Coronavirus

Virtual vouchers offer digital-payments stimulus

19 Jun 2020

Taiwan is issuing $1.7 bln of coupons to goose its economy. These types of handouts have worked to varied effect elsewhere, but often just replace one kind of spending with another. Making them electronic instead of paper should at least help accelerate efforts to go cashless.

Hertz shares may yet be roadworthy

18 Jun 2020

The bankrupt car-rental firm halted plans to sell stock after the SEC raised concerns. Equity is usually wiped out in Chapter 11. But if a re-emergent Hertz could rev its EBITDA up to, say, 60% of pre-pandemic levels, shareholders could stay along for the ride.

Viewsroom: Stock underwriting bonanza, Vietnam

18 Jun 2020

Equity capital markets bankers are having their day in the sun as companies scramble to raise money while central banks pump liquidity into the financial system, Breakingviews editors explain. Plus: Asia columnists Robyn Mak and Una Galani chew over Vietnam’s productive pandemic.

Corona Capital: Carnival, Cheap funds, Salmon

18 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: What lies on the horizon for the cruise operator; locking in cheap financing; and a fishy tale of coronavirus-related swings in demand.

New Zealand rebound depends on healthy contagion

18 Jun 2020

The $200 bln Kiwi economy suffered its worst quarterly contraction in 29 years. Prime Minister Jacinda Ardern’s lockdown worked, but her country will struggle with less tourism and immigration. It’s a prime example of how even successful virus control can have daunting costs.

E-commerce boost is about more than Amazon

17 Jun 2020

Lockdowns have trained people to shop online, including for formerly lagging goods like groceries. That has helped Jeff Bezos but even more so digital sales at Walmart and other retailers like Target and Home Depot. The future may be a lot to do with balancing clicks and bricks.

Hadas: Virus debt will leave toxic residue

17 Jun 2020

Corporate borrowing breaks down when revenue dries up. Yet companies are taking on more leverage to survive the Covid-19 slowdown, inhibiting future growth. Ultra-low interest rates reduce the pain but bring other risks. There’s no safe way to recover from the debt overload.

Corona Capital: J.C. Penney, Hockey

17 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Executives at bankrupt clothing chain J.C. Penney sell their shares for, well, pennies; and ice hockey gear supplier Bauer adapts for the Covid-19 era.

Vietnam can build on its good crisis

17 Jun 2020

The Southeast Asian economy checked Covid-19 and is set to be one of the fastest growing economies in the world this year. It’s already a manufacturing dynamo. As global trade slumps, Vietnam looks like a good destination for companies as they shift supply chains out of China.

Uber’s M&A plans thumped by inflated values

16 Jun 2020

DoorDash and other food delivery services are basking in higher multiples as the pandemic helps business. That puts a damper on Uber’s deal plans. Its valuation is muted because of shared rides. But fortunes can change quickly when lockdowns ease, putting Uber in a better spot.

The Exchange: Bruce Flatt

16 Jun 2020

The office is not dead, though hot-desking may be. The elevator needs a rethink. And don’t rule out the shopping mall. Brookfield Asset Management’s chief executive made these and other predictions for the post-pandemic global economy in a recent chat with Breakingviews editors.

Wall Street underwriters get their day in the sun

16 Jun 2020

Investors are going bananas for new shares. Even bust rental-car firm Hertz can sell stock. Re-equitizing companies is bringing a bonanza of fees to global equity capital markets desks at investment banks. But the window is only open now thanks to central banks and governments.

Corona Capital: Next crisis, Overvalued markets

16 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Deutsche Bank analysts sound a warning about future catastrophes, while investors try to square overpriced stocks with their hopes of a recovery.

Perfect storm blows Swire Pacific model away

16 Jun 2020

The Hong Kong conglomerate expects big first-half losses in its property, airline and marine services units. Protests, Covid-19 and weak oil demand have taken their toll. The sprawl wasn’t providing much of an edge before disaster struck, however, and warrants reconsideration.

Baseball risks strike-out with its labor squabble

15 Jun 2020

Major League Baseball and the players’ union have been arguing about pay and the length of the 2020 season. Meanwhile, other sports may soon be back in action. Baseball had problems before Covid-19. By focusing on short-term gains, the union could undermine the sport’s future.

Macron’s tax-lite recovery relies on EU indulgence

15 Jun 2020

The French president has ruled out tax rises to pay for 500 bln euros of Covid-19 stimulus. That makes sense to encourage fragile consumer spending and protect jobs. It also depends on EU officials maintaining looser budget rules and the ECB keeping borrowing costs low.

Corona Capital: Frequent fliers, Folies Bergeres

15 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: United Airlines hocks its MileagePlus loyalty program for $5 bln from Goldman; Lagardere tries selling Parisian nightlife venues, including Les Folies Bergeres and Bataclan theatre at perhaps the worst time ever.

UK’s pandemic insurance test will be first of many

15 Jun 2020

A British court will decide in July whether 1,200 firms can claim for lost sales caused by Covid-19. Insurers can easily absorb worst-case losses of around $380 mln. But with other countries planning similar rulings, business interruption policies could yet prove a big headache.

India Insight: Mumbai is in a real viral hotspot

15 Jun 2020

As cases rise, being rich is no more a guarantee of a hospital bed. The situation will worsen as lockdown loosens. Multinationals are baulking. Barriers are rising for the elite that want out. The financial capital is living the emerging world healthcare infrastructure nightmare.

Corona Capital: KKR, Rugby, Centene

12 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: KKR volunteers advisers to share the pain, Super Rugby heads back to the pitch, and Centene's best bet.