Coronavirus

Corona Capital: Texas hold it

7 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: The iconic State Fair of Texas has been canceled as coronavirus cases in the region soar. The decision adds some $500 mln to the Lone Star State’s economic and human toll from the pandemic.

Coronavirus tanks Trump’s election economy

6 Jul 2020

The U.S. president was cruising toward re-election, by one academic model based on GDP per capita and prices. Then the pandemic hit. The model isn’t built for such dramatic swings but it still tells a story. A sharp recession is one of few events that could put a Democrat on top.

Corona Capital: Disney/“Hamilton”, U.S. housing

6 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: “Hamilton” reinvigorates Walt Disney’s digital-download challenge, and America’s stay-at-home rules may mean there’s pent-up demand for real estate and home improvement.

Corona Capital: Quarantines, UK bailout, Drugs

3 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Britain relaxes its “bonkers” quarantine rules; a small UK bailout sets a troubling transparency precedent; and India’s drugmakers click into dealmaking mode.

YRC bailout throws U.S. taxpayers under the truck

2 Jul 2020

The Treasury is, unusually, taking a 30% stake in a freight company it says is an essential military supplier. On several measures, though, it’s a poor trade. The debt on offer is too cheap, the government won’t have voting influence, and YRC is far from a governance role model.

Mexico’s stingy populist is haunted by history

2 Jul 2020

The president, known as AMLO, is the rare left-winger queasy about budget deficits, even in the face of a pandemic. This may be because of his nostalgia for the country’s mid-century boom, which was undone by debt-fueled spending. He has learned the wrong lessons from the past.

U.S. economic reboot menaced by bug in the system

2 Jul 2020

Almost 5 million Americans found work in June as the unemployment rate fell to 11%. But the recovery could easily crash again, or freeze, because of coronavirus spikes caused by premature reopenings. Infections, not jobs, are the better numbers to track.

Fed keeps yield-curve control in back pocket

2 Jul 2020

Minutes of the U.S. central bank's June meeting suggest ambivalence about the policy. It’s unnecessary for now, with bond markets quiescent. If that changes, Japan’s experience shows the tactic can effectively cap long-term interest rates. But it may not deliver higher inflation.

Corona Capital: Tesla, OPEC

2 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Tesla speeds past its traditional rivals, and OPEC’s next meeting shapes up to be a bruising encounter.

Germany has chance to embrace new economic model

2 Jul 2020

Finance Minister Olaf Scholz is splurging to boost domestic demand as exports, the usual mainstay of growth, slump. Cutting taxes will help, as will upgrading crumbling infrastructure. It will make a real difference if Berlin sticks with its changed habits after the pandemic.

Corona Capital: Drug hoarding, Vacation-free world

1 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Stockpiling of Covid-19 treatment remdesivir may come back to haunt the Trump administration, while a forecast of $3.3 trillion in lost tourism is more than an inconvenience for some national economies.

Jefferies ushers in awkward summer for Wall Street

30 Jun 2020

As markets gyrated, the U.S. investment bank almost tripled its quarterly top line from fixed-income trading. Where revenue goes, traders’ pay goes too. That will be a theme as bigger banks report their earnings, reinforcing one of Covid-19’s more unequal economic side effects.

The Exchange: BIS chief Agustin Carstens

30 Jun 2020

It has been a hectic year for central bankers, who are on the front line of fighting a global recession. The head of the Bank for International Settlements joins Swaha Pattanaik to discuss how to unwind massive monetary stimulus, risks in the financial system, and regulation.

European bankers ahead in game with no winner

30 Jun 2020

Deals targeting companies in the region rose 39% to $415 bln in the first half, defying a massive global slump. Anomalies helped. As Brussels favours European corporate champions, the relative trend will continue. That helps UBS and Deutsche even if companies are suffering.

Corona Capital: U.S. recovery, Small-business aid

30 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: White House virus adviser Anthony Fauci’s estimate that U.S. cases could breach 100,000 a day is bad news for the economy. Plus: Uncle Sam’s loan program for small businesses comes to an end with money in the bank.

Carlyle hedges Indian link in pharma supply chain

30 Jun 2020

The buyout firm is taking a 20% stake in Ajay Piramal’s contract drugmaker at a healthy $2.8 bln valuation, ahead of a planned carve-out from its lending-focused parent. The division can benefit from a worldwide reshoring push. Short-term concerns explain the fiddly deal terms.

Gilead gives glimpse into feverish drug market

29 Jun 2020

Its Covid-19 treatment will set governments back about $2,300 per course – more than it costs to make but far less than U.S. patients would incur with longer hospital stays. There are many ways to decide the value of a drug. Gilead is, perhaps wisely, being relatively restrained.

Corona Capital: Amazon, Car perks, College sports

29 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Companies are trying to bolster pocketbooks. Amazon makes extra payments to employees while car companies are offering major discounts. Plus: Under Armour ditches its UCLA deal.

Beijing picks one too many bilateral brawls

29 Jun 2020

China has added India, Canada and Japan to its lengthening list of diplomatic spats. Trade partners are too distracted to coordinate a response, but individual retaliatory measures are adding up. With its economy still weak, Beijing can ill afford to fight on so many fronts.

Albertsons owners take shopping cart to the ankles

26 Jun 2020

The supermarket chain’s IPO raised 40% less than it hoped, pricing below the range set just a week earlier. The final valuation looks fair, suggesting the market is working as it should. It's a good outcome for investors, though not so much for Albertsons backers and advisers.