Billion-dollar whales fill 1MDB’s wide net 28 Jul 2021 Malaysia has clawed back funds almost equal to the amount the U.S. says was misappropriated from the sovereign fund. After chasing down Goldman Sachs, it has plenty of targets left to cover $5 bln of unfunded dues. Infamous 1MDB’s shortfall could soon become a surplus.
IMF skims over non-viral risks to global economy 27 Jul 2021 The emergence of new highly infectious Covid-19 variants could wipe about $4.5 trln off global GDP by 2025, the international lender warned. Its economic update pays less attention to policy missteps, market ructions, or more bankruptcies. Yet these also pose a threat to growth.
The Exchange: Spanish PM Pedro Sánchez 27 Jul 2021 In his attempt to revive the economy, Pedro Sánchez wants investors to give Spain more love. Local and global politics make that a challenging proposition. John Foley met with the prime minister as he set out for Wall Street, Silicon Valley and Hollywood but not Washington, D.C.
Greener anti-flood investments will be win-win 26 Jul 2021 Germany’s worst natural disaster in decades and deluges in China have sparked calls to build more dams and reservoirs. There are better ways to protect people, land and buildings from both too much and too little water. These alternatives will also appeal to investors.
Capital Calls: Twitter, Domino’s Pizza 22 Jul 2021 Concise views on global finance: Jack Dorsey’s social network reported a 74% bump in revenue despite a slowdown in adding new users; meanwhile, Domino’s Pizza shows one thing that hasn’t abated in 2021 is customers’ love of takeout pies.
UK’s Northern Ireland antics imperil other goals 21 Jul 2021 Less than two years after agreeing a bespoke deal for the province, Boris Johnson wants to change it. A lack of trust with the European Union complicates a compromise. A new Brexit standoff will also threaten the prime minister’s other ambitions, such as a global climate deal.
EU dirty money watchdog sounds less toothless 21 Jul 2021 Brussels wants to set up a single agency to prevent future Danske Bank-style scandals. The new body will take time to set up and could be watered down by politicians. But direct oversight of the EU’s riskiest financial entities and scope to levy big fines are a step forward.
Capital Calls: Volvo, Moderna, Mediobanca 21 Jul 2021 Concise views on global finance: The Swedish automaker boosts its appeal ahead of a possible IPO by buying out its Chinese joint venture partner; joining the S&P 500 will cut both ways for the vaccine maker; another Italian tycoon ups his stake in the Italian investment bank.
Capital Calls: BBQGuys go easy on the hot sauce 20 Jul 2021 Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.
UK virus cost-benefit discounts human psychology 19 Jul 2021 Britain lifted Covid-19 restrictions, diverging from states like Israel. On the face of it, the financial benefits of reopening outweigh the ongoing costs from living with the virus. But as with previous false dawns, if consumers remain fearful the recovery won’t motor.
Carbon market faces slow burn to success in China 19 Jul 2021 The world’s largest emissions-trading system is hampered by data concerns, dirt-cheap prices and feeble fines. It also currently exempts most big polluters and lacks a mechanism to reduce emissions. It’s a start, but the scheme needs an overhaul to match Beijing’s climate goals.
China’s IPO crackdown exposes U.S. weaknesses 19 Jul 2021 Several companies have spiked plans to list abroad after Beijing ramped up oversight. But the move by regulators also highlights the frailties of an American financial system that is heavily reliant on disclosure. Chinese firms have long shown that’s easy to take advantage of.
South Africa has no money to throw at its problems 15 Jul 2021 The Rainbow Nation is suffering its worst civil unrest since the end of apartheid in 1994. The ruling ANC’s usual response to cracks in the social fabric is to fill them with new subsidies. With debt at 80% of GDP and rising fast, that has a limited shelf-life.
Nationalist flame wars will singe China Inc 14 Jul 2021 Angry users are ditching Didi’s ride-hailing app for alleged data leaks to foreigners. Patriotic extremism has stung overseas brands like H&M; now it’s turning on domestic companies, sometimes with official encouragement. It sets a dangerous precedent that could get out of hand.
The Exchange: American-EU relations return to warm 13 Jul 2021 After four frosty years, Washington and Brussels are back to cooperation on foreign and economic policy, with some big trade wins already on the scoreboard, Ambassador Stavros Lambrinidis tells Rob Cox in an interview hosted by the European-American Chamber of Commerce New York.
Tencent e-sports defeat exposes tech M&A weakness 12 Jul 2021 Trustbusters nixed a $5 bln merger of two video-game streaming companies the Chinese titan backs. It's a sign Beijing will no longer tolerate the kinds of transactions that created giants like Meituan. For Tencent boss Pony Ma, a bigger problem may be having to unwind past deals.
Beijing sets wolf to guard equity sheep 12 Jul 2021 China’s cyberspace agency may take the lead deciding which companies can tap offshore markets. The move risks undoing progress made integrating financial regulation following the 2015 stock crash. A turf war also might clog the domestic IPO queue and encourage corruption.
Mario Draghi can help Italian recovery in two ways 9 Jul 2021 The end of a layoff ban, the prospect of more loan defaults and high public debt pose a triple economic challenge. Fortunately, ECB asset purchases will buy the prime minister time to focus on growth-enhancing investment and push for more flexible EU budget rules.
Viewsroom: Grocer buyouts, More China crackdowns 8 Jul 2021 Why are private equity firms clogging the aisles at Britain’s WM Morrison to pull off a near-$9 billion purchase of the supermarket chain? Aimee Donnellan and Peter Thal Larsen explain. And our Asia columnists discuss Beijing’s new attitude to U.S.-traded Chinese companies.
UK credibility on China inward M&A gets wafer-thin 8 Jul 2021 Britain’s government initially declined to review Chinese-owned Nexperia’s $87 mln deal to buy the country’s largest semiconductor plant. It has now U-turned, which makes sense given the world chip shortage. But the mixed messages hardly inspire confidence in the process.