Money‚ Markets & Macroeconomics

Senate could become Wall Street’s house of horrors

30 October 2020

The financial industry has been treated with kid gloves under Republican rule. That will change if Democrats win the upper house. With Sherrod Brown as banking czar, the Senate could take a tough line on trading rules and mergers. Bank breakups may even be back on the agenda.

Corona Capital: Netflix price hike

30 October 2020

Concise views on the pandemic’s corporate and financial fallout: The streaming-video service hiked the price on subscriptions as binge-watching booms during the pandemic.

Europe virus defences can manage one more lockdown

29 October 2020

France and Germany are imposing tough restrictions to stem the pandemic. The economic shock should be milder than the first Covid-19 crisis, and government spending and the ECB can cushion the blow. Yet the region would struggle to cope with a protracted shutdown.

The Biden portfolio is mainly the Trump portfolio

29 October 2020

It might matter for mini sectors, like solar power and cannabis, who wins next week’s U.S. presidential election. But as Trump’s impact on coal shows, it’s not that predictable. Instead the Fed, stimulus, taxes and the post-Covid economy are cause for an asset-allocation rethink.

Viewsroom: What we’re expecting on election night

29 October 2020

If Joe Biden wins Donald Trump’s place as POTUS on Nov. 3, and the Senate turns Democrat, lots of things will change – chief among them tax and economic policy. But big tech companies and China’s Communist Party will gain no reprieve. Rob Cox, Gina Chon and John Foley discuss.

Corona Capital: Utah Jazz, Comcast, Kraft

29 October 2020

Concise views on the pandemic’s corporate and financial fallout: Utah Jazz’s owners sign off with a respectable return; Comcast shoots the light out on broadband; and Kraft rides the stay-at-home wave.

Chinese lender IPO mess holds rules up to ridicule

29 October 2020

Xiamen Bank shares surged by the maximum allowable 44% in their Shanghai debut. That’s par for the course on primary mainland boards, but a day-two 10% plunge and trading halt are not. Semi-official guidance distorts bank pricing in particular, and is overdue for revision.

Argentina’s creditors made two silly mistakes

28 October 2020

Some investors say their newly restructured bonds have tanked due to President Fernandez’s lousy policies. They’re right. But they’re shouting in the wind, because they agreed to a debt rejig based on unenforceable promises, and gave up what leverage they had in the process.

Europe’s new lockdowns are Covid-19 reality check

28 October 2020

France is the latest nation to mull tough restrictions to curb infections. Companies are in a weaker state than in the first wave having racked up $765 bln of new debt. Despite the selloff, investors are pricing in a swift recovery. That’s hard to square with a lingering virus.

Corona Capital: Drugmaker’s pick-me-up, Golf M&A

28 October 2020

Concise views on the pandemic’s corporate and financial fallout: Drugmaker GSK sees a recovery in vaccinations against old-school ailments; meanwhile Covid-19 turns out to be a handy driver when it comes to golf-related dealmaking.

Corona Capital: Binge-watching, Gaming

27 October 2020

Concise views on the pandemic’s corporate and financial fallout: Streaming viewers like to binge-watch, but they are being stingy; a fresh surge of Covid-19 cases could be a boon for gaming developers.

The Exchange: IMF and sub-Saharan Africa

27 October 2020

The regional head of the International Monetary Fund, Abebe Aemro Selassie, joins Swaha Pattanaik to discuss how the Washington-based lender is helping hard-hit countries, debt difficulties, the need for reforms, and why policy choices are more limited than in advanced economies.

Corona Capital: Mixed market messages, Chile votes

26 October 2020

Concise views on the pandemic’s corporate and financial fallout: Global stocks slumped on Monday as Covid-19 cases rose – yet some prognosticators are readying for major stimulus; and Chile has shown that pandemics don’t have to squash voter turnout.

Election debate victor is big D – America’s debt

23 October 2020

The final televised face-off between Donald Trump and Joe Biden offered the first real side-by-side comparison of their policies. The president promised little change while his rival pledged plenty of fiscal spending. Markets will be reassured that austerity is not on the ballot.

Review: Green sceptic sheds more heat than light

23 October 2020

Bjorn Lomborg wants the world to understand the risks of doing too much on climate change as well as too little. The green firmament should not be immune to constructive criticism. But the Danish academic’s arguments are not convincing enough to warrant societal complacency.

Corona Capital: Gilead Sciences, Virtual Santa

23 October 2020

Concise views on the pandemic’s corporate and financial fallout: Remdesivir gets formal approval; Santa goes missing from Macy’s.

Nigeria unrest throws petrol on economic bonfire

23 October 2020

The army is offering to deploy to quell protests against police brutality. That would fan tensions, the last thing the country needs. Africa’s biggest economy is on the ropes due to Covid-19 and low oil prices. Trouble in the oil-producing Niger Delta would bring it to its knees.

Cox: China addiction looms as big corporate risk

22 October 2020

The People’s Republic has subdued Covid-19 while the West struggles. Its GDP grew 4.9% last quarter as consumers resumed consuming. From Ford to Durex, Hermès to Unilever, multinationals are developing a Chinese demand dependency that could backfire politically and financially.

Corona Capital: Quibi

22 October 2020

Concise views on the pandemic’s corporate and financial fallout: Video streaming company Quibi’s failure is in spite of – not because of – the Covid-19 pandemic.

Corona Capital: U.S. tests, UK loans, Man U groans

21 October 2020

Concise views on the pandemic’s corporate and financial fallout: Abbott Laboratories has a bumper third quarter; UK banks look at a workaround for their Covid-19 loan problem; and Manchester United reveals a predictably ropey set of annual results.