China’s NFTs face long digital purgatory 1 Apr 2022 Blockchain-based assets are catching on with companies like Xtep, which just released metaverse sneakers. Beijing bans cryptocurrencies, however, meaning apps only accept yuan and curb reselling. Absent sanctioned secondary markets, collecting will be merely a token gesture.
Atypical bear hug should kickstart Toshiba bids 1 Apr 2022 The hostile tactic usually involves pressuring a target with a generous offer. In this case, activist investor Effissimo and buyout shop Bain are squeezing the Japanese conglomerate with an artful display of their desire for a deal. It’s getting harder to avoid running an auction.
Review: Pandering to Beijing has shrinking payback 1 Apr 2022 One difference between the Cold War and current Sino-U.S. tensions is the crowd of capitalists rooting for the communists. In “America Second,” Isaac Stone Fish lambasts the CEOs and lobbyists who take China’s side. Yet the return on sucking up, never high, is falling sharply.
Putin’s gas April fool masks ulterior motives 31 Mar 2022 The Russian president told importers to buy Moscow’s gas in roubles but seems to have devised a way for them not to. The storm in a teacup helps Putin look tough, and Europe’s leaders brace citizens for tough times. It may also have helped Russia sell more gas at higher rates.
Apple Pay push is scarier for fintechs than banks 31 Mar 2022 The $2.9 trln iPhone maker is beefing up its in-house financial tools and muscling into consumer credit, Bloomberg reported. That’s bad news for technology partners and pay-later rivals. Lenders have less to fear: underwriting big loans isn’t lucrative enough to appeal to Apple.
U.S. states bestow inopportune tax cuts 31 Mar 2022 U.S. states' coffers did surprisingly well during the pandemic and federal aid helped them build big fiscal buffers. Now many, like California, plan tax cuts. That may fuel even more inflation and prove unsustainable as more than $900 billion of support from Washington winds down.
Chancellor: The battle for investment survival 31 Mar 2022 Despite Russia’s invasion of Ukraine, U.S. stocks still trade at sky-high levels. Meanwhile, the return of inflation means more market volatility. Passive investment strategies that have thrived for years won’t work in this new environment. A more nimble approach is required.
Martin Sorrell’s latest S4 pitch falls flat 31 Mar 2022 The former WPP ad man says a last-minute delay to his digital media upstart’s accounts are not a cause for concern. A 40% share price drop suggests investors disagree. S4’s breakneck growth targets and quirky corporate governance leave it exposed to undershooting positive spin.
Hydrogen’s civil war reveals its winner 31 Mar 2022 The element has a big role in beating climate change. But fans of natural gas-based “blue” hydrogen and its zero-carbon “green” cousin are constantly vying for supremacy. Soaring fossil-fuel prices and energy supply fears after Russia’s Ukraine invasion are handing green victory.
China jitters, energy decoupling and Russian gold 31 Mar 2022 The war in Ukraine is spurring investors and governments to act fast. In this Viewsroom podcast, Breakingviews columnists discuss foreign cash fleeing Beijing, the West’s rapid plan to de-Russify its energy mix and Vladimir Putin’s options for his $140 billion gold chest.
Citi exit tests Indian banks’ pulling power 31 Mar 2022 The Wall Street firm, the biggest foreign brand to leave the market, can be happy selling its subscale retail business for $1.6 bln. It’s a fair price for local buyer Axis, too – if it can retain the higher-spending affluent clients who liked the appeal of an overseas bank.
Sloppy sanctions will blunt themselves 31 Mar 2022 Their design allows Europe to keep buying Russian energy, and Washington’s focus is belatedly turning to spillover effects on poorer economies hit by spiking prices for wheat and oil. Rising resentment among innocent bystanders will reduce Western sanctions’ future effectiveness.
Capital Calls: Chip supply chain bites own tail 31 Mar 2022 Concise views on global finance: Semiconductor factories rely on machines made by ASM International. Paradoxically, the firm is having trouble finding the chips it needs. Untangling the mess will take a while.
Carl Icahn is attempting to rewrite his legacy 30 Mar 2022 From a favorable documentary to campaigns criticizing how McDonald’s and Kroger treat pigs, the activist is crafting his final chapter. Icahn changed the course of many companies and his investment prowess is undeniable. But a full evaluation of his impact demands a broader lens.
SPACs’ problems are bigger than the government 30 Mar 2022 The SEC wants to clamp down on blank-check firms’ rosy projections when touting deals. But the headiest days of the party are already over: Activity is down, broken deals are up, and big names have run aground. No matter what, SPACs will have a harder time from here on out.
China-U.S. ties will degrade regardless of Russia 30 Mar 2022 Beijing and D.C. have squabbled over the invasion of Ukraine. But longer-running disputes are still brewing. That could reignite a trade war with more tariffs, while screening U.S. investments in China would choke off access to that market. The economic decoupling may get worse.
Capital Calls: Nielsen takes its reboot off air 30 Mar 2022 Concise views on global finance: The TV ratings firm accepted a $10 bln buyout offer days after rejecting a slightly lower bid. If retooling for the streaming era is possible, it will be easier in private.
Where odd U.S. yields lead, Europe will follow 30 Mar 2022 Two-year U.S. Treasuries briefly yielded more than 10-year ones. There’s some way to go before such an inversion happens in the euro zone. But high inflation pushed German two-year bond yields into positive territory for the first time since 2014. A replay may be on the cards.
Breakingviews’ song remains the same 22 years on 30 Mar 2022 Much has changed since the journey began in the era before Twitter, when print ads financed journalism, China was an upstart, and Lehman Brothers still alive. What has not is the value propositions of agenda-setting financial insight. Founder-editor Rob Cox bids farewell.
Hackers turn crypto’s strength into Achilles heel 30 Mar 2022 Attackers stole $540 mln from a blockchain linked to an online game. Theft is growing as developers roll out untested new blockchain products with shaky security. So-called decentralised finance makes it easy to create new crypto services, but criminals are mopping up the spoils.
Ericsson’s governance mess stretches beyond Iraq 30 Mar 2022 Investors rebuked CEO Börje Ekholm for not disclosing possible payments to Islamic State by stripping him of legal protections. The telecoms-kit maker kept voting details quiet, and its dual-class share structure means Ekholm looks safe. Investors have more reason to steer clear.
Generali investors better off with devil they know 30 Mar 2022 A rebel billionaire is vying for control of the 190-year-old insurer, a linchpin of Italian finance. Francesco Caltagirone promises higher returns and bolder M&A than under CEO Philippe Donnet. Fuzzy targets and slowing growth should make shareholders wary of switching horses.
Kuaishou’s comeback gets unwanted Beijing cameo 30 Mar 2022 The $43 bln video-streaming outfit reckons its China business can break even this year. That would please investors, who have seen the stock crater 70%. But reports of regulators readying new rules spell more shareholder pain. Kuaishou’s turnaround may need some rewrites.
Singapore’s rebalancing is delicate act 30 Mar 2022 The pandemic burnished its safe-haven role for rich Asians, but it is flourishing as a centre for Chinese wealth creation too. Even as changing flows of people, business, and money sharpen social challenges, the pivot is restoring the Lion City’s animal spirits.
Great Wall Motor drives China’s cars to go global 30 Mar 2022 The $30 bln homegrown SUV and pickup-truck specialist grew overseas sales a whopping 142% in 2021. War in Ukraine casts a shadow over its Russian business. GWM’s overall success outside China, though, blazes a trail for ambitious compatriots from Nio to Chery to follow.
UnitedHealth plays long game with M&A strategy 29 Mar 2022 A month after watchdogs sued to block a deal by the insurer, it agreed to buy home healthcare firm LHC for $5.4 bln. Both deals may mean UnitedHealth is bogged down in a delayed deal process. But adding LHC to UnitedHealth’s doctors, clinics and other units is worth the hassle.
Uber, Lyft grease driver’s pockets with surcharge 29 Mar 2022 The ride-hailing firms added a 55 cents per-trip surcharge to offset a 50% spike in fuel prices. That should cover the bump in gas and then some. Both firms are competing in a tight labor market, so it’s a start. But they may find they have to open their wallets, too.
AIG life IPO marks 5,000 days of post-crisis slog 29 Mar 2022 That’s how long it took to fix the global insurer after its 2008 bailout. It has now reached a point where, with a little help from Blackstone and even BlackRock, it can float its life and retirement business, probably worth at least $22 bln. It’s a key moment in AIG’s reboot.
EU’s Ukraine currency fix is a problem best shared 29 Mar 2022 The ECB wants the European Union to guarantee potential losses when Ukrainians fleeing the war change their currency into euros. A rival plan would leave this up to national governments. The pooled scheme is much more likely to give Ukrainians hope in the value of the hryvnia.
Why U.S.-China financial tension is hard to disarm 29 Mar 2022 Relations between the world’s two largest economies were already tense, and Russia’s invasion of Ukraine has further increased the pressure. In this episode of The Exchange, James Fok explains how the relationship became so fraught, and why it’s unlikely to improve anytime soon.