El Salvador takes a risky punt on crypto 7 Sep 2021 Bitcoin is now an official currency in the Central American republic, alongside the U.S. dollar. There are potential benefits for a country that is so dependent on remittances from abroad, but President Nayib Bukele’s pioneering move has way too many downsides.
Capital Calls: UK interventions, Post-virus reset 7 Sep 2021 Concise views on global finance: U.S. bidder TransDigm’s withdrawal from the $8.7 bln race for Meggitt removes a tricky decision for the government; Boris Johnson’s new proposals will address social care but not generational wealth divides.
Guinea coup is win for Australia and Brazil 6 Sep 2021 Soldiers have deposed the West African nation’s president, Alpha Condé. Besides disruption to bauxite exports, the upheaval may upend development of the Simandou mine’s 8.6 billion tonnes of iron ore deposits, capable of adding 10% to global output. Rival diggers will be smiling.
Review: Covid-19 and the crises yet to come 3 Sep 2021 2020 was one of the most seismic years in world history. Adam Tooze’s “Shutdown” recaps how the pandemic exposed the fragility of an interconnected world, while uncovering some pockets of strength. It’s a troubling test run for future challenges, most notably from climate change.
Japan adds PM’s scalp to Olympic invoice 3 Sep 2021 Prime Minister Yoshihide Suga is stepping down. His failure to contain Covid-19 and his insistence on holding the $15 bln Tokyo Games despite popular opposition doomed him. His exit may dampen other governments’ enthusiasm for the event and puts economic reform momentum at risk.
Rio Tinto can afford to go halves in Mongolia 3 Sep 2021 The miner’s $14 bln Oyu Tolgoi scheme is over budget and debt-laden, depriving its government partner of a return. Restructuring so only 50% of the project’s free cash pays down debt could restore dividends and win Mongolia over. High copper prices give Rio scope to act.
Evergrande’s liquidity trap gets stickier 1 Sep 2021 The distressed Chinese real estate developer doubled first-half profit by dumping assets, but delayed paying suppliers so long it’s struggling to complete projects. As property restrictions tighten, finding buyers for what’s on the books will be harder. Contagion risk is rising.
Capital Calls: Forbes catches SPAC wave 27 Aug 2021 Concise views on global finance: The business brand and magazine has agreed to merge with a blank-check firm in a $630 million deal, upping its value since last time it changed hands.
Afghanistan’s financial lifeline may lie in Qatar 27 Aug 2021 The state needs help to prevent an economic collapse. If gas-rich Doha provided funds, as it has to other stricken regimes, it could embolden critics who claim it is too close to militants. But Qatar has a chance to avoid past mistakes and shore up its status as a power broker.
Viewsroom: China’s push for common prosperity 26 Aug 2021 Markets have been hit by a series of crackdowns in private tutoring, data security and more. Underlying this is Beijing’s effort to limit rich excesses and boost middle-class wealth, which could curb the performance of the country’s biggest and best-known private companies.
Pork feud stirs up another giant China risk factor 26 Aug 2021 WH Group is embroiled in a nasty clash with the octogenarian chairman’s son, who alleged financial misdeeds after being ousted. Denials didn’t prevent $2 bln of lost market value. Succession quandaries in graying corporate China add one more item to a growing investor checklist.
Dating outscores gaming in app store showdown 25 Aug 2021 A U.S. judge is considering an antitrust suit against Apple’s online shop as lawmakers pile pressure on the iPhone maker and rival Google. Despite games dominating their outlets’ $111 bln in annual sales, a cut in the tech giants’ 30% fee may boost daters like Match more.
Financially isolating Afghanistan is pointless 25 Aug 2021 Much of the budget has evaporated with the abrupt halt on aid, and an effective U.S. freeze on central bank reserves is compounding the chaos. An economic collapse will only fan extremism and refugee outflows. Targeted support is urgently needed to preserve development gains.
Capital Calls: Pfizer M&A, Uber driver status 23 Aug 2021 The drugmaker has agreed to acquire Trillium Therapeutics for $2.3 billion, looking to its broader post-coronavirus strategy; a California judge has struck down a law exempting tech companies from treating drivers as full employees, complicating their push to keep costs down.
China’s middle-class push has luxury silver lining 23 Aug 2021 President Xi Jinping’s plans to rein in the super-rich may mean more, not less, conspicuous consumption. With China accounting for 40% of designer demand, LVMH and others are nervous. But wealth reallocation may swell the ranks of bourgeoisie. The luxury selloff looks excessive.
Hollywood’s China romance withers faster 23 Aug 2021 Films like Disney's "Black Widow" are conspicuously absent as cinemas in the People's Republic reopen. The delay coincides with Beijing's heightened ideological censorship and rising nationalism. Tinseltown's already-shaky courtship looks headed for the rocks.
Companies offering child care get grown-up payback 20 Aug 2021 The pandemic has deterred women from working. U.S. employers are short of workers and long on office space. Patagonia, for one, says providing for employees' kids is worth it over time, and government aid can extend the perk to lower-income staff. It’s a teachable moment.
Viewsroom: China’s Afghanistan question 19 Aug 2021 Beijing was able to expand its influence in central Asia while America and its allies held back the Taliban. The Islamic fundamentalists’ return to power presents China with new challenges – and opportunities. Plus: CEO Mike Henry shakes up mining giant BHP.
Dixon: Afghan crisis is climate risk, opportunity 19 Aug 2021 The Western alliance may be so damaged it can’t provide climate leadership. Global decarbonisation plans would fail to build momentum, storing up massive financial pain. But there’s a chance the West will regroup – and devise a Pax Planeta to replace the failed Pax Americana.
Tencent’s Disney-like ambitions will enchant Xi 18 Aug 2021 Games, movies and web shows did well in the quarter, showcasing the $540 bln group’s entertainment prowess. Unlike the U.S. giant, censors dictate what Tencent can do. Yet a Chinese answer to the Magic Kingdom at least fits into Beijing’s vision of a prosperous middle class.