New Covid-19 variant raises risk of recovery limbo 26 Nov 2021 Britain and others have revived travel bans on South Africa amid a new viral mutation. Countries with low vaccination rates are most vulnerable. But if the virus evades vaccines, new lockdowns may be necessary at a time when governments and central banks have depleted firepower.
Capital Calls: Biden’s deficit, Austria lockdown 19 Nov 2021 Concise views on global finance: A nonpartisan analysis finds a $160 billion hole in the U.S. president’s social programs; while new Covid restrictions spark selloff in European airlines and hospitality.
Europe’s vaccine bazooka is more like sniper rifle 18 Nov 2021 Germany may join Austria in imposing curbs on the unvaccinated to tackle soaring Covid-19 infections. Restricting freedoms is harsh but worked in France and the United States, which both saw inoculation rates pick up. It also avoids the economic pain of blanket lockdowns.
Capital Calls: CalPERS and private equity, Art market 16 Nov 2021 Concise views on global finance: The biggest U.S. public pension fund is taking on more risk; works collected by the Macklowes sold for $676 million on Monday in a reminder that the richest have prospered through the pandemic.
AstraZeneca’s virus fix becomes awkward appendage 10 Nov 2021 The $195 billion drug group is moving its Covid-19 jab and related treatments into a new unit. That could open the door to a sale to a peer like Johnson & Johnson. But the drug’s uncertain future and messy political history make any deal tricky and unlikely to deliver much value.
Viewsroom: Climate and tech shindig dispatches 5 Nov 2021 World and business leaders made some headway in pledges to limit planetary frying during the first week of COP26 in Glasgow, say George Hay and Rob Cox. Also, venture capitalists and startups mingled along the banks of the Tagus in Lisbon with Peter Thal Larsen and Karen Kwok.
Capital Calls: Canada Goose’s extra insulation 5 Nov 2021 Concise views on global finance: Shares in the winter-jacket firm flew up over 16% after the company reported a 40% rise in sales, but the company’s valuation still has some extra padding.
Covid testers’ messy union would lure lab crashers 3 Nov 2021 German diagnostic group Qiagen and French peer BioMerieux may merge, Bloomberg says. A $28 bln deal would allow both companies to offer more products and better cope with the end of the pandemic boom. But few synergies and integration risks open the door to other predators.
European banks’ bad-debt nerves outlive lockdowns 29 Oct 2021 Britain’s NatWest is retaining a chunk of the 3 bln pound dud credit buffer it built up last year. It’s a similar story for BNP Paribas and Santander. With global shortages denting growth, pushing up prices and potentially lifting interest rates, a careful approach is wise.
Capital Calls: McDonald’s, GM, Worldline 27 Oct 2021 Concise views on global finance: The $177 bln fast-food chain boosted sales by making it easier to get burgers and nuggets; supply shortages are exacerbating the carmaker’s heavy investment bill; shares in the French payments group tumbled despite ambitious growth targets.
Hong Kong: Stuck between rock and virus hard place 25 Oct 2021 Entry to the finance hub from overseas remains tightly controlled with no end in sight to arduous quarantine restrictions but opening up to mainland China is proving no easier. As old rival Singapore welcomes back travellers, Hong Kong’s isolation will get harder to swallow.
Lockdown scars will linger Down Under 22 Oct 2021 With a 70% vaccination rate, Melbourne is ending its record run of strictly confining a fifth of Australia’s population. A burst of consumer spending should help the economy bounce back. The tab for mental health strains, closed borders and related issues keeps growing, however.
Capital Calls: Klarna, French vaccine, Philips 18 Oct 2021 Concise views on global finance: The $46 bln Swedish buy-now-pay-later company tries to outrun Britain’s financial watchdogs; Valneva’s Covid-19 shot may prove better than the UK’s home-grown version; the industrial giant sees light at the end of the supply-chain tunnel.
Aussie fiscal bazooka could use a safety feature 13 Oct 2021 The country’s flagship pandemic support programme distributed some A$70 bln in six months to save jobs. At least 20% of funds, however, wound up in businesses whose sales actually grew, a new Treasury report says. A clawback provision would make good policy even better.
China’s Golden Week takes shine off outlook 12 Oct 2021 A 5% fall in tourism spending during the annual autumn vacation stretch sent a gentle reminder about the shakiness of consumer confidence. Other bleak indicators such as home sales also suggest the economy is cooling quickly. Beijing for now seems unpersuaded to offer any relief.
Capital Calls: Facebook, TeamViewer, Audio M&A 6 Oct 2021 Concise views on global finance: Whistleblower Frances Haugen’s polished rollout is a warning for Big Tech; the video software specialist’s 25% share price fall shows the perils of growth stocks; hearing aid group GN snaps up headset maker SteelSeries for $1.3 bln.
Capital Calls: Merck pill, Zoom deal 1 Oct 2021 Concise views on global finance: Investors are being stingy about the pharma firm’s new drug to treat Covid-19; the video-conference company and Five9 are dropping their $15 bln transaction.
Easing crisis leaves Lagarde with tough transition 30 Sep 2021 The European Central Bank boss will have to fall back on a pre-pandemic bond-buying scheme once its emergency purchase programme runs out. The former is less flexible and may force Christine Lagarde to choose between flouting rules or curtailing support to the fragile economy.
Viewsroom: Basket-case Britain; Gambling in Macau 30 Sep 2021 Trucker shortages, partly thanks to Brexit, have been blamed for all manner of UK economic hardships, from toilet paper scarcities to long queues at petrol stations. Ed Cropley and Peter Thal Larsen explain. And our columnists in Hong Kong discuss casinos and investment banking.
Capital Calls: American healthcare exceptionalism 27 Sep 2021 Concise views on global finance: American male life expectancy at birth dropped over 2 years in 2020, the worst among 29 nations. That raises the stakes in a healthcare crisis among working-age people that even the mightiest U.S. employers have so far failed to solve.