Corona Capital: Good news is bad news 16 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. retail sales are rising and some banks say consumers are surprisingly resilient – but a recovery once glimpsed is even harder to give up.
Viewsroom: Wall Street, Huawei, Chinese taxpayers 16 Jul 2020 Investment bankers have had a very nice lockdown indeed, says U.S. Editor John Foley. British Prime Minister Boris Johnson backtracks on 5G, delivering his pal Donald Trump a tech victory against China. Meantime President Xi Jinping takes some unusual tax pointers from Uncle Sam.
Twitter hack is a nightmare not just for Twitter 15 Jul 2020 A wave of fake tweets from figures like Elon Musk and Joe Biden soliciting bitcoin mean Twitter’s security costs will have to rise. But the social network has the power to move markets, or worse. The risk is that high-profile users change their habits – or regulators step in.
Morgan Stanley CEO gets smart and lucky on E*Trade 15 Jul 2020 The online brokerage’s shareholders vote on James Gorman’s $13 bln takeover offer this Friday. It looked a good deal for the Wall Street firm in February. Now, thanks to a surge in trading volumes, it looks even better. But it’s still the best option for E*Trade shareholders too.
Navistar should be thankful for Volkswagen deal 15 Jul 2020 Activist Carl Icahn’s bet on the U.S. truck maker looked dead after Covid-19 upset a $2.9 billion cash bid from the German auto company. But VW insists a deal still makes sense. Given the sector’s grim outlook, accepting the offer – and bagging a juicy premium – is a no brainer.
Apple tax win flags EU problem of enemies within 15 Jul 2020 The tech giant won a legal case over $15 bln of back taxes. Ireland was fighting at its side against Europe’s antitrust czar Margrethe Vestager. The alliance shows the stiff resistance she faces, from governments as much as companies, to corporate tax reform or a digital levy.
Solomon’s remix of Goldman is luckily incomplete 15 Jul 2020 Two years in, the CEO’s plan to tilt away from choppy markets revenue toward new forays like digital banking has yet to come good. Still, the $74 bln Wall Street firm has grown more efficient, more highly valued and more diverse. And for now, relying on trading isn’t so bad.
Mukesh Ambani flaunts Jio’s global tech ambitions 15 Jul 2020 Reliance Industries’ boss unveiled a home-grown 5G solution with export potential at a meeting held on the Indian company’s answer to Zoom. His push is bad news for Huawei. And the latest investment in Jio, $4.5 bln from Google, points to a formidable competitor for all rivals.
Corona Capital: Expense accounts, Zoom’s new box 15 Jul 2020 Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs’ earnings give an insight into pandemic-era client schmoozing, and virtual meeting facilitator Zoom tiptoes into the high-priced hardware market.
Italy road saga hands Benettons life-saving finale 15 Jul 2020 The clan’s infrastructure group Atlantia could end a government dispute over a bridge disaster by letting state actors invest in its motorway unit, and list it. The shakedown may leave the group with a stake worth just 5 bln euros, but it’s better than a threatened expropriation.
Green laggards face a rising tide of short selling 15 Jul 2020 A new BNP Paribas fund will hedge investments in companies embracing the energy transition by betting against shares in refuseniks. Shorting ESG sinners isn’t easy, and has even caused controversy. But as disclosure improves it can play a growing role in sorting sheep from goats.
China bank IPO offers StanChart profitable exit 15 Jul 2020 The emerging market lender has owned one-fifth of Bohai Bank for over a decade with few obvious benefits. The latter's $11 bln Hong Kong listing gives StanChart CEO Bill Winters hope of pocketing a decent return – provided real estate and small business loans avoid more strain.
Airlines need surgery not a vaccine 14 Jul 2020 Delta’s CEO said business travel, recently half its revenue, may never fully recover. That suggests the health crisis is turning into a full-fledged shift in behavior. The U.S. government could re-up bailouts. But the industry needs to shrink and rethink to stay airborne.
Google strengthens as U.S. antitrust case weakens 14 Jul 2020 The Justice Dept may soon make its case against the unit of Alphabet, which is back to its pre-pandemic $1 trillion market value. With 90% market share in some areas, Google is a legitimate target. But by mixing political and economic aims, the DOJ risks tripping itself up.
The Exchange: Managing through the corona crisis 14 Jul 2020 As companies grapple with the pandemic’s fallout, consulting firm AlixPartners has a close-up view inside boardrooms. CEO Simon Freakley discusses priorities for troubled businesses, the long-term impact of Covid-19 and what he has learned running a global business by video call.
Bank traders pay their way, and everyone else’s 14 Jul 2020 American lenders like JPMorgan and Citi are putting aside billions to cover future losses. That even drove Jamie Dimon’s colossal consumer bank into a loss. Yet the markets’ wild ride delivered trading revenue that more than bridged the gap. Wells Fargo is the unhappy exception.
UK’s Huawei red card has visible and hidden costs 14 Jul 2020 Removing the Chinese tech giant from mobile phone networks by 2027 gives operators BT and Vodafone time to adapt their kit. That said, the ban will still cost 2 billion pounds. It also makes Britain’s 5G communications even more dependent on rival suppliers Ericsson and Nokia.
Virgin’s budget rescue buys a bit more flying time 14 Jul 2020 Richard Branson’s airline claims its rescue deal is worth 1.2 bln pounds. But the tycoon and other investors are only chipping in 370 mln pounds of new cash, with payment holidays and deferrals bringing in the rest. With few assets to borrow against, it’s the best deal on offer.
India prize for U.S. tech grows with Chinese wall 14 Jul 2020 Google will invest $10 bln in India over five years or so. A chunk might follow Facebook into Mukesh Ambani’s Jio. The showy confidence in an iffy economy can help to ease regulatory headwinds. When new rules have crippled Chinese-capital dependent rivals, it is extra helpful.
BlackRock warrants a spot on its climate watchlist 14 Jul 2020 The $6.5 trln asset manager voted against 53 companies for environmental missteps in the past 12 months and put 191 more on notice. It’s much better than the previous year, and necessary after CEO Larry Fink’s call to climate arms. But BlackRock’s own role needs monitoring too.