Good morning. Corporations raised a record $ 12.1 trillion this year by selling stocks, issuing bonds, and borrowing as a flurry of central bank stimulus and the swift recovery from the pandemic that fueled global markets.
In a few days of 2021, the cash price will already be almost 17 percent above 2020, a historic year, and according to calculations by the Financial Times based on refinitive data, it will be almost a quarter above the level of 2019 before the coronavirus Crisis.
The rapid pace of fundraising underscores the ease of financial conditions in many parts of the world, particularly the United States, where more than $ 5 trillion has been raised.
“It’s been a really successful year,” said Chris Blum, a BNP Paribas banker who helps fund leveraged buyouts. “We assume that it will continue in the next year. Every year you kind of think the markets are going to recede from this hectic pace, but it will still be robust. “
Dozens of 10- and 11-digit loans were signed, including to fund Discovery’s merger with AT & T’s WarnerMedia unit and railroad operator Canadian Pacific’s takeover of rival Kansas City Southern. And roughly $ 10 trillion worth of US corporate bond investors closed deal after deal.
Three more stories on the news
1. The US is cutting the Covid isolation period to five days to reduce the disruption to Omicron: U.S. health officials have cut the recommended isolation time for people with Covid-19 as parts of the country’s economy grapple with severe staffing shortages due to the Omicron wave. The U.S. Centers for Disease Control and Prevention is now saying that infected people only need to isolate themselves for five days, while their symptoms are clear, and then wear a mask around others for another five days.
2. US stocks rise in trading after holidays: US stocks rose in weak post-Christmas trading yesterday, with energy stocks leading the rally and technology stocks climbing as well. Analysts wonder if the favorable market conditions that drove Wall Street to an all-time high this year will last through 2022.
3. China is stepping up the scrutiny of companies seeking listing abroad: China has said that domestic companies must obtain approval prior to listing overseas if they are operating in sectors that are off limits to foreign investors, bridging a void for the country’s tech companies to raise capital in the U.S. without having to undergo an official examination in Germany. “The days of free listings abroad are over,” said Li Chengdong, founder of Dolphin, a consultancy based in Beijing.
The Chinese ride-hailing app Didi Chuxing was listed on the New York Stock Exchange in June but said it would reverse its course after the resistance from Beijing © AP © AFP via Getty Images
Coronavirus digestion
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Xi’an Officials tightened lockdown measures and launched another round of mandatory testing for its 13 million residents amid the worst Covid-19 outbreak in China in nearly two years.
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France will work from home for all eligible employees at least three days a week and will ban large indoor gatherings to contain a wave of infection.
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Boris Johnson has decided against new restrictions in England before New Year’s Eve despite the increasing number of cases on Christmas weekend.
What else we read
Error in the integration of the Apple Watch The challenge of integrating technology into healthcare is one of the reasons that the Apple Watch, which launched in 2015 and is worn by more than 100 million people on their wrists, made its promise “The future of health is on the wrist” largely not redeemed.
Iran-USA: Faltering nuclear talks enter dangerous phase Our major reading deals with the distrust between Tehran and Washington, which is deeper than ever. Now that Iran has hit uranium enrichment at its highest level ever and the language hardens on all sides, experts are warning that the next nuclear crisis may only be months away – despite talks resuming yesterday.
The world’s most brilliant bookstores In October, we published a list of FT writers’ favorite bookstores. Here are the nominations readers thought we missed, from New York to London, Seoul, São Paulo and beyond.
‘A holdover from another city’: City Lights in San Francisco © Alamy
Our most read opinion article of the year
The FT’s most widely read opinion article of 2021 was published just a few weeks ago. It may not surprise you that this is about the coronavirus and Omicron in particular. Don’t miss Anjana Ahuja’s description of the “bumpy trip” with a new twist that “makes the road a little icier”.
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