Society

Volkswagen makes timid bet on brave new car world

29 Jul 2021

A group led by the German carmaker will pay $3.4 bln for Europcar. The rental company’s city sites may help CEO Herbert Diess sell new services like subscriptions and self-driving taxis. But keeping the unit at arm’s length suggests caution at odds with the optimistic vision.

IMF skims over non-viral risks to global economy

27 Jul 2021

The emergence of new highly infectious Covid-19 variants could wipe about $4.5 trln off global GDP by 2025, the international lender warned. Its economic update pays less attention to policy missteps, market ructions, or more bankruptcies. Yet these also pose a threat to growth.

Greener anti-flood investments will be win-win

26 Jul 2021

Germany’s worst natural disaster in decades and deluges in China have sparked calls to build more dams and reservoirs. There are better ways to protect people, land and buildings from both too much and too little water. These alternatives will also appeal to investors.

Review: The many unseemly faces of Facebook

23 Jul 2021

The $1 trillion social network’s ruthless rise is well documented. “An Ugly Truth” captivates with new, disturbing details on recent scandals and CEO Mark Zuckerberg’s handling of the firm’s growing power. The uglier reality is that its 3 billion-plus users aren’t that bothered.

Cigar exit is next strike in Swedish Match revamp

20 Jul 2021

Most of the $14 bln group’s sales come from oral tobacco and nicotine pouches which are less harmful than cigarettes, giving it a rich valuation. But rivals like Philip Morris are catching up. Getting out of stogies could raise $2 bln and give its stock a brighter ethical flame.

Capital Calls: BBQGuys go easy on the hot sauce

20 Jul 2021

Concise views on global finance: An e-commerce company for grill connoisseurs is going public via a blank-check company with a valuation that befits its side-dish status.

UK virus cost-benefit discounts human psychology

19 Jul 2021

Britain lifted Covid-19 restrictions, diverging from states like Israel. On the face of it, the financial benefits of reopening outweigh the ongoing costs from living with the virus. But as with previous false dawns, if consumers remain fearful the recovery won’t motor.

South Africa has no money to throw at its problems

15 Jul 2021

The Rainbow Nation is suffering its worst civil unrest since the end of apartheid in 1994. The ruling ANC’s usual response to cracks in the social fabric is to fill them with new subsidies. With debt at 80% of GDP and rising fast, that has a limited shelf-life.

Review: The dark side of stakeholder capitalism

9 Jul 2021

Arif Naqvi promised to make money while doing good in emerging markets. But he treated his Abraaj private equity group’s cash as his own, pocketing $780 mln. “The Key Man” tells how he hoodwinked the likes of Bill Gates and TPG. It’s an overdue reality check for impact investing.

Chancellor: Paying the piper for pandemic recovery

2 Jul 2021

The war on Covid-19 proved remarkably expensive. The U.S. federal deficit ran to $3.4 trillion last year. As the crisis eases, policymakers are thinking about how to foot the bill. Past wars have brought forth new taxes. Consider some fresh sources for raising government revenue.

Vaccine passports are a patchy travel fix

1 Jul 2021

European Union passes went live on Thursday. But even within the bloc there are quibbles over standards and risks from viral variants. At a global level, rifts are amplified. Even with a central authority and consensus on approved jabs, governments can impose their own curbs.

Viewsroom: Communist birthday, Little guys in IPOs

1 Jul 2021

China’s Communist Party turns 100. The institution has never been so popular at home or resented abroad. Its leaders are experts at the nuances of control and long on ambition, Pete Sweeney says. Plus, Wall Street enlists individual investors to help price initial stock deals.

Review: Pandemic saga suffers from tunnel vision

18 Jun 2021

Michael Lewis explores the weaknesses in America’s response to Covid-19 in “The Premonition”. Exposing missed opportunities can offer lessons for the next outbreak. But by focusing on just one country, he risks repeating the mistakes global leaders made in tackling the virus.

Capital Calls: U.S. malls are a tale of two REITs

14 Jun 2021

Concise views on global finance: Shopping center operator Washington Prime filed for bankruptcy protection, but the outlook is a bit rosier for premium mall owners.

Capital Calls: GEO meme, United Parcel Service

9 Jun 2021

Concise views on global finance: The meme stock good-vs.-evil fairy tale is wearing thin with the private prison operator; the logistics company is focusing on high-margin deliveries rather than volume, and investors aren't loving it.

The Exchange: EU Trade Commissioner Dombrovskis

8 Jun 2021

With vaccination programs catching up with America and Britain, Europe is poised to rebound, the former Latvian premier, who is also responsible for an “Economy that Works for People,” tells Rob Cox in an interview hosted by the European-American Chamber of Commerce New York.

Capital Calls: Warren Buffett’s taxes

8 Jun 2021

Concise views on global finance: A ProPublica report unveils the true tax rate of the Sage of Omaha, Jeff Bezos and other members of the uber-rich elite.

Review: Meritocracy is a myth

4 Jun 2021

The business leaders who flock to the World Economic Forum use wealth and power to get their offspring into the best schools. This approach increasingly undercuts a society based on merit. Today’s capitalist elite, argues Adrian Wooldridge, is a new aristocracy in disguise.

Viewsroom: Vaccine carrots and sticks, plus donuts

3 Jun 2021

Governments and companies are dangling incentives for people to get jabbed against Covid-19. But it will take more than free weed, lottery tickets and beer to reach herd immunity, Jeff Goldfarb explains. And Dasha Afanasieva says take the pastries, leave the Krispy Kreme shares.

Capital Calls: Russia and US, Clothing IPOs, Food

3 Jun 2021

Concise views on global finance: The Kremlin tells its national state fund to get out of greenback-denominated assets; Rent the Runway thinks about going public; the FAO’s global food index hits its highest level in nearly a decade.