South Korea steps up to a fearful new world 13 Jun 2022 A new pro-business president, receding Covid-19 risks and rising clout in supply chains have infused local companies with newfound confidence. Many, led by giants like Samsung, are charging abroad. The optimism should pay off, even as fresh economic and global threats loom.
New York hybrid working woe, Toshiba’s options 9 Jun 2022 The work from home revolution looks here to stay with nearly 80% of surveyed employers accepting it as the new norm. In this Viewsroom podcast, Breakingviews columnists discuss how this will be painful for office landlords. Plus, the $22 bln Japanese company’s mysterious future.
EU women-on-boards plan only scratches the surface 8 Jun 2022 The bloc wants listed companies to reserve 40% of non-executive director roles for females. That’s lame, when 60% of graduates are women. And groups with diverse boards tend to deliver higher returns. It’s time for the EU to set a target for full gender parity in the boardroom.
Chinese movie industry screens business tragedy 8 Jun 2022 Box office takings touched a 10-year low during the recent holiday weekend. While China overtook the U.S. market during the pandemic, in absolute terms it’s contracting, a trend reflected in share prices for companies like IMAX China. The damage could be permanent.
Capital Calls: JetBlue makes winning Spirit hurt 6 Jun 2022 Concise views on global finance: The hostile bidder has offered cash up-front for Spirit shareholders, which could force current suitor Frontier to make costly concessions.
Capital Calls: Microsoft micromanages tech jitters 2 Jun 2022 Concise views on global finance: A 1% revenue shortfall because of a strong dollar normally isn’t that important. Microsoft’s warning reflects how nervous tech investors have become.
Pete Stavros and his equity-for-all quest 31 May 2022 The KKR partner started the non-profit Ownership Works to help companies grant stock to entire workforces. He discusses the resistance, the success stories, and an ambitious plan to create $100 bln of wealth for employees on this episode of The Exchange podcast.
New Toshiba board’s work extends beyond Toshiba 27 May 2022 The embattled $19 bln conglomerate nominated a Houlihan Lokey banker to be chair and directors from pushy investors Elliott and Farallon. The main job now is to end a tortuous saga with a sale. Success would help show Japan’s supine shareholders how dogged engagement pays off.
Beijing’s stimulus ignores elephant in the room 27 May 2022 Premier Li Keqiang sounded the economic alarm and urged officials to step up tax cuts and spending. Yet pandemic controls are stressing struggling local governments. Without relaxing zero-Covid policies, all efforts to help China hit its 5.5% growth target look futile.
Capital Calls: Airbnb, Prudential, Glencore 25 May 2022 Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.
Biden tries a new tool for handling China: realism 24 May 2022 At first glance a pact with India, Japan and Vietnam looks short on substance and skips sensitive issues. The U.S. also looks likely to drop many tariffs against China. But where his predecessors’ bids to woo or contain Beijing failed, Biden’s are at least likely to prove durable.
Australian election augurs serious climate upgrade 23 May 2022 Labor’s more ambitious green goals helped unseat the conservative coalition. Wins by climate-focused independents warn further against complacency. New Prime Minister Anthony Albanese also will rely on Greens for support. Bolder 2035 emissions targets would set the right tone.
Drought of economic ambition blots Aussie election 20 May 2022 Despite a 48-year low in joblessness and navigating the pandemic, Prime Minister Scott Morrison’s party is in a dogfight. Homebuyer and dam-building policies smell fishy, and a lack of climate leadership hurts too. As times get tougher, whoever wins will have to be bolder.
Fortescue energy transition loses sight of another 18 May 2022 The $42 bln miner and wannabe green hydrogen champ is hiring older white men as part of a management shakeup that repositions two women. Chair Twiggy Forrest and former GE, AGL and RBA bosses may bring useful experience, but it’s important to keep making progress in all phases.
Hong Kong co-living boom bets on more lonely years 17 May 2022 Warburg Pincus is among those buying hotels in the Asian hub to convert into upscale shared digs for millennials. Given a 99% drop in visitors in the past three years and a belief that won’t reverse soon as officials stick with China’s zero-Covid policy, more deals look likely.
India heatwave throws food security for loop 12 May 2022 Crops are wilting after weeks of climate change-induced scorching temperatures. On top of domestic pain, it casts doubt on India’s new role exporting grain to replace supplies lost to Russia’s war in Ukraine. That’ll create more dilemmas for political leaders near and far.
Marcos clan’s return to Manila is awkwardly timed 11 May 2022 The Philippines’ president-elect Ferdinand Marcos Jr, son of the late strongman, inherits an economy that grew 7.7% last quarter, but faces mounting headwinds. He will have to find drivers beyond the infrastructure spending that made his predecessor – and father - so popular.
Capital Calls: Business travel, Adidas China woes 6 May 2022 Concise views on global finance: British Airways owner IAG faces stormy UK skies; Chinese lockdowns and boycotts are slowing down the German sneaker maker.
Anti-Americanism is blinding Chinese policy 5 May 2022 President Xi Jinping’s obsession with surpassing his country’s top trading partner is distorting his approach to growth and the pandemic. Bad debts, crackdowns and Covid-zero could slow China’s push to double output by 2035 and become the world’s largest economy.
Capital Calls: Amazon and consumers 29 Apr 2022 Concise views on global finance: People are spending more amid price hikes, while the e-commerce giant struggles with them.