Chancellor: Beware the hyperreal financial market 18 May 2021 Americans have never been richer. Yet much of this wealth is comprised of claims not represented by anything of value in the actual world. Like the steak consumed by the cinematic villain Cypher in “The Matrix”, it looks juicy enough and tastes delicious but is mostly illusory.
Viewsroom: China’s baby bust, European SPAC boom 13 May 2021 China’s census data showed the population grew just 0.53% every year in the decade to 2020, with fertility rates dropping to Japanese levels. That’s bad news for growth. And European rainmakers like Claudio Costamagna and Ian Osborne offer market-friendlier blank-check deals.
Capital Calls: Disney misses the mark 13 May 2021 Concise views on global finance: Walt Disney reported nearly 104 million subscribers for its streaming flagship service.
Germany becomes food delivery battleground, again 12 May 2021 Delivery Hero is returning to the market it exited in 2018, while Uber is also preparing to take a bite. The pandemic has given Germans a taste for home-delivered meals, boosting market leader Just Eat Takeaway. With big players piling back in, shareholders may go hungry.
Guest view: Colombia’s struggle against poverty 11 May 2021 President Duque’s shift of tax burdens to the poor and middle class backfired. Despite their withdrawal and the finance minister’s exit, protests will continue until the country starts reversing Latin America’s worst income inequality, Smith College’s Veronica Kessler writes.
Review: A better way of valuing the world 6 May 2021 The pandemic is one of three crises that Mark Carney dissects to show how market prices can fail, to society’s detriment. He suggests solutions in “Value(s)”. Better still, the former central banker is trying to practice what he preaches with his work on climate change.
Biden’s vaccine shift has risky side effects 6 May 2021 The U.S. president backed waiving intellectual property rights for Covid-19 jabs to help crisis-torn countries. Yet a shortage of ingredients and manufacturing challenges mean the move may not boost supply much. And it may hurt investment in remedies during the next pandemic.
Africa’s digital payments race becomes a scramble 5 May 2021 The pandemic has brought the region’s mobile-based money networks and their 159 mln users to a crossroads. Airtel and MTN may spin off their payment arms. Banks and card giants like Mastercard are joining in. The victors will hold sway over an increasingly cashless continent.
Capital Calls: Peloton, Honest Co, Office Depot 5 May 2021 Concise views on global finance: Treadmill recall leaves investors in the workout app stranded; shares in Jessica Alba’s consumer packaged goods company opened more than 30% above their IPO price; the office-supply company paper-shuffles its way to a higher valuation.
Drug giants offer pandemic recovery sleeper trade 4 May 2021 While vaccine makers flourished, companies like GSK, Novartis and Sanofi suffered during lockdown as fearful citizens postponed tests and avoided hospitals. The reopening should mean a surge in delayed treatments and give their depressed share prices a booster shot.
Capital Calls: Robinhood vs. Munger, Meredith deal 3 May 2021 Concise views on global finance: Warren Buffett and his investing sidekick takes on Robinhood, and vice versa; and the U.S. media company is selling its local TV stations to Gray Television for $2.7 bln.
Capital Calls: Apple, UK SPACs 30 Apr 2021 Concise views on global finance: Apple’s European antitrust problem may start a global trend; UK regulators scramble to join SPAC party.
Viewsroom: Life from the latest Indian lockdown 29 Apr 2021 Images of vast funeral pyres, overcrowded hospitals and empty streets have been emanating from India as the country grapples with surging Covid-19 infection rates. Una Galani surveys the situation on the ground from Mumbai and discusses the government’s response with Rob Cox.
Italian IPO to square God’s work with capitalism 28 Apr 2021 Automatic door maker FAAC, worth some 2 bln euros, may float in Milan. The Catholic Church, which inherited the business from the owner, can use the proceeds to fund good deeds. The firm’s rapid growth may also convince investors their bet will be more solid than a parish raffle.
The Exchange: Becoming “Richer, Wiser, Happier” 27 Apr 2021 That’s the title of a new book looking at how some of global finance’s top investors, such as Howard Marks, Matthew McLennan, Charlie Munger and Mohnish Pabrai, crushed it. The author, William Green, tells Rob Cox what he learned from writing about these “practical philosophers.”
Capital Calls: Hella/Hueck, Evolution Gaming, 3M 27 Apr 2021 Concise views on global finance: A big block trade is good news for investors of German car parts maker Hella if it presages industry consolidation; Swedish gaming group enjoys a double whammy from locked-down punters and states jonesing for casino cash; 3M could use a pruning.
Review: How drug money cost a family its name 23 Apr 2021 Purdue Pharma set in motion an opioid epidemic which killed nearly half a million Americans in 25 years. Patrick Radden Keefe’s “Empire of Pain” shows how the Sacklers repeatedly used the same tactics to harm society and reap over $10 bln. The clan’s only damage is reputational.
Magic mushroom model is more service than pharma 22 Apr 2021 The fungi’s ingredient psilocybin has effectively treated depression and other ills. Startups like Field Trip jumped to develop patentable versions of the naturally occurring drug. Cutting trips from four-plus hours helps, but pricey therapist-shamans remain the key cost driver.
Viewsroom: The Super League’s short, unhappy life 22 Apr 2021 The richest European soccer clubs, including Juventus and Real Madrid, swiftly aborted plans to create a breakaway competition. But as Liam Proud and Peter Thal Larsen explain, the financial appeal of a U.S.-style sporting cartel remains irresistible. Plus, Huarong’s woes.
Capital Calls: Bank of America, WeWork, Kering 20 Apr 2021 Concise views on global finance: The bank’s shareholders voted against a deeper dive into its impact on racial inequality; the office landlord is taking bitcoin as payment, for now; the Gucci owner needs to run faster to catch arch-rival LVMH.