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.
Moody’s Hong Kong downgrade flunks Carrie Lam 21 Jan 2020 The credit agency cut the city’s rating, citing the leader’s feeble response to months of unrest. It’s a terse rejection of her stimulus plan, but Moody’s also indicted wider institutional inertia. That suggests economic revival will be difficult, whether Lam stays or not.
HDFC hiring for India’s best, hardest banking job 20 Jan 2020 The $99 bln lender is defying an economic slowdown to deliver 20% loan growth. Aditya Puri, who has led the institution to deliver outsize returns for almost three decades, is set to retire this year on a high note. His successor will inherit a richly valued bank with a lot to lose.
Macau’s makeover comes at a cost for casinos 20 Jan 2020 Authorities are desperate to diversify the $55 bln economy beyond betting and will use their clout in 2020 to force Sands and Wynn to invest more in theatres and malls, away from betting tables. Odds on it will sink profit margins: the new breed of visitors won’t be big spenders.
Huawei can afford to hang up on America 17 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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 Jan 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.