Three Gorges will bridge its renewables IPO gap 15 Apr 2020 The Chinese state giant plans a $3.5 bln offer for its clean energy unit. Raising funds before the phase-out of subsidies for wind and solar projects is smart even if it will take the outfit more time to be cost-competitive with coal. A strong parent will help support the sale.
A Chinese investment megabank looks big, not bad 15 Apr 2020 State-backed Citic Securities and CSC could merge in a $70 bln deal. The resulting giant could fend off encroaching foreign rivals like Goldman, plus consolidate a fragmented local industry. The trick will be generating synergies despite inevitable turf wars and culture clashes.
IMF helping hand is worth more than its forecasts 14 Apr 2020 The international lender’s grim new predictions see the global economy contracting 3% this year. This may be little better than a guess. More useful is the practical help, like debt service relief, that new boss Kristalina Georgieva is offering the most vulnerable countries.
Corona Capital: American football fail 14 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: The NFL has better finances and sturdier supporters than the XFL, which just filed for bankruptcy right after its reboot. But the Super Bowl operator’s future also rests on coronavirus-induced physical distancing.
Virus sets off China Inc’s biggest clash 14 Apr 2020 Alibaba, Tencent and Ping An dominate e-commerce, video games, and insurance, respectively. Now the trio, worth a combined $1 trln, is converging on the healthcare system, which is due an urgent upgrade. Financial and regulatory risks abound, but patients will be better off.
ValueAct slides an atypically ajar shōji 14 Apr 2020 After a victory at Olympus, the U.S. investor is trying to push open the latticed door at $4 bln JSR. Unusually for a Japanese company, the synthetic rubber and chemicals maker has a foreign CEO and regularly pays out cash. That means it could be receptive to an outsider’s ideas.
Masayoshi Son’s credibility wears even thinner 13 Apr 2020 SoftBank will report its first annual loss in 15 years thanks mainly to more losses on bets in its $100 bln Saudi-backed tech fund. The write-downs are neither out of line with markets nor fatal to Son’s vision. But along with other events they should shake even adherents’ faith.
India Insight: The race back to work is necessary 13 Apr 2020 A nationwide lockdown is driving up poverty and devastating a fragile financial system. Printing money will help New Delhi spend to soften the blow. But if crops wither and supply chains remain broken, social instability will look like a bigger problem than Covid-19.
Viewsroom: Vices and more 9 Apr 2020 Breakingviews columnists in Ireland, New York and Lantau check in with Editor Rob Cox to discuss Jamie Dimon’s annual letter and coming earnings onslaught, fraud at Luckin Coffee and, everybody’s favorite coronavirus obsession: a boom in sales of porn, weed, booze and junk food.
CEO pay sacrifices could use a pinch of altruism 9 Apr 2020 Disney, HSBC and Solvay are just a few big companies where bosses are volunteering pay. Solidarity with staff, prudence ahead of government bailouts and dwindling cash are the key motivators. Real generosity will need to come from those that are thriving amid the crisis.
Oil producers face their moment of truth 9 Apr 2020 After sparking a destructive price war last month, Russia and Saudi will discuss output cuts. Failure to agree could see supply bust through storage limits, sending prices below $20 a barrel. But, as a Breakingviews calculator shows, the required reductions are unprecedented.
Corona Capital: Expressive earnings 9 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: The U.S securities regulator encourages companies to ditch the boilerplates, ahead of what’s likely to be an unusual earnings season.
Treasury Wine’s posh-plonk split calls for a toast 9 Apr 2020 The $5 bln Australian winemaker could spin off its prized Penfolds business. That should deliver a higher valuation for the upmarket label and separate it from a ragbag of other brands that need restructuring. A coronavirus-induced glut of luxury grapes will eventually help, too.
Climate fight at Mizuho previews wider clash 9 Apr 2020 An investor group is urging the $29 bln finance giant to reduce lending for coal. With Japan in a state of coronavirus emergency, it’s an odd time to pick this battle, nor is Mizuho in charge of national energy policy – the real problem. But activists have to start somewhere.
Guest view: Can we achieve gender equality? 8 Apr 2020 In an unequal world, the coronavirus pandemic hurts women disproportionately. They are on the frontlines of the fight caring for the sick but are more exposed to hardships. Women might end up suffering the most while saving the world. Leaders can respond now to fix the equation.
Hadas: Beware of excessive economic gloom 8 Apr 2020 The recession is deep and the recovery may be slow, but the coronavirus will eventually pass. Capital stock is not deteriorating, and demand and money are being stored up for post-lockdown spending. Debts are the biggest risk, but a health crisis need not become a financial one.
Corona Capital: Latin America and Covid-19 8 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: Six Latin American countries want a $15 billion loan to help fight Covid-19. "There's no harm in trying" says Peru's president, a sad sentiment reflecting the global shortage of needed equipment.
Guest view: Recovery requires greater cooperation 7 Apr 2020 A rapid, “V-shaped” economic rebound after coronavirus passes seems increasingly unlikely, former Citi Chairman William Rhodes and Stuart Mackintosh argue. Policymakers must gird for a long haul back. A globally joined-up approach, which has been thus far absent, is critical.
TikTok is a winner in global viral challenge 8 Apr 2020 Millions of bored people are hooked on the video app for the latest dance moves and more. Owner ByteDance is getting a goldmine of user data and a bigger audience for a follow-up hit. But the unprecedented global success for a Chinese startup comes with uncharted risks.
Coronabonds can issue social goods 8 Apr 2020 Indonesia sold $4.3 bln worth of bonds, partly to tackle Covid-19. It copies a Chinese template. And an unusually long 50-year tranche found favour with life insurers. Investors welcome spin that makes portfolios look responsible, and this one may go viral faster than most.