Hong Kong signals virus battle will be a long slog 23 Mar 2020 The city has been lauded as an example of how to contain Covid-19. A second wave of infections, though, has prompted new tough measures including a tourist ban. It’s a sober reminder for the world that getting back to a post-outbreak normal will be a complicated and bumpy ride.
India Insight: Facing the pandemic on a shoestring 23 Mar 2020 As it braces for an outbreak of Covid-19, India lacks the authoritarian system that helped China cope and the advanced healthcare of Italy. India’s experience will illustrate the added struggle that poor, unruly nations face from rising disease and a straightjacketed economy.
UK adds fiscal steel to economy’s virus defences 20 Mar 2020 Britain will cover employees’ wages at firms hit by Covid-19 and beef up social security payments. That puts it among the more enlightened European states battling to keep their economies afloat. The activist approach is welcome given a slow approach to containing the outbreak.
Coming U.S. jobless spike is unusual and dangerous 20 Mar 2020 It’s not hard to see how the 20% unemployment estimated by Treasury Secretary Steven Mnuchin could come to pass. An early hit to hospitality and retail will swiftly spread, and the hit will almost certainly be faster than prior crises. This time there’s no flattening the curve.
Senate stock trades add to post-virus reform list 20 Mar 2020 Several U.S. lawmakers sold shares after briefings on Covid-19. One is even married to the New York Stock Exchange chairman and downplayed the disease. It looks like another case of the powerful benefiting during the outbreak. Congress can tackle it by banning stock ownership.
Viewsroom: How to run virus bailouts 20 Mar 2020 The rapid economic slowdown caused by the spread of Covid-19 has brought to the fore the prospect of companies getting help from taxpayers. Which firms to target and what strings to attach will be the big questions. Plus: Pepsi, credit cards and cancer drugs drive virus-era M&A.
Corona Capital: Dining bonds 20 Mar 2020 Concise views on the pandemic’s corporate and financial fallout: Restaurant industry cooks up a unique form of funding to help alleviate revenue wipeout.
Trade war truce sabotaged by virus battle 20 Mar 2020 Removing tariffs could provide an estimated $170 bln boost to the ailing global economy, yet any rollbacks hardly seem imminent. The White House just slapped fresh duties on Airbus. Relations with China are also worsening. Such intransigence only makes a bad situation worse.
Trump Org bailout would be ultimate self-deal 19 Mar 2020 The U.S. hotel industry is seeking $150 bln in government aid as it reels from virus fallout. Where does that leave the president’s hotels and golf resorts? Ideally, Trump would set an example by using his own wealth to preserve jobs. To let taxpayers do so would set a new low.
Bank of England deploys old tools for new problem 19 Mar 2020 New boss Andrew Bailey has cut UK interest rates to 0.1% and ramped up bond buying. Among the reasons for the easing is a deterioration in the government debt market that is leading to a tightening of financial conditions. Even massive asset purchases may not fix that headache.
Cox: Are taxpayers ready to rescue the jerks too? 19 Mar 2020 Workers will be human shields for reckless CEOs in the crisis clamor to save jobs. Consider Penn National: The U.S. casino group gorged on debt and bought brash Barstool Sports a month ago. If capitalism had any purity, or morality, Penn would go bust. Watch it get bailed out.
Emerging markets dollar lifeboat leakier than 2008 19 Mar 2020 Capital is heading out of Indonesia, Turkey and other emerging economies faster than in the financial crisis. Like then, the Fed should set up dollar swap lines with some of their central banks, and the IMF should boost reserves. But even these fixes might not stem the torrent.
Kraft Heinz shows long shelf life has virus limits 18 Mar 2020 The $29 bln ketchup maker is one of the few packaged-foods producers whose stock has sagged during the Covid-19 outbreak. Consumers stocking up on canned and boxed goods have already prompted General Mills and Campbell Soup to raise earnings guidance. Kraft’s debt holds it back.
Quarantine hits home for Canada’s Trudeau 18 Mar 2020 The border with the U.S. is closing. The Canadian prime minister – himself in Covid-19 isolation – also unveiled a fiscal aid package worth about 3.6% of GDP, way short of, say, the UK’s response to the pandemic. As everywhere, though, it’s a down payment on an unknown price.
Climate fight will survive dual oil and virus blow 18 Mar 2020 The Covid-19 outbreak could distract politicians from agreeing cuts to global emissions. The resulting slump in crude prices also removes pressure to ramp up renewables. But behavioural and societal changes to halt the pandemic may prove more potent in tackling global warming.
Virus likely to be a tale of three phases 18 Mar 2020 History and science suggest a serious hit – to the economy and health – lasting months, and varying depending on testing and behavioral changes. Flare-ups and uncertainty will continue until a vaccine is widespread in a year or more. After that, Covid-19 may just be another flu.
Britain’s mega-bailout is just a good start 18 Mar 2020 Finance minister Rishi Sunak promised 350 bln pounds in loan guarantees and support for stricken businesses. Though details are slim, the package worth 17% of GDP is suitably large. The next step is to get cash directly to those who need it most. Until then, fear will dominate.
South Korea’s boy band IPO may be peak K-pop 18 Mar 2020 Big Hit Entertainment, the label behind global phenom BTS, is eyeing a public market debut. Revenue hit $474 mln last year, but its fortunes depend on one act in a hit-driven business. With the coronavirus now eating into concert sales, a premium valuation sounds out of tune.
Cash handouts signal surprising ascent of Mnuchin 17 Mar 2020 Donald Trump wants to send cash to Americans after weeks of downplaying the virus. Other countries are likely to follow. The president’s U-turn looks partly down to Treasury Secretary Steven Mnuchin. He has unexpectedly become a steadying hand in a chaotic White House.
Toilet paper and bank notes aren’t so different 17 Mar 2020 Stampedes for bathroom tissue have similar roots to the bank runs that characterize financial panics. Rumor, fear of missing out and a patchy understanding of how underlying systems fit together are three ingredients. Bank runs are more serious, but easier to prevent.