Trump’s weak dollar upends Asian growth calculus 2 Feb 2018 Asia is bracing for a softer greenback. That could curb export-led growth from South Korea to Singapore and prompt a reappraisal of stock valuations. A U.S. policy shift could complicate Japan’s deflation fight and China’s ability to keep growing 6.5 percent annually.
Airbnb wisely tidies up before guests arrive 1 Feb 2018 The home-rental app ruled out going public in 2018 after its finance chief abruptly quit. With positive cash flows, boss Brian Chesky doesn’t need to rush. The naming of a chief operating officer also shows Airbnb has learned from some of its Silicon Valley peers’ mistakes.
Amazon’s growth risks irritating users 1 Feb 2018 The nearly $700 bln internet retailer turned in another remarkable holiday quarter. Advertising, third-party sales and private-label goods are some of the company’s fastest-expanding – and most profitable – businesses. They aren’t, however, necessarily great for Amazon’s image.
Alphabet is stuck at the letter G 1 Feb 2018 The holding company of Google was created to safeguard against conventionality and let moonshot ideas, like self-driving cars, flourish. Almost three years in, it’s basically still just Google. Which means, in turn, that the A in Alphabet stands mainly for advertising.
Apple’s less-is-more vibe bodes well for profit 1 Feb 2018 Apple sold fewer iPhones for more money in the last quarter, raising fears that the company is losing its innovation edge. But that’s OK – persuading customers to pay more arguably requires as much genius as getting people to adopt the technology in the first place.
Viewsroom: Jamie Dimon risks ruining a good run 1 Feb 2018 JPMorgan’s chairman and CEO intends to lead the bank until around 2023. Dimon has built a strong and successful company over the past 12 years. But the longer he stays, the harder it becomes to leave on an unambiguous high. Plus: Asian governments tackle bitcoin.
Google offers Aramco unlikely route to IPO heaven 1 Feb 2018 The Saudi oil producer is in talks with the search engine’s owner to create a tech hub in the kingdom, says the WSJ. There could be a secondary benefit. If investors valued Aramco the way they do Alphabet, the $2 trln valuation Riyadh wants from a future IPO would be a shoo-in.
PayPal may benefit from eBay’s push from nest 1 Feb 2018 The online auctioneer bought the upstart in 2002 and spun it off 13 years later. EBay’s decision to go it alone on payments dented its former charge’s market cap by over $8 bln. But by now the $90 bln-plus PayPal is mostly weaned and ready to exploit its independence.
Blackstone diversifies over time as well as space 1 Feb 2018 The manager of $434 bln of assets managed a double-digit rise in fee earnings in the fourth quarter. Longer-term funds are smoothing lumpy buyout gains. Stephen Schwarzman’s shop still does LBOs like the $20 bln Thomson Reuters deal this week, but it’s a far broader beast.
Lazard joins small band of U.S. tax rejects 1 Feb 2018 Recent changes mean the Wall Street firm will pay less to Uncle Sam, but make becoming a regular corporation harder. That would have expanded Lazard’s investor base and, in theory, its valuation. But the dilemma should be a spur: Lazard has advised on tougher transformations.
Jack Ma’s shopping adventures bring mixed results 1 Feb 2018 The Alibaba founder’s bets on bricks and mortar, logistics and movies weighed on the e-commerce giant’s margins in the December quarter. A 33 pct stake in payments affiliate Ant looks more promising. Even so, investors can only brace for the unpredictable impact of Ma's forays.
Steinhoff reminds creditors they are not all equal 1 Feb 2018 The scandal-hit retailer is planning early repayment of a $1.3 bln South African bond in return for releasing funds to cash-strapped European brands. Other mainly international creditors will be asked for waivers. It’s an early indicator of the unofficial pecking order.
Shell is flush enough to afford mistakes 1 Feb 2018 After negative free cash flow in 2016, the energy giant is back in the black. Shell can both comfortably pay shareholders and invest to ensure its survival after demand for oil peaks. The margin for error is welcome – it’s hard to predict how soon crude will fall out of favour.
Unilever success hinges on quick house-cleaning 1 Feb 2018 The Dove soap owner is on track to meet sales and profit targets that it set after rejecting Kraft Heinz’s $143 billion bid. Its next big tasks are to pick a new head office and the next CEO. Getting both out of the way quickly will allow the company to focus on taking on rivals.
Daimler drives into profitability problem 1 Feb 2018 The Mercedes-Benz owner expects operating profit to be flat in 2018 despite a rise in sales and margins last year. The cost of developing electric cars justifies European auto groups' lowly valuations. Financial engineering tricks like spinoffs can only be a short-term fix.
BBVA’s wanderlust has a looming downside 1 Feb 2018 A rise in impairments saw Spain’s second-largest bank by assets report returns below its cost of capital. BBVA’s reliance on emerging markets makes sense given a 4 pct drop in Spanish revenues. But the more it plays in risky climes the higher the return investors will expect.
Nomura’s Wall Street journey will be a steep climb 1 Feb 2018 The Tokyo-based bank’s latest results help explain why it's stocking up on U.S. dealmakers. A 25 pct jump in earnings was buoyed by one-offs, and its dominant trading arm is sputtering. It'll be tricky, though, to scale foreign M&A rankings and poach clients – even Japanese ones.