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Review: Lex Greensill epitomised post-2008 finance

22 Jul 2022

The Australian’s firm was one of many loosely regulated shadow banks that sprang up after the last crisis. Duncan Mavin’s “The Pyramid of Lies” explains how Greensill duped big lenders, investors and politicians. As interest rates rise, he’s unlikely to be the last failure.

Capital Calls: Citi’s luck, BlackRock’s blues

15 Jul 2022

Concise views on global finance: Citigroup’s second-quarter earnings were buoyed by its focus on trade flows and helping companies. Meanwhile, the world’s largest asset manager thinks investments will shift further into bonds but that business is less lucrative.

Japan’s post-Abe future, Europe’s currency problem

14 Jul 2022

The assassination of former Prime Minister Shinzo Abe is an end of an economic era. In this Viewsroom podcast, Breakingviews columnists debate how his party’s success could bring about big spending. Also, the euro’s decline is a problem for central bank chief Christine Lagarde.

Capital Calls: Delta’s earnings are bad and worse

13 Jul 2022

Concise views on global finance: Shares in the company fell 7% after the company missed earnings expectations. That’s bad, but worse is that its main strength – pricing power – has limits.

Shinzo Abe’s assassination leaves Japan undone

8 Jul 2022

The polarising politician who dragged the country out of decades of deflation was gunned down in the street on Friday. His Abenomics agenda will outlive him, as most of the challenges he tried to solve endure. Without Abe’s charisma, however, tackling them may get harder.

Capital Calls: Swedish Match, FCA

8 Jul 2022

Concise views on global finance: Elliott’s stake-building in Swedish Match may delay Philip Morris’s takeover of the oral tobacco company; the Hong Kong brain drain gathers pace with Ashley Alder’s move to Britain’s financial regulator.

Ray-Ban tycoon leaves behind unfinished business

27 Jun 2022

EssilorLuxottica Chairman Leonardo Del Vecchio has died at 87 without publicly anointing an heir. That raises questions about the eyewear giant’s future and investments in Mediobanca and Generali. Though trusted lieutenants may reassure investors, they lack his track record.

Hong Kong’s last governor on dealing with China

21 Jun 2022

Chris Patten was Britain’s top representative in the colony before its handover 25 years ago. In this edition of The Exchange podcast he talks about his newly published diaries, businesses sucking up to the People’s Republic, and whether the West will defend international rules.

Macron has narrow path to avoid domestic stalemate

20 Jun 2022

His party’s poor showing in parliamentary elections diminishes the French president’s authority and casts doubt on planned reforms like a pensions overhaul. He could still govern if he forms a coalition with the conservatives. But any deal will come with substantial concessions.

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.

South Korea steps up to a fearful new world

13 Jun 2022

A new pro-business president, receding Covid-19 risks and rising clout in supply chains have infused local companies with newfound confidence. Many, led by giants like Samsung, are charging abroad. The optimism should pay off, even as fresh economic and global threats loom.

New York hybrid working woe, Toshiba’s options

9 Jun 2022

The work from home revolution looks here to stay with nearly 80% of surveyed employers accepting it as the new norm. In this Viewsroom podcast, Breakingviews columnists discuss how this will be painful for office landlords. Plus, the $22 bln Japanese company’s mysterious future.

EU women-on-boards plan only scratches the surface

8 Jun 2022

The bloc wants listed companies to reserve 40% of non-executive director roles for females. That’s lame, when 60% of graduates are women. And groups with diverse boards tend to deliver higher returns. It’s time for the EU to set a target for full gender parity in the boardroom.

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.

Capital Calls: JetBlue makes winning Spirit hurt

6 Jun 2022

Concise views on global finance: The hostile bidder has offered cash up-front for Spirit shareholders, which could force current suitor Frontier to make costly concessions.

Capital Calls: Microsoft micromanages tech jitters

2 Jun 2022

Concise views on global finance: A 1% revenue shortfall because of a strong dollar normally isn’t that important. Microsoft’s warning reflects how nervous tech investors have become.

Pete Stavros and his equity-for-all quest

31 May 2022

The KKR partner started the non-profit Ownership Works to help companies grant stock to entire workforces. He discusses the resistance, the success stories, and an ambitious plan to create $100 bln of wealth for employees on this episode of The Exchange podcast.

New Toshiba board’s work extends beyond Toshiba

27 May 2022

The embattled $19 bln conglomerate nominated a Houlihan Lokey banker to be chair and directors from pushy investors Elliott and Farallon. The main job now is to end a tortuous saga with a sale. Success would help show Japan’s supine shareholders how dogged engagement pays off.

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.

Capital Calls: Airbnb, Prudential, Glencore

25 May 2022

Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.