Company News in Brief

Appetite for IPOs is strong, but watch those valuations, analysts say





The tepid reception to Venture Global's ambitious valuation target shows companies need to set realistic expectations when going public, Wall Street analysts said, and could be a signal that the recovery in new offerings may be a cautious one.

Touted as the first blockbuster listing of 2025, the LNG exporter was initially aiming for a price tag as high as $110 billion, only to settle for 45% lower when it eventually sold shares in the IPO on Thursday.



"Even with the improved market sentiment we've seen, investors are going to continue scrutinizing deals carefully," said IPOX CEO Josef Schuster.

"They aren't broadly willing to pay over-valued companies when there are readily available market comparisons."

Venture Global's IPO price of $25, the mid-point of the $23 to $27 range, was 7.67 times its adjusted tangible book value, according to a Reuters calculation.

-REUTERS



Moody's raises Argentina's rating for the first time in five years

Ratings agency Moody's on Friday raised Argentina's long-term foreign currency sovereign credit rating to "Caa3" from "Ca", citing the government's forceful policy shift that has helped address economic challenges and stabilize external finances.

Argentina achieved a record $18.9 billion trade surplus in 2024, according to official data released on Monday, which largely coincided with libertarian President Javier Milei's first full year in office, reflecting the impact of his economic policiesMilei's administration inherited spiraling inflation, depleted international reserves, and extensive economic imbalances that led to a very high probability of a credit event, according to Moody's.

"Decisive fiscal adjustment, alongside measures to halt monetary financing were put in place and have proven effective in addressing imbalances," it said, opens new tab.

Argentina's financial markets have been buoyant due to Milei's tough "zero deficit" policies, cooling inflation and the government's commitment to meet its debt obligations.

Moody's upgraded Argentina's credit rating for the first time in five years, following a downgrade in 2020 as disrupted debt restructuring talks amid the global pandemic increased the country'



REUTERS



.Google pushes global agenda to educate workers, lawmakers on AI





Alphabet’s Google, already facing an unprecedented regulatory onslaught, is looking to shape public perception and policies on artificial intelligence ahead of a global wave of AI regulation.

A key priority, one executive told Reuters, comes in building out educational programs to train the workforce on AI.

“Getting more people and organizations, including governments, familiar with AI and using AI tools, makes for better AI policy and opens up new opportunities – it's a virtuous cycle,” said Kent Walker, Alphabet's president of global affairs.



As Google races to best Big Tech rivals including Microsoft and Metain the AI arena, it is mindful of the heavy regulatory scrutiny it faces in its existing businesses in advertising and search.

In the European Union, Google has offered to sell a part of its ad tech business to appease regulators, Reuters reported. In the U.S., the Justice Department is attempting to force a breakup of its Chrome Web browser — though it may shift course under the administration of President Donald Trump.

REUTERS



Wall St Week Ahead Fed's rate-cut view set to test resurgent US stocks rally



The Federal Reserve's first meeting of 2025 in the coming week stands to test the resurgence in U.S. stocks as investors gauge the extent of more equity-friendly interest rate cuts in the months ahead.

Stocks swooned after the Fed's last meeting in December, when the central bank downgraded its forecast for rate cuts as it braced for firmer inflation this year.

Since then, monthly data that showed underlying inflation moderated set off relief on Wall Street, helping drive a rebound in stocks with the benchmark S&P 500 hitting a record high this week.



The Fed is broadly expected to pause its easing cycle when it gives its monetary policy statement on Wednesday, with investors instead focused on "what would need to happen for them to start talking about resuming the rate cuts," said Angelo Kourkafas, senior investment strategist at Edward Jones.

Given recent data indicating strong economic activity, Kourkafas said, "there's wide expectations that the Fed has no urgency to continue cutting until we get potentially more encouraging inflation data."

The Fed's benchmark rate stands at 4.25% to 4.5% after the central bank lowered it by a full percentage point last year. The Fed's easing cycle began after rate hikes had helped bring down inflation from 40-year highs, although it remains above the Fed's 2% annual target.

REUTERS







Google pushes global agenda to educate workers, lawmakers on





Wall Street banks prepare to sell up to $3 billion in X loans next week, sources say



Wall Street banks are getting ready to sell up to $3 billion of debt holdings in X, the social-media platform controlled by Elon Musk, two people with knowledge of the matter said on Friday.

Morgan Stanley bankers have contacted investors ahead of a planned sale next week, the sources said.

Banks expect to get 90 to 95 cents on the dollar, according to the Wall Street Journal, which first reported preparations for the sale.





Musk denied the Journal report as "false," posting on X that the newspaper was "lying."

The Journal cited a January email to X staff in which Musk said finances remained problematic but pointing to the growing power and influence the company had.

Musk said in his X post that he had "sent no such email."

Morgan Stanley and others, such as Bank of America (BAC.N), opens new tab and Barclays (BARC.L), opens new tab, lent Musk money to complete his $44 billion buyout of X, then known as Twitter, in 2022.