Capital Calls: JEDI’s demise, Toyota’s weird world 6 Jul 2021 Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.
OPEC spats are less important than its sweet spot 6 Jul 2021 The UAE stymied a deal to unwind oil output cuts. That will further strain relations with Saudi Arabia, but Riyadh will probably find a compromise. Meanwhile, the cartel and its allies have unusual scope to keep crude prices high without losing market share to U.S. producers.
China uses Didi as data law test dummy 6 Jul 2021 Cybersecurity watchdogs are revamping regulations and readying new ones as they widen their crackdown. The $75 bln ride-hailing group’s data trove and foreign backers mean it's a good candidate to make an example of. Investors may hope for more legal clarity; they might not get it.
Capital Calls: Glencore chair, Chinese e-commerce 5 Jul 2021 Concise views on global finance: The commodity giant picks a new chair familiar with its stamping grounds; Beijing cranks up the pressure on companies over data abuses.
China puts New York IPO fine-print risk in bold 5 Jul 2021 Chinese regulators have opened investigations into two more companies listed in the city after hammering ride-sharing app Didi just days after it raised $4.4 bln there. Investors that bought into these deals may blame Beijing or bankers, but they had ample, if indirect, warning.
Chancellor: Paying the piper for pandemic recovery 2 Jul 2021 The war on Covid-19 proved remarkably expensive. The U.S. federal deficit ran to $3.4 trillion last year. As the crisis eases, policymakers are thinking about how to foot the bill. Past wars have brought forth new taxes. Consider some fresh sources for raising government revenue.
Capital Calls: U.S. jobs, Didi probe, Pharma LBO 2 Jul 2021 Concise views on global finance: The U.S. added 850,000 jobs in June but the recovery isn't happening everywhere. Meanwhile, Didi is hit with an investigation by a Chinese regulator days after its U.S. listing, and a pharma buyout by EQT and Goldman is a game of hot potato.
Capital Calls: It sure feels good to be a banker 1 Jul 2021 Concise views on global finance: Global deals in the first half of the year broke all records.
Viewsroom: Communist birthday, Little guys in IPOs 1 Jul 2021 China’s Communist Party turns 100. The institution has never been so popular at home or resented abroad. Its leaders are experts at the nuances of control and long on ambition, Pete Sweeney says. Plus, Wall Street enlists individual investors to help price initial stock deals.
Atlantia’s M&A treasure chest has use-by date 30 Jun 2021 The infrastructure group is due a $10 bln cash windfall from the forced sale of its Italian motorway unit. Airports or toll roads are in high demand, while mobile payments bets are risky. Without a clear target, CEO Carlo Bertazzo should return more cash to investors or cut debt.
China’s Communist Party runs low on creativity 30 Jun 2021 The institution that runs the People’s Republic turns 100 this week. The Communist Party has never been so popular at home or resented abroad, as a clunky recovery empowers an aristocracy of xenophobes. This elite has an iron grip but few new ideas. It’s a recipe for stagnation.
South Africa’s arm of the law gets slightly longer 29 Jun 2021 Jailing ex-President Jacob Zuma for contempt of court is far from a conviction. Still, it’s another sign of the country’s institutions losing patience with graft and waste. With his predecessor neutralised, Cyril Ramaphosa can speed up reforms, including at power giant Eskom.
The Exchange: Niall Ferguson on human error 29 Jun 2021 The historian joins Pete Sweeney to discuss his latest book on disasters, natural and man-made, and why so many governments got Covid-19 so wrong. They debate which political model looked best after the pandemic and whether historians can make a difference at times like these.
Why 2021 is a sweet spot for economic policymakers 29 Jun 2021 Economies are rebounding, low interest rates mean debt service costs are at historical troughs, and finance ministers and central bankers are pulling in the same direction. But “Pandexit”, as a new BIS report calls it, will make officials’ jobs harder again after this year.
HSBC’s weak investment bank softens China backlash 28 Jun 2021 State-owned firms have shunned the lender amid tensions with Beijing, Reuters reported. It’s a setback for HSBC’s push to build up its wholesale arm. Longer-term banking relationships are harder to dislodge, however. And Chinese multinationals have few domestic alternatives.
Capital Calls: Infrastructure, Doximity, Deliveroo 24 Jun 2021 Concise views on global finance: President Biden’s $1 trln bipartisan plan for U.S. infrastructure is a feat of political engineering. Meanwhile, medical-themed social network Doximity finds riches in niches, and UK delivery outfit Deliveroo serves up a favorable court ruling.
Capital Calls: GameStop is a SPAC now 22 Jun 2021 Concise views on global finance: The meme-stock video-game retailer has raised more cash, making it look like an overvalued cash shell.
Battery deficit risks UK driving electric jalopy 22 Jun 2021 Britain needs more so-called gigafactories to supply power for green cars, ahead of import caps and a ban from 2030 on gas guzzlers. Current expansion plans may electrify just 20% of local output from BMW, Nissan and others. Prime Minister Boris Johnson faces an uphill drive.
Capital Calls: Netflix, Flackless SPAC 21 Jun 2021 Concise views on global finance: The streaming service strikes an agreement with Steven Spielberg’s Amblin Partners; Helicopter-taxi company Blade’s phony spokesperson speaks poorly to investors.
Malaysia’s $11 bln telco deal rings a softer tone 21 Jun 2021 Axiata and Norway’s Telenor are combining their local units after their bigger pan-Asian combo failed on nationalist sentiment. Some of that is still on display but the logic of a smaller tie-up is compelling and synergies ample. Equal ownership creates a fresh complication.