55 billion Tesla Inc compensation package. In a post on X, the social network he owns, Musk advised founders not to incorporate in the state.
CANADA
Jobs data raise eyebrows
A stronger-than-expected jobs report on Friday led some of Canada’s more dovish forecasters to revise their views on when they think the central bank will start cutting interest rates. The shift came after the nation’s job market on Friday reported the biggest gains in four months last month. The unemployment rate fell to 5.7 percent, the first such decline since December 2022. Capital Economics’ Stephen Brown and Desjardins Securities’ Royce Mendes joined the consensus of economists in a Bloomberg survey who see the Bank of Canada lowering its policy rate at its June 5 decision. Previously, both firms were expecting a cut in April.
CHEMICALS
BASF to shed China stakes
German chemical company BASF AG said on Friday it was speeding up the sale of stakes in two joint ventures in China after its local partner was accused in media reports of human rights abuses. BASF said in a news release that the market for the industrial chemicals made at the production sites in Korla in China’s Xinjiang region was under increased competitive pressure and oversupplied. The company said it had already begun the divestment process. However, it added that recent reports had contained “serious allegations” about activities “inconsistent with BASF’s values.” The company said it remained committed to the China market.
MUSIC
Sony buying half of Jackson
Sony Group Corp is acquiring a half interest in pop star Michael Jackson’s music catalog from the late singer’s estate for at least US$600 million, Billboard reported, saying it’s the largest such deal ever. The agreement might also include songs from other artists that are part of the Mijac publishing catalog, the music industry publication reported, citing sources it did not identify. The assets include ownership of master recordings and publishing for Jackson’s share of his songs, as well as the Mijac catalog. Jackson’s estate had earlier sold its half interest in Sony/ATV Music Publishing, a joint venture that included the Beatles songs.
TECHNOLOGY
Bezos unloads shares
Jeff Bezos unloaded 12 million shares of Amazon.com Inc this week, the first time the billionaire has sold the company’s stock since 2021. The sales took place on Wednesday and Thursday and netted just over US$2 billion, according to a filing. Amazon disclosed on Feb. 2 that Bezos plans to sell as many as 50 million shares of Amazon over the next 12 months, potentially cashing in on a stock surge that has put him within reach of becoming the world’s richest person. His fortune has climbed US$22.6 billion this year to US$199.5 billion as of Friday, according to the Bloomberg Billionaires Index.
ENERGY
Mergers to ramp up: Ebel
The surge in energy industry mergers and acquisitions — marked by a series of megadeals among oil producers last year — is set to ramp up further this year as interest rates decline, Enbridge Inc chief executive officer Greg Ebel said on Bloomberg Television on Friday. “After a couple years of tightening you see a couple years of easing, and people will be looking for those growth opportunities,” Ebel said. The energy industry has seen a wave of consolidation in recent months, including Exxon Mobil Corp’s US$60 billion purchase of Pioneer Natural Resources Co and Chevron Corp’s US$53 billion takeover of Hess Corp.
CHIP WAR: Tariffs on Taiwanese chips would prompt companies to move their factories, but not necessarily to the US, unleashing a ‘global cross-sector tariff war’ US President Donald Trump would “shoot himself in the foot” if he follows through on his recent pledge to impose higher tariffs on Taiwanese and other foreign semiconductors entering the US, analysts said. Trump’s plans to raise tariffs on chips manufactured in Taiwan to as high as 100 percent would backfire, macroeconomist Henry Wu (吳嘉隆) said. He would “shoot himself in the foot,” Wu said on Saturday, as such economic measures would lead Taiwanese chip suppliers to pass on additional costs to their US clients and consumers, and ultimately cause another wave of inflation. Trump has claimed that Taiwan took up to
A start-up in Mexico is trying to help get a handle on one coastal city’s plastic waste problem by converting it into gasoline, diesel and other fuels. With less than 10 percent of the world’s plastics being recycled, Petgas’ idea is that rather than letting discarded plastic become waste, it can become productive again as fuel. Petgas developed a machine in the port city of Boca del Rio that uses pyrolysis, a thermodynamic process that heats plastics in the absence of oxygen, breaking it down to produce gasoline, diesel, kerosene, paraffin and coke. Petgas chief technology officer Carlos Parraguirre Diaz said that in
SUPPORT: The government said it would help firms deal with supply disruptions, after Trump signed orders imposing tariffs of 25 percent on imports from Canada and Mexico The government pledged to help companies with operations in Mexico, such as iPhone assembler Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), shift production lines and investment if needed to deal with higher US tariffs. The Ministry of Economic Affairs yesterday announced measures to help local firms cope with the US tariff increases on Canada, Mexico, China and other potential areas. The ministry said that it would establish an investment and trade service center in the US to help Taiwanese firms assess the investment environment in different US states, plan supply chain relocation strategies and
Japan intends to closely monitor the impact on its currency of US President Donald Trump’s new tariffs and is worried about the international fallout from the trade imposts, Japanese Minister of Finance Katsunobu Kato said. “We need to carefully see how the exchange rate and other factors will be affected and what form US monetary policy will take in the future,” Kato said yesterday in an interview with Fuji Television. Japan is very concerned about how the tariffs might impact the global economy, he added. Kato spoke as nations and firms brace for potential repercussions after Trump unleashed the first salvo of
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