Review: The legal battle for Hong Kong’s future 24 Apr 2020 In "City on Fire", lawyer Antony Dapiran offers a riveting account of the 2019 protests. While demonstrators took to the streets, Beijing and the local government used Hong Kong’s rule of law to silence opponents. Coming court battles will help determine the financial hub’s fate.
Tesla gets board street cred it sorely needs 23 Apr 2020 Hiro Mizuno, former investment chief at Japan’s $1.5 trln pension fund is joining the electric-car maker as a director. He and Tesla boss Elon Musk may bond over their views on short sellers. But it’s Mizuno’s ESG clout that will serve the governance-challenged manufacturer best.
Viewsroom: The F’d up oil market 23 Apr 2020 Breakingviews columnists in London, Mumbai and Brooklyn discuss what’s going on in the global energy markets amid the coronavirus crisis, as well as Facebook’s big Indian deal and the U.S. government’s attempt to prop up small businesses with the Paycheck Protection Program.
Corona Capital: Merger bans, Moelis, Domino’s Pizza 23 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. politicians plan a curb on opportunistic M&A, advisory boutique Moelis cuts its dividend, and Domino's delivers.
China’s Didi looks short on engine power 23 Apr 2020 The ride-hailing giant unveiled a three-year plan. Hard-to-compare targets and more of the same bets hardly inspire, especially as tech peers Alibaba and Meituan grab Covid-19 opportunities in health and more. Didi’s $53 bln valuation is vulnerable without a stronger drive.
Crisis paves way for South Korea’s New Deal 23 Apr 2020 President Moon Jae-in has long wanted to redirect the emphasis from exports to jobs and wages. As the pandemic’s economic toll mounts, his government has unveiled nearly $200 bln of relief measures. Fresh political support could help make the “income-led” growth plan a reality.
Earth Day’s 50th comes at just the right moment 22 Apr 2020 Half a century ago, Americans protested in droves for cleaner air and water. But progress has slowed, or been undone, while air pollution costs the global economy $3 trln a year. The pandemic has given a taste of a less smoggy world that could bolster efforts to cut emissions.
Corona Capital: Extended Stay, Victoria’s Secret 22 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: Blackstone checks back into one of its favorite old haunts, hotel chain Extended Stay; while another private-equity shop, Sycamore, tries to dump its proposed investment in lingerie seller Victoria’s Secret.
It’s easy to like Facebook friending Reliance 22 Apr 2020 The social networking giant is paying $5.7 bln to buy 10% of the conglomerate’s Jio digital services division. WhatsApp will be able to power the retail ambitions of India’s richest man, and even potentially help build a super-app. This rare minority stake is a major step.
ValueAct nudges Nintendo to ditch the joystick 22 Apr 2020 The U.S. investor disclosed a $1 bln stake in the maker of Super Mario. Unlike the typical activist target, Nintendo is well run and outperforms rivals. But its focus on consoles looks short-sighted. As it did with Microsoft, ValueAct can push Nintendo in the right direction.
Corona Capital: HCA Healthcare, Kering 21 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: The virus helps one part of the U.S. healthcare industry, but harms another; and luxury group Kering's Chinese fortunes may depend on an end to Italy's lockdown.
UK’s inward M&A muddle comes home to roost 21 Apr 2020 China-backed buyout firm Canyon Bridge is trying to wrest control of Imagination Technologies, a British chip designer it acquired in 2017. The UK government lacks the grounds and the legislation to intervene. And its nuanced position on Huawei complicates a tougher approach.
Virgin Australia could struggle to regain altitude 21 Apr 2020 The carrier has gone into administration with over $3 bln of debt after a bailout failed to materialise. Australia is loath to leave Qantas a monopoly, which should help spur a solution, maybe with local pension funds. Remaking Virgin into a success is a different story, though.
Spurned Caltex can do some refining on its own 21 Apr 2020 Canada’s Couche-Tard abandoned its $5.5 bln plan to buy and break up the petrol station operator because of the pandemic. The Australian company’s mooted property spinoff looks like a poor consolation prize. It would make more sense just to proceed with the suitor’s blueprint.
Glencore mine grab would have a tiny silver lining 20 Apr 2020 Zambia may seize assets, including the commodity giant’s Mopani copper mine, to help with Chinese debt relief, the WSJ says. That would make the African state a pariah and confirm fears of debt-trap diplomacy by Beijing. At least Glencore might win some useful U.S. sympathy.
Bad news could travel fast for Facebook and Google 20 Apr 2020 Australia is forcing the tech goliaths to share revenue with local media. The virus was the last straw after years of digital destruction and fake news scandals. Whatever the financial formula, the costs should be bearable. The trouble is that Canberra headlines will go global.
Corona Capital: Pemex, Bond liquidity 20 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: Pemex becomes world’s chunkiest fallen angel, and bond liquidity gets a needed boost.
Singapore oil trading mess creates a long slick 20 Apr 2020 The founder of Hin Leong Trading, O.K. Lim, fessed up to hiding $800 million in losses. That’s bad for auditors and the banks holding $3.9 bln of related debt. It’s also tricky for the city-state’s status as an energy hub, and perceptions of privately held commodities firms.
Dixon: How will pandemic debts be paid for? 20 Apr 2020 The UK introduced income tax to fund the Napoleonic Wars. America imposed it to pay for the civil war. The coronavirus pandemic is not literally a war. But it will lead to massive borrowing. Higher taxes are a better way to repay it than austerity, default or inflation.
India erects low wall against Chinese money 20 Apr 2020 Direct investment from the People’s Republic will now require special approval, potentially slowing technology development. Capital-hungry India has left the door open to buyers from elsewhere, however. Chinese funds will keep flowing in, but only where they’re welcome.