Around the time the United States formally abolished slavery in 1865, African Americans owned 0.5% of the United States’ wealth. Today they own under 3%, even though around 13% of the population is defined by the U.S. census as “black or African American.” This isn’t an accident of history – it’s a result of government policies and institutional bias. The interest keeps compounding.
The United States is grappling anew with its original sin. The issue of reparations for slavery is a complicated and emotional topic. Like most progress made in America today, don’t expect the federal government, Congress or the courts to lead the charge. But companies could move the matter forward.
Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
Leonardo Del Vecchio’s late swoop on a key nexus of Italian finance is adding a thrilling chapter to his long career. After becoming the largest investor in Mediobanca last year, the restless 85-year-old Ray-Ban mogul now wants to double his 10% shareholding. That could unlock the door to controlling 22 billion euro insurer Assicurazioni Generali. Yet Del Vecchio’s goals remain a riddle.
Asia’s buyout barons face a high-wire act. Private equity dealmaking in the region is on the rise this year, defying a global pandemic-induced slump. But some of the worst acquisitions were done during the last financial crisis. Sitting it out and delaying exits may help firms avoid repeating past mistakes.
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.
Markus Braun’s day of reckoning turned out to be worse than seemed possible. The Wirecard chief executive’s company lost more than half its market worth on Thursday, sending its value down to 5.4 billion euros, after EY found indications that 1.9 billion euros of cash may be “spurious”. Its accounting scandal is now an existential crisis. Braun’s enablers, including regulators, lenders and auditors, have a lot of explaining to do.
Corona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights.
Segway is blazing a trail to Shanghai. If all goes to plan, the owner of the self-balancing scooter will soon debut Chinese depositary receipts in a $300 million initial public offering. Ninebot brings sticky elements typically shunned by Beijing. A smooth listing would help set the tone for future stock sales.
Amazon.com still dominates the fast-growing e-commerce pie, but it’s getting some company. Lockdowns have trained people to shop online including in formerly laggard categories like groceries. That has helped Jeff Bezos but even more so digital sales at Walmart and other retailers. The future may be a lot to do with balancing clicks and bricks.
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at http://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.