Coronavirus

Pandemic speeds AB InBev’s necessary revamp

25 February 2021

More drinking at home and higher raw materials costs will pressure the $100 bln brewer’s margins in 2021. After years of zero-based budgets, it needs looser purse strings to revive sales. But with $83 bln of debt, its valuation discount to less profitable rivals will persist.

Capital Calls: Soho House, Aston Martin

25 February 2021

Concise views on global finance in the Covid-19 era: The private members’ club shrugs off lockdowns to plan a New York IPO; The loss-making luxury carmaker’s shareholders need to buckle up.

Capital Calls: Pharma, Volvo delay, Hotels

24 February 2021

Concise views on global finance in the Covid-19 era: Big Pharma’s new popularity could give it leverage in Congress; China’s Geely can profit from Volvo IPO delay; and boutique hotels feel the heat.

Capital Calls: WeWork, HSBC offices, Wells Fargo

23 February 2021

Concise views on global finance in the Covid-19 era: Co-founder Adam Neumann may get a big payment for failure after all; The bank’s plan to shrink its property footprint recalls an earlier effort; And the scandal-plagued lender takes another small step towards rehabilitation.

UK online levy procrastination may be helpful

22 February 2021

Finance minister Rishi Sunak has delayed a decision on whether to impose a 2% sales tax on internet retailers like Amazon. He misses out on some tax revenue in the short term but buys time for joined-up thinking on how to level the playing field for firms that pay property tax.

Capital Calls: Petrobras CEO, Kohl’s

22 February 2021

Concise views on global finance in the Covid-19 era: Brazilian President Jair Bolsonaro nominates a former general to replace the oil group's market-friendly boss, tanking the shares; and U.S. department store Kohl’s has some unhappy shareholders.

Capital Calls: Petrobras

19 February 2021

Concise views on global finance in the Covid-19 era: Brazil's president becomes Petrobras' activist.

Precision is ECB’s enemy when picking compass

18 February 2021

President Christine Lagarde has stressed the need for favourable borrowing conditions to justify her 1.85 trillion euro crisis response. Rate-setters will in March discuss how to measure this concept. Being too specific may backfire and limit the central bank’s wiggle room.

South Korea leans into wrong sort of socialism

17 February 2021

President Moon Jae-in is exploring a plan to encourage corporate titans such as Samsung to share pandemic profit with struggling peers. A crisis that includes soaring unemployment is a good time for bold policy. Shoring up public safety nets would be a better long-term fix.

The Exchange: Editorial lessons from Lionel Barber

16 February 2021

The former Financial Times editor discusses his views on journalism in the post-Trump, post-Brexit, post-print era with Rob Cox. He also shares some of the juicier stories from his memoir, “The Powerful and the Damned,” like the time he told off Blackstone’s Steve Schwarzman.

Capital Calls: Deloitte castoff, Banks and Brexit

15 February 2021

Concise views on global finance in the Covid-19 era: The UK auditor chooses an unfortunate moment to offload its lucrative restructuring practice; The Bank of England pours cold water on the idea of a regulatory bonfire after Britain leaves the European Union.

Breakdown: Slaying virus Hydra is Herculean task

12 February 2021

Like the Greek serpentine monster, Covid-19 is mutating. Though vaccines are effective at defeating the original virus, their ability to protect against new variants is uncertain. Breakingviews explains why the world faces a prolonged fight to get back to normal.

Europe’s airlines may need financial refuelling

12 February 2021

Delayed vaccines and mutating virus strains are threatening another peak tourist season, hitting carriers like Lufthansa as well as low-cost rivals such as easyJet. With debt soaring, shareholders, including governments, may need to fork out again. If so, better to beat the rush.

Guest view: Virus teaches the limits of economics

8 February 2021

Faced with ballooning deficits, governments are reversing decades of reduced corporate taxes. It’s an overdue recognition the policy never delivered the promised benefits, argues Tom Bergin. Other misguided theories, from labour taxes to tobacco levies, are also due a rethink.

Corona Capital: Peloton, Star SPAC, Italian bank

5 February 2021

Concise views on the pandemic’s corporate and financial fallout: Peloton needs to keep pedaling faster to keep up its subscriber pace; baseball’s Alex Rodriguez is jumping in the special purpose acquisition company game; and Intesa Sanpaolo makes good on M&A.

Cash handouts are Biden rescue plan’s weak link

4 February 2021

The Democratic president’s proposal to send $1,400 to millions of Americans is a big sticking point to a deal with Republicans. Compromising on who qualifies might help clinch an accord. Being pickier about eligibility will also prevent the wealth gap from growing even wider.

Corona Capital: McKinsey/opioids, Bumble IPO

4 February 2021

Concise views on the pandemic’s corporate and financial fallout: Consulting firm McKinsey settles over its role in the U.S. opioids scandal; and dating site Bumble boss Whitney Wolfe Herd looks smart to be holding back in the company’s initial public offering.

Corona Capital: Exxon, Uber

2 February 2021

Concise views on the pandemic’s corporate and financial fallout: Exxon dodges M&A questions, while Uber guzzles up a beverage delivery firm.

Biden’s relief package comes with political price

1 February 2021

Democrats want to go it alone on a $1.9 trln economic rescue. With a workaround they can probably pass some measures, like direct payments to households, even if Republicans protest. Minimum-wage hikes, though, may be out of reach. And the effect will be more ugly partisanship.

Corona Capital: Universal Music

1 February 2021

Concise views on the pandemic’s corporate and financial fallout: A Universal Music IPO could close Vivendi’s conglomerate discount.