FirstFT: GE will eventually become America’s best-known conglomerate

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General Electric plans to split into three separate companies, ending its status as America’s best-known industrial conglomerate after years of trying to address the flaws in its model exposed by the financial crisis.

The split into three public companies focused on healthcare, energy and aviation marks the final step in the destruction of the sprawling group created by Jack Welch at the turn of the last century.

It is also the boldest move ever taken by chief executive Larry Culp in his long-standing efforts to streamline the diverse company, which faces increasing pressure from investors due to its underperformance.

Shares of GE jumped more than 10 percent in pre-market trading as investors welcomed the move, which will make it easier for them to decide which companies they want to support.

GE Healthcare will be split in 2023, with GE retaining a 19.9% ​​stake in the unit. GE Renewable Energy, GE Power and GE Digital will be combined into a single energy-focused company that will be split in 2024. Once these transactions are completed, GE Original will focus on aviation.

What do you think the GE split means for the other large conglomerates? Tell me what you think [email protected]. Thanks for reading FirstFT Asia. – Emilie

1. Global holdings of Chinese stocks and bonds soar Global holdings of Chinese stocks and bonds have jumped by around $ 120 billion in 2021 as foreign investors seek returns in the country’s markets despite recent volatility and Beijing’s regulatory crackdown.

2. Pfizer calls on the United States to expand access to the Covid-19 booster The company has asked the United States Food and Drug Administration to extend authorization of its Covid-19 booster injection to all adults in order to address concerns about the diminished immunity of those vaccinated before the winter.

3. Kaisa pleads for “patience” as market strife spreads Chinese real estate developer asked investors for “more time and patience” as it rushes to raise funds through asset sale amid signs that market turmoil is spreading to top-rated companies of the real estate sector.

  • Go further: In today’s Unhedged email, Robert Armstrong highlights the panic gripping the Chinese junk bond market.

4. U.S. Capitol riot panel subpoena Trump’s senior adviser The Congressional committee investigating the January 6 attack on the U.S. Capitol issued subpoenas to 10 other Donald Trump allies, including former senior adviser Stephen Miller and the former president’s press secretary in the White House Kayleigh McEnany.

5. DoorDash buys the Wolt delivery app for 7 billion euros The DoorDash delivery app has reached a deal to acquire Finnish group Wolt in an all-share deal worth € 7 billion. The Helsinki-based company, which has more than 4,000 employees, is present in 23 European markets, including Germany, where DoorDash wishes to establish itself.

Summary of COP26

  • A global agreement to be eliminated new car emissions by 2040 is struggling to attract support from the world’s largest automakers and governments.

  • The UN found that the climate targets for 2030 are still far from the targets of the Paris agreement and would increase temperatures to 2.7 ° C by 2100.

  • Global greenhouse gas emissions of agriculture and food production have increased by 17% over the past 30 years, according to UN data.

  • 130 fashion brands have pledged to halve their greenhouse gas emissions by 2030, but the entire industry will be a long way off based on its current trajectory.

  • Democrats in the US Congress attending COP26 tried to inject a positive tone into discussions that remain blocked by a lack of American political capital.

The day to come

Inflation data The United States and China are both releasing inflation data today. In China, ex-factory prices are expected to have increased to a peak of 26 years. U.S. figures are expected to show consumer prices rose 5.8% year-on-year in October, the highest level of increase since 1990. (Bloomberg, FT)

Rivian starts trading on the Nasdaq The Amazon-backed electric vehicle maker is expected to register in New York City today in the largest initial public offering for a U.S. company since Facebook debuted in May 2012.

Earnings Results are expected from ABN Amro, Adidas, Ahold Delhaize, Alcon, Allianz, Continental, Crédit Agricole, EDF, Eon, Halfords, Infineon Technologies, Marks and Spencer, NTT and Walt Disney.

What else do we read

“An incredible feeling” Families, couples and friends rushed to reunite after the United States’ pandemic-era border controls were lifted yesterday that banned most travelers from the UK and Europe. We had reporters at O’Hare International Airport in Chicago, John F Kennedy International Airport in New York, and London Heathrow.

Michael Williams kisses his friend and business partner Craig Pettigrew at Chicago O'Hare International Airport

Michael Williams kisses his friend and business partner Craig Pettigrew at Chicago O’Hare International Airport © Claire Bushey / FT

China struggles to regulate house prices In recent years, the authorities have put in place measures to carefully control price increases in order to avoid the risk of asset bubbles in a sector that accounts for the majority of household wealth. But now officials in some regions are also taking action to stop price movements in the other direction.

Asia opens up its post-Covid economies China may have one of the continent’s toughest restrictions, but critics still believe the restrictions are too tight in countries starting to open up like Japan, South Korea and Singapore. “Politically and for companies, this [route] has been contentious, ”said one executive.

Do you think the Covid restrictions are still too strict where you live? Let us know what you think in our latest survey.

The investment industry is getting tougher on the climate Tired of having low-key conversations with companies about emissions and how global warming will affect long-term valuations, many investors are now threatening to divest. Their change in attitude could have huge ramifications for global businesses.

Singapore takeover contest shines a light on Singapore The opportunity to take the heat on the city-state’s stock market as a trading arena presented itself with a takeover contest that could ultimately be decided by two separate offers valued at S $ 0.001.

Music

Concert halls don’t often sound singing like the audience is watching a football game, like the Barbican did last week. With tongue in cheek, lifelong Arsenal fan Mark-Anthony Turnage wrote a score describing his side’s victory over Liverpool in 1989 and a film of the match was shown to accompany it.

‘Up for Grabs’ combines Mark-Anthony Turnage’s twin loves for music and football © BBC / Tom Howard

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