Capital Calls: Netflix, Google-India 28 Jan 2022 Concise views on global finance: Netflix hints at deals by flagging the risks associated with potential acquisitions; Google’s $700 million investment in Bharti Airtel also reflects on Reliance.
Congress is out of excuses on insider trading 27 Jan 2022 U.S. lawmakers have long avoided constraints on their investments despite obvious conflicts of interest. It undermines their criticisms of trades by Fed officials and corporate leaders. There's momentum finally to impose rules. The latest proposals might even have real teeth.
Capital Calls: Blackstone, German chips, Guy Hands 27 Jan 2022 Concise views on global finance: The $140 bln group braces for falling asset values and rising interest rates; Berlin sends the wrong signal by ignoring a 4.4 bln euro offer for wafer maker Siltronic; Britain seeks to reverse the financier’s lucrative 1996 housing deal.
MSC gives Lufthansa cover for Italian raid 27 Jan 2022 The shipping giant and German carrier want to buy Alitalia successor ITA, a boon for Italian taxpayers. A reported 1.2 bln euro price tag will surprise Berlin, which retains a 14% stake from a 2020 airline bailout. If MSC does the heavy lifting, the swoop is easier to justify.
Boris Johnson’s fate is an economic sideshow 26 Jan 2022 The partygoing prime minister’s antics have cast doubt over his political future. Past upheaval had far-reaching consequences, particularly for Brexit. But Britain’s direction is now mostly fixed. And a new leader would have to grapple with the same contradictions as Johnson.
China flexes to bring home Olympic tech gold 26 Jan 2022 Hosts like South Korea and Japan used the games to showcase cutting-edge advances like 5G and robots. February's event will deploy apps, automation and more to manage Covid-19 outbreaks. Beijing is also keen to prove its growing prowess in digital currencies and hydrogen energy.
IMF’s economic crystal ball is cracked 25 Jan 2022 The Washington-based lender slashed global growth forecasts and hiked inflation predictions. The IMF has been too late to admit that Fed policy tightening is needed. That’s damaging for an institution that doles out economic advice and monitors financial stability risks.
Italy’s presidential race revives political risk 24 Jan 2022 Former premier Silvio Berlusconi abandoned a divisive bid to become the country’s president. The absence of decent alternatives favours Prime Minister Mario Draghi’s ascent. If he makes the switch, however, Italy could have another ineffective government or face early elections.
Ukraine sabre-rattling hits Russian bank investors 20 Jan 2022 If President Vladimir Putin invades, the United States has vowed to punish the country’s lenders. Sberbank and VTB don’t need foreign funding and can count on state support. Yet tumbling stocks this year show that shareholders can still get crushed by diplomatic failure.
Capital Calls: Siemens Gamesa, Psych SPAC 21 Jan 2022 Concise views on global finance: The 11 billion euro wind turbine manufacturer serves up its third profit warning in nine months; Hope for drugs to treat depression is tempered after rivals suffer mishaps.
Rising IPO tide could lift all Gulf boats 20 Jan 2022 Riyadh, Abu Dhabi and Dubai are fighting it out to be the region’s listing venue of choice. But recent evidence suggests much greater foreign investor interest in Gulf IPOs in general than previous misfires like Aramco. The competitive tension may wind up being good for everyone.
Biden’s antitrust cops turn dealmaking into improv 19 Jan 2022 U.S. watchdogs, swamped by 2021’s $5.8 trln of deals, want to rewrite the merger rule book. Plans to swap a defined framework for an amorphous “holistic” view of possible harms could make deals rarer and more expensive, even if courts that truly decide their fate aren’t on board.
Imperfect UK energy fix would still kill two birds 19 Jan 2022 Finance minister Rishi Sunak faces pressure to help consumers with high power bills without busting the budget. The least-bad plan would spread energy costs over some years. By curbing price pressures, he will also limit inflation-linked bond payouts and public sector pay hikes.
China plays lonely game of Covid whack-a-hamster 19 Jan 2022 As Hong Kong culls 2,000 of the rodents, Beijing is blaming overseas mail for spreading Omicron. Dogged devotion to Covid-zero and the resulting disruptions are becoming increasingly farcical, and costly, as the rest of the world learns to live with the virus.
Alibaba’s U.S. cloud probe has big silver lining 19 Jan 2022 Washington is examining whether the $350 bln Chinese e-commerce giant’s data-storage business poses a risk to national security. That could hobble the unit’s global ambitions. But shareholders, at least, have little to worry about yet: They already ascribe almost no value to it.
Demographic flatline will test China’s generosity 18 Jan 2022 The population may have peaked in 2021, far earlier than expected. Beijing might prefer to continue to tackle root causes including high living costs, but a desire to prop up the economy in a key political year makes less disruptive, clumsy fixes like cash subsidies practical.
Scotland shows England how to run a wind auction 17 Jan 2022 Edinburgh has sold permits for a huge 25 GW of offshore power at cheaper prices than London a year ago. Successful bidders will be more likely to deliver without strife, letting politicians hit green targets. It also gives Scotland bargaining chips in any future secession talks.
Power windfall tax is bad idea whose time has come 17 Jan 2022 European leaders are under pressure to help households with soaring power bills. Taxing energy companies is potentially ineffective and replete with unwise incentives. The idea could nevertheless catch on, and oil giants like BP and Shell may need to take the strain.
Stressed Beijing will buck Fed’s tightening trend 17 Jan 2022 China's reported output grew 8.1% in 2021, well above target, but activity slowed sharply at the end of the year. Monetary easing has been restrained by debt concerns, but the central bank surprised markets with a rate cut on Monday. Low inflation and a strong yuan give room for more.
Biden’s bank cop choice will draw heat 14 Jan 2022 The U.S. president named Sarah Bloom Raskin to lead supervision at the Federal Reserve. She has slammed watchdogs as laggards on climate risks. The Fed has downplayed tying bank capital reserves to global warming. But if Raskin gets through the Senate, that could become a goal.