Latest news with #CatrionaBurns
Reuters
04-04-2025
- Business
- Reuters
ASX to face investor push back on dual-class listing plans
Summary Companies ASX seeking means to reinvigorate ailing market for new listings Floated dual-class plan in 2007; shelved after criticism Investors worry dual-class shares give founders too much power SYDNEY, April 4 (Reuters) - Australia's plan to introduce dual-class share trading to help revive its weak listing market faces resistance from investors concerned the structure would give too much power to some shareholders, including founders. The Australian Securities Exchange told Reuters in March it was considering allowing dual-class listings to bring it in line with most major rivals including New York and London. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Dual-class structures typically have two or more types of shares with differing voting rights. Companies might favour such a listing to reward founders or executives however some argue the structure can diminish the rights of other shareholders. Such criticism contributed to the ASX shelving dual-class shares the last time it floated the idea in 2007. However, a two-decade low in new listings and regulatory calls for action have prompted the exchange operator to reconsider. ASX faces an uphill battle as fund managers now, as in 2007, remain unconvinced. Dual-class shares would need to be sold at a discount in an IPO to attract local investors, they said. "Most fund managers would be pretty hostile to dual-class shares," said Hugh Dive, chief investment officer of Atlas Funds Management which has A$200 million ($126.28 million) of funds under management. "There are different voting interests and we have had enough founder-led problems in the past year. Dual-class shares would give a disproportionate say based on economic interests - you could see a case where founders would get, say, 10 times the amount of say. That creates a lot of governance issues." Dual-class shares can give founders more power which fund managers said could be a deterrent to invest, especially in light of recent scandals involving founders at WiseTech and Mineral Resources. "Retail and institutional shareholders could be disadvantaged to founders and that is not ideal to those investors and we would not be supportive of that happening," said Wilson Asset Management's lead portfolio manager Catriona Burns. REINVIGORATE ASX's group executive of listings, Blair Beaton, said listing candidates had told the exchange that dual-class shares were one factor taken into account when deciding where to list. Technology companies typically have dual-class shares which has led to a lack of major listings in Australia from that sector. "We know there are a range of perspectives and ideas on dual-class shares, however we think it is important to continue to seek feedback and input on measures that will help to continue supporting a dynamic and globally competitive listings market," Beaton said. Australia has recorded the slowest start to the year in two decades for new listings, LSEG data showed. Virgin Australia, the nation's second-largest airline after Qantas Airways ( opens new tab, has begun preparations to list on the ASX by meeting investors, Reuters reported on Monday citing sources. The size of the deal and timing have yet to be finalised. The Australian Securities and Investment Commission, the corporate regulator, in late February urged ASX to speed up its listing approval process to reinvigorate the listings market. "We are pleased to see that ASX is actively considering what changes can be made to ensure that ASX is an attractive listing venue, and hope that this (dual-class shares) is one of many other points being considered within ASX," said Patricia Paton, a partner at law firm Ashurst that advises on listings. "With tough market conditions for new listings and a range of options now available to companies to access capital, this is critical." ($1 = 1.5838 Australian dollars)
Zawya
12-03-2025
- Business
- Zawya
Euro surges on Ukraine ceasefire proposal, tariffs squeeze stocks
SINGAPORE: The euro was riding at five-month highs on Wednesday on Ukraine's readiness to accept a month-long ceasefire, while stocks whipsawed on back-and-forth U.S. tariff plans and concern about a U.S. economic slowdown. European equity futures jumped 0.8% and FTSE futures rose 0.3% after the U.S. said it would restore military aid and intelligence sharing to Ukraine after Kyiv said it would accept a U.S. ceasefire proposal. Russia is yet to respond. The euro hit its highest since October in New York trade at $1.0947 and was steady at $1.0913 in the Asia session. Russia's rouble rose to a seven-month high overnight. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2% with markets in Hong Kong and China broadly steady and Japan's Nikkei holding its ground after slumping to a near six-month low a day earlier. On Wall Street overnight the S&P 500 flirted with notching a 10% fall from February's record closing high, and finished a volatile session about 0.8% lower. President Donald Trump threatened then backed down from a doubling of steel and aluminium tariffs on Canada to 50%, after Ontario suspended plans for a surcharge on exported electricity. The dollar has sunk, Treasuries have rallied and lately stocks have suffered their heaviest selling in months as traders worry tariffs and policy uncertainty will hurt U.S. growth. "He's clearly trying to rebalance the economy back in favour of America," said Catriona Burns, lead portfolio manager of a global fund at Wilson Asset Management in Australia. "In this interim bit at the start, where he's going hard, it's a very dynamic environment to be operating in," she said. "The uncertainty that the tariffs and the back-and-forth on them is creating is hindering decision making ... so the effect that has in terms of a short-term pocket for the U.S. and an impact on growth there will be really interesting." Travel stocks took a beating after Delta Air Lines cut its profit forecast in half and rivals United and American Airlines warned of deteriorating results, falling government bookings and uncertainty weighing on demand. Investors nervous about the economy also punished downbeat financial results from retailers, with Dick's Sporting Goods stock diving 5.7% on a dour outlook and Kohl's Corp shares plummeting 24% after reporting a drop in sales. Steel and aluminium tariffs take effect later in the day. U.S. inflation data for February is also due, though it is likely to be too early to show much of a tariff hit. A central bank meeting in Canada will be closely watched to see what monetary policymakers on the front line of Trump's trade war are thinking. A seventh consecutive rate cut -- seen as only an even chance two weeks ago -- is priced in to the market. The Canadian dollar hit a one-week low overnight before recovering to C$1.443 per dollar. U.S. equity futures were broadly steady. The yen inched down from a five-month high to trade around 148 per dollar. The risk-sensitive Australian dollar was pinned just below 63 U.S. cents and Brent crude futures were held just under $70 a barrel. (Editing by Shri Navaratnam)
Reuters
12-03-2025
- Business
- Reuters
Euro surges on Ukraine ceasefire proposal, tariffs squeeze stocks
SINGAPORE, March 12 (Reuters) - The euro was riding at five-month highs on Wednesday on Ukraine's readiness to accept a month-long ceasefire, while stocks whipsawed on back-and-forth U.S. tariff plans and concern about a U.S. economic slowdown. European equity futures jumped 0.8% and FTSE futures rose 0.3% after the U.S. said it would restore military aid and intelligence sharing to Ukraine after Kyiv said it would accept a U.S. ceasefire proposal. Russia is yet to respond. The euro hit its highest since October in New York trade at $1.0947 and was steady at $1.0913 in the Asia session. Russia's rouble rose to a seven-month high overnight. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab was up 0.2% with markets in Hong Kong (.HSI), opens new tab and China (.SSEC), opens new tab broadly steady and Japan's Nikkei (.N225), opens new tab holding its ground after slumping to a near six-month low a day earlier. On Wall Street overnight the S&P 500 (.SPX), opens new tab flirted with notching a 10% fall from February's record closing high, and finished a volatile session about 0.8% lower. President Donald Trump threatened then backed down from a doubling of steel and aluminium tariffs on Canada to 50%, after Ontario suspended plans for a surcharge on exported electricity. The dollar has sunk, Treasuries have rallied and lately stocks have suffered their heaviest selling in months as traders worry tariffs and policy uncertainty will hurt U.S. growth. "He's clearly trying to rebalance the economy back in favour of America," said Catriona Burns, lead portfolio manager of a global fund at Wilson Asset Management in Australia. "In this interim bit at the start, where he's going hard, it's a very dynamic environment to be operating in," she said. "The uncertainty that the tariffs and the back-and-forth on them is creating is hindering decision making ... so the effect that has in terms of a short-term pocket for the U.S. and an impact on growth there will be really interesting." Travel stocks took a beating after Delta Air Lines (DAL.N), opens new tab cut its profit forecast in half and rivals United (UAL.O), opens new tab and American Airlines (AAL.O), opens new tab warned of deteriorating results, falling government bookings and uncertainty weighing on demand. Investors nervous about the economy also punished downbeat financial results from retailers, with Dick's Sporting Goods stock (DKS.N), opens new tab diving 5.7% on a dour outlook and Kohl's Corp (KSS.N), opens new tab shares plummeting 24% after reporting a drop in sales. Steel and aluminium tariffs take effect later in the day. U.S. inflation data for February is also due, though it is likely to be too early to show much of a tariff hit. A central bank meeting in Canada will be closely watched to see what monetary policymakers on the front line of Trump's trade war are thinking. A seventh consecutive rate cut -- seen as only an even chance two weeks ago -- is priced in to the market. The Canadian dollar hit a one-week low overnight before recovering to C$1.443 per dollar. U.S. equity futures were broadly steady. The yen inched down from a five-month high to trade around 148 per dollar. The risk-sensitive Australian dollar was pinned just below 63 U.S. cents and Brent crude futures were held just under $70 a barrel.
