BYD could get China’s Tesla back on the road 2 Oct 2019 Nio is sputtering. Making snazzy rides for the world's largest market is burning up cash, and the $1.4 bln electric-car maker is now contemplating more cuts just to keep up. That could tarnish a shiny brand. Pooling with a more experienced peer, like BYD, may be a better option.
Hong Kong’s next phase starts with ominous bang 2 Oct 2019 Police shot a protester during clashes on Communist China’s 70th anniversary, in contrast to Xi Jinping’s message of peaceful development. Beijing’s quandary also became starker: it needs to restore calm for economic stability, but tougher intervention will fuel further unrest.
Zuckerberg grasps big problem with tech breakups 1 Oct 2019 The Facebook boss expects the U.S. to try and dissect the social network if Democratic detractors win office. His argument: Making tech firms smaller would be counterproductive in preventing election interference. He’s right on both counts. That could be Facebook’s best defense.
Bank of Japan tests the limits of monetary policy 1 Oct 2019 The weakest Japanese government-bond auction in three years caused global yields to jump. The swift reaction, rooted in uncertainty about new policies designed to keep rates low, should teach Europe a worrying lesson: A bond-purchasing safety net can sometimes be dangerous.
Election year could be potent M&A sedative 1 Oct 2019 Drugmakers and healthcare companies made up the lion’s share of deals this year. U.S. presidential elections next year will inject uncertainty, because the sector is so geared to policy shifts. Proposals from Democrats like Elizabeth Warren could dampen animal spirits for years.
Unfit companies make flawed IPOs even worse 1 Oct 2019 VCs like Bill Gurley want startups to favor direct listings over traditional floats. IPO fees are too high and they are often priced too low, the critique goes. Maybe, but try telling that to WeWork and similar wannabes that, among other weaknesses, need massive cash injections.
Leveraged loan partygoers take a much-needed rest 1 Oct 2019 Growth in risky corporate debt has slowed. Investors worrying about the economy are driving a harder bargain with private equity-owned groups like Shutterfly and Sotheby’s. Yet sovereign bond yields are ultra-low and buyout firms have huge cash piles. The lull may be temporary.
Thiam absolved but not unscathed in spy scandal 1 Oct 2019 An internal investigation has cleared the Credit Suisse CEO of wrongdoing after his chief lieutenant hired spies to tail an ex-employee. Tidjane Thiam has now lost two key staff in three months. Worse, ignorance of key decisions in the company you run is not a good look.
Digi-banks seem short on financial innovation 1 Oct 2019 Revolut and Monzo wooed millions of customers and secured multi-billion dollar valuations with slick apps and low fees. But they’re not earning much revenue. If flogging subscriptions and commission-based products fails, the temptation will be to lean on old-school bank charges.
India’s financial fires are starting to rage 1 Oct 2019 An outsize scandal at a Mumbai-based co-operative bank, abetted by poor oversight, has battered confidence. Plummeting share prices, meanwhile, raise questions over the future of private lender Yes Bank, and others. It signals loan pain to come for an already scorched economy.