Corona Capital: Drug hoarding, Vacation-free world 1 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Stockpiling of Covid-19 treatment remdesivir may come back to haunt the Trump administration, while a forecast of $3.3 trillion in lost tourism is more than an inconvenience for some national economies.
China smothers Hong Kong in heavy security blanket 1 Jul 2020 A harsh new law will quash protests that have vexed the business community. The definition of subversion is ominously vague, while allowing for extradition and secret trials. It also applies to non-residents, further complicating risk management. The price of order is high.
The Exchange: BIS chief Agustin Carstens 30 Jun 2020 It has been a hectic year for central bankers, who are on the front line of fighting a global recession. The head of the Bank for International Settlements joins Swaha Pattanaik to discuss how to unwind massive monetary stimulus, risks in the financial system, and regulation.
Wirecard is argument for a Big Four pay clawback 30 Jun 2020 Audit giant EY is embroiled in the German scandal after signing off accounts when $2 bln was missing. Remedies like splitting bookkeeping from consulting or using two auditors may focus minds on finding frauds. But until pay is linked to clean accounts, scandals will continue.
Corona Capital: U.S. recovery, Small-business aid 30 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: White House virus adviser Anthony Fauci’s estimate that U.S. cases could breach 100,000 a day is bad news for the economy. Plus: Uncle Sam’s loan program for small businesses comes to an end with money in the bank.
India’s war on China apps will have network effect 30 Jun 2020 TikTok and others from Tencent to Alibaba are among those banned on security concerns. It narrows a growth market for Chinese tech and may embolden other governments to close doors. But Beijing has plenty of ways to retaliate, including in pharmaceutical supply chains and more.
Carlyle hedges Indian link in pharma supply chain 30 Jun 2020 The buyout firm is taking a 20% stake in Ajay Piramal’s contract drugmaker at a healthy $2.8 bln valuation, ahead of a planned carve-out from its lending-focused parent. The division can benefit from a worldwide reshoring push. Short-term concerns explain the fiddly deal terms.
German lift LBO hits ceiling on lax lending 29 Jun 2020 Advent and Cinven, who paid $19 bln for Thyssenkrupp’s elevator unit, had to tweak terms for the deal’s funding after an investor revolt. Rock-bottom interest rates give buyout groups a strong hand with creditors. After the Covid-19 crisis, however, lenders’ tolerance has limits.
Corona Capital: Amazon, Car perks, College sports 29 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Companies are trying to bolster pocketbooks. Amazon makes extra payments to employees while car companies are offering major discounts. Plus: Under Armour ditches its UCLA deal.
Beijing picks one too many bilateral brawls 29 Jun 2020 China has added India, Canada and Japan to its lengthening list of diplomatic spats. Trade partners are too distracted to coordinate a response, but individual retaliatory measures are adding up. With its economy still weak, Beijing can ill afford to fight on so many fronts.
Tencent embraces its inner Goldman Sachs 29 Jun 2020 The Chinese tech titan’s investment portfolio has swollen to more than $65 bln with stakes in Warner Music, Afterpay and more. The deals, led by a Wall Street banker, are now vital to Tencent’s growth. Financial and strategic returns from buying make up for a lack of building.
Corona Capital: Nike, Microsoft and retail pain 26 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Bad news for landlords. Nike’s online sales surged during the lockdown even as stores were mostly closed. Meanwhile, Microsoft is shutting most of its retail outlets — for good.
Qantas charts choppy path for Bain’s Aussie flight 26 Jun 2020 The U.S. buyout shop beat out rival bids for bankrupt Virgin Australia. There’s haggling to do with creditors and others before the sums are known. At the same time, Qantas is raising $940 mln and plans to axe 20% of its workforce in a fresh sign of the brutal challenges ahead.
Remittance woes will transfer from poor to rich 26 Jun 2020 Money sent home by migrant engineers, domestic helpers and more will fall sharply with the global slump and job losses. It could cost $140 bln. The pain, borne mostly by developing countries, may be shared by wealthier peers in the form of slower recoveries and possible bailouts.
Paroled Chinese tycoon greases GOME rally 26 Jun 2020 Shares of the $4.5 bln electronics retailer rallied as much as 25% after founder Huang Guangyu was released after a decade in jail. GOME has lost money for years, but investors are betting his return, plus recent deals with JD.com, herald a comeback. That could be a long shot.
Vaccine victory would be half cure for economy 25 Jun 2020 Governments have ploughed over $5 bln into efforts to create a barrier against Covid-19. Promising trials raise hopes the virus can be made less lethal. But as even effective vaccines would still allow the disease to spread, they will only allow a partial return to normality.
Chancellor: Inflation as the post-pandemic cure 25 Jun 2020 The massive fiscal deficits engendered by the virus should see off deflation. The spectre of rising prices now beckons. While its potential horrors shouldn’t be downplayed, inflation can resolve great imbalances and festering social discontents besetting the global economy.
Viewsroom: Reparations math, the coming WFH battle 25 Jun 2020 As America continues to grapple with the legacy of slavery, Breakingviews columnists debate the financial question of whether the government, and some corporations, have a debt to repay. And Pete Sweeney dives deep into the post-pandemic future of working from home – or not.
SoftBank-Alibaba distancing has further to go 25 Jun 2020 Masayoshi Son is leaving the e-commerce group’s board after 15 years. The Japanese group just raised $11.5 bln using some of its Alibaba stake; its valuation discount gives it reason to keep selling. Being a major investor in both U.S. and Chinese firms will also only get harder.
Corona Capital: U.S.-China fight, Canada downgrade 25 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Washington deploys sanctions over Hong Kong, adding to trade and Covid-19 tensions; and a double whammy of the coronavirus and low oil prices costs Canada one of its AAA ratings.