Coronavirus

Incompetence and greed fuel U.S. airline 5G battle

20 Jan 2022

Major airlines said a rollout of 5G could make flights dangerous. Airlines, wireless firms, and government agencies had over a year to solve the problem. The weakened air industry may not want extra costs. But other countries figured it out while U.S. taxpayers are left hanging.

Capital Calls: Siemens Gamesa, Psych SPAC

21 Jan 2022

Concise views on global finance: The 11 billion euro wind turbine manufacturer serves up its third profit warning in nine months; Hope for drugs to treat depression is tempered after rivals suffer mishaps.

China plays lonely game of Covid whack-a-hamster

19 Jan 2022

As Hong Kong culls 2,000 of the rodents, Beijing is blaming overseas mail for spreading Omicron. Dogged devotion to Covid-zero and the resulting disruptions are becoming increasingly farcical, and costly, as the rest of the world learns to live with the virus.

The Exchange: Xpeng boldly goes

18 Jan 2022

The Chinese electric-car maker has navigated everything from shrinking subsidies to Covid-19. Embracing new ways of working is critical, President Brian Gu tells Katrina Hamlin. Future forays into Europe, the metaverse and flying cars will test the Tesla rival’s resilience again.

Covid-19 victory lap leaves Beijing exhausted

14 Jan 2022

China gloated over its pandemic control and took advantage of economic stability to launch risky crackdowns on tech and property. Now mini-outbreaks are prompting fresh lockdowns as an export boom looks set to slow. In 2022, malaise could prove harder to manage than disease.

Big transitions are better embraced than resisted

4 Jan 2022

The extraordinary actions required to make epochal shifts, like eradicating hydrocarbons or vanquishing Covid-19, are being taken now. Central banks are removing punch-bowl money. Digital is crushing everything. And without social inclusion, it all falls apart. Welcome to 2022.

Capital Calls: Biogen hits Medicare wall

12 Jan 2022

Concise views on global finance: An unusual decision by the U.S. government program to restrict payment for the firm’s Alzheimer’s drug is likely to be an exception rather than becoming the rule.

Biotech is set for a geopolitical stress test

12 Jan 2022

The sector has been immune to U.S.-China tensions that sickened cross-border tech investments; in fact giants like $27 bln cancer treatment specialist BeiGene are thriving thanks to global tie-ups. Decoupling looks unlikely, but political risks are rising fast.

China’s next debt crisis will be municipal

10 Jan 2022

Local government investment vehicles owe $8 trillion, over half national GDP, and are big dollar bond issuers. Collapsing property sales and Omicron stress are squeezing them. Beijing may let some default; others might try to dump assets in a weak market. It could get ugly.

Finding China’s Moderna is a financial long shot

6 Jan 2022

The U.S. biotech giant’s Covid-19 vaccines have inspired copycats in the People’s Republic, where cities are scrambling to contain fresh outbreaks. With foreign jabs yet to be approved, the $13 bln Walvax looks promising. Feverish valuations leave little margin for error.

Moderna’s boosted valuation has Tesla-like spin

5 Jan 2022

Its Covid-19 vaccine is one of the world’s biggest medical products, yet that doesn't justify even half of Moderna’s $94 bln market value. Like Elon Musk’s $1.2 trln carmaker, the company is now a bet on dominating markets yet to exist. That suggests a volatile future for investors.

Big Quit sends world’s back office back offshore

24 Dec 2021

When the pandemic fades, and along with it the stigma of letting people go, the WFH revolution will embolden global employers to move jobs to low-cost centres again. While that should benefit India’s IT services providers, they’re ironically grappling with similar problems.

Rishi Sunak picks bad time to play Scrooge

21 Dec 2021

Britain’s finance minister has offered 1 bln pounds to companies hit by the new Omicron variant. The package looks meagre compared to his previous offerings and France’s support measures. Given the UK is raising rates, Sunak could have deployed a bit more fiscal firepower.

The Exchange: Australian Treasurer Josh Frydenberg

21 Dec 2021

With an election looming early next year, the Liberal Party’s deputy leader discusses everything from booster shots to Big Tech, climate change to China, immigration to inflation, and more. He tells Jeffrey Goldfarb how his country can overcome the many economic challenges ahead.

Davos delay will stoke gabfest demand

20 Dec 2021

January’s Swiss conflab is off, for the second year running. In 2021, Zoom calls and rival events like COP26 raised the risk Davos could lose its relevance. In 2022, enough bankers were looking forward to the slopes to imply that a summer event will still get takers.

Kidney transplant endangers healthy CSL

14 Dec 2021

The Australian flu-vaccine maker will buy Swiss nephrology specialist Vifor for about $12 bln in cash. It’s paying a 60% premium for a weaker peer and doesn’t expect much in the way of cost savings. The mid-pandemic diversification hardly justifies this elective M&A procedure.

China travel boom is stuck in the departure lounge

10 Dec 2021

Domestic tourism was already struggling of late. Now a surge in pandemic curbs like testing and quarantine is making regional travel difficult. Duty-free giant China Tourism’s decision to shelve its $6 bln Hong Kong listing shows the industry hunkering down for staycation pain.

Glove maker’s governance spoils pandemic bounce

9 Dec 2021

Top Glove, the world’s largest maker of protective handwear, has won investor support for a third listing in Hong Kong. Labour concerns derailed the Malaysian firm’s earlier attempt when markets were hot. With shares back near pre-pandemic levels, the delay has cost it dearly.

Viewsroom: Omicron hits, Dorsey quits

2 Dec 2021

As the world gets to grips with a new coronavirus variant, Swaha Pattanaik looks ahead to how Omicron could frustrate attempts to rein in rising prices. Meanwhile, Gina Chon watches Twitter say goodbye to founder Jack Dorsey and usher in a new, still-quirky governance setup.

Vaccinating the world is a worthy but elusive goal

1 Dec 2021

Ensuring all rich and poor countries are fully jabbed is the best way to stop Covid-19 variants. The cost of lockdowns makes it an economic necessity. The challenge, as South Africa shows, is getting needles to people, and persuading them of the benefits. That may take years.