Asia-Pacific

HDFC Bank’s new boss is good choice for hard times

4 August 2020

Veteran insider Sashidhar Jagdishan will succeed Aditya Puri, who has led the $73 bln Indian lender for 26 years. The group has excelled at controlling bad debt and taking market share. With Covid-19 pains still raging, Jagdishan is a solid pick to defend outsize returns.

Corona Capital: PizzaExpress, Aerospace pain

4 August 2020

Concise views on the pandemic’s corporate and financial fallout: The UK restaurant chain’s restructuring is not that tasty a meal for creditors; Airplane-parts maker Spirit’s reliance on Boeing’s 737 MAX has it heading into worse turbulence.

Sony is primed for coming game-console battle

4 August 2020

Quarterly operating profit at the group’s PlayStation unit blew up 68% year-on-year to $1 bln. With Sony ready to roll out a new console later this year, the momentum looks sustainable. A huge base of loyal gamers plus exclusive content gives it an edge over Microsoft.

Mukesh Ambani’s retail M&A would wipe competition

4 August 2020

The tycoon’s Reliance might buy Future Group for $3.6 bln. It would enlarge a shopping giant bigger than all its major brick-and-mortar rivals combined. Amazon might also invest in the behemoth. The deals would shore up Ambani’s dominance, and blunt India’s shopping revolution.

WeChat makes bigger brick in anti-China firewall

3 August 2020

Tencent’s app is next in line for a White House ban after TikTok. Blocking WeChat, crucial to life and business in the People’s Republic, would protect overseas Chinese from Beijing’s spies, but cut them off from home. That would hasten and deepen the decoupling of the internet.

Corona Capital: College mergers, UK property funds

3 August 2020

Concise views on the pandemic’s corporate and financial fallout: M&A goes to the University of Arizona; Britain’s financial watchdog considers stopping property fund withdrawals.

HSBC is firing on just one shaky cylinder

3 August 2020

The $90 bln lender’s investment bank is the only business that’s really growing, as the group racks up further bad-debt charges. CEO Noel Quinn is cutting costs fast. But with low interest rates crimping revenue, he might need to take a sharper knife to restructuring plans.

Speedway adds financial inconvenience for 7-Eleven

3 August 2020

The retail chain’s Japanese owner, Seven & i, is gearing up to expand its U.S. footprint by buying Marathon’s gas station business for $21 bln. The synergies could help to eke out a sensible return. But investors have already discounted $2 bln, about half of their net value.

TikTok learns old lesson about U.S. art of deal

2 August 2020

President Trump had significant influence on conversations between Microsoft and TikTok after owner ByteDance’s proposed minority stake in earlier talks posed concerns. On M&A that raises national security worries, Chinese firms will find Uncle Sam is the new poison pill.

Corona Capital: Pinterest, Tech heaven

31 July 2020

Concise views on the pandemic’s corporate and financial fallout: Pinterest offers a window into advertisers’ souls, while tech giants’ valuations soar.

Viewsroom: Silicon Valley spotlight

30 July 2020

The CEOs of Big Tech companies faced off against U.S. lawmakers during an antitrust hearing that raised new evidence about past acquisitions. Meanwhile, Japan’s Ootoya and Colowide engage in a food M&A fight. And: SoftBank CEO Masayoshi Son’s next steps.

Corona Capital: Ford narrows the gap

30 July 2020

Concise views on the pandemic’s corporate and financial fallout: The Detroit automaker put in a better second-quarter performance than expected. That’s good news for under-pressure CEO Jim Hackett – and allows Ford to close some of the distance to rival GM.

VW’s China acceleration leaves Renault in the dust

30 July 2020

An uptick in Middle Kingdom car sales helped Volkswagen boss Herbert Diess restate a pledge to make an annual profit, following a half-year loss. By contrast, the French carmaker is losing money and market share. New Renault CEO Luca de Meo’s cost-cutting plan needs more fuel.

Mumbai’s slums test lockdown logic

30 July 2020

Nearly 60% of people in densely packed areas have had Covid-19, a study found, suggesting a low fatality rate. About 40% of the Indian financial capital's residents live in similar settings. The city’s strict shutdown may now be impoverishing more than protecting the poor.

China’s economic recovery looks squiggle-shaped

30 July 2020

Budweiser, KFC and Rio Tinto point to reviving sales in beer, fried chicken and steel. Industrial profit is up too. But the rebound is unevenly distributed across sectors and regions, and employers are still shedding jobs. As pent-up demand is sated, the optimism might fade.

TikTok deal depends on how, not how much

29 July 2020

Some of the social network’s investors have proposed buying it at $50 bln, or 50 times sales. That would suggest growth that vastly outpaces rivals like Snap. It’s possible, but with bans in places like India, TikTok’s worth depends on how cleanly it can cut ties with China.

Bank branches will be down, not out, post-pandemic

29 July 2020

During the Covid-19 crisis, even the last holdouts to digital banking had to throw in the towel. While that means banks like Italy’s UniCredit or Japan’s MUFG can accelerate branch closures, IT costs will limit savings as a hybrid, branch-lite future arrives sooner than expected.

Corona Capital: GM, Glaxo, Shopify, Movies, Pemex

29 July 2020

Concise views on the pandemic’s corporate and financial fallout: General Motors pulls further ahead; GlaxoSmithKline’s vaccine-order boost; Shopify fills its revenue basket; AMC bows to online streaming’s growing power; Mexico’s oil giant puts on a brave face.

Nomura leverages market turmoil to buy time

29 July 2020

Quarterly profit more than doubled to $1.4 bln, as trading volatility bolstered earnings and cost cuts bore fruit. But its retail unit is still struggling, rivals are attacking, and its turnaround plan is in its infancy. At least it can make hay while the sun doesn’t shine.

Ctrip invites funds to buy out China’s travel dip

29 July 2020

The $16 bln booking giant is mulling going private, Reuters reports. Ctrip has a clean balance sheet, no controlling shareholder, and premiums for delisting Chinese companies in New York have nearly halved. It’s a good target as domestic tourism revives. Funding is the trick.