China’s population peak hastens fiscal reckoning 5 May 2021 Officials enforced harsh birth limits and underfunded pensions based on overly rosy estimates for years. Beijing’s decision to delay releasing 2020 figures highlights the sensitivity. The government must now contemplate radical changes to policy far earlier than expected.
SJM is only edging out of Stanley Ho’s shadow 5 May 2021 A year after the death of its founder, the $7.2 bln Macau casino company has yet to open a new flagship resort, its market share is the lowest among peers and the board needs a shake-up. Daughter and Chair Daisy Ho has her work cut out to make sure the house wins again.
Long-suffering GE shareholders flex muscle on pay 4 May 2021 Most of the U.S. conglomerate's owners voted against top bosses' 2020 packages. That included $73 mln for CEO Larry Culp whose incentives the board repriced last August, showing the hollowness of giving up some of his base pay and bonus. It's a rare rebuke, richly deserved.
D.C. as a state could be bailout risk 4 May 2021 Upgrading the U.S. capital makes sense given its population. But the 51st state would rely on one city for revenue, which could crash in a crisis. Unlike individual cities, states can't declare bankruptcy. Washington would need to protect itself from becoming too big to fail.
Chancellor: Central bank coin will crush the banks 4 May 2021 To battle cryptos, digital money created by monetary authorities must protect individual liberties while minimising the state’s role in credit allocation. Doing that without disrupting commercial banking and the dollar’s hegemony will be a tall order for Powell, Lagarde and Co.
Customers can win, too, in big U.S. mergers 4 May 2021 It’s easy to doubt trustbusters’ ability to hold giant companies to account. But as railroads have shown, consolidation doesn’t mean that end users are gouged. Shareholders have won out, too, suggesting there is give-and-take. That’s the best regulators can hope for.
Corporate tax reform may help Ireland in the end 4 May 2021 The Emerald Isle’s allure as a low-levy destination will fade if a global minimum tax rate is agreed. Dublin wants to maintain its appeal by spending over 4% of GDP to fix problems like poor public transport. Such investment will lay the foundations for a more balanced economy.
Bolloré makes tactical retreat in Italian foray 4 May 2021 The French billionaire has buried the hatchet with Silvio Berlusconi’s Mediaset, ending a wasteful five-year row. Bolloré’s Vivendi may not fully recoup its 1.2 bln euro investment in the broadcaster. At least the tycoon now has a freer hand to pursue his Italian telecom bet.
Drug giants offer pandemic recovery sleeper trade 4 May 2021 While vaccine makers flourished, companies like GSK, Novartis and Sanofi suffered during lockdown as fearful citizens postponed tests and avoided hospitals. The reopening should mean a surge in delayed treatments and give their depressed share prices a booster shot.
Capital Calls: Pfizer, ConocoPhillips 4 May 2021 Concise views on global finance: About $6 bln of additional earnings from Covid vaccines at the U.S. drug giant should mean more capital returned to investors; the independent oil group is offloading stock in Canada-based Cenovus it collected as part of a deal four years ago.
Ping An finds suitable rebound deal 4 May 2021 The Chinese insurance giant plans to buy most of Peking University’s bankrupt corporate empire, Founder Group, for up to $7.9 bln. Potential synergies will be welcome after a recent property investment mess. There are reasons to be wary, but Ping An also bounced back post-Fortis.
Evergrande breakup keeps banks’ fee party going 4 May 2021 The embattled Chinese developer paid Credit Suisse, UBS and others at least $275 mln since 2016, mostly to borrow heavily. That made it the region’s fourth most lucrative investment-banking client. Now its rush to cut debt by spinning off assets enables them to rake in more fees.
SPAC flips coin for $7 bln on biotech “platform” 3 May 2021 Roivant has built more than a dozen subsidiaries buying bigger companies' unwanted compounds. Results have been mixed. Now it's going public by merging with a blank-check vehicle. That may speed up its drug process, but the odds and rewards of success remain unknowable.
India Insight: Riding a dystopian Covid-19 wave 3 May 2021 Shaking pandemic nightmares over the past week has been impossible as the virus begins to ebb in Mumbai but drowns Delhi and beyond. Watching the human misery is overwhelming but seeing the economic consequences even as billion dollar-plus deals get done is just as affecting.
KPN LBO looks doomed by arithmetic, nationalism 3 May 2021 The 12 bln euro Dutch phone company flatly rejected takeover approaches by buyout shops EQT and KKR, smacking its share price. Paying more would curb so-so prospective returns. Overcoming potential Dutch government resistance to a debt-laden bid is another challenge entirely.
Capital Calls: Robinhood vs. Munger, Meredith deal 3 May 2021 Concise views on global finance: Warren Buffett and his investing sidekick takes on Robinhood, and vice versa; and the U.S. media company is selling its local TV stations to Gray Television for $2.7 bln.
Blackstone fights time more than Oaktree for Crown 3 May 2021 It’s hard to see value in Oaktree’s plan to fund a buyback of founder James Packer’s 37% stake in the Aussie casino operator. And yet Blackstone is willing to absorb more regulatory risk. That suggests concern that as Crown’s crisis ebbs, the $6 bln bid’s appeal may too.
Vaccine prince exposes India’s best and worst 3 May 2021 The Serum Institute, the world’s top vaccine maker, is under heavy pressure, with owner Adar Poonawalla complaining of “unprecedented” threats from politicians and tycoons trying to secure jabs. India’s flawed procurement policy is straining fraught ties with the private sector.