United States of America

Cox: Trans-ocean travel has zombie apocalypse vibe

5 June 2020

A flight this week from Zurich to JFK reveals empty airplanes, airports devoid of people, limited services and a glimpse into the emerging protocols that surely await when more normal travel flows resume. It’s unsettling in a plague-times way, but surprisingly hassle free.

U.S. jobs surprise mixes hope with division

5 June 2020

The unemployment rate unexpectedly fell in May despite continuing lockdowns. That revives hopes of a V-shaped recovery and makes roaring stock markets look less out of touch. But 21 mln Americans are still out of work, with minorities in a protest-hit country faring worst.

U.S. response to Hong Kong calls for precision

5 June 2020

Politicians want to swat China for ramming through draconian security laws in the restless city. The likely targets are Chinese banks. Starving them of dollars is a harsh option but risks collateral damage to foreign firms. Naming and shaming individuals is smarter and cheaper.

JD stock sale helps illuminate China’s have-nots

5 June 2020

The $70 bln Beijing-based online retailer will be next with a second listing, in Hong Kong. Others are bound to follow, but not all 175 trading on New York exchanges can access this safety valve from a U.S. backlash. Some may need to go private and hibernate for a while.

The “Trump option” still has value for U.S. CEOs

4 June 2020

Corporate chiefs who left White House councils in 2017 are speaking up again over racial injustice. Their ability to challenge the president is constrained, since they still need help on trade and other issues. The value of being inside the tent, though, is less than it was.

U.S. testing firms aren’t having a great pandemic

4 June 2020

With no vaccine, finding Covid-19 cases is key. But it’s not lucrative. Extra revenue is being offset by falls in other tests for Quest and rival lab companies and in unrelated businesses for test makers like Abbott. There's little time to cash in and plenty of competition.

BlackRock is becoming the new, old Goldman Sachs

4 June 2020

Before and during the financial crisis, Goldman seemed to have a finger in every pie. Now it’s as if Larry Fink’s asset manager, wielding $7 trillion of investor cash, is slipping into that role. For all BlackRock's efforts, brickbats and more regulation could follow.

Warner Music is opening act for mini IPO-palooza

3 June 2020

The record label’s shares climbed more than 20% after the biggest U.S. IPO this year. It suggests there is investor demand for companies resistant to pandemic disruption. Current market conditions make good mood music for companies that offer stability, growth, or both.

Argentina risks stumbling at the finish line

3 June 2020

The nine-time defaulter and its creditors are nearing a $65 bln restructuring deal. It might not seem fair for Argentina to give more ground, especially when it has IMF support. It can’t risk being frozen out of global capital markets, though. Playing tough could backfire.

Tiffany share drop offers LVMH a bargaining chip

3 June 2020

Fears that Bernard Arnault may pull his $16.2 bln bid amid U.S. unrest have hit the jeweler’s shares. The French billionaire may see an opportunity to renegotiate, but it’s not without risk. Buying Tiffany shares on the market would be a less aggressive way to meet a similar end.

Even Zoom’s lockdown boom needed Amazon delivery

3 June 2020

The $60 bln videoconferencing service had an astonishing first fiscal quarter as revenue surged 169% and profit rocketed. Zoom’s ability to rent thousands more servers daily from Jeff Bezos' company shows the flexibility and earnings leverage possible from operating in the cloud.

Fintech superstars face brutal financial comedown

3 June 2020

Digital banks like Chime and Monzo have millions of customers but are tackling their first big crisis with scant revenue. Online lenders from Kabbage to Klarna face rising defaults, less new business, and funding concerns. Valuations, business models, even survival, look shaky.

Private equity hangers-on face diminishing returns

3 June 2020

France’s Ardian raised $19 bln to buy stakes in other buyout funds. The niche, known as secondary investing, did well after the last crisis and is booming as conventional fundraising slows. Yet sellers are less desperate this time, and an oversupply of capital may hurt returns.

Dollar’s crisis crown is slipping

3 June 2020

The greenback has fallen to its lowest in nearly three months. The scale of Fed Chair Jerome Powell’s stimulus has calmed nerves and lured investors into riskier assets. The more confident money managers are that he has their back, the more the U.S. currency will weaken.

American CEOs have huge power. They can use it

2 June 2020

Leaders like JPMorgan’s Jamie Dimon support calls for racial justice. Most businesses can do more though, financially and in their workforces. Even if it’s not their job to fix society, U.S. norms and pliant shareholders give executives wide latitude to do what they think best.

Only losing users will get Zuckerberg’s attention

2 June 2020

Facebook workers and civil rights groups criticized the social network’s hands-off approach to President Trump’s inflammatory posts. Its co-founder says he’s listening, but Zuckerberg has little incentive to act. Covid-19 has boosted the company, and reduced employees’ leverage.

NetEase fortifies itself against global disarray

2 June 2020

The $51 bln video-game producer is ready to raise $2.6 bln in Hong Kong. Quarantined customers have helped it defy a U.S. backlash against Chinese stocks. A secondary listing closer to home, following a tougher trail blazed by Alibaba, should add a useful layer of protection.

Clashes are facet of U.S. “exorbitant privilege”

1 June 2020

Unrest over racial injustice does nothing for a country already divided and struggling with disease. Yet it takes more to unseat a superpower. America is no longer the only one, but it still has unrivaled heft. The downside: limited pressure to tackle economic or social problems.

Tech giants dare antitrust deal watchdogs

1 June 2020

Facebook, Microsoft and Apple have been on a buying spree of small companies. U.S. regulators are examining such deals but their work has been hindered by Covid-19. Big Tech can argue some firms would fail otherwise. But the effect on consumers is a mixed bag.

Zynga puts overvalued shares to risky use

1 June 2020

The $9 bln video-game company is buying the Turkish maker of Toon Blast and Toy Blast for $1.8 bln, its biggest deal ever. Zynga is partly financing it with stock puffed up by the pandemic. But the high price and its mixed acquisition record should give investors pause.