Perfect storm blows Swire Pacific model away 16 Jun 2020 The Hong Kong conglomerate expects big first-half losses in its property, airline and marine services units. Protests, Covid-19 and weak oil demand have taken their toll. The sprawl wasn’t providing much of an edge before disaster struck, however, and warrants reconsideration.
China’s $9 bln classifieds buyout is an easy sale 16 Jun 2020 A group including Warburg Pincus will take U.S.-listed 58.com private. A 20% premium is decent for a business that has fallen out of favour to sexier tech stocks. Private equity boasts a strong record in classifieds, and can offer 58.com a clean exit from an unwelcoming market.
Buyout fund investors score some leverage on fees 15 Jun 2020 Private equity pools raised between 2006 and 2015 performed no better than public stocks, an Oxford University study found. Pension funds and other backers probably won’t abandon groups like Blackstone and KKR. Yet proof of shrinking returns helps make the case for lower costs.
China’s Zambia debt problem is Africa-sized 15 Jun 2020 Beijing-backed lenders are owed nearly a third of the African state’s $10 bln external debt pile. They will be under pressure to share in any restructuring pain. Caving in will set a precedent across a continent that has borrowed $146 bln from China in the last two decades.
Corona Capital: Frequent fliers, Folies Bergeres 15 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: United Airlines hocks its MileagePlus loyalty program for $5 bln from Goldman; Lagardere tries selling Parisian nightlife venues, including Les Folies Bergeres and Bataclan theatre at perhaps the worst time ever.
Tencent’s China car deal defies and disappoints 15 Jun 2020 A consortium led by the tech giant has agreed to buy New York-listed Bitauto for $1.1 bln, the same price proposed months ago. Globally, buyers have tried to cut lower prices on pre-pandemic deals. But the outlook for China’s auto market is rosier: Tencent is getting a bargain.
India Insight: Mumbai is in a real viral hotspot 15 Jun 2020 As cases rise, being rich is no more a guarantee of a hospital bed. The situation will worsen as lockdown loosens. Multinationals are baulking. Barriers are rising for the elite that want out. The financial capital is living the emerging world healthcare infrastructure nightmare.
Review: Trump’s fight with China will outlast him 12 Jun 2020 The U.S. president started the trade war but “Superpower Showdown” shows that anger with Beijing predates him. The account of the tariff row, which partly played out on Twitter, is familiar. Even so, it’s a warning that miscalculations on both sides can haunt long-term ties.
Corona Capital: KKR, Rugby, Centene 12 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: KKR volunteers advisers to share the pain, Super Rugby heads back to the pitch, and Centene's best bet.
Crack in Hong Kong dollar peg is invisible 12 Jun 2020 U.S. investor Kyle Bass has bet the currency’s greenback link will snap within 18 months. The peg is vulnerable if Beijing’s new security law scares capital away. But that looks to be a long-term trend, and authorities for now are restraining a rally. Shorters are short on time.
Viewsroom: Global takeaway and Cathay 11 Jun 2020 Nothing sums up pandemic dealmaking quite like this: As a merger of America’s top shopping mall operators crashed and burned, two of the world’s biggest food-delivery companies joined forces. Also, Cathay gets a bailout and so might the Mets. Breakingviews columnists discuss.
Corona Capital: Instacart stocks up 11 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Grocery-delivery firm and lockdown beneficiary Instacart tops up on capital while the getting is good.
Zoom’s China conundrum poses division problem 11 Jun 2020 The $62 bln videoconferencing firm temporarily suspended a U.S.-based Chinese activist account after it held an event commemorating Tiananmen Square. The incident hasn’t dented Zoom stock, up 200% this year. But like ByteDance, Zoom may need to hive off China operations somehow.
NetEase’s Hong Kong reception beckons to China Inc 11 Jun 2020 Local mom-and-pop investors ordered 360 times as many shares of the $58 bln video-game maker as were on offer. Easy money is distorting markets everywhere and NetEase has virus-resistance appeal. Exuberant retail buyers only make the case for other secondary tech listings easier.
“Lipstick effect” kissed off by Covid-19 11 Jun 2020 Estee Lauder’s ex-chairman once theorised that a downturn could be discerned by women buying the cheaper cosmetic over pricier items. Masked mouths, however, help explain a steep fall in lipstick sales during the pandemic. An economic-indicator makeover may be in order.
Britain has more to lose from a Huawei U-turn 10 Jun 2020 Prime Minister Boris Johnson may block the Chinese tech giant from 5G phone networks, reversing a January decision. That would play well in Washington but carry big costs and possible retaliation by Beijing. With antes rising, Johnson is better off demonstrating his independence.
Corona Capital: Make infrastructure great again 10 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Brookfield Asset Management CEO Bruce Flatt reckons national and local governments will start getting investors to help finance new roads, bridges and the like. That’s one way to plug deficits wrought by Covid-19.
Travel bubbles could encase global divisions 10 Jun 2020 Australia and Norway are among the countries aiming to open borders to neighbours in similarly good health. Welcoming visitors should help slumping economies, especially in Hong Kong and Macau. The risk of narrow deals is that they reinforce the world’s balkanisation trend.
Citi uncomfortably straddles Hong Kong-China fence 10 Jun 2020 The $124 bln U.S. lender has avoided taking sides on Beijing’s new security law for the territory. That could allow it to exploit dissatisfaction with those that have, like HSBC. But if the White House sanctions Chinese banks, Citi could become a convenient target.
Corona Capital: Goldman, Vroom, Deutsche Bank 9 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Goldman does too well in Britain; shares in online used-car sales outfit Vroom double on their market debut; and Deutsche Bank gets another shot at redemption in the U.S. market.