FT News Briefing SoftBank financing, White House on unemployment benefits, French industry
Jun 15, 2020
SoftBank makes headlines with over $500 million flowing into Credit Suisse funds, aimed at boosting struggling startups. Meanwhile, the White House debates the extension of unemployment benefits, claiming they may disincentivize work. As China prepares for a potential new wave of COVID-19, France rolls out a significant support plan for its vital aerospace industry, emphasizing the challenges faced by major players like Airbus. Will these financial maneuvers revive the economy or spiral into further issues?
AI Snips
Chapters
Transcript
Episode notes
SoftBank's Circular Financing
- SoftBank invested over $500 million in Credit Suisse funds, which then financed SoftBank's own tech bets.
- This circular arrangement involves Greensill Capital, a SoftBank-owned company, selecting the debts for the Credit Suisse funds.
Supply Chain Finance Risks
- Supply chain finance, while legitimate, can be misused to obscure debt.
- Several accounting scandals, including Carillion and NMC Health, highlight the risks of this financing technique.
Unemployment Benefit Debate
- The White House opposes extending the $600 weekly unemployment benefit, arguing it discourages work.
- This stance clashes with the ongoing pandemic and high unemployment rates, despite some economic recovery.