Investment

Czech billionaire Kretinsky widens investment scope as energy deals ease – TheChronicleHerald.ca

Published

4 years ago

April 7, 2020

By Jason Hovet

PRAGUE (Reuters) – Czech billionaire Daniel Kretinsky, who forged one of Europe’s largest energy groups through more than a decade of deals, is diversifying and scouring retail, media and other areas for investments.

Kretinsky helped launch Energeticky a Prumyslovy Holding (EPH) in 2009 with Czech-Slovak financial group J&T and PPF – owned by the richest Czech Petr Kellner – and forged the business into an energy powerhouse with assets stretching from Ireland to Italy.

EPH has grown by squeezing profits out of unwanted coal plants and also has a key stake in Slovakia’s Eustream, an important carrier of Russian gas to Europe. But Kretinsky told Reuters that tougher competition for energy deals has spurred him to new targets in the past couple of years, including a stake in German retailer Metro , although energy remained core to his business.

Answering questions via email due to self-isolation after contracting the coronavirus, the former investment bank lawyer said competition from pension and infrastructure funds, fewer deals in generation and increased risk due to volatile CO2 prices have hurt growth opportunities in the energy sector.

“Energy will remain a key pillar of our operations and we will indeed explore ways how to grow our presence there. However we are less optimistic in our capability to do so,” Kretinsky said in reply to Reuters questions.

“For the diversification strategy I think the existing investments are signalling our way but give us a few weeks to make a more structured announcement.”

Kretinsky, who owns a 10% stake in ProSiebenSat.1 Media , dismissed speculation that he would team up with Italy’s Mediaset to make a bid for the German broadcaster.

“We are not acting in concert with Mediaset,” Kretinsky said.

Kretinsky is the main shareholder in EPH, which generated 1.9 billion euros ($2.05 billion) in consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) in 2018, the latest published data.

Kretinsky, whose net worth stands at $3.4 billion according to Forbes, said equity allocation in recent years has been split between renewables and gas power and that future investment would be more about development than acquisition, with some minor divestments possible.

NEW DEALS

When asked about outside investors, Kretinsky said the group had considered inviting one more “in a very minority way” into its EP Infrastructure unit – in which Macquarie already has a stake.

“Very likely we will postpone the decision as we are considering some other steps which are not supporting this transaction now,” he said, without giving further details.

Kretinsky branched out beyond energy with J&T chief Patrik Tkac in 2018 with a share of German wholesaler Metro that has grown to just below 30%. They also hold a stake in French retailer Casino .

Kretinsky, who also bought a minority share in French paper Le Monde and other French titles in recent years, said he expected the coronavirus outbreak would eventually impact his retail and media investments in some way.

The billionaire, who said he had mild symptoms, has argued some statistics have overstated the threat of the virus. But he added any death was tragic and states’ measures to fight the spread have been right, buying time for healthcare systems.

He predicted the impact of lockdowns could be limited in places where governments get intervention and economic aid right but said a second threat from the virus was behavioural change.

“If (people) fear and adjust their consumer and economical behaviour, we will see robust negative impacts and deep structural changes. Unfortunately the misinterpretation of the numbers and related panic are working heavily against us,” he said.

(Reporting by Jason Hovet; Editing by Michael Kahn and Susan Fenton)

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

7 days ago

September 6, 2024

Anne Joseph

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

2 weeks ago

August 29, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

1 month ago

August 5, 2024

Harry Miller

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.