Perfect storm blows Swire Pacific model away 16 Jun 2020 The Hong Kong conglomerate expects big first-half losses in its property, airline and marine services units. Protests, Covid-19 and weak oil demand have taken their toll. The sprawl wasn’t providing much of an edge before disaster struck, however, and warrants reconsideration.
Corona Capital: Frequent fliers, Folies Bergeres 15 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: United Airlines hocks its MileagePlus loyalty program for $5 bln from Goldman; Lagardere tries selling Parisian nightlife venues, including Les Folies Bergeres and Bataclan theatre at perhaps the worst time ever.
India Insight: Mumbai is in a real viral hotspot 15 Jun 2020 As cases rise, being rich is no more a guarantee of a hospital bed. The situation will worsen as lockdown loosens. Multinationals are baulking. Barriers are rising for the elite that want out. The financial capital is living the emerging world healthcare infrastructure nightmare.
Corona Capital: KKR, Rugby, Centene 12 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: KKR volunteers advisers to share the pain, Super Rugby heads back to the pitch, and Centene's best bet.
Corona Capital: Instacart stocks up 11 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Grocery-delivery firm and lockdown beneficiary Instacart tops up on capital while the getting is good.
“Lipstick effect” kissed off by Covid-19 11 Jun 2020 Estee Lauder’s ex-chairman once theorised that a downturn could be discerned by women buying the cheaper cosmetic over pricier items. Masked mouths, however, help explain a steep fall in lipstick sales during the pandemic. An economic-indicator makeover may be in order.
Corona Capital: Make infrastructure great again 10 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Brookfield Asset Management CEO Bruce Flatt reckons national and local governments will start getting investors to help finance new roads, bridges and the like. That’s one way to plug deficits wrought by Covid-19.
Travel bubbles could encase global divisions 10 Jun 2020 Australia and Norway are among the countries aiming to open borders to neighbours in similarly good health. Welcoming visitors should help slumping economies, especially in Hong Kong and Macau. The risk of narrow deals is that they reinforce the world’s balkanisation trend.
GVS offers hedge against an even darker world 9 Jun 2020 The Italian maker of biohazard masks used to guard against Covid-19 is selling a 40% stake. Listing itself at a 1.4 bln euro valuation driven by surging sales makes sense for GVS’s owners. But if a new virus wave occurs, it may also offset investors’ losses elsewhere.
Chancellor: A catastrophic failure of risk control 5 Jun 2020 Dependency on risk models may be leading policymakers astray in handling the pandemic, just as such models did ahead of the financial crisis. If “risk societies” are to prosper, they must apply large doses of common sense to avoid the groupthink that hinders smart decisions.
U.S. testing firms aren’t having a great pandemic 4 Jun 2020 With no vaccine, finding Covid-19 cases is key. But it’s not lucrative. Extra revenue is being offset by falls in other tests for Quest and rival lab companies and in unrelated businesses for test makers like Abbott. There's little time to cash in and plenty of competition.
Corona Capital: Crisis loans, Jet fighting 3 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Bank customers are no longer making a dash for cash, loan drawdowns suggest. Meanwhile, a U.S. block on Chinese passenger flights suggests domestic battles haven’t dimmed President Trump’s desire to make China pay.
Apply political-capital discount to Abe’s cash 27 May 2020 Japan’s prime minister is prepping $930 bln of fresh stimulus. Funds are critical as the economy staggers, but the crisis also offers a golden chance to ram through overdue changes for Japan Inc. Alas, Abe’s sinking popularity hobbles his ability to do much more than spend.
The Exchange: Vaccine optimist 26 May 2020 Lloyd Minor, the dean of Stanford’s school of medicine, tells Rob Cox that research into the coronavirus shows promising signs for the discovery of a vaccine. Just the same, the world needs to better prepare for pandemics, and medicine is at the cusp of extraordinary change.
Sanofi finds M&A cure to CEO foot-in-mouth disease 26 May 2020 The French drugmaker is selling a $13 bln stake in biotech Regeneron. CEO Paul Hudson, recently chastised for saying America would get first dibs on a Covid-19 vaccine, now has a pristine balance sheet to do deals and invest. It helps Sanofi’s growth problem, and public image.
Telemedicine may be U.S. healthcare’s new normal 21 May 2020 Online doctor visits are surging. It’s a safe and convenient alternative to going in person, insurers incentivize it, and restrictive rules are easing. While virtual visits are usually cheaper, though, increased uptake could push up total healthcare spending.
Xiaomi making the most of the crisis 21 May 2020 Rolling out a 5G model during China's lockdown paid off for the online-savvy handset maker. First-quarter sales increased 14% from a year earlier, to $7 bln. Serious setbacks for rival Huawei and virus-powered interest in home gadgets should help sustain the impressive growth.
J&J talc is a dry run for pandemic product risk 20 May 2020 The U.S. firm will stop selling talcum powder in the U.S. amid what it calls misinformation about its safety. That’s no big loss. But avoiding lawsuits can also deter companies from taking risks that aid the common good. Vaccines are an example, but the line isn’t always clear.
It’s a long jump back onto the travel bandwagon 19 May 2020 Despite the whopping 30% fall in globetrotting expected this year, tourists will pack their bags again just as they have after past crises. Health precautions will add costs, however, while empty middle seats hurt revenue. The relevance of corporate flyers also is bound to wane.
Corona Capital: Air travel, Starbucks 14 May 2020 Concise views on the pandemic’s corporate and financial fallout: Airlines’ experienced hands offer warning; Starbucks begins dance with landlords.