Asia-Pacific

Huawei can afford to hang up on America

17 January 2020

The Chinese telecoms firm is fighting to keep its rural-carrier customers amid D.C. pressure. It’s a losing battle and makes little sense given the tiny contribution to Huawei’s top line. Quitting the U.S. would get rid of a headache and leave more energy for bigger conflicts.

Vodafone’s India demise would cause wave of pain

17 January 2020

Shares in the telco’s local unit plunged 25% after a court dismissed a plea to review $7 bln of levies. The government could accept delayed payment, still leaving Vodafone Idea with a heavy burden. The alternative, bankruptcy of the big brand, will hit a fragile economy hard.

China’s shadow bankers sneak back to market

17 January 2020

GDP grew 6.0% last quarter, but lending disappointed. A drive to cut bad debt while pushing banks to prop up small risky firms has squeezed healthier private companies. With informal, pricey credit moving to fill the gap, officials may have to tolerate a shadow loan revival.

Anta Sports puts ultimate buy rating on itself

17 January 2020

After outrunning short-sellers, the Chinese apparel giant is issuing 1 bln euros of convertible debt that pays nothing and can’t be swapped for equity until shares rise 40%. Strong take-up will signal confidence Anta can repeat its success reviving Fila with Finland’s Amer.

Trump’s trade war chases its own tail

16 January 2020

The U.S. president is hailing his agreement with China as a boost to farmers and manufacturing workers. It is, but only because they were the losers from trade conflict. Obama showed that following the rules doesn’t work; Trump has only shown that ripping them up doesn’t either.

Viewsroom: Carlos Ghosn’s great escape

16 January 2020

The international car boss who fled Japanese authorities is now lambasting Nissan and suing Renault for money due. Breakingviews columnists discuss why the latest twists overshadow the fraying global alliance of three automakers. Also, why China’s Geely wants Aston Martin.

China’s reform camp high-fives Wall Street

16 January 2020

The most substantive part of Beijing’s trade deal is the commitment to open its financial sector. Combined with other liberalisations, local institutions face real U.S. competition. That should reduce the credit misallocation that irks trade partners and warps economic growth.

Lazy days are over for buyout barons in China

16 January 2020

Dealmakers were gloomy at an annual forum in Hong Kong after a disappointing year. Private equity can no longer rely on minority stakes in a booming economy to juice returns. Tech bets are mostly off. The next batch of funds will work hard on traditional, unloved businesses.

China trade deal gives Trump a campaign win

15 January 2020

Beijing pledged to buy more U.S. goods and enforce intellectual-property rights. It has fallen short on similar promises in the past, and anyway the conflict was partly whipped up by the U.S. president. Still, he can tout the new “phase one” agreement as he seeks re-election.

Hadas: Ghosn caught in non-prisoner dilemma

15 January 2020

The self-liberated former Nissan boss dodged Japanese justice, but took his conscience with him to Lebanon. His decision to flee would be hard to justify without insistent claims of total innocence. Still, the moral and practical case for showing some contrition is strong.

Goldman Sachs tests Malaysia reach in Tesco deal

15 January 2020

The bank is advising on the $9 bln sale of the grocer’s Southeast Asia businesses. Goldman could indirectly earn fees from the sale of assets in Malaysia where it is in hot water over its role in the 1MDB scandal. A smooth checkout will signal it’s mostly back in action.

Hong Kong’s luxury icon sells new retail model

15 January 2020

Chow Tai Fook plans to close up to 15 of its local stores. The $11 bln jeweller’s decision comes at a moment of calm after months of protests and before a key shopping holiday. That suggests a recovery is distant. Tapping mainland shoppers elsewhere is the new way forward.

Facebook cash a CEO blessing, investor curse

14 January 2020

Antitrust heat makes it hard for the $633 bln social network to use its $52 bln war chest on deals. A dividend creates a tax hit for its boss Mark Zuckerberg. Without warehouses to buy or software to bolster, buying shares is the best option. But that consolidates power.

Consumer wallets are top risk to chip titan TSMC

14 January 2020

A heady valuation multiple for Taiwan's $295 bln supplier to Apple, Huawei and others reflects its relentless march on rivals. Rising retail prices for ever-fancier smartphones, though, may curb demand. That’s possibly the biggest risk for the tech supply chain’s sturdiest player.

Plane woes cast doubt on Beijing’s DIY tech plan

14 January 2020

The C919, intended to compete with Airbus and Boeing commercial jets, is behind schedule and riddled with problems despite vast state support. China’s plan to replace foreign hardware and software with local versions may struggle to take off for similar reasons.

Trump adds fake currency news to trade armory

13 January 2020

The U.S. government will stop accusing Beijing of yuan manipulation as part of a limited tariff deal. The dubious claim was born of presidential ire. But its arguable success makes it a useful stick for the White House – a worry for those with growing trade deficits like Vietnam.

Geely’s European car collection is too eccentric

13 January 2020

The Chinese rescuer of Lotus and London black cabs might inject funds into Aston Martin, James Bond’s favoured ride. Founder Li Shufu had some success with Volvo, but with his home market under pressure, becoming a collector of genteel money-losers is an unwelcome distraction.

Aussie fires could be tipping point for carbon tax

13 January 2020

Horrendous bushfires are pushing CO2 emissions cuts ever further into the spotlight. The scope for sharp hits to earnings at domestic champions like airline Qantas has stopped Canberra properly pricing carbon before. But inaction is becoming increasingly unsustainable.

Taiwan’s revival is Tsai’s to squander

13 January 2020

The independence-leaning president has coasted into a second term on anti-Beijing sentiment and a strong $580 bln economy. Tsai Ing-wen can take credit for neither. After wasting an earlier opportunity, she now has another to fix poor infrastructure that threatens growth.

Thailand’s capital markets are anything but sick

10 January 2020

Central Retail is raising up to $2.7 bln in a record IPO, putting the country on course to be top for new issues in Southeast Asia for a fourth year. As Thai Inc looks abroad for growth, helped by a strong currency, it’s a reminder that the market’s relative maturity has upsides.