Tag: investment

Corporate dealmaking boosts business for investment bankers

The business of banking has become tougher in the last few years. Rising interest rates mean banks have to pay depositors more interest, and many banks have a lot of risky loans on their balance sheets — especially commercial real estate loans.

But big banks have other lines of business that’ve been doing well lately. Like investment banking.

If a corporation wants to raise a bunch of money by selling stock or issuing bonds, it might call up someone like Drew Pascarella, who spent 10 years as an investment banker at Citi, covering the technology, media and telecom sector. He now teaches finance at Cornell University.

He said investment bankers help companies find buyers for those stocks and bonds and help companies purchase other companies or be purchased themselves.

“So there’s lots of different flavors, but an investment bank would help a company think through those merger and acquisition transactions and help them actually effect those transactions in the market,” Pascarella said.

And they charge fees for doing all of that. But until the end of last year, investment bankers’ phones were pretty quiet.

Steve Biggar, a bank analyst at Argus Research, said that last year, corporations were kind of nervous about doing deals. When the economy is uncertain, firms tend to pull back.

“You say, ‘I don’t want to do any expansions, maybe now is not the time, I want to see how everything shakes out in the economy, and are we going to get this soft landing?’ and so forth,” he said.

Companies are also facing higher interest rates and greater regulatory scrutiny. But Christina Sautter, a law professor at Southern Methodist University, said by now, companies have adapted to those challenges.

“Since they’re getting more used to it, they’re more inclined to do deals when they feel

Globalink Investment Inc. Announces Extension of the Deadline to Complete a Business Combination to May 9, 2024

Globalink Investment Inc.

Globalink Investment Inc.

New York, NY, April 09, 2024 (GLOBE NEWSWIRE) — Globalink Investment Inc. (Nasdaq: GLLI, GLLIW, GLLIR, GLLIU) (“Globalink” or the “Company”), a special purpose acquisition company, announced today that on April 9, 2024, it caused to be deposited $60,000 (the “Extension Payment”) into its trust account (the “Trust Account”) with Continental Stock Transfer and Trust Company (“Continental”) to extend the deadline to complete its initial business combination from April 9, 2024 to May 9, 2024. The extension is the tenth extension since the consummation of the Company’s initial public offering on December 9, 2021, and the fifth of twelve extensions permitted under the Company’s governing documents currently in effect.

About Globalink Investment Inc.

Globalink is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. Although there is no restriction or limitation on what industry or geographic region, Globalink intends to pursue targets in North America, Europe, South East Asia, and Asia (excluding China, Hong Kong and Macau) in the medical technology and green energy industry.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “guidance” or the negative of those terms or other comparable terminology. These statements are based on the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Because these forward-looking statements involve risks

Richmond resident introduce investment jewelry business idea

Fast fashion needs to slow down or paused in the jewelry marketspace, according to UBC grad.

Jewelry can be more than just a pretty ornament – it can also be sustainable and a smart financial investment for the future.

This is the main message Richmond resident Corey Sham is hoping to share, having launched her online-based jewelry business Vela Jewels Co.

Sham developed an interest in jewelry early on, like many others, thanks to her mother.

However, she noticed an unsustainable cycle of buying jewelry that would tarnish after a few months of wear only to be discarded, which was not a good use of her money.

Sham, who is 22 years old, created Vela Jewels offering big brand quality, but at a lower cost.

“It’s about introducing people to the idea of investment jewelry and allowing people to have that first piece of luxury jewelry without the big price tag,” said Sham.

All of Vela’s pre-made and custom-made jewelry is 18-karat gold, which is 75 per cent gold, and includes natural gemstones such as diamonds and sapphires. 

The jewelry is designed and manufactured in Hong Kong. It can take eight to 11 weeks for final custom-made pieces to be delivered.

While jewelry doesn’t retain the same value as a gold bar, Sham described jewelry as an asset.

“You’re able to wear it as opposed to leaving the gold bar at home,” said Sham.

When a piece of jewelry is out of style or a customer doesn’t like it anymore, they can trade it in and it’s then turned into a new piece of jewelry.

Because the pieces are made from 18-karat gold, they can be remelted and reused in new jewelry pieces, she explained.

While the return value of the item is lower than the original price, Sham explained

Amazon spends $2.75B on Anthropic in largest venture investment yet

Jakub Porzycki | Nurphoto | Getty Images

Amazon is making its largest outside investment in its three-decade history as it looks to gain an edge in the artificial intelligence race. 

The tech giant said it will spend another $2.75 billion backing Anthropic, a San Francisco-based startup that’s widely viewed as a front-runner in generative artificial intelligence. Its foundation model and chatbot Claude competes with OpenAI and ChatGPT.

The companies announced an initial $1.25 billion investment in September, and said at the time that Amazon would invest up to $4 billion. Wednesday’s news marks Amazon’s second tranche of that funding.

Amazon will maintain a minority stake in the company and won’t have an Anthropic board seat, the company said. The deal was struck at the AI startup’s last valuation, which was $18.4 billion, according to a source. 

Over the past year, Anthropic closed five different funding deals worth about $7.3 billion. The company’s product directly competes with OpenAI’s ChatGPT in both the enterprise and consumer worlds, and it was founded by ex-OpenAI research executives and employees.

News of the Amazon investment comes weeks after Anthropic debuted Claude 3, its newest suite of AI models that it says are its fastest and most powerful yet. The company said the most capable of its new models outperformed OpenAI’s GPT-4 and Google‘s Gemini Ultra on industry benchmark tests, such as undergraduate level knowledge, graduate level reasoning and basic mathematics.

“Generative AI is poised to be the most transformational technology of our time, and we believe our strategic collaboration with Anthropic will further improve our customers’ experiences, and look forward to what’s next,” said Swami Sivasubramanian, vice president of data and AI at AWS cloud provider.

Amazon’s move is the latest in a spending blitz among cloud providers to stay ahead in the AI

Chinese President Xi Meets With US Executives as Investment Wanes

China’s President Xi Jinping met American business leaders at the Great Hall of the People in Beijing on Wednesday, as the government tries to woo back foreign investors and international firms seeking reassurance about the impact of new regulations.

Beijing wants to boost growth of the world’s second-largest economy after foreign direct investment shrank 8% in 2023 amid heightened investor concern over an anti-espionage law, exit bans, and raids on consultancies and due diligence firms.

Xi’s increasing focus on national security has left many companies uncertain where they might step over the line, even as Chinese leaders make public overtures toward foreign investors.

“China’s development has gone through all sorts of difficulties and challenges to get to where it is today,” Xi said, according to state media.

“In the past, [China] did not collapse because of a ‘China collapse theory,’ and it will also not peak now because of a ‘China peak theory,'” he said.

Stephen Schwarzman, co-founder and CEO of private equity firm Blackstone, Raj Subramaniam, head of American delivery giant FedEx, and Cristiano Amon, the boss of chips manufacturer Qualcomm, were part of the around 20-strong all-male U.S. contingent.

The audience with Xi — organized by the National Committee on U.S.-China Relations, the U.S.-China Business Council and the Asia Society think tank — lasted around 90 minutes, according to a person with direct knowledge of the matter.

The source, who declined to be named as they were not authorized to speak to the media, had no immediate comment on what was discussed. The National Committee on U.S.-China Relations and Asia Society did not immediately respond to requests for comment on the meeting.

A statement from U.S.-China Business Council said the participants “stressed the importance of rebalancing China’s economy by increasing consumption there and encouraging the government

Releases | Investment in Major Indian Broiler Business

Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President and CEO: Kenichi Hori) has decided to invest in Sneha Farms Pvt. Ltd. (“Sneha”), one of India’s leading broiler producers. After the investment, the company will become an associated company of Mitsui.

With the country’s GDP per capita reaching US$2,400, chicken consumption is about to enter an expansionary phase. India has a sizeable non-vegetarian population, and has achieved continuous economic growth and sustained development. Sneha is a chicken supplier based in Hyderabad, the capital city of the state of Telangana. Its integrated operations encompass feed manufacturing, broiler production, meat processing and packing, transportation, and retail. It is one of India’s leading companies in terms of production volume. Through its collaboration with Mitsui, Sneha also aims to expand its share in the Indian market and plans to double its production over the next five years. Furthermore, Sneha is aiming for full-scale entry into the market for high added-value food products, such as frozen and chilled ready-to-eat meals.

Mitsui will continue to contribute to the stable supply of chicken and other sources of protein, for which demand is expected to grow.

Chicken has the best feed efficiency and smallest environmental footprint of any livestock product. It is subject to few religious constraints, and demand is expected to grow worldwide. For many years, Mitsui has been building an integrated chicken production business, especially in the Japanese market, through its group companies, including its subsidiary Prifoods Co., Ltd. Using knowledge accumulated through its activities in Japan, Mitsui is also expanding its overseas business. It invested in Zalar Holding S.A. (“Zalar Holding”), the biggest broiler business in Morocco and Senegal, in 2018, and invested in Wadi Poultry S.A.E., Egypt’s biggest broiler producer, in 2024.

Meanwhile in the marine products area, Mitsui is strengthening farming and processing

Saudi Arabia plans $40 billion investment in artificial intelligence | World News

The government of Saudi Arabia plans to create a fund of about $40 billion to invest in artificial intelligence, according to three people briefed on the plans — the latest sign of the gold rush toward a technology that has already begun reshaping how people live and work.

In recent weeks, representatives of Saudi Arabia’s Public Investment Fund have discussed a potential partnership with Andreessen Horowitz, one of Silicon Valley’s top venture capital firms, and other financiers, said the people, who were not authorized to speak publicly. They cautioned that the plans could still change.

The planned tech fund would make Saudi Arabia the world’s largest investor in artificial intelligence. It would also showcase the oil-rich nation’s global business ambitions as well as its efforts to diversify its economy and establish itself as a more influential player in geopolitics. The Middle Eastern nation is pursuing those goals through its sovereign wealth fund, which has assets of more than $900 billion.

Officials from the Saudi fund have discussed the role Andreessen Horowitz — already an active investor in A.I. and whose co-founder Ben Horowitz is friends with the fund’s governor — could play and how such a fund would work, the people said. The $40 billion target would dwarf the typical amounts raised by U.S. venture capital firms and would be eclipsed only by SoftBank, the Japanese conglomerate that has long been the world’s largest investor in start-ups.

The Saudi tech fund, which is being put together with the help of Wall Street banks, will be the latest potential entrant into a field already awash in cash. The global frenzy around artificial intelligence has pushed up the valuations of private and public companies as bullish investors race to find or build the next Nvidia or OpenAI.

Business investment per worker fell 20% in 15 years amid weaker competition: StatCan

OTTAWA — Canadian business investment per worker plummeted by 20 per cent over a 15-year stretch, according to new Statistics Canada research that suggests weaker competition is partly to blame.

The report finds for every worker, businesses invested $628.80 less in their companies in 2021 than they did in 2006.

The decline was more significant in large and medium-sized companies and foreign-controlled businesses, though it’s unclear why that was the case.

The report attributes nearly one-third of the drop to declining entry rates, or the number of new companies starting up by industry.

“Economists always believe that competition promotes investment. When you look at our data, there’s a decline in the share of new firms,” said Wulong Gu, the study’s author.

Canada is struggling to increase labour productivity amid low business investment, an issue that has been raised frequently by business groups and economists in recent years.

Capital investment, which refers to spending on everything from real estate to machinery, helps businesses grow and make their employees more productive.

That’s why economists argue capital investment is critical to growing the economy and improving living standards.

The report says the slowdown in investment coincided with a shift toward intangible assets such as brand equity and patents, which national statistical agencies don’t record as investments.

However, that shift doesn’t explain why business investment in Canada lags that in other countries, said Wu, because intangible assets are not recorded as investments elsewhere, either.

The study also found no relationship between profitability and business investment, which Wu said was “surprising.”

Canada’s competition watchdog released a report in the fall that found competition weakened over the previous two decades as profits and markups rose.

The Liberal government recently introduced several changes to the Competition Act after pledging to modernize the country’s competition law.

The Competition

Scottish business school and investment bank launch new programme for scale-up community

A NEW programme to address the growth barriers faced by impact-oriented businesses launches today. The Scottish Impact Investor Readiness Programme is being delivered by award-winning Strathclyde Business School, in partnership with the Scottish National Investment Bank (the Bank), and was developed following extensive research into the challenges that businesses with a focus on environmental and societal impact face when looking to scale.

The programme aims to help business owners grow their businesses responsibly, with a focus on helping them develop a better understanding of environmental, social, and corporate governance (ESG) considerations and measure impact.

This new executive education programme is the latest addition to Strathclyde’s portfolio of programmes for the leaders of companies looking to grow and scale. It will be delivered by experts from across the University – including the ScaleUp Institute endorsed Hunter Centre for Entrepreneurship and the Centre for Sustainable Development – utilising world class, internationally recognised research, and real-world practitioners.

David Ritchie, Exec Director of Partnerships & Engagement at the Bank, said: “As an impact investor, we can see first-hand how focusing on critical impact measures can drive long-term societal and economic benefits for Scotland, for generations to come. We have a portfolio of 31 businesses, all of whom set out clear and measurable impact targets as part of our commercial investment process, and we monitor their progress with them annually.

“Investors demand more than commercial returns, they also want to see the positive human impact that their funding enables. It’s never been more pressing for businesses to understand and embed the principles of impact investing in their business plans.

“We’re delighted to partner with the University of Strathclyde with their proven track record in supporting the SME community.  We encourage business owners and leaders who are focused on long-term success and transformative innovation to sign

Virtuous AI Investment Cycle to Boost Record Profits

  • A virtuous investment cycle sparked by AI is set to drive S&P 500 profits to record highs, according to Bank of America.
  • The bank raised its 2024 and 2025 S&P 500 earnings per share estimates to $250 and $275, respectively.
  • Corporate investments in AI technologies will eventually spill over into utilities as electricity demand rises, BofA said.

The stock market is about to enter a “virtuous investment cycle” that leads to record corporate profits, according to a Tuesday note from Bank of America.

Strategist Savita Subramanian said corporate investments in artificial intelligence will spark a wave of spending across different sectors, which will ultimately be a tailwind for S&P 500 earnings per share.

Subramanian raised her 2024 S&P 500 earnings estimate to $250 per share from $235, representing a record high on Wall Street and well above the average consensus estimate of $235. If Subramanian’s estimate proves accurate, it would represent a 12% year-over-year jump in corporate profits.

For 2025, Subramanian issued an S&P 500 earnings per share estimate of $275, which would represent year-over-year growth of 10% from her 2024 forecast.

The crux of the stock market’s latest rally has centered on profit growth following better-than-expected fourth-quarter earnings results, and Subramanian thinks there will be record profits in the future as AI technologies are more broadly adopted.

“We see a potential virtuous cycle forming from AI investments. Semis and networking are the most obvious beneficiaries, but increased power usage and the physical build-out of data centers will lead to more demand for electrification, utilities, commodities, etc,” Subramanian said. 

Much of the initial investments are coming from the mega-cap hyperscalers like Microsoft, Amazon, Alphabet, and Meta. As a whole, these