May 5, 2020
Good morning! This Tuesday, we see the first signs of an impending M&A wave, investors are hot for Apple's bonds, and plastic-free materials aren't worried about the oil price. Want Index in your inbox each morning? Subscribe here.
As of 4:23 a.m. PDT: Nasdaq Futures: 1.17% | Euro 600: 1.55% | Nikkei: -2.84% | Hang Seng: 1.08%
Tailored to meet client demand, the Nasdaq Cloud Data Service (NCDS) provides real-time streaming of exchange, index, fund and analytic data. Data is made available through a suite of APIs, allowing for effortless integration and a dramatic reduction in time to market for customer-designed applications.
Yesterday, The Information reported that Uber is mulling a $170 million investment in Lime, which would value the scooter startup at $510 million.
It's our first (big) taste of the M&A spree that seems to lie ahead.
But evidently some companies are interested in M&A, seeing this as an opportunity to get a leg up on competitors.
Expect much more of this. Some industries — transport, travel, hospitality — have been hit hard by the crisis, but not everyone in those industries has been hit equally. The bigger companies have the cash to withstand the downturn and also have the cash to pick up competitors. SoftBank's "capital advantage" thesis might finally turn out to make sense.
This morning, biotech startup RWDC Industries announced a $133 million Series B funding round, offering some hope that a sustainable future is still in reach. I spoke to CEO Dr. Daniel Carraway yesterday about the round, curious whether the rock-bottom oil price had dampened demand for PHA, RWDC's biodegradable plastic alternative. "What's driving the interest in materials like PHA is not price," he said, saying that sustainability and safety seemed to still be a focus for his customers. The company has seen one effect though: Construction on its giant new factory in Athens, Georgia, has been delayed by a few months. We'll have to wait just a little longer for a plastic-free future, but it's coming.
Correction: Yesterday's edition misidentified a company that had reportedly laid off approximately 10% of its staff. It is SoftBank Group International.