Markets Defused gives an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- Golden Goose cancelled its IPO, blamed France
- JP Morgan to boost UK banker pay
- Ferrari has priced first electric model at half a million
- Zilch wants UK IPO support as it mulls a float
Golden Goose cancelled its IPO, blamed France
Golden Goose, a luxury trainers brand, has cancelled its recently mooted stock market IPO, blaming instability in the European market.
The decision by the Venice-based sneaker brand and its British owners, private equity firm Permira, followed the recent snap election in France which has caused turmoil in European stocks.
"The significant deterioration in market conditions following European Parliament elections this month and the calling of a general election in France have impacted European markets performance and, in particular, the luxury sector," the company said in a statement.
Golden Goose had wanted to pitch its stock market valuation between €1.7 billion and €1.9 billion, making it potentially Italy's largest IPO in over a year.
The company is known for its high-priced and pre-scuffed sneakers, which sell for between $585 and $820 per pair and are a “celebrity favourite” – worn by the likes of Taylor Swift, Selena Gomez, and Reese Witherspoon.
JP Morgan to boost UK banker pay
London bankers are set for bigger payouts this year, JP Morgan Chase has now confirmed it will remove the ‘bonus cap’ for its staff in The City.
This move, already announced by American rival Goldman Sachs, allows senior bankers to earn bonuses of up to ten times their fixed pay – whereas the previous cap, brought in to meet EU rules in the past, limited bonuses to twice fixed pay.
JPMorgan employs 22,000 people in the UK, 14,000 of which are in London.
"We believe we have developed one of the most attractive and balanced pay structures in the industry,” the American bank’s spokesperson said in comments to media.
“Fixed pay will remain very competitive, and we will have ample room to reward the highest performers appropriately."
Whilst no longer capped, bonuses at JPMorgan are expected to remain discretionary and performance-driven.
Ferrari (NYSE:RACE) has priced first electric model at half a million
Ferrari is to price its first electric car will cost at around half a million Euros, that’s according to media reports citing ‘sources familiar with the matter’.
The elite Italian automaker plans to launch this new electric model late next year.
Production is expected to be located in a newly inaugurated plant in Maranello, northern Italy, which is opening later this week (on Friday).
Ferrari's pricing strategy for the electric model sets it apart from other luxury EVs, with the average sale price for a Ferrari currently around €350,000 including extras.
By comparison, Porsche’s electric Taycan starts at about €100,000.
The new factory in Maranello is designed to produce both electric cars and also petrol and hybrid models.
Ferrari is also understood to be developing a second electric vehicle, although this project is still in its early stages.
Zilch wants UK IPO boost as it mulls a float
Zilch, a fintech firm backed by eBay currently based in the UK, has threatened to float abroad if the next British government fails to boost the market for tech firms.
Chief executive Philip Belamant says the payments firm is holding off on listing in London until it sees evidence of government policies aimed at creating "liquidity and excitement around IPOs".
These comments came as the company landed £100 million of debt financing from Deutsche Bank.
This funding was described as a precursor for a potential IPO.
Belamant, meanwhile, is looking to see “pension funds investing in high-growth British companies” and “incentives for retail investors to buy and hold British stocks”.
“If this all happens, I’m not sure why you wouldn’t want to list on the LSE . . . But of course, if it doesn’t happen, then we have to take the appropriate decision and that might be to go somewhere else,” Belamant said in comments to the media.
London has been ailing in profile over the past year, witnessing an exodus of its mid-to-large companies – some going private, others being taken over by private equity, and others moving over to the United States in search of better valuations and stronger liquidity.