Corona Capital: NYC 30 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: New York City’s economic reboot comes up against a new outbreak.
China staycation offers glimpse of spending future 30 Sep 2020 With overseas destinations off limits, Chinese businesses will hope for a repeat of last year’s $200 bln domestic splurge during Golden Week. That will boost consumption without juicing imports. As Beijing turns inward, trade partners have reason to fear the model will stick.
Guest view: Another lost decade for Latin America? 29 Sep 2020 The region is grappling with three challenges, which when combined pose the gravest threat seen in over a century, argues former Citibank Chairman William Rhodes. Leaders can, and must, use the Covid-19 crisis to make long overdue reforms, build institutions and expand trade.
Tiffany looks ill suited for life on the shelf 29 Sep 2020 LVMH’s $16 bln bid for the U.S. jeweler has descended into acrimony. If it craters, Tiffany could be worth just $10 bln based on similar companies’ valuations. For LVMH boss Bernard Arnault, the idea of buffing up Tiffany’s brand must be rapidly losing its appeal.
Corona Capital: U.S. sports’ virus-bubble success 29 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Professional hockey and basketball associations scored victories keeping infection rates low or at zero in spectator-free games. And less traveling and more sleep helped players up their game. Wall Street take note.
KKR takes risky punt on 20th century office life 28 Sep 2020 The buyout giant has taken a 5% stake in landlord Great Portland Estates. Investors are pricing in a 30% virus-linked drop in rents or asset values. For KKR to be on the winning side, a shift in working patterns will need to be distinctly cyclical, not structural.
Corona Capital: Shale merger, Logistics startup 28 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Two Permian Basin oil drillers agree to merge to share their coronavirus demand-shock woes; and delivery upstart ShipBob gets some SoftBank cash to help it compete with Amazon.
Corona Capital: Financial centers, Costco 25 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: New York, London and other financial centers still have their luster even if workers will trudge in less to the office; Costco’s coronavirus costs add up.
Apple fight is just one front in Europe’s tax war 25 Sep 2020 Antitrust tsar Margrethe Vestager will appeal a court ruling nullifying demands the tech giant pay Ireland $15 bln of back taxes. It’s time-consuming and possibly futile. With Covid-19 inflating government deficits, political pressure on low-tax states may be more fruitful.
American Airlines bailout plea looks cheeky 24 Sep 2020 The company wants more public money to avoid furloughing 19,000 workers. But it should have $13 bln of liquidity by the end of the quarter, including discounted loans competitors eschewed. Even if American can’t stay afloat, there’s Chapter 11. The time for handouts is over.
Rishi Sunak’s UK economic safety net has a tear 24 Sep 2020 The finance minister’s new job retention scheme will avoid unemployment surging when furloughs wind up yet costs less than the old arrangement. That’s helpful. But his plan does too little for low-skilled service workers whose roles may disappear forever, and who need training.
Hadas: Markets’ risky fling is far from over 24 Sep 2020 Fears of returning Covid-19 and revelations like Nikola’s non-driving trucks have restrained investors a bit. But the financial world’s careening exuberance will keep going long after the economy stops benefitting from massive support. Higher asset prices mean bigger risks.
Corona Capital: Vaccines, Olive Garden, Oil 24 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Vaccine concerns are bad for the economy; cravings for never-ending pasta bowls return; and oil practitioners tell sad truths.
Angst-ridden end to 2020 is written into options 23 Sep 2020 As if Covid-19 hadn’t sparked enough market gyrations, the next three months bring U.S. elections, tense UK-EU trade talks, and more. Central bankers are keeping bonds on a tight leash so jitters will be channelled into currencies. That is already showing up in FX option prices.
Corona Capital: LVMH and Macron, Eyewear deals 23 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: LVMH has friends in high places; 1-800 Contacts has semi-disposable owners.
Corona Capital: Coca-Cola, Viral inequality 22 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Coca-Cola, once an icon of temperance, is diving into the hard seltzer market; and California is considering using the disparity in numbers of Covid cases between neighborhoods to steer its response.
Corona Capital: Playboy, Mondelez 21 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: The owner of perhaps the most famous adult magazine is hoping a SPAC can give it a new lease on life; Mondelez wants to expand its range of healthy snacks – but they’re not always the best money spinners.
India Insight: Chai-onomics brews more inequality 21 Sep 2020 Raju has resumed selling tea at his Mumbai roadside stall, but his post-lockdown business is diminished. Covid-19 has accelerated a shift to a more efficient, formal Indian economy. One consequence is that, from street to stock market, the strong are displacing the weak.
Corona Capital: Millionaire tax, Rent the Runway 18 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: New Jersey taxes the rich to help close a budget gap; and high fashion has trouble competing against sweats.
Corona Capital: Newspaper rivals, College football 17 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: the Wall Street Journal hits up the New York Times’ printing presses; U.S. college football’s Big Ten makes a comeback.