Mon. Dec 6th, 2021


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General Electric plans to divided into three separate companies, effectively ending its status as America’s most famous industrial conglomerate after years of trying to respond to flaws in its model exposed by the financial crisis.

The division into three public companies focused on healthcare, energy and aviation is the final step in the destruction of the vast group created by Jack Welch at the end of the last century.

It is also the bravest step yet by CEO Larry Culp in his years-long effort to streamline the diversified company, which has experienced increasing investor pressure over its underperformance.

Shares in GE jumped more than 10 percent in pre-market trading when investors welcomed the move, which will make it easier for them to decide which of the businesses they want to support.

GE Healthcare will be divested in 2023, with GE retaining a 19.9 percent stake in the unit. GE Renewable Energy, GE Power and GE Digital will be combined into one energy-focused company that will be separated in 2024. Once these transactions are completed, the original GE will focus on aviation.

What do you think GE’s separation means for other major conglomerates? Tell me what you think firstft@ft.com. Thank you for reading FirstFT Asia. – Emily

1. Global holdings of Chinese stocks and bonds rise Global holdings of Chinese stocks and bonds have jumped about $ 120 billion in 2021 while foreign investors are chasing returns in the country’s markets despite recent volatility and regulatory repression by Beijing.

Bar graph of value of renminbi-denominated securities held by foreign investors ($ billion) showing that global exposure to Chinese equities and bonds exceeds $ 1 tn

2. Pfizer asks US to expand Covid-19 amplifier access The company has asked the U.S. Food and Drug Administration to extend authorization of its Covid-19 booster shot to all adults in a move to address concerns about dwindling immunity for vaccinated people before winter.

3. Kaisa pleads for ‘patience’ as market strife expands The Chinese real estate developer has asked investors for “more time and patience” as he rushes to raise cash from asset sales amid signs that market unrest spreads to higher-rated businesses in the real estate sector.

  • Go deeper: In today’s Unsubscribed Email, Robert Armstrong highlights the panic gripping China’s junk bond market.

4. US Capitol riot panel sues Trump’s senior adviser The Congressional Committee investigates the January 6 attack on the US capital have issued summonses to 10 other allies of Donald Trump, including former senior adviser Stephen Miller and former president’s White House press secretary Kayleigh McEnany.

5. DoorDash buys the Wolt delivery program for a € 7 billion deal Delivery program DoorDash has reached transaction to acquire the Finnish group Wolt in a transaction for all shares worth € 7 billion. The Helsinki-based company, which has more than 4,000 employees, operates in 23 European markets, including Germany, where DoorDash was eager to gain a foothold.

COP26 consumed

  • A global deal to eliminate new car exhaust by 2040 struggling attract support of the world’s largest automakers and governments.

  • The A found that 2030 climate targets are still far from the track of the Paris Agreement’s targets and would increase temperatures by 2100 to 2.7C.

  • Global greenhouse gas emissions from agriculture and food production has 17 percent up over the past 30 years, according to UN data.

  • 130 fashion brands promised to halve their greenhouse gas emissions by 2030, but the broader industry will fall far short of it based on its current trajectory.

  • US Congress Democrats attending COP26 tried to inject a positive tone in talks stalled by a lack of US political capital.

The day ahead

Inflation data US and China both report inflation data today. In China, factory gate prices are expected to have risen to a peak of 26 years. US figures are expected to show consumer prices rose 5.8 percent in October year-on-year, the highest level of increases since 1990. (Bloomberg, FT)

Rivian starts trading on Nasdaq The Amazon-backed electric vehicle manufacturer is set to list today in New York in the largest initial public offering for a U.S. company since Facebook’s debut in May 2012.

Earnings Results is expected from ABN Amro, Adidas, Ahold Delhaize, Alcon, Allianz, Continental, Crédit Agricole, EDF, Eon, Halfords, Infineon Technologies, Marks and Spencer, NTT and Walt Disney.

What else are we reading

“An incredible feeling” Families, couples and friends rushed to reunite after the US pandemic-era border control that banned most travelers from the UK and Europe was lifted yesterday. We had reporters at Chicago’s O’Hare International Airport, New York’s John F Kennedy International Airport and London Heathrow.

Michael Williams embraces friend and business partner Craig Pettigrew at Chicago's O'Hare International Airport

Michael Williams embraces friend and business partner Craig Pettigrew at Chicago’s O’Hare International Airport © Claire Bushey / FT

China struggles to regulate house prices In recent years, authorities have put in place measures to closely monitor price increases to avoid the risk of asset bubbles in a sector responsible for the majority of household wealth. But now officials in some regions are also acting stop price movements in the other direction.

Asia opens its post-Covid economies China may have one of the most severe restrictions on the continent, but critics still believe curbs are too strict in countries starting to open up like Japan, South Korea and Singapore. “Politics and for businesses it [route] was controversial, ”said one executive.

Do you think Covid restrictions are still too strict where you live? Tell us what you think in our latest opinion poll.

Investment industry gets tougher on climate Tired of having quiet conversations with companies about emissions and how global warming will hit long-term valuations, many investors are now threatens to sell. Their change in attitude can have major consequences for global business.

Takeover competition puts the spotlight on Singapore An opportunity to take the temperature on the city – state’s stock market as an arena for transactions has arrived with a takeover contest that can finally be decided by two bids. separated in value by 0.001 from a Singapore dollar.

Music

Concert halls do not often ring to chanting as if the audience is at a football game, as the Barbican did last week. With tongue in cheek, lifelong Arsenal fan Mark-Anthony Turnage wrote a score depicting his team’s league victory about Liverpool in 1989 and a film of the match was shown to go along with it.

‘Up for Grabs’ combines Mark-Anthony Turnage’s twin loves for music and football © BBC / Tom Howard

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