E Cross The Aisle

*After Nasdaq announced buying Verafin to crack down on trading fraud, the banking specialist brokerage Keefe, Bruyette & Woods up-graded NDAQ stock from neutral to outperform. We own much NDAQ via our Scandinavian fund proxy Investor a/b, the Swedish Wallenberg family's listed fund manager, IVSBF, which fell 0.11% today. However another holding of our fund manager, ABB has been downrated to sell by Deutsche Bank today.

*Eduardo Garcia warns that the planned merger of Spain's BBVA and Sabadell may create a monopoly in Mexico which means it may be blocked. Eduardo edits sentidocomun.co.mx with which we trade ideas. Any grief for the newbies is good news from Banco Santander, SAN.

*Hang Seng Bank HSNGY (operator of the Hong Kong Stock Exchange Index) fell 8.65 today to the equivalent of $17.

*Standard Life Aberdeen, SLFPY, the Scottish fund manager, is on the high road today, up 3.92% on no news.

Electric Vehicles

*Our best performing speculative stock is Nio, the Chinese firm, which tops the charts even though I sold half my shares in Feb. Today it won a buy rating from Deutsche Bank and the stock rose 3.35%. This despite a highly negative report from a new website, Simply Wall St. Journal. Its first issue included a negative note on NIO which its writer, Kshitija Bhandaru, accused of being in hock to the Beijing government. The payment NIO received was not from the central government but from the designated auto industry center in Hefei, Anjui Province, which also gave grants to Volkswagen. Nio supplies the raw materials for Anjui's to use to make vehicle parts which Nio then buys back per car ordered in China. This is not Xi Jinping, but local brass. In return for creating a factory and HQ in Anjui, NIO collected about $1 bn, nice change if you can get it. One of the terms of the deal is that NIO has to make an IPO of the Hefei operation on China's stock market in the next 5 years. This is not a hindrance to its growth, but a help. If Nio fails to do this the local government can redeem the shares they got for the funded vehicle parts sub at an 8.5% premium, which gives NIO an incentive to make the offer. Mr. Bhandaru says NIO would have to sell its own stake in the factory if the IPO is halted, which presumably means it will do the IPO.

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Vivian Lewis 2 months ago Author's comment

what is an echo show?