Coronavirus

Drugmaker’s US listing journey starts with failure

9 Jul 2024

Shares in $2 bln Indivior, which in June switched its primary venue from London to New York, fell 42% after flagging slower opioid-treatment sales. Investors may fear that CEO Mark Crossley took his eye off the ball. With little broker coverage, it risks becoming an orphan stock.

Why rich nations have to keep helping poorer ones

16 Apr 2024

The world faces many onerous financial and climate challenges. Still, as Axel van Trotsenburg, the World Bank’s Senior Managing Director, explains in this Exchange podcast, governments and companies in advanced economies cannot afford to stop supporting developing ones.

Pampered pets unleash booming market

6 Jun 2023

The pet craze brought on by the pandemic has become a boon for companies that sell products to dog-loving owners. FidoCure founder Christina Lopes explains to The Exchange podcast how this might be able to help humans, too.

Rome foot-dragging can help EU kick bad aid habits

18 Apr 2023

The Italian government is clashing with Brussels over 19 bln euros in pandemic loans. Missing milestones is bad policy for the biggest recipient of European aid. But the country’s pushback may have a silver lining if it prompts the bloc to be more flexible with money.

Capital Calls: Microsoft/Activision, Subscriptions

24 Mar 2023

Concise views on global finance: The software giant convinced UK regulators to drop one of two major concerns about its $69 bln deal. Meanwhile, the U.S. Federal Trade Commission has picked an easier — and less controversial — fight than its antitrust crackdown.

IAG takeoff weighed down by debt dilemma

24 Feb 2023

With net debt above its market value, the $9 bln British Airways owner could use a rights issue. But it’s also back in the black after a painful pandemic, and deals may yield cost savings. Boss Luis Gallego has to work out which path is likely to annoy long-term investors least.

Italy may hold key to unlock EU green subsidies

1 Feb 2023

Europe’s response to the U.S. green-subsidy surge now hinges on tapping existing budgets, rather than new money. Ursula von der Leyen wants to channel unspent pandemic billions into tax credits and tweak state aid. Italy’s Giorgia Meloni may be the one to broker a deal.

Global supply chain scars will spark sea change

31 Jan 2023

The business of shifting goods around the world plunged into chaos during the pandemic. In this Exchange podcast Alan Murphy, boss of researcher Sea-Intelligence, explains China’s changing role in global trade and how that impacts the price of everything from iPhones to cars.

High-flying airlines still face stiff headwinds

25 Jan 2023

EasyJet shares surged on improved expectations, as rising numbers of holiday-goers look set to push the sector back into the black. But recent meltdowns show air travel has an increasing problem with tech glitches. It’s premature for investors to settle back in their seats.

EU debt fears hinder U.S. green subsidies riposte

24 Jan 2023

Ursula von der Leyen has pledged a European response to protectionist U.S. energy handouts. The European Commission president can improve permitting speed and offer token subsidies. But her best weapon, a permanent form of the EU-wide pandemic bond-sale programme, is far off.

Davos, Inc. finds reasons to be less gloomy

20 Jan 2023

Business leaders gathering in the Swiss mountain resort have plenty to fret about. Still, with China reopening, Europe keeping the lights on and interest rate pressure easing, the overriding emotion is one of relief. Less clear is whether the mood extends beyond the alpine elite.

Chinese GDP surprise sets expectations too high

17 Jan 2023

The world’s second-largest economy grew 3% in 2022, the government reported, beating forecasts but way below target. Ending consumption-suppressing policies removes drags on growth. With fiscal coffers low, though, and debt and inflation rising, China is short on stimulus tools.

Capital Calls: Southwest, U.S. jobs and wages

6 Jan 2023

Concise views on global finance: Financial bumpiness caused by the airline’s major flight disruptions should be temporary, partly due to limited competition; slower U.S. wage growth raises the chances that the Fed won’t have to crush the labor market to bring down inflation.

Capital Calls: Amazon, Flying cars

5 Jan 2023

Concise views on global finance: The $855 billion e-commerce giant's layoffs could actually help its antitrust defense; Stellantis’s possible $150 mln investment in Archer Aviation is less crazy than it seems.

Return of Chinese tourists will be turbulent

4 Jan 2023

Retailers and hoteliers from Macau to Paris will welcome travellers again. Pent-up demand augurs a full recovery in $255 bln of annual spending even if flight capacity and testing requirements slow the pace. But Beijing's policies may reshape where and how money is spent.

China’s reassuring growth talk comes cheap

19 Dec 2022

Policymakers said they will boost consumption, buttress property and support the private sector at a key meeting. The message is positive, repetitive and insufficient. A chaotic Covid outbreak, record job losses and fiscal stress demand concrete measures, preferably cash.

China reopening is mixed blessing for inflation

15 Dec 2022

The country’s exit from its “zero-Covid” policy, though hesitant, will bring Beijing back to the top economic table. That will unblock global supply chains, easing price pressures for importers. For the euro zone, however, it also means increased competition for energy resources.

Chinese equities need time to exit lockdown

13 Dec 2022

Local bourses have rallied somewhat as Beijing eases pandemic controls. In the long run, ending policies that depress consumption and investment will boost earnings at listed Chinese firms. The wild card is how the real estate rescue package impacts appetite for stocks.

China’s reopening will come with big late fees

9 Dec 2022

Strict quarantine rules have helped authorities to keep money onshore, including $760 bln in travel spending. If China fully relaxes, capital outflows could be Beijing’s next headache. But the damage to outward-facing parts of the economy from keeping borders closed is worse.

China’s Covid pivot may be damned by faint praise

5 Dec 2022

President Xi Jinping told EU officials that recent virus variants are less lethal, green-lighting more quarantine relaxation and inspiring markets. The next step is persuading households that hoarded $1.9 trln this year to spend or invest it. That won’t be easy or quick.