Sri Lanka crisis sends inflation warning worldwide 4 Apr 2022 The island is in turmoil after the war in Ukraine sent prices surging, leading to crippling shortages. Its foreign debt is now heading for a harder restructuring. Years of mismanagement make Sri Lanka an extreme case, but it’s a warning on the risks even for sturdier economies.
Shanghai crisis lays frost over economic spring 4 Apr 2022 The city’s 26 mln residents have been thrown into a strict lockdown. It suggests politicians pushing hardline Covid measures have the upper hand and more anti-Omicron shock-and-awe may follow. With big stimulus looking unlikely, the economy’s green shoots would quickly wilt.
China’s audit U-turn goes less than a full 180 4 Apr 2022 In a bid to avoid the ejection of some 200 companies from New York markets, Beijing plans to allow local bean-counters to show papers to U.S. inspectors. A requirement that clients shield so-called state secrets, however, is unlikely to build trust or satisfy Washington.
Capital Calls: Microsoft’s Activision deal 31 Mar 2022 Concise views on global finance: The software giant’s $69 bln acquisition of the “Call of Duty” publisher comes with a ton of baggage. That could be why Activision shares are trading at a wide discount to the deal price.
Private equity can pull away from Wall Street 1 Apr 2022 Sponsors like Thoma Bravo are perfecting a playbook that demotes banks by tapping direct lenders for financing and sourcing transactions directly, bypassing auctions. Banks make a chunk of their annual fees from the buyout business. This threatens that pot.
Strong U.S. jobs are blessing and curse for Fed 1 Apr 2022 The unemployment rate fell to 3.6%, near pre-pandemic levels. Dining out is back, and even travel is returning to normal. That all gives the central bank room to fight inflation. But employers are still short of workers, and continued robust hiring may make price pressures worse.
Russian yachts stranded in choppy sanctions waters 1 Apr 2022 France, Italy and Britain have grabbed headlines by seizing luxury cruisers linked to sanctioned oligarchs. But proving ownership is tricky, while keeping the expensive boats afloat may require state money or navigating complex rules. Selling them will be an even rougher voyage.
Christine Lagarde’s inflation excuses wear thin 1 Apr 2022 Euro zone prices rose at a record annual rate of 7.5% in March, almost as much as in the United States where the Fed has started hiking rates. There’s more going on than just surging energy costs. It’s getting harder for the European Central Bank boss not to follow Jerome Powell.
Buy gas now, pay later is a hard tiger to ride 1 Apr 2022 Fintech firms Klarna and Zip are offering U.S. punters interest-free instalments as a way to manage higher fuel bills. The fact that consumers use loans to afford mere essentials raises the risk of defaulted payments. And unlike discretionary sales, Klarna isn’t getting a fee.