Corona Capital: Davos delay, Political TV ratings 26 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: The World Economic Forum’s annual winter meeting becomes a summer gathering; and in the U.S., the Democrats’ online spectacle leads TV ratings over the Republicans’ more traditional convention.
Home working will delay not kill office recovery 26 Aug 2020 Some big firms have declared remote working to be new normal. Such fervour is making big city property a buyers’ market, with shorter and cheaper leases and less new construction. But there are still good reasons to work in offices – more spacious ones than in pre-Covid days.
Hong Kong skyscrapers will scale new heights again 26 Aug 2020 Take the world’s priciest offices. Add the highest vacancy rate in 14 years, geopolitical tension, a weak economy and a broad work-from-home movement. It’s no wonder owners of IFC and other towers have suffered market slumps. There are good reasons, however, to expect a rebound.
Guest view: Freeing Abenomics from Abe 26 Aug 2020 Japanese Prime Minister Shinzo Abe’s return to hospital has raised concerns about a change of power. His signature economic policy fell short even before the pandemic. A strong successor could reinvent it, but that seems unlikely, argues ex-BOJ policy board member Sayuri Shirai.
China’s Ant can gobble up $200 bln valuation 25 Aug 2020 The fintech firm’s IPO filing shows it handled $17 trln worth of online payments in the year to June. Earnings are volatile, but the trend is strongly positive. The Alibaba affiliate is well placed in the expanding Chinese market. The mooted price tag looks conservative.
Corona Capital: KFC ditches finger lickin’ 25 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: The Yum Brands’ fast-food chain made eating fried chicken synonymous with cleaning your digits with your mouth. KFC has at last realized that’s a no-no in a pandemic.
Fashion can bear the costs of virtue cotton 25 Aug 2020 Most of China’s crop comes from the persecuted Uighurs’ home region. Forced labour may taint some of that, but clothes makers do not yet trace their complex supply chains back to the farms. Scrutiny from politicians and investors means careful sourcing makes financial sense.
India Insight: Ambani, a maverick Rockefeller 25 Aug 2020 Data is the new oil for the tycoon who wants his $185 bln Reliance to serve all the needs of Indian consumers. He’s backed by America’s tech monopolists. Just as the Standard Oil energy cartel birthed U.S. antitrust law, Mukesh Ambani will amass power until told to stop.
Corona Capital: Dividends, Zoom, Big-screen blues 24 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: As company bosses try to conserve cash, investors are feeling the pinch; Zoom has a back-to-school problem; and a mediocre debut for Russell Crowe’s new road-rage movie shows Hollywood is stuck in the slow lane.
Pinduoduo gets stung by its own shopping hype 24 Aug 2020 Investors erased $16 bln in market value from the Chinese company as orders on its e-commerce app disappointed. “Gross merchandise value” is a confusing metric and much more so when consumer sentiment is volatile. Boss Chen Lei has had a costly lesson in why hard numbers rule.
China picks lazy solution to food crisis 24 Aug 2020 Floods, a pig epidemic and more have delivered sustained double-digit inflation of edible goods. A crackdown on wasteful dining tackles corruption more than high prices: poor people are not overeating. A better agrarian policy and a truce in trade wars would be more powerful fixes.
Corona Capital: Europe’s recovery, Indian selloffs 21 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: The latest economic reports from Britain, France and Germany paint a patchy picture; and why the virus will hinder New Delhi’s asset-sale programme.
Nippon Paint’s $12 bln makeover uses semi-gloss 21 Aug 2020 The Japanese company is ceding control to its biggest shareholder, Singapore's Wuthelam, by acquiring its JVs for stock. It's a clever cleanup, but also dilutes minority investors in the process. They have enjoyed a good run, however, and the growth strategy looks promising.
Charge into Chinese scooter’s VIE fine print 21 Aug 2020 Ninebot, the maker of two-wheelers which famously bought Segway, is set to be the first IPO on the mainland using an arcane variable interest entity structure. Beijing’s blessing does not clear up the legal fuzziness. Investors should be ready to scrutinise the specifics.
Alibaba polishes its crown and half-hidden jewels 20 Aug 2020 Quarterly sales at its shopping business rose 34%, in line with rival JD. But the cloud computing unit is growing nearly twice as fast and fintech affiliate Ant is on track for an epic IPO. The pair account for a fifth of Alibaba’s value. Boss Daniel Zhang has plenty to tout.
Corona Capital: Nvidia, Air conditioners 20 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: Nvidia goes gangbusters, HVAC units have their moment in the sun.
Wall Street prefers China to Pennsylvania Avenue 20 Aug 2020 Chinese companies are rallying in New York despite delisting threats from Washington. Governance problems abound, yet the $2 trln group is beating the S&P 500. That may be part greed, part short attention spans, but the finance industry is betting the White House is bluffing.
Tencent’s D.C. lobbying is too little, too late 19 Aug 2020 WeChat's owner made its first hire to influence Washington amid a threat to ban the Chinese app. Huawei boosted government efforts after its finance chief was arrested. TikTok was less flat-footed but still tardy. Courting politicians works better before their help is needed.
Corona Capital: Vegan eggs, Target’s online fiesta 19 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: A maker of chicken-free egg products accelerates its IPO plans amid Covid-19, while U.S. supermarket group Target shows that preparedness is everything in e-commerce.
Blotches appear on Kirin’s skincare deal 19 Aug 2020 A year after the Japanese brewer paid $1.2 bln for a 30% stake in Fancl, the facial cream maker’s profitable but frustrated overseas distributor is up for sale. That could deepen the rift between Fancl and its partner, and force Kirin to protect its pricey investment.