Coronavirus

Chinese audits, Vaccine wars, UK tax cuts

1 Sep 2022

Beijing will let companies submit to U.S. audit requirements. In this Viewsroom podcast, Breakingviews columnists argue only weak firms will comply. Also, Pfizer and Moderna’s legal battle is unlikely to create a winner, and Britain’s prime ministerial hopefuls debate handouts.

Capital Calls: Saipem’s new CEO

31 Aug 2022

Concise views on global finance: The hard-hit Italian energy services company appointed Eni veteran Alessandro Puliti as chief executive.

AstraZeneca’s Soriot on cures for pharma ills

30 Aug 2022

The $208 bln drugmaker’s CEO is celebrating 10 years at the helm. In this edition of the Exchange podcast, he explains why after quadrupling the company’s share price, there is more to do. He also delves into Chinese competition and the consequences of caps on U.S. drug prices.

Capital Calls: Taiwan, Meme stocks

18 Aug 2022

Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.

Pfizer and Moderna react well to cash boosters

12 Aug 2022

The Covid-19 vaccine makers combined may generate an extra $110 bln through 2024. With its bounty, younger Moderna would be wise to double down on R&D. Mature Pfizer is better off pursuing acquisitions like Global Blood Therapeutics. The trick for both will be to stay focused.

China’s Hawaii washes away an economic sandcastle

8 Aug 2022

A Covid-19 outbreak has locked down cities in Hainan, stranding over 80,000 visitors. It sets back a decent recovery in tourism, a generator of more than 11% of pre-pandemic GDP. With other growth pillars shaky, it’s the worst time to give consumers another reason to check out.

Capital Calls: Heineken’s post-Covid bounce

1 Aug 2022

Concise views on global finance: Beer drinkers are quaffing more than before the pandemic, despite higher prices. But the Dutch brewer’s decision to scrap its 2023 operating profit margin target suggests it can’t entirely escape rising costs.

Global food crisis demands urgent Western response

25 Jul 2022

Russia’s invasion of Ukraine has pushed up food and energy costs around the globe. The most urgent problems are in poorer countries, write William Rhodes and Stuart Mackintosh. Rich nations offered insufficient help for Covid-19. International bodies can do better this time.

China’s great outdoors opens up for business

19 Jul 2022

Tired of lockdowns and wary of Covid contagion, citizens are embracing camping, glamping and recreational vehicles. For now, the market is tiny compared to the $700 bln U.S. industry. It’s a great opportunity for foreign brands to pitch their tents in a fast-growing luxury space.

Cathay Pacific charts hopeful course for Hong Kong

18 Jul 2022

Huge capacity cuts and a bailout put a lid on debt as quarantine rules keep its home city isolated. Its shares, better performing than Singaporean and Western peers, imply the airline and the Asian hub will make a quick turnaround. But it faces a harder slog back to normal.

Henan displays China’s economic cracks all at once

6 Jul 2022

The province of 100 million is clumsily covering up economic stress. Local officials hacked Covid-19 tracking apps to conceal bank runs and silence investors even as they report rosy data. Beijing’s push to deliver 5.5% GDP growth this year implies more misdirection to come.

Missing Chinese tourists augur hard economic treks

14 Jun 2022

From Phuket to Paris, destinations that banked on the $255 bln mainlanders spent in overseas hotels, shops and restaurants each year are awakening to the possibility they might be gone indefinitely. It will challenge governments to find new and more sustainable sources of growth.

Next pandemic is a financial numbers game

10 Jun 2022

Outbreaks are hard to predict – look at the spread of Monkeypox – but they can be prepared for. The $88 bln the White House wants to spend on pandemic readiness is a pittance next to the cost of being blindsided. Even for budget hawks, the case for spending more is powerful.

Chinese movie industry screens business tragedy

8 Jun 2022

Box office takings touched a 10-year low during the recent holiday weekend. While China overtook the U.S. market during the pandemic, in absolute terms it’s contracting, a trend reflected in share prices for companies like IMAX China. The damage could be permanent.

New York has a towering hybrid work problem

6 Jun 2022

Only four in 10 Manhattan-based workers are in the office on any given day, and vacancy rates are twice the historical average. Some big tenants are downsizing. If hybrid work trends stick, landlords already wrestling with inflation could wind up with 40% fewer desk-jockeys.

Fingers crossed Davos Man gets it wrong again

27 May 2022

Gloomy delegates at the Swiss conference worried about a prolonged conflict in Ukraine, Covid-19 lockdowns in China, and runaway food and energy prices. But in 2020 they failed to foresee the global pandemic. This time, an incorrect forecast might be good news for the planet.

Beijing’s stimulus ignores elephant in the room

27 May 2022

Premier Li Keqiang sounded the economic alarm and urged officials to step up tax cuts and spending. Yet pandemic controls are stressing struggling local governments. Without relaxing zero-Covid policies, all efforts to help China hit its 5.5% growth target look futile.

Smaller, warmer Davos confronts a siloed world

23 May 2022

The Swiss confab of global leaders returns this week after a gap of over two years. Pandemic, war, and the unusual spring timing explain some notable absences. As markets tumble and economies turn inward, founder Klaus Schwab’s knack for brokering relationships faces a test.

Global brands set too much store in China recovery

13 May 2022

Western companies like Estée Lauder and Remy Cointreau remain hopeful about the country even though lockdowns have hit revenue. Yet continued mass testing due to Beijing’s zero-Covid push will weigh on demand. Excessive optimism risks delaying a much-needed diversification drive.

Capital Calls: Business travel, Adidas China woes

6 May 2022

Concise views on global finance: British Airways owner IAG faces stormy UK skies; Chinese lockdowns and boycotts are slowing down the German sneaker maker.