Daily Brief - 26 Feb 2024

Ant Group outbids Citadel for Credit Suisse's China venture

Ant Group, supported by Jack Ma, has successfully outbid Citadel Securities for Credit Suisse’s investment bank in China. This deal is a big step for Ant Group as it tries to expand its financial services, but it's not in the clear yet. Chinese regulators might take a closer look because they usually prefer foreign companies to own these businesses. Meanwhile, UBS, which now owns Credit Suisse, is stuck choosing between a higher offer from Ant and a lower one from Citadel that might be easier to get approved. This situation is made tougher by global tensions and local partnership complexities. Ant's move comes after a period of scrutiny by Chinese authorities, highlighting its ongoing recovery and ambition in the financial sector.

Ryanair to cut summer flights due to Boeing delays

Ryanair has announced potential cuts to its summer schedule because of delays in receiving new Boeing 737 Max jets, warning that this could lead to fewer passengers and higher fares. CEO Michael O'Leary revealed that the airline might get fewer than 40 of the expected jets before summer, forcing a revision of their passenger forecast down from 205 million to 200 million for the next fiscal year. The shortage of aircraft is expected to push up fares across Europe by 5 to 10%. Ryanair's growth is being hampered by the uncertainty around Boeing's delivery schedule, particularly after a recent incident prompted increased scrutiny over Boeing's manufacturing quality. The airline is also discussing compensation with Boeing for the delivery delays.

Goldman Sachs secures $1 billion for Asia-focused private credit

Goldman Sachs has struck a significant $1 billion deal with Mubadala Investment Co., targeting private credit opportunities in Asia, especially in India. This move comes as the private credit market, now worth $1.7 trillion, continues to grow rapidly, attracting more investors seeking higher returns. With the Middle East's interest in private debt rising due to higher yields, institutions like Mubadala are eager to expand their portfolios. Goldman aims to double its current $110 billion private credit assets, leveraging partnerships to gain exposure in less saturated markets like Asia Pacific. This strategy aligns with Mubadala’s goal to double its Asia investments by 2030.