SoftBank’s mea culpa may be too little, too late 6 Nov 2019 The group posted a $5 bln writedown on WeWork and others. Poor judgement on valuations has led to poor performance. Meanwhile, concerns about SoftBank’s own accounting wizardry, and more, remain. Boss Masayoshi Son has much to do to restore his reputation as a visionary investor.
Nio enthusiasm overheats with Intel inside 6 Nov 2019 The Chinese electric-car maker struck a new deal with the chipmaking giant’s autonomous-vehicle arm, Mobileye. It’s a promising partnership for sputtering Nio. A dearth of details and the industry’s fledgling nature, though, mean a 37% jump in market value is too optimistic.
Mongolia’s coal IPO squeezes through narrow hole 6 Nov 2019 Ulaanbaatar has picked advisers to list part of its prize mine. It's a tough sell: a landlocked deposit with only one market, a history of political meddling and a decade of false starts. Still, Chinese backing and an upcoming election might help Mongolia pull it off this time.
Biotech upstarts will be Big Pharma’s China tonic 6 Nov 2019 AstraZeneca is launching a $1 bln healthcare fund in the People's Republic. A wealthier, older society promises huge growth, but rising costs mean Beijing is pushing drugmakers to lower prices. Investing in local discoveries and exporting them globally could be a smart remedy.
China baby-milk IPO mixes in a helping of cynicism 6 Nov 2019 Feihe has priced shares at the bottom of the range, valuing the infant-formula maker at $8.6 bln. That's partly down to Hong Kong's lukewarm market. But it also reflects the risks for a homegrown brand sourcing a premium product locally in a country with a history of food scares.
Tech firms muscling in on banks, like it or not 5 Nov 2019 Uber and Facebook have designs on finance, and Japanese e-commerce group Rakuten wants to set up a U.S. bank. Community lenders have warded off interlopers before. But if regulators value financial inclusion and customers want innovation, small banks are fighting the tide.
Xerox truce leaves future in black and white 5 Nov 2019 The copier-maker’s $2.3 bln exit from its joint venture with Fujifilm beats the convoluted, activist-opposed merger the two had once discussed. The neat ending makes up for years of wrangling. And the $7.7 bln firm’s spiffed up governance and simpler structure may tempt a buyer.
SoftBank debt burden may stoke an asset fire sale 5 Nov 2019 The group’s $45 bln of borrowing seems low compared with $260 bln of equity holdings. Yet that ignores layers of leverage, and overstates SoftBank’s asset value. If CEO Masayoshi Son’s giant tech-investment machine runs into trouble, he may have to offload stakes like Alibaba.
Peugeot rescue pays better for China than cars 5 Nov 2019 Dongfeng has made some $2 bln from its 2014 rescue of Peugeot, which aims to merge with Fiat Chrysler. The state-owned car giant can cash out and euthanise its stalled JV with Peugeot too. Both moves would be financially wise, if strategically embarrassing, for China and France.
Asia’s airports fly far higher than its carriers 5 Nov 2019 Thai Airways’ market value has shrunk by a third this year to $600 mln, and the loss-making airline says it is running out of time. Airports of Thailand, by contrast, is worth $38 bln and is a top performer. It’s a light signal for investors eyeing the region’s travel boom.
Global drug firms cash in on richer, older Chinese 4 Nov 2019 Pharmaceutical groups are racking up impressive growth in the world’s second-biggest market. Merck’s China sales increased 84% in the third quarter from a year earlier. Demographic forces and easier approvals outweigh forced price cuts. But domestic rivals will soon emerge.
Hong Kong IPOs get away with a protest discount 4 Nov 2019 Warehouse owner ESR is the latest issuer to pull off a $1 bln-plus debut, despite months of anti-government demonstrations that have left investors jittery. Alibaba's plans may be back on track too. But the welcome has been tepid, and may be reserved for blue-chip sellers.
Japan enters rehab for cash-addiction 4 Nov 2019 The world's third-largest economy is hooked on paper money. Ditching banknotes could generate a 3% one-off output boost in big cities like Tokyo, juicing innovation and wages. Elderly consumers and reluctant merchants will require more forcible persuasion, though.
Aramco IPO can choose either price or credibility 4 Nov 2019 The Saudi Arabian oil giant’s long-delayed float is finally underway. It might seem success hinges on how close Riyadh gets to its desired $2 trillion valuation. A better benchmark is how much foreign investors buy in to the local listing. They’ll require a much lower price tag.
Alibaba readies itself for lighter shopping days 1 Nov 2019 Quarterly sales of $17 bln beat expectations, but growth has come down sharply from a year earlier. Boss Daniel Zhang is shoring up the core e-commerce unit, while investing in new areas. Proceeds of $15 bln from a mooted listing in Hong Kong will also help to soften the blow.
Macquarie shape-shifts into lucrative green niche 1 Nov 2019 The $30 bln Aussie bank is good at morphing to stay ahead. Commodities hedging helped lift first-half earnings. Its next phase is a bet on renewables. With fewer constraints than rivals, Macquarie is well-placed to go green. New projects may be shorter-term though, and riskier.
Amgen pops $2.7 bln dose of risky Chinese medicine 1 Nov 2019 The pharma giant is paying a 36% premium for a fifth of biotech group BeiGene. That feels rich for a pre-profit upstart that just fought off a short-seller attack. But the partnership promises the American company quick access to China’s massive cancer market at a critical time.
China’s banking heavyweights flex fee muscles 1 Nov 2019 Third-quarter earnings from $288 bln ICBC and peers offered pleasant surprises, despite economic malaise, rate cuts and loans to riskier borrowers. In part, that’s down to service charges, which mega-lenders have been able to hike this year. Punier rivals are less lucky.
Viewsroom: LVMH wants more sparkle 31 Oct 2019 The $200 bln luxury conglomerate is making a $14.5 bln bid for Tiffany. The iconic brand known for putting its bling in blue boxes would be wise to accept the proposal. Plus: Venezuela’s leadership saga and a surreal debt drama collide. And: the world’s most expensive chocolate.
Goldman faces drip-drip 1MDB pain like Jho Low 31 Oct 2019 The alleged mastermind of the Malaysian fund fraud will pay the U.S. $700 mln. The deal’s loose ends hint at future pain for others, including the Wall Street bank. CEO David Solomon wants to draw a clean line under the scandal. Instead Goldman could end up paying multiple times.