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good morning. Elliott Management Fund has become one of the largest shareholders in Dai Nippon Printing – a 146-year-old Japanese company with a huge but undisclosed global stake in electric vehicle battery components and smartphone screens.
The mortgage build adds to only a handful of investments Elliott has previously made in Japan — with Masayoshi Son’s SoftBank Group and Toshiba the most prominent. People close to the fund described it as an experiment in extracting reserved value that could pave the way for significantly more activity.
Elliott has quietly increased its investment in DNP over the past few months, according to people familiar with the situation, and now owns a stake of just under 5 percent worth about $300 million, making it the third-largest outside shareholder.
People close to DNP said Elliott’s initial involvement with the company, which has a market capitalization of $6.3 billion and currently trades where it did 20 years ago, focused on a series of demands: a more aggressive share buyback scheme, and the sale of its sprawling shares. real estate holdings and the rapid disposal of its extensive portfolio of shares in other Japanese companies.
Five more stories in the news
1. Germany to send Leopard tanks to Ukraine Germany will send Leopard 2 tanks to Ukraine, in a move that marks a significant breakthrough in Western efforts to bolster Kyiv’s fight against the Russian military. The decision to send the tanks marked a new turn for German Chancellor Olaf Scholz, who had long hesitated to supply heavy armor to Ukraine.
Related reading: Several senior Ukrainian officials have resigned after President Volodymyr Zelensky quickly sought to allay concerns about corruption at a time when he is asking for more Western weapons to push back Russian forces.
2. The recovery of Chinese property securities with the support of Beijing Bonds issued by heavily indebted Chinese real estate developers have rebounded sharply over the past two months, in a sign that efforts by Chinese authorities to boost the hard-hit sector are bearing fruit. The high-yield Chinese dollar bond index, which is dominated by real estate developers, has recovered nearly 50 percent from its early November low.
3. The United States is suing Google over the “dominance” of its digital advertising The US Department of Justice is suing Google for allegedly exercising monopolistic control over the digital advertising market. This is the latest legal attack against the company as Washington seeks to suppress the dominance of big tech companies.
4. Confidential documents found in Pence’s private residence Former US Vice President Mike Pence handed over classified documents to the Justice Department last week as federal authorities continued to investigate how sensitive government files ended up in the private residences of Joe Biden and Donald Trump. The discovery adds to the growing scrutiny of how current and former leaders handle classified information.
5. The United States is promoting Biden’s green subsidies to attract clean technology from Europe A rift between EU and US politicians over support linked to Joe Biden’s inflation-lowering law is deepening as state governors across America try to lure European clean energy companies into their states.
inflation numbers An inflation update is due from the UK, Australia, Spain, Sweden and Singapore. Japan will also announce a cost-of-living measure of the Consumer Price Index (CPI). Use our global inflation tracker to see how your country compares to rising prices.
Tesla earnings It will be another week for Elon Musk watchers (just like every other week) as Tesla reports fourth quarter numbers. The company has lowered the prices of its electric cars to boost demand in the US and Europe.
🎧 listen: In a recent episode of the Behind the Money podcast, Richard Waters of the Financial Times answered whether Tesla’s golden age of growth is over.
Coinciding with the publication of Martin Wolf’s new book, The Crisis of Democratic Capitalism, join him and other online thought leaders for a subscriber-exclusive event on January 31. Register for free here.
What else do we read?
What I learned in my days on the mountain in Davos At the World Economic Forum last week, the general mood of the economy in high-income countries was one of overwhelming optimism about the near future. Still, these optimists may be getting ahead of themselves, writes Martin Wolf of the Financial Times.
The Wagner Company: A Russian Warlord and His Lawyers Russian businessman Yevgeny Prigozhin, founder of the private mercenary operation known as the Wagner Group, is one of the most sanctioned individuals on the planet. A Financial Times investigation shows how he has used top corporate lawyers around the world to try to keep Western governments at bay.
Seven must-stay hotels in Singapore Whether you’re after a closer look at the cocktail bar scene or a poolside lounge followed by a Michelin-starred dinner, here’s a selection of the best accommodations in town.
The rise of Esther Crawford in Musk’s “hardcore” Twitter The social media giant’s director of product management has become one of the few women at Twitter to join Elon Musk’s trusted lieutenants. Some insiders believe the 39-year-old has the energy to turn around the company’s ailing business. Others say she is sycophantic and pushy.
Why passive investing makes less sense in the current environment Passive portfolio management is attractive in a world where investment outcomes are strongly influenced by a universal common factor – as has been the case with the contract of artificial interest rates and massive central bank liquidity injections. But in a world where macro prospects are murky, dynamic asset allocation trumps low fees, writes Mohamed El-Erian.
Take a break from the news
Japanese glasses are still unmatched. It uses elements from the past, reconfigured into something with modern means, designed for the future. We discover how state glasses are made.
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