Capital Calls: Saudi and Credit Suisse, EU patents 27 Mar 2023 Concise views on global finance: The resignation of the chairman of Saudi National Bank, Credit Suisse’s largest shareholder, may prompt a quiet period for other investors; big companies want Europe’s new system for registering intellectual property to cover more countries.
Swiss CoCo litigation may have a broader payoff 23 Mar 2023 Holders of Credit Suisse’s $17 bln contingent convertible bonds think authorities were wrong to wipe them out. A legal challenge will take years. Still, Bern might decide to placate angry investors. And a fight will discourage countries considering following the Swiss example.
Credit Suisse rescue sends shockwaves far and wide 23 Mar 2023 The ailing Swiss lender was saved by UBS with a $3 bln takeover. In this Viewsroom podcast, Breakingviews columnists debate why the deal pushes up bank funding costs, how the new mega-lender affects Switzerland’s financial system, and why bank deposits are becoming less reliable.
Capital Calls: Nike, Stablecoins, Meme stocks 22 Mar 2023 Concise views on global finance: The Air Jordan maker grew quarterly revenue 14% despite inventory woes and China’s slow reopening; diverging demand for Circle and Tether cryptocurrencies raises questions about how investors are assessing risk; and GameStop’s shares surged 40%.
Capital Calls: Gas station M&A 16 Mar 2023 Concise views on global finance: Canada’s $44 bln Alimentation Couche-Tard pays 3.1 bln euros for TotalEnergies’ European gas station cast-offs.
EU power rejig may only solve tomorrow’s problem 14 Mar 2023 Spooked by the 2022 gas crisis, the European Commission wants to boost long-term electricity contracts at fixed terms to shield consumers. That’s wiser than splitting the whole power market. Yet while it might aid green investment, it won’t curb prices in the short term.
Capital Calls: Blacklisting China 3 Mar 2023 Concise views on global finance: Another 28 Chinese firms were blacklisted by the United States, making it harder for them to buy US goods. As security officials warn of TikTok’s massive reach, personal data should count as an American export, too.
UK begins long and uncertain road back from Brexit 27 Feb 2023 Rishi Sunak agreed a deal over Northern Ireland trade with the European Union. If the UK leader can get it past his own party, it should improve relations and collaboration. Closer links will need bigger compromises than Sunak can stomach, but his deal is symbolically important.
Politicians could do better with FTX donations 24 Feb 2023 Recipients of cash from Bernie Madoff and Allen Stanford had to hand it back. In Madoff’s case some $14 billion was recouped. The people overseeing the FTX bankruptcy vow to go after politicians. In a perfect world, lawmakers would voluntarily give money back.
Hermès’ “MetaBirkin” win misses the big picture 17 Feb 2023 A court ruled an artist’s digital version of the $198 bln group’s iconic Birkin bag violated trademark rights. The verdict gives luxury firms more clout to commercially exploit the metaverse. Yet the jury is still out on whether such forays will be anything more than marketing.
Gautam Adani’s crisis will hit India hard 2 Feb 2023 The Indian magnate’s sprawling empire has lost over $100 bln of market value after a short-seller made accusations of fraud. In this Viewsroom podcast, Breakingviews columnists explain why the situation will narrow Adani’s financing options, limiting his infrastructure ambitions.
Sam Bankman-Fried lacks cover of systemic risk 13 Dec 2022 The former boss of bankrupt crypto firm FTX has been arrested. That hasn’t happened to financial hall-of-shamers that are more mainstream. The decentralised nature of crypto makes isolating people easier. The more complex the institution or blow-up, the harder it is to pin blame.
Big Pharma’s heartburn win is a valuation salve 7 Dec 2022 GSK, Haleon and Sanofi’s combined worth rose $14 bln after a U.S. judge dismissed claims that a drug causes cancer. It frees up cash for new research and deals. The victory also helps lay to rest the ghost of Bayer’s Roundup legal thwack, which has haunted the sector since 2020.
FTX flop evokes history’s great financial swindles 18 Nov 2022 Investment bubbles are generally accompanied by fraud. The collapse of Sam Bankman-Fried’s cryptocurrency exchange has elements of past scandals, from Dutch tulip mania to Bernie Madoff. Unusually, the 30-year-old seems to have previewed his own downfall, says Edward Chancellor.
Stephen King makes for unlikely antitrust hero 1 Nov 2022 A U.S. judge blocked Penguin’s $2.2 bln deal with rival publisher Simon & Schuster, after watchdogs argued it would unfairly limit pay for top authors. If the decision sticks, future mergers may be vetted based on their effect on workers as well as customers. It could get messy.
Credit Suisse legal tab is wildcard for investors 17 Oct 2022 The bank settled an old mortgage case without having to set more money aside. But the bill for future litigation, up to $1.6 bln on its own estimates, will erode earnings. The risk for investors in a looming rights issue is that further nasties bog down the bank’s restructuring.
Guest view: Russia sanctions lack decisive punch 27 Sep 2022 Restrictions imposed by the United States and its allies following President Vladimir Putin’s invasion of Ukraine have done economic damage, write William Rhodes and Stuart Mackintosh. But Cuba and Iran show American sanctions are not decisive in changing geopolitical outcomes.
U.S. drug price cap hurts Big Pharma twice over 15 Sep 2022 President Biden’s plan to curb medicine bills could cost drugmakers like Pfizer or GSK $29 bln a year in lost sales. To cope, companies may focus on blockbuster therapies, and shun niche treatments. More competition in hot areas like cancer may mean lower prices and poor returns.
Long arm of China law reaches today from Tomorrow 22 Aug 2022 Xiao Jianhua, the man behind the dismembered investment colossus, has been convicted of graft and illegal use of funds five years after he was snatched from Hong Kong. His fate is a timely reminder that Beijing is determined to show that no company or person is too big to fail.
Big Pharma should brace for worst cancer outcome 18 Aug 2022 Investors have wiped $36 bln off Sanofi, GSK and its consumer spinoff on fears heartburn remedies cause cancer. The science implies an overreaction. But the scope for U.S. juries to see the saga as akin to Bayer’s Roundup weedkiller debacle could actually make the hit bigger.