Corona Capital: Rich vs. poor, Carnival 31 Mar 2020 Concise views on the pandemic’s corporate and financial fallout: The rich may save even more while the coronavirus rages while the poor will be further squeezed, and Carnival tries to bail out its sinking cruise business with a big sale of equity and debt.
Green investing loses star player at bad time 31 Mar 2020 Hiro Mizuno is leaving Japan’s $1.5 trln pension fund. The chief investment officer led the way in focusing more on environmental, social and governance factors. Asset management can ill afford the exit of such a figurehead just as Covid-19 pushes these issues to the backburner.
Meituan Dianping delivers extra side of ESG 31 Mar 2020 The $58 bln Chinese takeaways-to-taxis company expects a rough first quarter after Covid-19 closed eateries and curbed travel. With the outlook hazy, Meituan instead directed investors to the aid it’s providing customers. The initiatives may be useful in a fight against Alibaba.
Hong Kong rues taking off its face mask 31 Mar 2020 A fresh wave of Covid-19 infections has forced the Asian hub into a crushing second phase of lockdown. It illustrates the challenges of getting back to business as usual, especially for more outward-facing economies. Breakingviews looks at life in a city beating a fresh retreat.
Corona Capital: Banking bonuses, Local TV M&A 30 Mar 2020 Concise views on the pandemic’s corporate and financial fallout: BBVA’s ditched bonuses pressure peers; local TV deal has more than one struggle.
Strong dollar hits renewables when they’re down 30 Mar 2020 Plunging oil prices have already made wind and solar power less attractive. But a coronavirus-led weakening of emerging market currencies also pushes up the dollar cost of new projects. That puts a brake on growth just when the opposite is needed to hit carbon reduction targets.
Beijing hands Wall Street rusty keys to kingdom 30 Mar 2020 After tortuous journeys, Goldman Sachs and Morgan Stanley finally joined JPMorgan with approvals to take majority stakes in their Chinese JVs. It’s a token concession at a precarious time after locals have spent a decade getting stronger. Patience, however, could yet pay off.
Japanese investors stick to curious old ways 30 Mar 2020 Despite signs of displeasure with Kirin’s strategy, shareholders rejected proposals to change it. Toshiba Machine’s approved anti-takeover measures while Teikoku Sen-i’s spurned higher payouts. There are glimmers of progress in the votes, but they are self-defeating all the same.
Mitsubishi is too mild a mediator for Nissan 27 Mar 2020 Mitsubishi Corp, second-largest shareholder in the eponymous carmaker, is mulling a 10% stake in Renault, Reuters reports. It’s a small step, but could signal an overdue adjustment within the troubled troika. The French group will have to give more to get Nissan on board.
Rice jitters suggest nations can panic-buy too 27 Mar 2020 Iraq wants to stock up on the staple, while Vietnam may curb exports to ensure enough food to ride out the coronavirus storm. It’s not yet out of hand, but prices are creeping up. And unlike with shoppers, there’s no global policeman to man the checkout if hysteria takes hold.
Corona Capital: Cirque du Soleil, Airlines, France 27 Mar 2020 Concise views on the pandemic’s corporate and financial fallout: Cirque du Soleil may leave TPG sunburnt. Airlines get a sweet bailout. And France joins the campaign against dividends.
Singapore Airlines secures business-class bailout 27 Mar 2020 State investor Temasek is supporting a whopping $13 bln funding package. Deeply discounted equity and a zero-coupon convertible bond provide other shareholders a chance to bet on a post-crisis recovery. The hard-to-copy playbook could even give the carrier a longer-term edge.
China throws savers under bus full of bankers 27 Mar 2020 The government might cut interest rates on deposits, buttressing lenders’ margins as defaults rise. Ordinarily that would encourage people to invest more and hoard less. Unfortunately Beijing has deliberately made it hard to find decent returns elsewhere in the system.
Review: China’s brewing blue-collar rebellion 27 Mar 2020 Foreign investors are entranced by the Chinese middle class; the proletariat less so. In “The Myth of Chinese Capitalism”, Dexter Roberts lays out the increasing plight of the latter, to the benefit of the former. Beijing is struggling to manage this big, hidden political risk.
Cox: Virus-ebbed tide exposes the better leaders 26 Mar 2020 Politicians, central bankers and CEOs will soon be judged by their handling of the health crisis. Impressive new options who have shown courage, effectiveness and moral purpose have started to emerge. Preconceived choices – like Biden vs. Trump – are rapidly becoming passé.
Corona Capital: Ackman’s hedge, Oil stockpiles 26 Mar 2020 Concise views on the pandemic’s corporate and financial fallout, including investor Bill Ackman’s surprise reversal of fortune, and the U.S. shale oil bailout that wasn’t.
Why 150% is the new 100% for public debt/GDP 26 Mar 2020 Governments are splurging to fight the economic havoc wrought by the coronavirus. For example, France’s debt will exceed its annual output by the end of 2020. Investors may not mind as much as before: Every country is affected, and central banks are the backstops.
Chinese video-game deal is fight for extra life 26 Mar 2020 Tencent-backed iDreamSky wants to take over larger rival Leyou for $1.3 bln with CVC’s help. The suitor’s Nasdaq delisting and subsequent relisting in Hong Kong have not gone well, but owning the Warframe developer makes strategic sense. The financial logic is less compelling.
China plays chicken with property market 26 Mar 2020 Indebted developer Evergrande warned 2019 profit could drop 50%, and is slashing prices as sales tank. Rivals are in trouble, too. A real estate crash poses an unprecedented economic threat, but Beijing is maintaining curbs on speculation. That hard line risks hobbling recovery.
Viewsroom: Lives under lockdown 25 Mar 2020 From Milan to Mumbai to Manhattan, Breakingviews journalists are staying put to help stop the spread of coronavirus. Editor Rob Cox checks in with columnists in India, where 1.3 bln people are housebound; New York City, the epicenter of the U.S. crisis; and hard-hit Italy.