Hong Kong property tycoons send warning by waiting 22 Mar 2024 A home price slump has left blue-chip real estate firms like New World trading at their lowest valuation since 2003. Back then, it sparked a rash of shareholder buyouts. This time round, property magnates remain on the sidelines, suggesting the market has further to fall.
Samsonite books a test flight out of Hong Kong 22 Mar 2024 The $6 bln luggage maker is planning another listing in addition to the Asian financial hub where its shares have long suffered from low liquidity. A resulting valuation uplift might be enough to convince potential suitors including KKR and Carlyle that a buyout could make sense.
Tencent is running out of excuses for gaming woes 21 Mar 2024 Revenue at the $350 bln giant is shrinking in its core business in China and abroad. That implies Beijing's crackdowns are not to blame this time. It pledged to double share buybacks but Tencent admits it needs to get its "own house in order". That looks increasingly urgent.
Japanese investors becoming the life of the party 21 Mar 2024 ValueAct, Elliott and Berkshire Hathaway have deployed some $16 bln to uncover value in Tokyo-listed stocks. They’re receiving warmer welcomes than raider T. Boone Pickens did in 1989. Even better, the US trio’s success is helping inspire local funds to sustain the momentum.
China’s automakers try turning Japanese 20 Mar 2024 Efforts to block Chinese auto exports are inspiring BYD and rivals to set up factories overseas. Their journey is reminiscent of Toyota and Nissan’s drive into the US and Europe. But Washington and Beijing’s fraught ties and new tech portend a different ending to this road trip.
US Steel tug-of-war threatens to pull it apart 19 Mar 2024 Cleveland-Cliffs has put its rival in a bind, rallying political and labor opposition to a $14 bln agreed sale to Japan’s Nippon while pushing its own questionable takeover bid. No deal at all would be bad news for the target’s union workers. A carve-up might be inevitable.
Mexican wave of nearshoring firms is all at sea 19 Mar 2024 The country’s proximity to the US could make it a preferred destination as multinationals move away from Asia. Companies like Merck and Tesla are building factories there but, so far, manufacturing is not growing. With relocations costs soaring, an economic boom looks elusive.
Japan’s first step to new normal is the easiest 19 Mar 2024 The central bank raised interest rates, ending 26 years of unconventional stimulus. Policymakers hinted they will keep borrowing costs steady for a while but the pressure to curb inflation, rather than unleash its virtues, may rise fast. The hard work for the country starts now.
China property’s Enron damp squib may yet surprise 19 Mar 2024 Markets shrugged as a watchdog accused Evergrande of inflating sales by $78 bln over a two-year period. The US firm’s 2001 demise, by contrast, had broad impacts. More fallout in China is likely, potentially ensnaring banks and auditors like PwC. Investors are too sanguine.
CATL earnings slip masks charged-up ambitions 18 Mar 2024 The world's largest battery maker suffered its first quarterly net income drop in two years as EV demand stuttered. US-China tensions are a problem, too. Yet its core business is solid. And boss Robin Zeng looks set to use CATL's heft to take advantage of smaller rivals' pain.
Singtel can dial up long distance call 18 Mar 2024 The Temasek-controlled firm denies it is selling Australia's Optus to Brookfield for up to $12 billion, twice what some analysts reckon the business is worth. If done right, a deal Down Under could help CEO Yuen Kuan Moon narrow the extreme discount Singtel suffers.
Biden’s subsidies are working a little too well 15 Mar 2024 The US president’s incentives for chips and clean energy have provoked a competitive scramble and raised the cost of building factories – which cuts the handouts’ real value to recipients like Intel. The risk is that investment zeal sets the scene for future gluts.
Cars are moving into the fast lane for Tata 15 Mar 2024 Autos were once group Chair Natarajan Chandrasekaran’s top headache. Now he’s splitting $43 bln Tata Motors into commercial and passenger vehicles. That's doable because luxury unit Jaguar Land Rover no longer burns cash. The rejig paves the way for more dealmaking too.
Joe Biden out-MAGAs Donald Trump 14 Mar 2024 The US president is siding with union workers who oppose a US Steel takeover by Japan’s Nippon. He also said he would sign a bill forcing TikTok’s Chinese owner to sell the popular app or see it banned. The ad hoc approach to national security concerns sets a dangerous precedent.
ByteDance’s TikTok woes are never-ending sideshow 14 Mar 2024 US lawmakers edged closer to banning the short-video app. Co-founder and CEO Liang Rubo has grappled with the epic four-year-long fight while rejigging the business at home to focus on e-commerce. ByteDance remains in IPO limbo but its fortunes have not fallen too far.
Japan’s rate shift will hit zombie firms hardest 14 Mar 2024 The central bank could end an era of negative borrowing costs as early as next week. In this Viewsroom podcast, Breakingviews columnists argue that large companies are ready for the tightening, but many struggling small businesses could hit the wall even if policymakers go slow.
China’s Xiaomi embarks on Apple’s road not taken 13 Mar 2024 The $48 bln handset-maker said it will deliver its first electric car just weeks after the iPhone-maker scrapped its decade-long effort. CEO Lei Jun faces overcapacity and slowing growth at home. Still, deep pockets and a software edge will help Xiaomi navigate brutal price wars.
Bill Winters pulls a poor man’s Jamie Dimon 13 Mar 2024 The frontrunner to succeed StanChart's CEO has abruptly left the bank. JPMorgan's boss is adept at ousting executives, Winters included, but Dimon has earnings and investors on his side. Winters wants for the latter. The lack of a clear heir is now another worry for the board.
Capital Calls: Small Fed windows 12 Mar 2024 Concise views on global finance: US consumer prices rose 3.2% year-on-year in February, above the Federal Reserve’s 2% target, prompting traders to rein in hopes for rate cuts. The agency’s Chair Jerome Powell could have avoided that by guiding markets towards a higher number.
Escaping Hong Kong’s value trap is far from cheap 12 Mar 2024 L'Occitane, Samsonite and ESR may be buyout targets as stocks languish in the financial hub. These businesses are broadly doing well and could command a higher multiple on another bourse now or later. That means shareholders can demand a generous premium from any buyer.