Coronavirus

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.

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.

Chinese buyout baron’s dissent challenges Beijing

29 Apr 2022

Shan Weijian, a frequent defender of Xi Jinping’s tough policies, broke ranks to warn of an economic crisis and discontent from lockdowns. It adds risk to the IPO of his firm, PAG, but making an example of him would be tricky. His sentiments are shared in the financial community.

China takes new tack on emerging market debt

27 Apr 2022

Beijing has agreed to work with the Paris Club of official creditors to clear up Zambia’s $17.3 bln debt mess. That’s a major shift from the bilateral approach it usually adopts. An even bigger sign of progress would be accepting a haircut on the $5.8 bln that China is owed.

Capital Calls: Britain’s beefed-up M&A watchdog

25 Apr 2022

Concise views on global finance: The activist building its stake in video-ratings firm Nielsen may face a potential snag, thanks to the UK’s answer to U.S. cross-border merger cop CFIUS.

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.

Capital Calls: KKR and Australia, Danone

20 Apr 2022

Concise views on global finance: The private equity firm’s offer for Ramsay Health Care would almost double Down Under M&A by value this year; the French consumer group’s sales growth boost is offset by inflation fears.

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.

Covid shuts down China, Baltic lessons for Germany

14 Apr 2022

As Shanghai grapples with a coronavirus outbreak and almost one-third of the country’s population is under lockdown, Breakingviews columnists discuss the impact on China’s economy in this Viewsroom podcast. Plus, tiny Lithuania shows European countries how to give up Russian gas.

Global economy braces for China inflation shock

14 Apr 2022

Manufacturing hubs from Guangdong to Jilin are seizing up as authorities stamp out outbreaks. Despite talk about diversifying supply chains, the world’s dependence on Chinese factories has increased. Beijing’s refusal to live with Covid could mean higher prices for everyone.

China is at risk of self-inflicted recession

13 Apr 2022

Nearly one-third of the population is under some sort of lockdown, with many shops shut and factories struggling. More policy easing looks unavoidable, but with benchmark yields dropping below U.S. Treasury bonds, so does capital flight. The economic hit could be worse than 2020.

China Covid-zero zeal puts carmakers into low gear

12 Apr 2022

Vehicle exports have doubled from pre-pandemic levels, with Tesla and others more dependent on the country’s factories to meet Asian demand. But Beijing’s harsh Omicron lockdowns are stalling supply chains while war cranks up costs. This year could be a rougher ride than 2020.

Shanghai Covid crisis puts China tech on eggshells

11 Apr 2022

City officials have called on food delivery apps from $123 bln Meituan and rivals to help feed 26 mln residents under strict lockdowns. It’s a chance for the companies to win political brownie points and new users. But the logistical challenges risk putting both out of reach.

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.

Chancellor: In praise of slack

7 Apr 2022

Executives spent decades optimising strategies to boost efficiency and returns on equity. That left them exposed to shocks like the global pandemic and invasion of Ukraine. In a world that values spare capacity, Japanese firms look better placed than their American counterparts.

Capital Calls: U.S. truck drivers go missing

4 Apr 2022

Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.

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.

Capital Calls: Chip supply chain bites own tail

31 Mar 2022

Concise views on global finance: Semiconductor factories rely on machines made by ASM International. Paradoxically, the firm is having trouble finding the chips it needs. Untangling the mess will take a while.

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.

The Covid effect: Sheds, Hong Kong, Conferences

24 Mar 2022

The pandemic continues to shape business and policy around the world. In this Viewsroom podcast, Breakingviews columnists debate a possible 21 bln euro bid for city-centre warehouses, the relaxing of restrictions in Hong Kong, and a recent conflab of M&A advisers in New Orleans.