Inflation finally kills shaky U.S. trade-war logic 5 Jul 2022 President Biden is close to axing some of the levies on $350 bln in Chinese imports, partly driven by a belief they hurt consumers. A better reason would be that they never succeeded in changing China’s ways in the first place. That ought to inform fresh tariff discussions too.
War helps Russian nickel king expand his realm 5 Jul 2022 Tycoon Vladimir Potanin may merge Norilsk Nickel with aluminium maker Rusal. The West would be extra wary of sanctioning such a giant for fear of roiling metals markets. The pair may have some synergies, but their two main owners don’t get on. It would be a governance nightmare.
Italy starts countdown to risky life after Draghi 5 Jul 2022 The 5-Star party may bring down Mario Draghi’s coalition government. A crisis would hurt growth and raise the chances of a less EU-friendly executive. Worse, market jitters due to rising political uncertainty may complicate the European Central Bank’s efforts to tame bond yields.
GSK’s bid to dominate longer-life HIV drugs 5 Jul 2022 Deborah Waterhouse and Dr Kimberly Smith have spent decades battling the deadly virus. In this edition of The Exchange podcast, the leaders of the British drug giant discuss breakthroughs in the $26 bln market and how Gilead is also making a play for the growing sector.
Macron’s travails could turn into fiscal mess 5 Jul 2022 The French president’s electoral platform was bound to stress the state budget. Now a deadlocked parliament may only agree on increased spending and more tax cuts. With borrowing above 110% of GDP, and no credible plan to control public finances, Paris’s debt looks vulnerable.
KKR-led hospital deal calls for surgical precision 5 Jul 2022 To make a $14 bln buyout of Ramsay Health Care work may involve amputating parts in Europe and a tricky sale and leaseback operation. And since due diligence started back in April, higher interest rates and a new Australian government further complicate the delicate procedure.
Bankers hit the bottle for Asia deal inspiration 5 Jul 2022 Thai Beverage is spinning off its beers business in Singapore while the Manila-based owner of Whyte & Mackay whisky plans a secondary listing. Rising home consumption can be a comforting tipple amid global uncertainty. Well-priced boozy deals could crack open the wider market.
Capital Calls: EU bank windfalls 4 Jul 2022 Concise views on global finance: The European Central Bank is worried banks will pocket a windfall on special loans when it starts raising rates. But deciding whether the bonanza is too big is a political choice.
Kraft has secret sauce in UK grocer food fight 4 Jul 2022 Supermarkets like Tesco are dropping the U.S. food giant’s wares after “unjustifiable” price hikes. That earns brownie points from shoppers and shunts politicians’ gaze to Kraft’s beefier margins. But less choice on the shelves may push business to cut-price rivals like Aldi.
Cosseted bank bondholders need to feel more pain 4 Jul 2022 Credit Suisse’s repayment of a hybrid bond at its first call despite the higher cost of replacing it highlights flaws in the $212 bln market. Post-2008 reforms were meant to make such capital permanent, but lenders fear angering investors. Bank watchdogs can take a harder stance.
Japan strains to populate its sparse unicorn farm 4 Jul 2022 As economic troubles mount, Prime Minister Fumio Kishida wants the country’s $1.5 trln pension fund to play venture capitalist to help create more startups like SmartNews and Spiber. It will take far more than government money, however, to incubate entrepreneurial spirits.
India’s crisis buffers are part optical illusion 4 Jul 2022 New Delhi is loosening purse strings to cushion imported inflation as the central bank hikes rates. Rising trade and fiscal deficits put economic recovery at risk, but there’s no good alternative. In that context, throwing precious reserves at a plunging rupee could be rash.
Americans’ urge for the open road knows few bounds 1 Jul 2022 Travelers book flights for convenience – and in theory rising gas prices help that trend. But time is money, too, and plane delays are increasing. Assign a reasonable value for an airport setback, and it suggests holiday travelers should blare "Holiday Road."
Down with regulation, up with uncertainty 1 Jul 2022 The U.S. Supreme Court has slapped down the environmental watchdog, and crimped regulators’ power to act where “major questions” are concerned. The result will be fewer rules, and Congress may find it even harder to pass legislation. The private sector faces a fuzzier future.
Gazprom investors lack Rosneft’s Qatari airbag 1 Jul 2022 Moscow blocked the $93 bln gas giant’s 2021 dividend, but approved that of its $73 bln oil peer. In general the Kremlin, which is replacing its own Gazprom payout with a tax, isn’t fussed about riling Western investors. Doha’s Rosneft stake makes the driller a rare exception.
Capital Calls: Kohl’s future, Aerojet fight 1 Jul 2022 Concise views on global finance: The U.S. retailer walked away from a deal with Franchise Group, leaving it to weather a potential recession alone. Meanwhile, Aerojet CEO's victory against her executive chairman culminates in a board mess.
Tight bosses are counting on a looser jobs market 1 Jul 2022 BT, British Airways and Sainsbury’s are tussling with workers over pay. Given the Bank of England thinks tight labour markets should slacken, bosses have scope to hang tough. But if the BoE is wrong, which is possible, they will have lost valuable worker goodwill for nothing.