FT News Briefing Evergrande’s endgame
Dec 9, 2021
The big four accounting firms are thriving, enjoying their best performance since Enron, thanks to a surge in consulting services. Meanwhile, Apple is navigating a grey area in its new privacy policies, allowing developers to track user data. The podcast also dives into the unfolding crisis of Evergrande, with insights on how the Chinese government might be steering its slow-motion collapse, raising alarms about potential economic impacts and bondholder risks in the process.
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Big Four Boom
- The Big Four accounting firms saw their strongest performance since the Enron scandal, driven by increased demand for consulting services during the pandemic.
- Companies sought advice on digital transformation, ESG compliance, Brexit, and supply chain disruptions.
Conflict of Interest Concerns
- Despite selling off consulting arms post-Enron, the Big Four rebuilt them, raising conflict-of-interest concerns.
- They now face challenges balancing consulting fees with audit objectivity and internal frustrations.
Apple's Privacy Policy Loopholes
- Apple's privacy policy, requiring user permission for ad tracking, has been loosely interpreted by app developers.
- Despite most users opting out, apps still collect data at a group level, bypassing individual tracking restrictions.