Coronavirus

Missing Chinese tourists augur hard economic treks

14 Jun 2022

From Phuket to Paris, destinations that banked on the $255 bln mainlanders spent in overseas hotels, shops and restaurants each year are awakening to the possibility they might be gone indefinitely. It will challenge governments to find new and more sustainable sources of growth.

Next pandemic is a financial numbers game

10 Jun 2022

Outbreaks are hard to predict – look at the spread of Monkeypox – but they can be prepared for. The $88 bln the White House wants to spend on pandemic readiness is a pittance next to the cost of being blindsided. Even for budget hawks, the case for spending more is powerful.

Chinese movie industry screens business tragedy

8 Jun 2022

Box office takings touched a 10-year low during the recent holiday weekend. While China overtook the U.S. market during the pandemic, in absolute terms it’s contracting, a trend reflected in share prices for companies like IMAX China. The damage could be permanent.

New York has a towering hybrid work problem

6 Jun 2022

Only four in 10 Manhattan-based workers are in the office on any given day, and vacancy rates are twice the historical average. Some big tenants are downsizing. If hybrid work trends stick, landlords already wrestling with inflation could wind up with 40% fewer desk-jockeys.

Fingers crossed Davos Man gets it wrong again

27 May 2022

Gloomy delegates at the Swiss conference worried about a prolonged conflict in Ukraine, Covid-19 lockdowns in China, and runaway food and energy prices. But in 2020 they failed to foresee the global pandemic. This time, an incorrect forecast might be good news for the planet.

Beijing’s stimulus ignores elephant in the room

27 May 2022

Premier Li Keqiang sounded the economic alarm and urged officials to step up tax cuts and spending. Yet pandemic controls are stressing struggling local governments. Without relaxing zero-Covid policies, all efforts to help China hit its 5.5% growth target look futile.

Smaller, warmer Davos confronts a siloed world

23 May 2022

The Swiss confab of global leaders returns this week after a gap of over two years. Pandemic, war, and the unusual spring timing explain some notable absences. As markets tumble and economies turn inward, founder Klaus Schwab’s knack for brokering relationships faces a test.

Global brands set too much store in China recovery

13 May 2022

Western companies like Estée Lauder and Remy Cointreau remain hopeful about the country even though lockdowns have hit revenue. Yet continued mass testing due to Beijing’s zero-Covid push will weigh on demand. Excessive optimism risks delaying a much-needed diversification drive.

Capital Calls: Business travel, Adidas China woes

6 May 2022

Concise views on global finance: British Airways owner IAG faces stormy UK skies; Chinese lockdowns and boycotts are slowing down the German sneaker maker.

Anti-Americanism is blinding Chinese policy

5 May 2022

President Xi Jinping’s obsession with surpassing his country’s top trading partner is distorting his approach to growth and the pandemic. Bad debts, crackdowns and Covid-zero could slow China’s push to double output by 2035 and become the world’s largest economy.

Chinese buyout baron’s dissent challenges Beijing

29 Apr 2022

Shan Weijian, a frequent defender of Xi Jinping’s tough policies, broke ranks to warn of an economic crisis and discontent from lockdowns. It adds risk to the IPO of his firm, PAG, but making an example of him would be tricky. His sentiments are shared in the financial community.

China takes new tack on emerging market debt

27 Apr 2022

Beijing has agreed to work with the Paris Club of official creditors to clear up Zambia’s $17.3 bln debt mess. That’s a major shift from the bilateral approach it usually adopts. An even bigger sign of progress would be accepting a haircut on the $5.8 bln that China is owed.

Capital Calls: Britain’s beefed-up M&A watchdog

25 Apr 2022

Concise views on global finance: The activist building its stake in video-ratings firm Nielsen may face a potential snag, thanks to the UK’s answer to U.S. cross-border merger cop CFIUS.

Capital Calls: Gap falls through the inflation gap

22 Apr 2022

Concise views on global finance: Shares in the clothing retailer fell over 19% after the company warned of a sharper drop in sales and announced the departure of Nancy Green, the boss of its Old Navy unit.

Capital Calls: KKR and Australia, Danone

20 Apr 2022

Concise views on global finance: The private equity firm’s offer for Ramsay Health Care would almost double Down Under M&A by value this year; the French consumer group’s sales growth boost is offset by inflation fears.

Shanghai deflates the Chinese Dream

19 Apr 2022

Brutal lockdowns in the financial centre are testing the elites' confidence in the Communist Party. The tacit contract in which citizens traded political rights for rising living standards is fraying. Revolt is unlikely, but China can ill-afford a sulking intelligentsia.

Covid shuts down China, Baltic lessons for Germany

14 Apr 2022

As Shanghai grapples with a coronavirus outbreak and almost one-third of the country’s population is under lockdown, Breakingviews columnists discuss the impact on China’s economy in this Viewsroom podcast. Plus, tiny Lithuania shows European countries how to give up Russian gas.

Global economy braces for China inflation shock

14 Apr 2022

Manufacturing hubs from Guangdong to Jilin are seizing up as authorities stamp out outbreaks. Despite talk about diversifying supply chains, the world’s dependence on Chinese factories has increased. Beijing’s refusal to live with Covid could mean higher prices for everyone.

China is at risk of self-inflicted recession

13 Apr 2022

Nearly one-third of the population is under some sort of lockdown, with many shops shut and factories struggling. More policy easing looks unavoidable, but with benchmark yields dropping below U.S. Treasury bonds, so does capital flight. The economic hit could be worse than 2020.

China Covid-zero zeal puts carmakers into low gear

12 Apr 2022

Vehicle exports have doubled from pre-pandemic levels, with Tesla and others more dependent on the country’s factories to meet Asian demand. But Beijing’s harsh Omicron lockdowns are stalling supply chains while war cranks up costs. This year could be a rougher ride than 2020.