Corona Capital: Newspapers, 747s 17 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Congress may dangle newspapers a lifeline; British Airways brings its fleet of jumbo jets in for a final landing.
Cox: Happy anniversary to Breakingviews readers 17 Jul 2020 It was 20 years ago today Hugo Dixon taught the band to play. Finance has changed. The media business been turned upside down. Yet punchy, agenda-setting commentary has only become more relevant to professionals. We’ve gone global and expanded our coverage but kept our values.
Chip champ jumps into Shanghai-Hong Kong value gap 17 Jul 2020 Dual-listed SMIC's mainland shares debuted at four times the price of its Hong Kong equivalent. Other peers trade at similarly ridiculous premiums. Mainland traders still struggle with valuing companies, while Beijing’s incomplete reforms keep the markets out of sync.
Toshiba mistakes activist opportunity for a threat 17 Jul 2020 The $15 bln conglomerate says that allowing pushy Effissimo to install directors would create conflicts of interest. Since overhauling the board, however, Toshiba’s performance has underwhelmed. Adding its biggest investor would be a confident move for the company and Japan Inc.
Seoul’s Green New Deal plants seeds for recovery 17 Jul 2020 Tackling climate change is at the centre of President Moon Jae-in's $133 bln stimulus plan. The country has a dismal environmental record, and previous green initiatives have disappointed. But the pandemic gives Moon a mandate to try again. Sceptics should give him a chance.
Corona Capital: Good news is bad news 16 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. retail sales are rising and some banks say consumers are surprisingly resilient – but a recovery once glimpsed is even harder to give up.
Viewsroom: Wall Street, Huawei, Chinese taxpayers 16 Jul 2020 Investment bankers have had a very nice lockdown indeed, says U.S. Editor John Foley. British Prime Minister Boris Johnson backtracks on 5G, delivering his pal Donald Trump a tech victory against China. Meantime President Xi Jinping takes some unusual tax pointers from Uncle Sam.
China’s jobless recovery risks debt indigestion 16 Jul 2020 Output rose 3.2% last quarter, as a record $1.7 trln in loans kicked in. But investment is tepid, employers are shedding jobs, and retail remains anaemic. Beijing is also running low on distressed credit buyers. With bad debt set to rise, pressure to find alternatives will build.
Mukesh Ambani flaunts Jio’s global tech ambitions 15 Jul 2020 Reliance Industries’ boss unveiled a home-grown 5G solution with export potential at a meeting held on the Indian company’s answer to Zoom. His push is bad news for Huawei. And the latest investment in Jio, $4.5 bln from Google, points to a formidable competitor for all rivals.
Corona Capital: Expense accounts, Zoom’s new box 15 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs’ earnings give an insight into pandemic-era client schmoozing, and virtual meeting facilitator Zoom tiptoes into the high-priced hardware market.
China bank IPO offers StanChart profitable exit 15 Jul 2020 The emerging market lender has owned one-fifth of Bohai Bank for over a decade with few obvious benefits. The latter's $11 bln Hong Kong listing gives StanChart CEO Bill Winters hope of pocketing a decent return – provided real estate and small business loans avoid more strain.
Chinese tax initiative strains overseas reach 15 Jul 2020 Beijing wants citizens to pay full whack no matter where they earn in the world, just as the United States does. The top bracket, at 45% for incomes over $137,000, makes low-tax Hong Kong less attractive at an odd time. Enforcing the rule further afield, though, could be tough.
UK’s Huawei red card has visible and hidden costs 14 Jul 2020 Removing the Chinese tech giant from mobile phone networks by 2027 gives operators BT and Vodafone time to adapt their kit. That said, the ban will still cost 2 billion pounds. It also makes Britain’s 5G communications even more dependent on rival suppliers Ericsson and Nokia.
India prize for U.S. tech grows with Chinese wall 14 Jul 2020 Google will invest $10 bln in India over five years or so. A chunk might follow Facebook into Mukesh Ambani’s Jio. The showy confidence in an iffy economy can help to ease regulatory headwinds. When new rules have crippled Chinese-capital dependent rivals, it is extra helpful.
Corona Capital: Lockdown diets, Beating the Fed 14 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Covid-19 is prompting diets for both animal and human; and the Fed takes a hit on a garbage deal.
SoftBank will struggle to find equal love of Arm 14 Jul 2020 The Japanese conglomerate paid $32 bln for the chip designer in 2016. Businesses have been hived off, while sales growth and operating profit have underwhelmed. As boss Masayoshi Son contemplates floating a piece of Arm, under pressure, it could be hard to avoid a markdown.
India’s banks peddle bad-loan black holes 14 Jul 2020 ICICI wants to raise some $2 bln, joining peers seeking capital as customers take advantage of interest holidays on a huge one-third of borrowings. Defaults system-wide could double to a whopping 20%, or worse. Amid so much disarray, the strong will inevitably get stronger.
U.S. buyer can take advantage of TikTok’s problems 13 Jul 2020 Donald Trump is considering a ban on the video-sharing app because of its Chinese roots. Selling to an American suitor, whether it’s Disney, Twitter or another firm, would normally trigger regulatory watchdogs. They may turn a blind eye, though, leaving an open door.
Corona Capital: Ice hockey 13 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: The National Hockey League and its players make the kind of deal Major League Baseball sluggers and owners should have been pitching for.
Yum China can fill a pricier bucket in Hong Kong 13 Jul 2020 The $19 bln KFC operator is mulling a secondary float in the city. Its New York shares have been whipsawed by Sino-American tensions. An outsize base of U.S.-centric investors, a legacy of its spinoff, could be to blame. Heading East will fetch a more finger lickin’ valuation.