☕️ AirBnb now larger than the world's top 3 largest hotel chains combined

Creative finance - customer loyalty points as collateral to take loan. Govt-owned Amanah Raya RM500 million asset deficit. 'The Loser of The Year' goes to...Donald Trump

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1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

US$125 billions - the size of the livestream shopping market in China.

$1.1 billion - the amount Hyundai paid for 80% stake in Boston Dynamics.

US$500 millions - long waited “Cyberpunk 77” sold over 80 million copies @ USD60 a piece.

RM105.9 millions of crystal meth were seized off our country’s west coast by the Malaysian Maritime Enforcement Agency (MMEA).


3. COVID-19 SUMMARY


4. IN MALAYSIA

  1. Former Pandan MP, Rafizi Ramli has warned party president DS Anwar Ibrahim that Opposition is losing the plot as the latter is surrounded by “hardcore opportunists”.

  2. Proton will be exporting its X50 sports utility vehicle next year. A fantastic turnaround by Geely, the giant automotive company from China that bought 49.99% of Proton for RM460.3 million in 2017. Geely is also a substantial shareholder of Daimler (Mercedes-Benze owner) with a 10% stake that it bought for USD9 billion in 2018.

  3. Amanah Raya Bhd is confident of recovering up to RM500 million worth of assets within the next two to three years after the National Audit Department highlighted the deficit in fund manager by Amanah Raya.

  4. Will FBM KLCI break the 1,700 points and end the year with a bang? Did window dressing come early? Window dressing is an action taken by fund or portfolio managers near the year or quarter end to improve the appearance of a fund’s performance.

  5. Another victim fell for phone scam, this time a 59-year-old clerk lost RM694,000. Please be vigilant and tell your parents about phone scams.

    • Modus operandi: The scammer impersonated authority and asked for online banking details.

    • Target: Retirees, outside of Klang Valley.

  6. Quarantine period for overseas travellers shortened to 10 days starting today!

  7. Our beloved Top Glove Corp Bhd is in the news again. Find The Edge’s interview with Tan Sri Dr Lim Wee Chai here. Highlights:-

    • Coming quarters performance will be better due to additional 10% capacity, higher nitrile gloves mix and continued increase in demand.

    • The company will continue to evaluate the need to buy back share on an ongoing basis.

    • TG is still closely working with US to revoke ban on the company's two subsidiaries.


5. AROUND THE WORLD

  1. AirBnb’s IPO debut skyrocketed as high as 143%, valuing it at more than USD100 billion at one point. It closed at USD144.71, giving it a market cap of USD86.5 billion, bigger than the 3 largest hotel chains in the world, Marriott, Hilton and Intercontinental worth USD84.1 billion combined. 

    Here are some of the winners from AirBnb’s IPO:

    1. Sequoia Capital: invested USD585k in 2009 @ USD0.01 per share. They have invested a total of USD280 million, with its stake today worth more than USD4.8 billion

    2. Y Combinator: This startup accelerator admitted AirBnb to its incubator and invested USD20k. Value of its investment today: USD116 million.

    3. Youniversity Ventures: A seed investing firm made up of PayPal and Linkedin alumnis, invested a total of USD5 million with its stake worth USD302 million today. 

    4. The 3 co-founders: Between them, they own close to ⅓ of the company before the IPO. Their stakes each are worth more than USD4 billion

    Not to be left out, AirBnb hosts too are winners from this IPO. USD238 million worth of stocks were allocated for its hosts.

  2. Bankers are getting creative with raising debt capital for the clients. JP Morgan tied up with a startup, Affinity Capital Exchange to allow companies to secure financing by pledging their loyalty programme (ie. frequent flier miles) as collateral.

    The combined value of the 10 largest airline loyalty programme is more than USD112 billion, but converting those value into cash was previously a challenge.

  3. MassMutual Life Insurance, a 169-year-old insurance company founded in 1851 with USD235 billion assets under its general investment account has picked up USD100 million worth of Bitcoin for its general investment account, following a growing trend of institutional investors investing in this growing asset class.

  4. Germany’s Covid-19 cases and deaths rose the most since the pandemic began and is entering a hard lockdown this Wednesday. In US, more Americans have died from Covid-19 (291,754 deaths) than the number of US soldiers killed during World War II (291,557 deaths).

  5. Billionaire rapper Jay-Z launches his own cannabis brand, Monogram.

  6. ‘The Loser of The Year’ goes to Donald Trump by Europe’s biggest news magazine, Der Spiegel

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