Daily Brief - 15 Apr 2024

CVC Capital partners eyes over €1 billion IPO

CVC Capital Partners, a well-known European buyout firm, plans to launch its stock market debut in Amsterdam soon, aiming to raise between €1 billion and €1.5 billion.

They hope to achieve a company valuation of up to €15 billion. This move comes after previous IPO efforts were disrupted by unstable market conditions. CVC manages significant assets, including shares in popular brands like Breitling and Lipton Teas.

A successful IPO could inspire other private equity firms to go public, especially after some mixed results from similar companies recently. This listing could also provide CVC with new resources for acquisitions.

Emerging markets struggle with weak currencies

Emerging markets, particularly in Asia, are actively battling currency devaluation due to a stronger US dollar. In response, countries like South Korea, Thailand, and Poland are monitoring their currencies closely and are ready to intervene if necessary.

Indonesia and China have already taken measures to strengthen their currencies, with Indonesia selling dollars and China managing the yuan's value tightly. This financial struggle comes as US inflation rates suggest continued high interest rates, adding pressure on these economies.

Central banks are using both verbal interventions and direct market actions to manage their currency values against the dollar.

Bitcoin 'halving' to slash miners' earnings by $10 billion

The upcoming 'halving' event in Bitcoin's blockchain will dramatically reduce the earnings of cryptocurrency miners, cutting daily Bitcoin generation in half from 900 to 450. This adjustment, occurring around April 20, is anticipated to cause a $10 billion annual revenue loss for the industry. Miners like Marathon Digital Holdings Inc. and CleanSpark Inc. are bracing for this by acquiring new equipment and smaller companies. The reduction in potential earnings comes at a challenging time as miners now face increased competition for electricity, not only from each other but also from the rapidly growing AI sector, which also demands high power.