Japanese hotelier bidding war gets status upgrade 30 Jan 2020 Blackstone and Fortress raised their offers for Unizo. Both now trump Lone Star’s $1.6 bln deal, which cashes out the target’s bosses under murky terms. Activist investor Elliott may play kingmaker. The outcome could be a landmark for the country’s M&A and governance standards.
Tata test-drives conglomerate power 30 Jan 2020 Various companies in the $160 bln Indian empire are uniting to support an electric-car initiative. In theory, it should give Tata Motors an edge over Western rivals forced to find outside partners. If it all works in practice, it could deliver rare and valuable synergies.
Virus tests Hong Kong market’s resistance 29 Jan 2020 A full-blown epidemic would rock what is already the year’s worst-performing major exchange index following a fresh 3% fall. Though a protest-related tourism tumble may prove a blessing in disguise, anti-Beijing public sentiment is also complicating the health response.
India’s tax tweaks will deliver half-stimulus 29 Jan 2020 The government may implement big changes to levies on dividends and capital gains in the budget, building on cuts to corporate dues. Lower rates will please investors, but the next step is freeing officials of collection targets and creating a credible system to resolve disputes.
Virus lockdown hands LVMH tricky start to 2020 28 Jan 2020 The $230 bln luxury group’s comparable sales grew 10% in 2019. But at least the current quarter could be rocky with the fallout from the new coronavirus likely to infect its hefty Chinese sales. That makes smooth progress towards its acquisition of Tiffany even more important.
UK’s Huawei call is anti-Trump parting gift to EU 28 Jan 2020 Britain has granted the Chinese telecom-kit maker a limited role in 5G networks. The U.S. president, who had pushed for a ban, will be as miffed as mobile operators will be relieved. On the eve of Brexit, London has also shown Europe how to balance Washington and Beijing.
Viewsroom: Over beers from Davos 27 Jan 2020 At the end of the World Economic Forum, Breakingviews’ three delegates reflected on the highs and lows of the annual gathering of world leaders, corporate executives and do-gooders. Overall, they conclude that Greta outdid Trump, and sustainability is now a boardroom fixture.
New China virus is bigger threat for world economy 27 Jan 2020 Growth rebounded quickly after the 2003 SARS outbreak. Stronger prevention measures this time are offset by the potentially more contagious coronavirus. China’s economy is also more fragile and accounts for a larger share of world growth. No wonder investors are jittery.
China puts Washington into awkward M&A role 24 Jan 2020 The government faces the temptation to broker new tie-ups to mitigate the blacklisting of telco Huawei, and unwinding of China-related mergers. True, Beijing-bashing could inspire other deals: think Cisco buying Nokia. But Washington is better as an onlooker than a matchmaker.
Progress can’t dispel viral risk to world GDP 24 Jan 2020 It has been decades since a pathogen as frightening as new coronavirus has spread. Biotech advances and China’s modernization helps catch diseases earlier, but easier travel speeds dispersal. Vaccine development is slow. Economic damage, from mild to $3 trln, is up to chance.
Wuhan virus will shape China’s smart city vision 24 Jan 2020 The metropolis of 11 mln is under quarantine. Big investments in healthcare, AI and even surveillance led by the $50 bln Hikvision and other giants could help curb future contagion risk. That might compensate for less tractable problems: human error and institutional weakness.
Hong Kong homecoming bets are only half a whim 24 Jan 2020 Trip and Baidu are mulling secondary listings in the Asian hub, following in the footsteps of Alibaba. Early evidence suggests that could boost valuations. For now, it’s more convincingly a hedge against any politically-driven crackdown on Chinese companies listed in New York.
Viewsroom: China’s latest viral threat 23 Jan 2020 The outbreak of a contagious disease before the Lunar New Year holiday evokes memories of SARS’ human and economic toll in 2003. Beijing’s swift reaction this time, imposing travel bans on five cities as 18 died, is encouraging. Plus: the cost of the UK royal family’s new schism.
SoftBank’s next problem: Sprint M&A interference 23 Jan 2020 CEO Masayoshi Son values his group’s stake in the U.S. carrier at $29 billion, a reflection of its original deal with T-Mobile US. Investors rightly take a dimmer view. Courts may block the deal. But even if they don’t, T-Mobile has a strong case to lower its price.
Guest view: China bonds enjoy best of worst times 23 Jan 2020 Defaults are at record highs, yet foreign money keeps chasing yield in the country’s fixed-income market. China finance specialist and author Fraser Howie argues Beijing can console itself: its bonds are part of the global investment landscape as never before.
Flying cars are a cool solution to a tiny problem 23 Jan 2020 Toyota has pledged $394 mln to support aviation startup Joby; Geely and Hyundai are also dabbling. Technology advances have put commercialisation within reach, and regulators will slowly come to grips with the idea. The final frontier is finding actual customers.
Lotte scion gets chance to inspire Korea Inc 21 Jan 2020 Shares in South Korea's fifth-largest conglomerate rallied after the death of founder Shin Kyuk-ho. His son, already in charge of the group, has promised aggressive restructuring. With diplomatic, legal and family spats winding down, he has space to hurry up.
Aussie fires light tiny flame under climate action 22 Jan 2020 The damage may cost an estimated 0.5% of GDP, barely registering in the $1.3 trln economy. Politicians may act as social costs mount, but change will come faster if stakeholders also heed warnings that “secondary perils” could be recurring rather than one-off.
China virus scare leaves bling giants exposed 21 Jan 2020 A deadly virus erupted ahead of the key Lunar New Year festival. Compared to the 2003 SARS crisis, the damage to luxury stocks looks modest. Yet Chinese shoppers now make up a third of the $310 bln market for high-end goods. If the disease spreads, the overall hit will be worse.
China’s viral immune system open to economic pox 21 Jan 2020 A bungled swine flu cover-up doubled pork prices last year, taxing the poor. Now a human virus is panicking citizens before the start of what’s usually a $150 bln holiday spending boom. President Xi’s anti-corruption campaign has made officials less venal, not more credible.