6th May 2021

Prime Brokers At Archegos Try Not To Go Broke

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Welcome to another edition of The Under60 Daily - a brief rundown of the top happenings in the business world, compiled by hand to exclude the clutter and ensure you get up to speed in under a minute.

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[Insolvency] Archegos Capital has hired restructuring officers to assess legal claims from banks and assist with plans to wind down the company. Six banks that acted as prime brokers for Archegos - Credit Suisse, Nomura, Morgan Stanley, UBS, MUFG and Mizuho collectively lost over $10 billion after Archegos failed to respond to margin calls. 

Over60: Reuters

[Pharmaceuticals] Moderna reported its first-ever quarterly profit, reporting net income of $1.2 billion on revenues of $1.9 billion ($1.7 billion coming from the sales of Covid-19 vaccines). The company reported a loss of $124 million for the same quarter last year. Despite the positive earnings, Moderna’s shares were down by 6% as the US Government backed the temporary suspension of Covid-19 vaccine patents. The company plans to deliver more than 250 million vaccines in Q2 2021. 

Over60: CNBC

[IPO] South African conglomerate Steinhoff is set to raise $1 billion as it lists its Pepco chain of discount retailers in Warsaw, Poland. Pepco operated 3200 stores in Poland, Romania and Hungary, as well as Poundland in the UK. 

Over60: Bloomberg Quint

[Fitness] Peloton, the fitness technology group, recalled its treadmills after reports of injuries and one death involving the machine. The US Consumer Product Safety Commission urged people with children and pets to avoid using the Peloton treadmills as it was investigating the death of one child. The news of the recall sent shares of Peloton to a seven-month low. 

Over60: CNBC

[Investment] BlackRock Inc., the world’s largest asset manager, voted for two shareholder proposals that would require Warren Buffett’s Berkshire Hathaway Inc. to publish disclosures on how it manages climate risk and diversity efforts across its many businesses. Berkshire’s two shareholder-led proposals didn’t pass, but around a quarter of the votes cast favored the two proposals. BlackRock’s vote highlights the growing tension between asset managers calling for companies to emphasize further ESG issues and executives pushing back.

Over60: WSJ, What is ESG?

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