Gaming’s strongest opponent will be regulation 23 Dec 2019 New Microsoft and Sony consoles come out in 2020. Apple and Google want to be the Netflix of online play, and game makers like Activision Blizzard, Epic and EA hold a strong hand. But tighter scrutiny of gambling-style digital prizes will temper the $130 bln industry’s growth.
India Insight: Onion prices add to nation’s tears 23 Dec 2019 Amid violent protests over a citizenship law, Indians are also having to deal with poor harvests for this staple of the curry dish. It’s a glimpse into how changing climate patterns will exacerbate inefficiencies and create more of the volatility famous for toppling governments.
China’s e-yuan will be more cryptic than crypto 23 Dec 2019 Beijing is primed to launch the world's first digital sovereign currency in 2020. The rollout will give authorities a powerful tool to tackle fraud and money laundering. Deploying the breakout innovation into the wheeling-dealing banking system could also aid a cleanup.
Asia Pacific is primed for its next 11-digit LBO 23 Dec 2019 Over $250 bln of private equity money is sloshing around the region, as a new KKR fund looks set to exceed its flagship U.S. one. Cheap debt helps put another Toshiba-like deal in the frame. Dentsu and Haier fit the buyout profile. Even whoppers like Woolworths could be targeted.
ChemChina’s fortunes rest on Syngenta listing 20 Dec 2019 The state chemicals giant wants to raise $10 bln ahead of a mooted flotation of the Swiss firm it bought in 2016. Boss Frank Ning may settle for a lower valuation, Reuters reports. But the funds will help him pay down big debts, and pave the way for a merger with rival Sinochem.
Tencent is next in Western cross-hairs 20 Dec 2019 The WeChat app, indispensable to life and business in the People's Republic, is due unwanted foreign attention. Beijing uses the Tencent tool to influence and monitor users at home and abroad. Debate over restraining it will test democracies’ commitment to free information flow.
China swaps its poor for the merely miserable 20 Dec 2019 Beijing will hit its 2020 target of doubling disposable incomes and GDP in 10 years, while eliminating extreme poverty. That’s laudable, but forcing breakneck growth exacerbated inequality, while consumer debt ballooned. Political and financial risks are higher as a result.
Divorce will test Seoul chaebol’s reform stripes 20 Dec 2019 Chey Tae-won’s wife wants nearly half his $3 bln stake in SK Holdings. That would leave him more reliant on outside support for a mooted corporate rejig to get a tighter grip on a $58 bln chip unit. It’s a potential check on how fast Korea Inc is mending its own awkward past.
Goldman set for show of guilt without tears 19 Dec 2019 The Wall Street firm may pay $2 bln for its role in the 1MDB bribery scandal and offer a rare admission of wrongdoing. Neither fine nor mea culpa would carry much sting. As often happens in the cat-and-mouse game of enforcement, the end result looks half-baked.
Japan’s buyout teams face endurance challenge 19 Dec 2019 Industrial group Showa Denko is buying Hitachi’s chemical arm for $9 bln, disappointing private equity suitors like Bain and Carlyle. Firms are raising record sums in the hope that corporate reforms unleash a wave of dealmaking. Flush with cash, Japan Inc is crashing the party.
Singapore bank’s China rescue role raises red flag 19 Dec 2019 Hengfeng Bank is getting a $14 bln state bailout, with United Overseas Bank pitching in while getting heavily diluted. China wants foreign investors to help shore up its financial system and perhaps support M&A. Those eyeing a way into the market might change their approach.
Beijing’s bet on Macau market might pay 19 Dec 2019 Worried by violent protests in Hong Kong, President Xi wants to turn the casino enclave into a rival finance hub. Scepticism is warranted, but an open capital account gives it an advantage over Shenzhen and Shanghai. If it plays a good reform hand, Macau could defy the odds.
Lenovo founder’s M&A manual is missing an update 19 Dec 2019 Liu Chuanzhi will retire as head of Legend Holdings, the $8 bln PC-maker’s parent. His 2005 purchase of an IBM unit was one of the best examples of a Chinese firm building a global brand through foreign deals. That playbook looks more like an exception to today’s hostile rule.
Investors will rue their Hong Kong risk appetite 19 Dec 2019 The city’s stocks have lagged the S&P 500 since violent protests started in June. Yet the slide has been less severe than during the Asian financial crisis or the SARS outbreak. Local unrest, trade tensions and a U.S. market reversal should prompt some overdue reconsideration.
Green laggards face war on multiple fronts 18 Dec 2019 Businesses slow to react to the impact of climate change have so far got off lightly. In 2020, investors will broaden their activism and target passive funds, too. Meanwhile, some governments may impose stricter measures, and more valuation clarity will wake up short sellers.
Bringing back Tata’s old boss offers no panacea 18 Dec 2019 A court has ordered the $160 bln Indian giant to reinstate Cyrus Mistry – ousted as chairman in 2016 – and declared his successor’s appointment illegal. The disruption may exacerbate Tata woes that range from cars to steel. And returns under Mistry were only slightly better.
Taiwan will widen U.S.-China schism in 2020 18 Dec 2019 The island's significance in supply chains stands to grow as manufacturing shifts accelerate. Anti-Beijing sentiment is also gaining traction in the United States. Both dynamics herald deeper ties between Taipei and Washington, bolstering the case for a controversial trade deal.
Chinese bottled water IPO offers up a muddy glass 18 Dec 2019 Market-leader Nongfu Spring could raise more than $1 bln in Hong Kong. Mainland households are drinking more of the bottled stuff as incomes rise. That thirst, though, has brought competitors, and may also prompt a much-needed tightening of environmental and consumer rules.
Nasty pieces of WeWork 17 Dec 2019 The shared-office outfit’s absurd $47 bln valuation wasn’t all that got exposed during a shambolic IPO attempt that led to SoftBank’s bailout. With any luck, founder worship, supervoting shares, weak governance, wacky missions and more will be knocked down a peg – or several.
Guest view: Cities are $24 trln green opportunity 17 Dec 2019 Metropolises account for 70% of global carbon emissions. That puts them at the forefront of the battle to keep global warming to a minimum, argues Christiana Figueres, the former UN climate chief behind the 2015 Paris accords. But cities cannot do it alone.