eToro mulls New York or London for IPO

Good morning. Here's what happened overnight and what you need to know today.

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1.

eToro IPO: Retail trading platform eToro is considering pursuing an IPO in New York or London, according to a report by the Financial Times. The Israel-based brokerage is seeking to list at a valuation of over USD3.5 billion ($5.27 billion), the valuation it received during its last funding round of USD250 million last year. Across three million accounts, eToro manages USD11.3 billion in customer assets. Founder and CEO of eToro, Yoni Assia, explained that while the company is “exploring the right timing” for a London or NY IPO, a US listing offers a broader range of investors compared to the UK market. Listing in the US would be another blow for the London Stock Exchange, which has seen significant outflows as large listings including Flutter, TUI, and semiconductor maker ARM chose to list elsewhere. (Financial Times)

2.

Oil bank: The world’s biggest crude oil exporter, Saudi Aramco, has increased its dividend to almost USD100 billion as it reported its second-highest annual profits despite lower oil prices and production cuts. Aramco achieved net income of USD121 billion during 2023, down from its peak of USD161 billion in 2022. Despite the drop, Aramco increased its total dividend by 30% year-on-year to USD97.8 billion. The payout is significant for the Saudi state which owns 82% of the oil giant, and controls another 16% through the country’s sovereign wealth fund. Aramco CEO Amin Nasser revealed the figures during an earnings call on Sunday morning. The results also highlighted Aramco’s plans to expand its presence in the liquified natural gas sector, stating that it is in discussion with a number of entities in the US and other regions, noting its first investment of a minority stake in Australia-focused MidOcean Energy in September. (Saudi Aramco full year 2023 results)(Bloomberg)

3.

Red sea conflict: US, UK, and French military forces shot down dozens of Houthi drones in the Red Sea on Saturday after the Iran-aligned militia targeted a cargo ship as well as US destroyers in the region. US CENTCOM said that US and coalition forces downed at least 28 uncrewed aerial vehicles early on Saturday morning. CENTCOM explained that no US or coalition vessels were damaged in the attack, nor were there reports of damage to commercial ships. On Wednesday last week, three civilian mariners were killed by a Houthi missile strike on the True Confidence cargo ship, the first civilians killed by the Houthi group since it began attacks late last year. Houthi forces began attacking ships in the Red Sea in response to the ongoing Israel-Palestine war. (US Central Command Press Release)(Reuters)

4.

Nuisance tax: The Albanese government will abolish up to 500 ‘nuisance tariffs’ from July 1 this year, in efforts to reduce the impact of rising expenses on households and businesses. The government said that the lifting of import tariffs on a range of everyday goods from toothbrushes to pens, accounting for 14% of the country’s total tariffs, is estimated to save companies more than $30 million in compliance costs per year. The news was announced by Treasurer Jim Chalmers in a statement on Sunday, which states that “By abolishing hundreds of import tariffs, we’ll reduce red tape, boost productivity, ease the burden on small businesses and help to cut the cost of doing business.” (Bloomberg)(AFR)

5.

US election: US citizens are happy about the state of the country’s economy, but are unlikely to credit President Joe Biden for the performance, according to the FT-Michigan Ross poll conducted in March. Around 48% of respondents said they are now living “comfortably” or can “meet expenses with a little left over,” compared with 43% in November 2023. Biden’s approval rating for his handling of the economy remained flat from November at 36%, while 59% disapproved. Trump has maintained a strong lead with voters on the topic, with 40% of respondents saying they trust his handling of the economy. The results underscore the challenges facing the incumbent Biden, as former President Donald Trump ramps up his campaign for the November election. (Financial Times)

6.

Sterling effort: The British pound is performing better than 90% of the globe’s currencies this year, as market participants bet that the UK’s Bank of England will likely hold rates higher for longer than other western nations. Of over 140 global foreign-exchange rates tracked by Bloomberg, only 11 currencies including those of Kenya, Zambia and Sri Lanka, have outperformed the UK sterling this year. According to analysts, the UK’s economy is proving more resilient than previously thought, which is likely to mean the country’s central bank will delay cutting rates from August, later than the June cuts expected from the US Fed and ECB. While the UK’s job market also remains robust with wages rising 5.7%, weaker consumer confidence figures for February suggest that some households continue to struggle under the cost of living crisis. (Bloomberg)

7.

Back on board: Sam Altman will be reinstated as a board member of OpenAI after a review into his dramatic ousting found the firing was unwarranted. Altman was fired as CEO and removed from the board of the AI company he co-founded in November, before being reinstated as CEO just days later. His return to the board has taken a number of months, and followed a review into the boardroom drama that found a significant breakdown of trust between previous board members and Altman, but no evidence that he had misled investors nor pushed products at an unsafe pace. On Friday Altman responded to the news, stating: “I’m pleased this whole thing is over. Over these last few months it’s been disheartening to see some people with an agenda trying to tease leaks in the press to try and hurt the company and hurt the mission.” (Financial Times)

8.

Criminal probe: The US Justice Department has opened a criminal investigation into the Alaska Airlines mid-flight cabin door blowout on a Boeing 737 Max-9 jet earlier this year. According to sources cited by the Wall Street Journal, investigators have contacted some passengers and crew who were onboard during the flight, and the Justice Department has reportedly interviewed pilots and some flight attendants. Last week, the Federal Aviation Administration’s six-week audit of the plane maker found multiple instances where both Boeing and Spirit AeroSystems allegedly failed to comply with manufacturing quality control requirements. (Wall Street Journal)(FAA)