Dealmaker exit reflects SoftBank’s humbler vision 5 Feb 2020 The investor behind the world's largest tech fund has lost U.S. partner Michael Ronen. Without big Gulf backers, its second Vision Fund may mostly manage the Japanese group’s money. CEO Masayoshi Son will focus more on wringing cash from existing investments than making new ones.
China fortune hard to read in Luckin Coffee beans 5 Feb 2020 Short-seller Muddy Waters targeted the $9 bln Starbucks wannabe, briefly stinging the shares. Erstwhile China bear Citron is defending the unprofitable company. Luckin has focused U.S. exuberance, and suspicion, over mainland consumer tech. The verdict remains oddly optimistic.
China shocks to global tourism have room to grow 5 Feb 2020 Travel curbs on the virus-hit country have shaken airlines and hotels. Even with a fast recovery as with the SARS epidemic, it’s a reminder of China’s vital role in the $1.7 trln tourism market. With millions more set to travel, any future jolts will only be more brutal.
Sony on the road to reclaiming its electronic mojo 4 Feb 2020 Quarterly operating profit fell 20%, to $2.8 bln, but exceeded expectations. Its image sensors used in iPhones helped and boss Kenichiro Yoshida is now eyeing autonomous cars. Wise investment could put the inventor of the Walkman and Trinitron TV back in the tech driver’s seat.
For Macau investors, all bets are off 4 Feb 2020 The territory is closing casinos for two weeks to contain the virus. Visits to Sands and rivals may be postponed, not lost, but only a real gambler would double down on Macau now. Home entertainment from the likes of iQiyi, China Literature or Perfect World offer better odds.
Epidemic impact will simulate China mini-recession 4 Feb 2020 The virus is eating into consumer spending. As restaurants lay off cooks and property developers default, local governments and banks will be stressed. Growth will stay positive, but for a generation that hasn’t experienced a downturn, this one might feel like the real thing.
Heat from Chinese e-cigarette IPO may burn 4 Feb 2020 Smoore sells battery-powered devices to the global tobacco giants. A backlash against the smokeless pastime will likely hit the company’s red-hot profitable growth. Its planned Hong Kong listing will test how much puff is left in global vaping valuations.
Beijing’s virus response leaves seeds of doubt 3 Feb 2020 China’s effort to contain the disease is tougher than most nations could manage, just as its top-down structure allowed its economy to grow fast. But a yes-man culture initially allowed the problem to spread. It’s one reason promises on market opening and such may be unreliable.
Xi’s market watchdogs get black swan for new year 3 Feb 2020 The benchmark index fell 9% as traders returning after a week-long holiday dumped stocks on coronavirus concerns. The slide may be hard to brake; Beijing’s stimulus options are constrained. Finance regulators, restructured after the 2015 crash, face a major credibility test.
India’s mega-IPO sounds like Aramco mess in making 3 Feb 2020 The mooted listing of state giant Life Insurance Corp, maybe worth some $130 bln, is the strongest sign yet of a government ready to shake things up. As with the Saudi oil debut, though, it will be a painstaking process that bends rules only to achieve a half-baked outcome.
Hong Kong’s new banks will move fast, break things 3 Feb 2020 The city’s first digital-only bank, backed by insurer ZhongAn, is paying around 6% deposit interest. Similar promotions may come from newbies backed by Ant, Xiaomi, and others. The aggressive entrance suggests incumbents may lose revenue share fast to rich upstarts.
Chinese virus will afflict ailing globalisation 31 Jan 2020 Trade wars and Brexit-type barriers have knocked worldwide integration. As the Wuhan coronavirus spreads and borders harden, companies have fresh reasons to rethink the merits of cross-regional businesses and supply chains. A rise in security-based protectionism can be expected.
Nomura’s solid turnaround raises bar for new boss 30 Jan 2020 The Japanese bank posted a fourth consecutive quarter of profit. After a massive rally in 2019 it trades at 70% of book value, far above Deutsche Bank and Japanese rivals, and near parity with BNP Paribas. Sustaining the momentum will challenge incoming CEO Kentaro Okuda.
Mario Kart puts Nintendo on track to mobile riches 30 Jan 2020 Smartphone hits including one featuring the Japanese company’s iconic plumber racing on wheels accounted for just 3% of its $5 bln in quarterly sales. That may soon change, as Nintendo charges for subscriptions and in-game prizes. Steady mobile profit and a valuation boost await.
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.