The deal boom isn’t just happening in the United States | CNN Business (2024)

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As the stock market soars to new heights, companies have been racing to issue shares, leveraging the enthusiasm to generate cash for their businesses.

But the game isn’t just being played on Wall Street.

What’s happening: This has been a huge week for initial public offerings in India, which has been churning out billion-dollar startups.

Paytm digital barcode scanner can be seen in Kolkata, India, 11 June, 2021. can be seen in Kolkata, India, 11 June, 2021. Paytm, Infosys and MakeMyTrip are among companies seeking approval in India to provide online COVID-19 vaccine bookings according to an Indian media report. (Photo by Indranil Aditya/NurPhoto via Getty Images) Indranil Aditya/NurPhoto/Getty Images Related article Paytm files for India's biggest tech IPO on record

Digital payments firm Paytm is planning to raise as much as 166 billion rupees ($2.2 billion) in an initial public offering in Mumbai, according to documents filed on Friday. The IPO, which is set to be a record tech listing for the country, would value Paytm at $25 billion, according to Reuters.

The news comes just two days after food delivery giant Zomato began raising $1.3 billion from its share sale in Mumbai, my CNN Business colleague Diksha Madhok reports. It was the country’s first tech unicorn to go public.

Step back: 2021 has produced the best start to the year ever for initial public offerings, according to data from Dealogic. Globally, there have been 1,522 deals worth almost $350 billion.

Stock issuers from the United States raised $213 billion on global markets during the first half of 2021. That was up 8% compared with levels seen a year ago, per data from Refinitiv.

But the rush to tap markets isn’t just benefiting American companies, with US firms accounting for a smaller share of global stock issuance than in 2020.

A global phenomenon: Stock offerings from issuers in the Asia-Pacific region hit a record $253 billion during the first half of 2021, an 81% increase compared to 2020, according to Refinitiv.

Plenty of the action is still passing through the United States. Chinese ride hailing giant Didi, for example, opted to list its shares on the New York Stock Exchange.

But the flurry of listings in Mumbai could encourage more of the country’s unicorns to consider the option. Walmart-owned Flipkart, which is the only Indian tech unicorn to have been acquired at a valuation of more than $1 billion, is also said to be considering a public offering.

And as China exerts more control over listings of domestic companies, Shanghai and Hong Kong could see an uptick in deals, too.

Meme stocks are having a rollercoaster week

Meme stocks popular online aren’t known for their predictability. But shares of GameStop and AMC Entertainment have been noticeably volatile this week, giving whiplash to small investors still among the faithful.

The latest: The value of shares of movie theater chain AMC has been cut in half since a record high in early June. Despite rising nearly 8% on Thursday, they’re still down 22% this week.

Last week, AMC (AMC) canceled a vote on whether to authorize the sale of 25 million more shares, citing a divide in opinion among its investors.

“It’s no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us,” CEO Adam Aron tweeted. He added that AMC would not make any more share sale requests for the rest of 2021.

GameStop (GME), meanwhile, is off nearly 13% this week. The company, which is trying to execute an ambitious turnaround plan, now has another foe to consider: Netflix, which intends to start offering video games on its platform.

Watch this space: Despite lots of uncertainty, amateur investors are staying in the game. Retail investors have been averaging daily stock purchases of $1.3 billion a day since the middle of June, according to Vanda Research. That’s 25% more than the post-Covid average.

But the research group notes that meme stocks haven’t been driving much of the action.

“Since June, a large share of retail purchases has been concentrated in underperforming sectors like financials, energy or reopening,” Vanda’s Ben Onatibia and Giacomo Pierantoni said in a research note this week.

Apple needs to watch out for this Chinese phone maker

The iPhone may be ubiquitous, but Apple (AAPL) is still playing defense in the global smartphone market.

This just in: Xiaomi has overtaken Apple to become the world’s second biggest smartphone maker for the first time ever, according to market research firm Canalys.

The Chinese company took 17% of worldwide smartphone shipments for the second quarter of 2021, behind Samsung’s 19%, Canalys said in a report this week. Compared with the same period in 2020, Xiaomi’s shipments jumped more than 80%.

Apple ranked third, with shipments that accounted for 14% of the global total. Chinese smartphone makers Oppo and Vivo followed, with 10% each.

Xiaomi is celebrating the win, pointing to its global expansion both online and in stores. The company’s stock surged nearly 5% in Hong Kong on Friday.

Apple and Xiaomi generally target different customers. Compared to Samsung and Apple, Xiaomi’s average selling price is around 40% and 75% cheaper, respectively.

But the rankings are a reminder that even with nearly $48 billion in iPhone sales during the first three months of the year, Apple has genuine global competition.

Up next

Charles Schwab (SCHW), State Street and Ericsson report results before US markets open.

Also today: US retail sales for June post at 8:30 a.m. ET.

Coming next week: Earnings from Netflix (NFLX), Johnson & Johnson (JNJ) and Intel (INTC).

The deal boom isn’t just happening in the United States | CNN Business (2024)


What is happening to the US economy? ›

The U.S. economy is still growing. Following up 2023's 2.5% Gross Domestic Product (GDP) growth rate, which included a particularly strong second half of the year, the latest read of first quarter 2024 economic expansion measured 1.3% on an annualized basis.

How strong is the US economy right now? ›

The state of the U.S. economy is strong despite inflation remaining elevated. The economy is expanding at a crisp pace, unemployment is low, inflation is slowing from its peak.

How many jobs were added in May? ›

The U.S. labor market added 272,000 jobs in May, marking an acceleration in the pace of hiring following 165,000 gains in April. However, there were modest downward revisions to job growth of 15,000 combined for April's and March's nonfarm payrolls.

What industry is the backbone of the US economy? ›

Manufacturing is the backbone of the American economy.

What is the richest country in the world? ›

The Richest Countries in the World Ranking
  1. Luxembourg ($140,000) With a GDP per capita of about $140,000, Luxembourg ranks first among the richest countries in the world. ...
  2. Ireland ($110,000) ...
  3. Switzerland ($106,000) ...
  4. Norway ($96,000) ...
  5. Qatar ($90,000) ...
  6. Singapore ($87,000) ...
  7. United States ($84,000) ...
  8. Iceland ($80,000)
May 31, 2024

How is the economy right now in 2024? ›

Steady but Slow: Resilience amid Divergence

Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies.

What is the best economy in the world right now? ›

The United States is the undisputed heavyweight when it comes to the economies of the world. America's gross domestic product in 2022 was more than 40% greater than that of China, the world No. 2. Even more striking, U.S. GDP was over five times that of the next two largest economies, Japan and Germany.

Is the US economy growing or declining? ›

Gross Domestic Product, First Quarter 2024 (Second Estimate) and Corporate Profits (Preliminary) Real gross domestic product (GDP) increased at an annual rate of 1.3 percent in the first quarter of 2024, according to the "second" estimate. In the fourth quarter of 2023, real GDP increased 3.4 percent.

Is the US economy at risk? ›

Despite stubborn inflation and still-high interest rates, the US economy has proved resilient so far in 2024. However, the Federal Reserve (Fed, the US central bank) will continue to try to cool the economy and reduce inflation. The target for inflation is 2% and it is currently above 3%, which is still too high.

What is the labor shortage in the US? ›

US Labor Shortage Rates

In the US, talent scarcity is on the rise. As of 2023, US labor shortage currently sits at 75%, just under the global average. That means that 3 in 4 employers are unable to find suitable employees for their job vacancies.

What is the unemployment rate in the US in 2024? ›

U.S. adds a much-better-than-expected 272,000 jobs in May, but unemployment rate edges up to 4% Nonfarm payrolls expanded by 272,000 for the month, up from 165,000 in April and well ahead of the Dow Jones consensus estimate for 190,000.

What is the trend in the unemployment rate in the US? ›

US Unemployment Rate is at 4.00%, compared to 3.90% last month and 3.70% last year. This is lower than the long term average of 5.69%. The US Unemployment Rate measures the percentage of total employees in the United States that are a part of the labor force, but are without a job.

Which country is closest to a pure market economy? ›

Singapore's economy is considered the freest, followed by Switzerland and Ireland, according to the Heritage Foundation's 2022 Index of Economic Freedom.

Who form the backbone of our economy? ›

Agriculture is the backbone of Indian economy.

What is America's biggest industry? ›

Biggest Industries by Revenue in the US in 2024
  • Commercial Banking in the US. $1.359.7B.
  • Hospitals in the US. ...
  • Drug, Cosmetic & Toiletry Wholesaling in the US. ...
  • Health & Medical Insurance in the US. ...
  • Pharmaceuticals Wholesaling in the US. ...
  • New Car Dealers in the US. ...
  • Life Insurance & Annuities in the US. ...
  • Public Schools in the US.

Is a depression coming? ›

ITR Economics is projecting that the next Great Depression will begin in 2030 and last well into 2036. However, we do not expect a simple, completely downward trend throughout those years. There will be signs of slight growth that pop up during this period.

Did the US economy go into recession? ›

We haven't seen a recession. To fight inflation, the Federal Reserve spiked interest rates in 2022 and 2023 at the fastest pace since the 1980s under legendary Fed chief Paul Volcker. Many feared that war on inflation would cause unemployment to surge and short-circuit the economic recovery from Covid-19.

Is the US economy finally getting stronger? ›

By the Numbers: U.S. Economy Grows Faster than Expected for Year and Final Quarter of 2023. Today, the U.S. Commerce Department's Bureau of Economic Analysis (BEA) reported fourth quarter real gross domestic product (GDP) increased at an annual rate of 3.3 percent in the fourth quarter of 2023 exceeding expectations.

How long do recessions last? ›

According to the National Bureau of Economic Research (NBER), the average length of recessions since World War II has been approximately 11 months. But the exact length of a recession is difficult to predict. In general, a recession lasts anywhere from six to 18 months.

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