G20 says global economy on path for soft landing

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

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1.

Soft landing: A draft closing statement for this week’s G20 meeting in Brazil, seen by Bloomberg, says that the global economy has a growing chance of achieving a soft landing, as global growth and falling inflation continues to bolster resilience. Last month the International Monetary Fund upped its forecast for global economic growth to 3.1% this year. The draft statement dated February 23 reads: “We note that the likelihood of a soft landing in the global economy has increased […] Risks to the global economic outlook are more balanced. Upside risks include faster-than expected disinflation.” (Bloomberg)

2.

Floating IPO: Chinese fast fashion label Shein, is reportedly considering shifting its planned initial public offering from New York to London after facing significant regulatory scrutiny from US regulators. The Singapore-based company has not revealed the size of the IPO, but the company was estimated to be worth USD60 billion ($91.5 billion) in mid-2023 and Bloomberg has reported it was targeting up to USD90 billion in the float. Should the listing shift to the UK, it would be a huge boost for the London market after just USD1 billion was raised in the country through IPOs in 2023. (Bloomberg)(Capital Brief)

3.

BNPL listing: Swedish buy-now-pay-later fintech, Klarna Bank AB, is reportedly moving forward with plans to list in the US at a potential valuation of USD20 billion. Unnamed sources cited by Bloomberg say that the BNPL giant has commenced in depth discussions with investment banks to consider the IPO, which could happen as soon as Q3 this year. The fintech was once the most valuable startup in Europe, reaching a USD45.6 billion valuation in a 2021 funding round, before tumbling to a USD6.7 billion valuation in 2022. (Bloomberg)

4.

IB pay gaps: Leading investment banks have some of the biggest gender pay gaps in Australia, according to the Workplace Gender Equality Agency (WGEA) survey, which is more than twice as high as the average of 19%. Of the nearly 5000 employers included in the survey, 62% had a median gender pay gap of more than 5% favouring men. A further 30% were in the target range, or below 5% in the pay gap between men and women. At UBS, women were paid 43% less than men, at Morgan Stanley the gap was 48%, and at Bank of America it was 42%. (Capital Brief)(Financial Times)

5.

Is Bitcoin back? Bitcoin has surged over 10% in two sessions, reaching a two-year high of USD57,000. The cryptocurrency gained 32% in value during February, putting it on track to make its largest one-month gain since January 2023. Bitcoin hit its all-time high in November 2021, reaching USD68,990. Software firm MicroStrategy disclosed that it had recently purchased approximately 3,000 Bitcoins for USD155 million on Monday, highlighting increased interest in the cryptocurrency from larger buyers. The SEC’s approval of spot Bitcoin exchange traded funds in the US earlier this year, in addition to Bitcoin’s fourth halving event in April, is serving to buoy Bitcoin’s market value. (Reuters)(MicroStrategy SEC Filing on Bitcoin)

6.

Shifting alliances: Four Asian and European shipping lines will extend their vessel sharing agreement as carriers seek to optimise their alliances in a high-capacity, low-freight rate market. Cosco Shipping, CMA CGM, Evergreen Marine and Orient Overseas Container Line, a unit of Cosco, have agreed to continue sharing ship capacity until 2032 under their 2017 Ocean Alliance pact. Shipping alliances allow lines to offer broader geographic coverage and reduce costs. In January, Maersk Line and Mediterranean Shipping announced they would end their 2M Alliance operating agreement next year, which was followed by Maersk teaming up with Hapag-Lloyd to form a new alliance named Gemini. (Wall Street Journal)

7.

Odysseus fading: The first US spacecraft to land on the moon since 1972 is quickly running out of battery life, with just 10-20 hours left. Texas-based Intuitive Machines was paid USD118 million by NASA to build and fly the spacecraft to the moon, with science instruments from the space agency and other commercial customers on board. Odysseus landed on Friday, but its expected 7-10 days of operation was cut short after it landed sideways. Shares in Intuitive were down 16% yesterday, slightly up after flight controllers disclosed they were still in contact with the Odysseus moon lander. It is not known whether the company will be able to retrieve any of the research data or imagery from the mission. (Reuters)

8.

Second rebuff: UK electronics retailer Curry’s has turned down a second (improved) bid from Elliott Management, saying the offer still undervalues the company. Pitched at 67 pence per share, Elliott’s updated offer is a 5 pence increase on its original bid. Elliott has until 5pm on March 16 to raise its offer under UK takeover rules, and analysts at Peel Hunt have said that they would “struggle to see the [Currys] board engaging on anything less than 80 pence.” Shares in Curry’s rose on the news, reaching 66.5 pence and valuing the company at £756.6 million. (Financial Times)