Bloomberg - Evening Briefing - New ways to cash out

As the market for initial public offerings bounces back after two lifeless years, investors who’ve been waiting to cash in (or out) are finally getting some returns. But the revival hasn’t come fast enough for some, and behind the scenes, private equity shops saddled with bulging portfolios (and the banks and exchanges that make millions of dollars pushing companies public) are still looking for alternative exit strategies. Some are turning to private share sales while others establish new semi-public exchanges to tempt companies to market. Executives are also looking to rework long-accepted investment frameworks to address the new reality. “With the volatility and other concerns that you see around the IPO market,” says Christian Sinding, chief executive of EQT AB, “we do feel the need to develop alternatives.” —David E. Rovella  

Things just keep getting worse for Boeing. Now the US  Securities and Exchange Commission is scrutinizing statements made by the embattled planemaker about its safety practices following a near-tragic January accident aboard one of its 737 Max 9 planes. The SEC investigation is focused on whether comments by the company or its executives misled investors. The probe, which is examining statements before and after a panel blew off during an Alaska Airlines flight on Jan. 5, adds to a litany of legal problems facing Boeing, whose stock has lost about one third of its value in 2024.

The Romans called the Mediterranean Sea (and the Tyrrhenian before it) mare nostrum, or our sea. These days, NATO might be tempted to look at the Baltic Sea in a similar, possessive light. With the addition this year of Sweden and last spring Finland, it only takes a glance at a map to see that much of the body of water is surrounded by alliance nations, James Stavridis writes in Bloomberg Opinion. But there are a few places, including one small outpost bristling with weapons, that belong to Vladimir Putin. As NATO begins exercises in the region, Russia may be looking to change things up.

Estonian flags on the shoreline of the Baltic Sea in Tallinn Photographer: Peter Kollanyi/Bloomberg

Though in a stare-down with its biggest ally and arms supplier over the looming invasion of Rafah, Israel has another problem when it comes to the ongoing war with Hamas: debt. Israel has racked up a $16 billion bill after seven months of war, leaving its budget deficit on a path to calamity absent government action. As the war’s financial toll grows, Israel is on track to run one of its widest budget deficits this century.  Expenditure surged almost 36% in the first four months of 2024 from the same period a year earlier, of which roughly two-thirds went toward defense outlays. 

China’s first shipment of crude from Niger has been blocked by a border dispute between the landlocked West African nation and its southern neighbor. Benin barred exports of the fuel from its port after junta-led Niger refused to open its land border for goods coming from the south, Benin President Patrice Talon said on Wednesday. “If you want to load your oil in our waters, you can’t view Benin as an enemy and at the same time expect your oil to cross our territory,” he said. China National Petroleum built a 1,200-mile pipeline to move oil from Niger to Benin, part of a $4.6 billion investment in Niger’s petroleum industry. The country was expected to start shipping 90,000 barrels per day this month.

Oil shipments are dispatched from Niger via a pipeline to neighboring Benin Source: Savannah Energy, S&P Global Commodity Insights

Moderna’s pioneering Covid shot turned the company into a $200 billion biotech giant and a public health hero. But its second vaccine, meant to prevent a common respiratory virus, is calling into question the premise on which the company staked its entire business. The forthcoming RSV shot is Moderna’s first chance to show the versatility of mRNA technology to more effectively treat and prevent a range of illnesses, from the flu to cancer. But the results aren’t nearly so spectacular.  

Roughly one in 37 homes are now considered seriously underwater in the US, and that share is much higher across a swath of southern states. Nationally, 2.7% of homes carried loan balances at least 25% more than their market value in the first few months of the year. That’s up from 2.6% in the previous quarter.

Target is planning to cut LGBTQ-themed merchandise from some stores during Pride Month in June after a right-wing backlash dented revenue last year. The retailer plans to offer the full assortment online but is said to be considering store-level data to decide which physical locations will carry the products. Target is likely to stock the products in about half of its nearly 2,000 stores in the US. 

Target stores like this one in Miami have been the subject of protests by opponents of Pride Month merchandise. Photographer: Joe Raedle/Getty Images North America

• Xi Jinping skips visit to bombed embassy he vowed never to forget.
• Pentagon teams up with SpaceX to block Russia from using Starlink.
• Guess which Big Oil heavyweight wants to buy Tesla’s superchargers?
• Supreme Court majority makes it easier for police to keep your property.
• While not critical to case, did Stormy Daniels hurt Trump prosecutors? 
• Palm Beach old guard is in a tizzy over the new money moving in.
• Sony’s plans for Paramount include sale of famous studio lot.

Investor enthusiasm for AI-related trades is percolating again—but this time, the spotlight is on beneficiaries largely outside the large-cap tech leaders. Most of the experts who shared ideas for how to invest $1 million with Bloomberg News focused on ways to play on the future of artificial intelligence beyond the usual suspects. As uncertainty mounts about when the Federal Reserve will begin its rate cuts, waning exuberance for growth stocks weighed on the S&P 500 last month. But wealth advisers and strategists are saying there are still reasons to be bullish. Here’s where they say to look.

Illustration: Isabel Seliger

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