In today’s top stories, Tencent’s buybacks fail to rebound shares, Binance and FTX bid $50m for bankrupt Voyager and GE names Repsol director as head of its power division. Meanwhile, Disney and Apple attract an anti-ESG’s ire and Ford releases a profit warning.
Buybacks fail to turn Tencent around
Chinese internet giant Tencent [0700.HK] started a repurchasing programme in July after its biggest shareholder Prosus [PRS.AS] reduced its stake. Despite buying back $1bn worth in the past month – taking the total to $2.3bn – the Tencent share price has tumbled 7.4% in that time. According to Banny Lam of CEB International Investment, buybacks are a limited solution and Tencent “still needs some policy support from the government for a turnaround”.
Bankrupt crypto lender goes to auction
Bankrupt crypto lender Voyager drew plenty of interest from buyers at an auction last week. Bianance and FTX appear to have come out on top with bids of around £50m, according to sources who spoke to the Wall Street Journal. Final results are to be announced on 29 September. Voyager rejected a “low-ball” offer from FTX back in July, adding that it had received “higher and better” bids.
Anti-ESG activist investor targets Disney and Apple
Big companies trump their ESG credentials, but activist Vivek Ramaswamy isn’t a fan. The co-founder of Strive Asset Management has written letters to the Apple [AAPL] and Disney [DIS] CEOs asking them to refrain from making political statements or hiring decisions based on sex or race. His firm launched its second ETF last week, Strive 500 [STRV], which will vote against unrelated social or political agendas, according to Bloomberg.
GE taps Repsol director for power business
At the end of 2021, General Electric [GE] announced it would be splitting into three companies in a bid to simplify its operations and pare down debt. It’s been announced that Mavi Zingoni, director of Repsol’s [REP.MC] low carbon generation business, will head up GE’s power division with a focus on renewables and nuclear energy. She will start in her new role on 1 January.
Profit warning drives Ford lower
An ugly pre-earnings release saw the Ford [F] share price tumble 12% on Tuesday, its steepest one-day drop in over a decade. The automaker warned that higher costs associated with inflation and supply chain constraints is likely to have dented third-quarter operating profit to the tune of more than $1bn. It’s expecting to report a figure between $1.4bn and $1.7bn, a far cry from the Wall Street analyst consensus of $2.98bn.
Cineworld shareholders hope for pleasant viewing
In the two weeks since Cineworld [CINE.L] filed for bankruptcy, the share price has continued to fall, although it has climbed roughly 74.8% from its all-time low recorded 19 August. Investors are still hopeful for a positive outcome and will be listening out for any updates when it announces interim results on Thursday. The company’s legal battle with Canadian cinema chain Cineplex [CGX.TO] remains unresolved.
Green hydrogen could fuel Ceres Power
Clean energy is having its moment in the sun, yet the Ceres Power [CWR.L] is down roughly 52% year-to-date. A surprise earnings update today could fuel upward movement, however. Its prospects have brightened thanks to a collaboration with Shell [SHEL.L] that will see the two parties work to produce cost-efficient green hydrogen. Shareholders will also want to hear steps Ceres Power is taking towards profitability.
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