Corona Capital: Intel, Run on guns 21 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Intel’s new boss gets closer to his big debut. Meanwhile, gunmakers are riding high on social tensions and pandemic angst, but could soon find they have fewer friends in high places.
Hong Kong stays on dangerous roller coaster ride 19 Jan 2021 Troubled Ocean Park is receiving another government lifeline, growing its rescue cost to over $1 bln. That's more than the latest stimulus package, in a further sign of the city’s skewed priorities. Even with a new business model, the park is destined for more downs than ups.
Corona Capital: Inflation, Poshmark 14 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Breakingviews panel predicts the end of the free-money era; and Poshmark’s IPO looks overdressed.
Even the 1% are poorly served by U.S. healthcare 12 Jan 2021 America overall spends heavily on medicine with little to show for it. Conventional wisdom holds that the most fortunate get world-beating care. But a new study suggests that in areas including heart attacks and maternal mortality, they lag average citizens in other countries.
Corona Capital: KKR/music, IMF 11 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Private equity giant KKR buys a stake in hip OneRepublic music royalties; and the International Monetary Fund half-heartedly bumps up its target lending cushion.
Corona Capital: U.S. jobs, Covid-19 tests 8 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: The U.S. job recovery is stalling as the pandemic surges, increasing the chances of more stimulus; a Covid-19 testing startup may be the reason for a rise in cases in Los Angeles.
Labelling vaccine hares and tortoises is premature 8 Jan 2021 The UK and Israel are rapidly inoculating against Covid-19, while France lags. Final success is likely to hinge on a disciplined rollout from a centralised hub to a receptive populace. Israel appears to have all three; investors may soon see that France, Britain and peers do not.
Corona Capital: Video rental stores, Conagra 7 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: A last surviving U.S. video rental chain shutters, Conagra’s boosted sales aren’t enough for investors.
Corona Capital: Commercial real estate, IBM 5 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Commercial office real estate is Zoom’s mirror image; IBM taps former Goldman-exec Gary Cohn.
Cure for U.S. healthcare malady isn’t capitalism 4 Jan 2021 Amazon, Berkshire Hathaway and JPMorgan took on America’s medical dysfunction and failed, disbanding their joint venture Haven after three years. Big as the three are, they’re dwarfed by the vested interests that keep healthcare expensive. Now it’s the government’s turn.
Urge to purge 2020 from memory should be resisted 4 Jan 2021 Nearly everything that could go wrong did. The pandemic threw plans – and predictions – out the window. As the world emerges and maybe slingshots into a Roaring Twenties rebound, old appetites will return. But the divisions Covid-19 exposed in our societies can't be forgotten.
Corona Capital: Icahn, Productivity, Natixis 4 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Carl Icahn sells half his Herbalife Nutrition stake; an ECB survey suggests Covid-19 will make big firms more productive, but that may not be all good news; and Natixis fast-tracks its overhaul.
Vaccine jostling calls for U.S. rethink on pay 28 Dec 2020 Amazon, Uber and Cargill are among those lobbying for their workers to get priority access. They have a solid case for saying their staff are essential. But employing a workforce that’s critical to the national interest should come with responsibilities as well as privileges.
Big Pharma’s vaccine immunity will be fleeting 18 Dec 2020 Groups like Pfizer and AstraZeneca are emerging as pandemic heroes. Their ability to rapidly test, make and distribute vital doses will help quiet the industry’s critics. However, universities and governments also played a big part. Pressure to slash drug prices will soon return.
Philips’ cardiac deal carries heart-stopping price 18 Dec 2020 CEO Frans van Houten agreed to buy U.S. group BioTelemetry for $2.8 bln including debt. It’s wise to push further into “telehealth”, where doctors treat and monitor patients remotely rather than in hospital. But the valuation he’s paying will make it hard to earn a good return.
EU’s Google-Fitbit approval sets risky precedent 17 Dec 2020 Antitrust tsar Margrethe Vestager approved the $2.1 bln deal with conditions. The buyer’s pledges, like giving rival fitness trackers equal access to the Android operating system, are great in theory but hard to monitor. Vestager may only spot the loopholes once the harm is done.
Weed merger smells funky, but could offer high 16 Dec 2020 Canadian pot producer Aphria will combine with Tilray to form the world’s biggest cannabis company by sales. The deal looks to help Tilray shareholders more. Yet as companies position themselves for a post-legalization world, such tie-ups will be necessary for survival.
Corona Capital: Filming drama, Spanish bank 16 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Actor Tom Cruise’s outburst about social distancing may not have been scripted, but it’s on point; Spanish bank Sabadell lines up a new leader.
EQT’s $2.8 bln pharma bet relies on sales booster 14 Dec 2020 The Swedish buyout firm is buying manufacturer Recipharm, which handles outsourced production for drug giants like Moderna. Given the target’s already heavy borrowings, delivering a decent return for EQT’s investors will depend on ramping up revenue growth.
AstraZeneca’s $39 bln deal is bold as well as big 12 Dec 2020 The UK drugmaker will buy U.S. biotech Alexion, which makes treatment for a rare immune disease. It’s growing and throws off cash. Yet competitive challenges and a wayward M&A strategy have depressed its stock. That’s an opportunity and a threat for AstraZeneca CEO Pascal Soriot.