🚀 Orsted falls 17% as the US government ends wind project

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. Orsted shares plunged 17% to a record low on Monday after the U.S. government ordered a halt to construction on its nearly finished Revolution Wind project off Rhode Island, leaving the company’s finances in limbo. The offshore wind farm is already 80% complete, but analysts warn that the stoppage could derail Orsted’s plans for a $9.4 billion rights issue, which is critical to stabilizing its balance sheet. While the Danish state-backed developer insists it will push ahead with the fundraising, some warn that if the project fails to deliver power, Orsted could face massive write-downs and billions in extra costs—raising questions about the company’s ability to weather an already turbulent period for the offshore wind industry.

2. Keurig Dr Pepper is brewing up a major shakeup, announcing an $18 billion deal to acquire Dutch coffee giant JDE Peet’s as it looks to revive its struggling U.S. coffee business. The takeover, which values JDE Peet’s at a 33% premium, is expected to deliver $400 million in cost savings over three years and pave the way for Keurig Dr Pepper to split into two independent, U.S.-listed companies—one focused on beverages and the other on coffee. The coffee spin-off, projected to generate $16 billion in annual sales, will be led by Keurig’s current CFO. At the same time, the beverage arm, with $11 billion in revenue, will remain under the leadership of CEO Tim Cofer. For Keurig Dr Pepper, the move effectively unwinds its 2018 merger while signalling a bet that a sharper focus on at-home and ready-to-drink coffee can help it compete with Starbucks and Dunkin.

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4. China Evergrande, once the country’s largest developer and valued at over $50 billion, has now been delisted from the Hong Kong Stock Exchange after collapsing under more than $300 billion in debt, symbolizing the depth of China’s prolonged property crisis. Its fall, triggered by Beijing’s 2021 “three red lines” policy to curb borrowing, left behind hundreds of unfinished housing projects, millions of anxious buyers, and creditors with little hope of repayment. While the wave of defaults among private developers has slowed, analysts say the sector is consolidating around state-backed companies, as wary homebuyers increasingly prefer state developers and completed units over risky presales. Although Beijing is rolling out easing measures to support demand, the crisis has permanently scarred the sector, leaving Evergrande’s liquidation slow-moving and overseas investors facing steep losses with limited prospects for recovery.

   Headlines

   1. Nio shares were up nearly 15% on Monday, its seventh straight winning day, due to the anticipation and now aftermath of unveiling its newest SUV on August 21st.

   2. The US government has taken a 10% stake in Intel, and SoftBank has invested $2B in the company.

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