Anti-Americanism is blinding Chinese policy 5 May 2022 President Xi Jinping’s obsession with surpassing his country’s top trading partner is distorting his approach to growth and the pandemic. Bad debts, crackdowns and Covid-zero could slow China’s push to double output by 2035 and become the world’s largest economy.
NFTs are more opportunity than threat for Spotify 28 Apr 2022 Music streamers have cause to fear so-called non-fungible-token platforms, which enable artists to nab bigger royalties. Yet Spotify and its peers are where the fans are. If digital collectibles take off, streamers may be able to take a piece of the pie rather than being eaten.
ECB forecasting snafus may turn into trust problem 28 Apr 2022 Christine Lagarde’s central bank underestimated how high inflation would soar and deferred rate hikes. Its own research says rising inequality hurts faith in public institutions. Soaring prices risk undermining such confidence, which is critical in a still-young currency union.
Asia wealth slump renders bank hype a little rich 26 Apr 2022 UBS’s pre-tax profit from private banking in the region slumped 38% in the first quarter. Lockdown pains should ease eventually, but China’s “common prosperity” agenda may undermine the highly touted opportunity. Hiring blitzes by Citi, HSBC and others could be hard to justify.
Elon Musk buys Tesla a pounding Chinese headache 26 Apr 2022 The world’s wealthiest man is buying Twitter for $44 bln in the name of free speech. Beijing will lean on him to un-ban its troll army, then push him to comply with its extra-territorial sedition law. The profitable carmaker’s key Shanghai outfit risks being a pawn in the fight.
Capital Calls: Gap falls through the inflation gap 22 Apr 2022 Concise views on global finance: Shares in the clothing retailer fell over 19% after the company warned of a sharper drop in sales and announced the departure of Nancy Green, the boss of its Old Navy unit.
Twitter’s scarce suitors, Didi’s New York exit 21 Apr 2022 As Elon Musk dangles a $41 billion offer, Breakingviews columnists discuss whether anybody will end up buying the social network in this Viewsroom podcast. Plus, the Chinese ride-hailing firm cancels its U.S. listing less than a year after arriving, leaving shareholders stranded.
Shanghai deflates the Chinese Dream 19 Apr 2022 Brutal lockdowns in the financial centre are testing the elites' confidence in the Communist Party. The tacit contract in which citizens traded political rights for rising living standards is fraying. Revolt is unlikely, but China can ill-afford a sulking intelligentsia.
China’s “bulletproof” coffee IPO is full of holes 12 Apr 2022 Star Plus Legend banks on the founder's pop-star son, Jay Chou, hawking butter-infused, or bulletproof, java and other diet fads. Beijing's crackdown on celebrity influence, however, threatens $57 mln of revenue. Using consumers as a sales force raises another red flag.
Next Hong Kong chief gives China chance to reset 8 Apr 2022 Carrie Lam’s handling of protests and Covid-19 weakened the city’s stature and deepened economic imbalances. John Lee, the frontrunner to succeed her, looks thinly qualified to fix such issues. A more pragmatic approach from Beijing, though, might shore up investor confidence.
Sri Lanka crisis sends inflation warning worldwide 4 Apr 2022 The island is in turmoil after the war in Ukraine sent prices surging, leading to crippling shortages. Its foreign debt is now heading for a harder restructuring. Years of mismanagement make Sri Lanka an extreme case, but it’s a warning on the risks even for sturdier economies.
Shanghai crisis lays frost over economic spring 4 Apr 2022 The city’s 26 mln residents have been thrown into a strict lockdown. It suggests politicians pushing hardline Covid measures have the upper hand and more anti-Omicron shock-and-awe may follow. With big stimulus looking unlikely, the economy’s green shoots would quickly wilt.
Review: Pandering to Beijing has shrinking payback 1 Apr 2022 One difference between the Cold War and current Sino-U.S. tensions is the crowd of capitalists rooting for the communists. In “America Second,” Isaac Stone Fish lambasts the CEOs and lobbyists who take China’s side. Yet the return on sucking up, never high, is falling sharply.
Carl Icahn is attempting to rewrite his legacy 30 Mar 2022 From a favorable documentary to campaigns criticizing how McDonald’s and Kroger treat pigs, the activist is crafting his final chapter. Icahn changed the course of many companies and his investment prowess is undeniable. But a full evaluation of his impact demands a broader lens.
Singapore’s rebalancing is delicate act 30 Mar 2022 The pandemic burnished its safe-haven role for rich Asians, but it is flourishing as a centre for Chinese wealth creation too. Even as changing flows of people, business, and money sharpen social challenges, the pivot is restoring the Lion City’s animal spirits.
EU’s Ukraine currency fix is a problem best shared 29 Mar 2022 The ECB wants the European Union to guarantee potential losses when Ukrainians fleeing the war change their currency into euros. A rival plan would leave this up to national governments. The pooled scheme is much more likely to give Ukrainians hope in the value of the hryvnia.
Sea’s ‘Free Fire’ churns up Singapore-India ties 25 Mar 2022 New Delhi’s ban on the mobile game persists despite diplomatic intervention. The clash, tangled in Chinese tensions, casts a shadow over India’s relations with one of its biggest foreign investors. Rising nationalist sentiment on both sides will make rifts harder to heal.
Hong Kong’s Star Ferry deserves tycoon lifeline 18 Mar 2022 Lockdowns have put the Victoria Harbour icon into dire financial straits. Local moguls like family-controlled parent Wharf group are keen to help the city through tough times. Keeping the boats afloat would preserve a slice of history and provide some hope for the future.
China’s pandemic playbook runs low on pages 14 Mar 2022 Financial hubs Shanghai and Shenzhen are locking down as infections surge. Recycling tough policies from 2020 will put the “around 5.5%” annual growth target even further out of reach. Living with the virus would be economically stimulating, but politically embarrassing.
Refugee bonds can keep humanitarian corridors open 11 Mar 2022 Europe says 7 mln Ukrainians may flee Russia’s invasion. The 2015 refugee crisis showed migrants can boost workforces and economies. But integrating new arrivals is expensive. Impact bonds can pay for the upfront resettlement burden, limiting quarrels between host nations.