China delisting reversal calls for consistency 5 Jan 2021 The NYSE abruptly aborted plans to toss three state-backed telecom companies worth a combined $164 bln off the bourse because of their deemed military ties. Wild swings in the stock prices left investors as confused as Washington seems to be. Clear policy can’t come soon enough.
Third lockdown entrenches Britain’s great divides 5 Jan 2021 The virus has already hit smaller companies and the less affluent harder than bigger firms and the rich. New restrictions to control a fresh outbreak mean a deeper slump, until vaccines come to the rescue. Other countries will need to act more quickly to avoid similar pain.
Bank capital rules are only half fixed 5 Jan 2021 Big shock absorbers allowed American and European lenders to survive the pandemic. Even so, they required state guarantees and supervisory relief to support lending. Though post-2008 reforms made banks safer, their instinct to preserve capital can make an economic crisis worse.
Corona Capital: Commercial real estate, IBM 5 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Commercial office real estate is Zoom’s mirror image; IBM taps former Goldman-exec Gary Cohn.
Tokopedia neatly channels Indonesia’s potential 5 Jan 2021 The online shopping site, valued at $7.5 bln, lags Singapore’s Sea in the country. But the smaller company stands out for its single focus on one of the world’s fastest rebounding and digitalising economies. No wonder everyone from Gojek to Peter Thiel sees it as a hot target.
Jack Ma’s absence feeds into China Inc fears 5 Jan 2021 The Ant and Alibaba founder has not been seen in public for two months. Amid Beijing’s crackdown on both the fintech and e-commerce empires, keeping a low profile seems prudent. A history of Chinese tycoons mysteriously disappearing, though, is enough to warrant some concern.
The World Emerges 5 Jan 2021 Read Breakingviews' predictions and prescriptions for the year ahead by viewing the PDF or website.
Cure for U.S. healthcare malady isn’t capitalism 4 Jan 2021 Amazon, Berkshire Hathaway and JPMorgan took on America’s medical dysfunction and failed, disbanding their joint venture Haven after three years. Big as the three are, they’re dwarfed by the vested interests that keep healthcare expensive. Now it’s the government’s turn.
Brookfield picks up a $5.9 bln new year bargain 4 Jan 2021 The Canadian investment firm’s bid to take its commercial real estate arm private is cheap by its own admission. That suggests there’s room for a small bump. Yet investors may have little appetite to fight a determined majority shareholder, or an uncertain real estate market.
Urge to purge 2020 from memory should be resisted 4 Jan 2021 Nearly everything that could go wrong did. The pandemic threw plans – and predictions – out the window. As the world emerges and maybe slingshots into a Roaring Twenties rebound, old appetites will return. But the divisions Covid-19 exposed in our societies can't be forgotten.
Brexit throws down electric gauntlet to UK cars 4 Jan 2021 Britain’s motor industry has escaped European Union tariffs that would have hobbled half its output. But to meet export rules on low-carbon vehicles by 2024, Prime Minister Boris Johnson needs to ramp up battery output. Convincing groups like Nissan and BMW to stay will be tough.
“Big Four” U.S. airlines will go down to three 4 Jan 2021 Stricken travel is worsening carriers’ positions. They’ve already slimmed staff, and restructuring is next. But U.S. taxpayers are invested in them succeeding, and have already benefitted from a long descent in ticket prices. A merger stamped by the government is on the horizon.
Overpayment detected in $8 bln Teledyne deal 4 Jan 2021 The $14 bln U.S. industrial conglomerate is buying rival FLIR Systems. Cost savings cover less than half of the $1.6 bln premium. Both firms sell sensors, but focus on different wavelengths, so it’s possible combining could deliver faster growth. But that’s hard to deliver.
Corona Capital: Icahn, Productivity, Natixis 4 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Carl Icahn sells half his Herbalife Nutrition stake; an ECB survey suggests Covid-19 will make big firms more productive, but that may not be all good news; and Natixis fast-tracks its overhaul.
MGM’s $11 bln UK punt is close to maximum wager 4 Jan 2021 Entain rebuffed a merger proposal from the U.S. resorts-to-roulette group. The British bookie has good reasons to ask for more stock and a slug of cash from its sports-betting partner. But with no rival bidders, and a shrinking domestic business, its negotiating power is limited.